Here's Mark Cuban's advice for the winner of the $1.4 billion Powerball lottery

Yahoo News ^ | 12 January 2016 | Business Insider via Yahoo

[dfwgator]

I’ll take the lump sum.

Exactly. What the government giveth it can just as easily taketh away. Better get it while you can.

[ChocChipCookie]

Agree on all points.

[Raymann]

Because they prioritize state funding over lottery payouts. Powerball is a consortium of several states and winnings are paid out first before any goes to the states

[deweyfrank]

Maybe I have it wrong, but I thought that if one dies the annuity payout stops. If you're in your 60’s or 70’s, take the annuity, die within a few years, your survivors get a lot less than if you take the lump sum.

[PUGACHEV]

I’m with you. I like Poor Richard’s advice about a bird in the hand. I would take the lump sum. Why should I trust the promise of any one person, state, or institution that they are going to pay me? Take the lump sum and spread the risk around.

[Dalberg-Acton]

“sit naked in front of the computer . . . If the balls don’t come up . . . “

?

[Carpe Cerevisi]

I heard once that the lottery is just another tax on stupid people. Good luck to all.

I've heard it referred to as a poor person's retirement system.

[AF_Blue]

I do, too.

Powerball truck shopping

[Resolute Conservative]

Lump sum, pay the taxes up front. Get cash in a non-interest bearing account, pay cash for everything, and get off the grid.

[dfwgator]

If I won the Lottery, Nick Saban would be the new Gators’ head coach.

[usurper]

We all know each others business and spare money goes to those in most need.

I don't have that many friends and family. I could give them all a million bucks with just the first years interest.

And I would, they don't need anything but that's not the point.

[kevkrom]

Yeah, I like most of Cuban’s advice here but I disagree about the lump sum. You should be hiring more than just a tax attorney, you want a whole team to manage the finances (and likely as a trust) and you want to money working for the trust’s benefit, not sitting in a low-yield annuity.

Even a modicum of common sense should ensure you have a massive revenue stream for life and an income-producing asset to pass on to your heirs (or put to work for a cause of your choice if you have no heirs) after you depart this earth.

[AustinBill]

You always take the lump sum. If you have no discipline buy yourself an annuity that you own rather than relying on the continued solvency of the State payer. Also, if you take the payments and die tomorrow you're out of luck as they end with you. With a lump sum you have a legacy to bestow.

Hire a top tax attorney and portfolio manager pronto. You'll be setting up a Trust to manage all this while you simply enjoy the income stream.

[technically right]

Take the lump sum. You’ll get about 58% of it after federal, state and local income taxes (depends on where you live) allocate 20% of it to spend, put the rest in municipal bond funds. They only pay about 3% but the income is tax free and muni bonds for the most part are solid investments. The enjoy life.

[Louis Foxwell]

Did not and will not buy a ticket. Big or little enticement, doesn’t matter. Only ticket I ever bought was on my daughter’s day of birth. Never checked, it was already a winner.

[SoothingDave]

Also, if you take the payments and die tomorrow you're out of luck as they end with you.

Nonsense. The annuity is an asset that goes to your estate.

[TexasCajun]

I heard there were 28 $ 1,000,000.00 winners Saturday.

Five numbers, less the Powerball.

Someone with the same odds as me will win.

[US_MilitaryRules]

Yep! The g’ment just raked in 75%+ of the lottery ticket purchase. 50% off the top and another 50 to 60% of the winnings.

[Rockitz]

I did pick 13 for the Powerball, but didn’t get the other 5.

[Lee'sGhost]

Depends on how old you are. I’m 60. I’ll take the lump sum. Screw MC.