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December 23, 2008


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She took the annual installments? Idiot.

I wouldn't quit my job, but I'd definitely be looking for that job where I go home happy and/or no worries at the end of the day. However my tolerance for putting up w/ sh!t would drop significantly, increasing the likelihood of having a Jerry Maguire moment.

I think the fact that she is not quitting right away shows that she indeed has her head on her shoulders.

I believe in such a thing as "windfall shock", and it's best to transition slowly but surely.

As for lump sum vs. annual payments, I've heard both sides, and I honestly don't think there is a clear cut and simple answer. However, I also don't know the details of tax codes and regulations surrounding Texas lotteries, so I can't say for sure.

But then, I suppose that's the point too. Perhaps it's not an idiotic move. In fact, perhaps there may not even be an option for a lump sum pay-out....

At $390k/ year annuity she may have made a decent tax move since much of the 390 will be taxed lower than 39%. That said it is very likely that the tax rates on 390k will rise substantially in the near future...I'm not wishing it or making a political statement, I'm merely pointing out that the money will need to come from somewhere and soon.

Winning 13 million may feel like a lot, but if you go blowing it on stuff, you may just find yourself broke. looks like she is taking the right approach with keeping her job for now (stats show that people who do this don't stay very long).

I think I'd take the lump sum rather than wait 25 years to get all of my money. That way I could invest the money as I saw fit rather than loan the Texas lottery that money for 25 years. Besides, with tax rates likely to go up, I would rather take the tax hit now, than in the future.

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