Defense Worker Wins $217 Million Lottery

[Hum]

A husband and wife who work for the Department of Defense won the Virginia Lottery?s $217 million Powerball jackpot, the second-largest lotto prize the state has ever awarded.

Dave and Nancy Honeywell of Fredericksburg, Va. both work for the Defense Department.

Dave Honeywell, a computer scientist, bought the winning ticket at one of Richmond International Airport?s Lottery Express stations when he left for a business trip to Denver on Feb. 6.

His winning numbers were 5-27-36-38-41, chosen randomly through Easy Pick?s computer system. His prize is the state?s first Powerball jackpot win, the Virginia Lottery said.

According to the Virginia Lottery, Honeywell said that he plans to continue working for six weeks to finish work.

After they spoke to reporters at the press conference, the Honeywells declined to comment further to the media.

On Valentine?s Day, he and his wife, a project manager, received a giant check at the spot where he bought the ticket. They chose the one-time cash option of $136.4 million before taxes.

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[Detection]

"They chose the one-time cash option of $136.4 million before taxes."

As opposed to what? Waiting a few weeks for more millions to clear ?

[Stetson]

"They chose the one-time cash option of $136.4 million before taxes."

As opposed to what? Waiting a few weeks for more millions to clear ?

Usually these lotteries give you the option to take a reduced 'lump sum' payment, or to get the full amount as payments spread out over 20 years or similar.

[Detection]

Usually these lotteries give you the option to take a reduced 'lump sum' payment, or to get the full amount as payments spread out over 20 years or similar.

Ah right, although spread out over 20 years would be nice, I think I'd take the reduced lump sum too, easier to help your family / friends / buy a house / yacht lol

[Hum]

^ A lump sum would also attract more leeches.

[spenser.d]

Usually these lotteries give you the option to take a reduced 'lump sum' payment, or to get the full amount as payments spread out over 20 years or similar.

Wrong way around - the lump sum is the full payment. The amount they advertise is the amount they predict they can give you over 25 years by investing the lump sum amount conservatively. If a smart person wins the lottery and gets a finance guy they can usually do much better.

Good for this family though. Still waiting for my turn ;)

[Hum]

^ Where did you get this 'invest it' stuff ?

The Jackpot is the estimated annuity value.

If you don't take the lump sum which is half, you get X amount over a 20 to 25 year period, minus taxes.

The Lottery pockets the other half.

[Japlabot]

^ Where did you get this 'invest it' stuff ?

The Jackpot is the estimated annuity value.

If you don't take the lump sum which is half, you get X amount over a 20 to 25 year period, minus taxes.

The Lottery pockets the other half.

I think spenser is right, from what I have heard/read about US lotteries, they "guarantee" the $217 million advertised will be paid minus taxes over X amount of years. In reality, they don't have this much on hand, so the invest it instead to try and make $217 million themselves to give to you. If their investments go bad and they come up short at the end of X amount of years, they will have to pay out that difference and if they invest well, they keep the amount over $217 million for themselves. Alternatively, if you want to take a gamble, you can get yourself a GOOD financial advisor/investor who thinks that they can use that $136.4 lump sum to make good investments that would yield more than $217 million over X amount of years. Not guaranteed, but that is a chance you take. Or maybe you just want it now and don't care about investing.

[Hum]

^ I imagine that 33 to 40 % is taken by the loving Federal government. :/ So you might put $81 million in your bank.

[spenser.d]

^ Where did you get this 'invest it' stuff ?

The Jackpot is the estimated annuity value.

If you don't take the lump sum which is half, you get X amount over a 20 to 25 year period, minus taxes.

The Lottery pockets the other half.

What is the difference between Cash Option and Annuity?

• Cash option:
  

• 
  
  • For every dollar spent on a jackpot lotto game, a certain percentage is placed immediately into a cash pool.
    
  • When you win the jackpot and choose the cash option, you will get the entire amount in the cash pool, minus taxes. After your ticket is verified, you will receive your cash option payment in one lump sum.
    

• Annuity:
  

• 
  
  • When you win the jackpot and choose the annuity option, the cash pool is used to buy government bonds that pay out over a 25-year period for Megabucks and Mega Millions or over a 30-year period for Powerball.
    
  • You will receive a payment every year until the full annuity amount is paid out. Taxes are withheld from each payment.
    
  • It is similar to how a savings bond works. A $100 savings bond costs the purchaser only $50 today. If the holder of the bond waits until maturity, the bond is then worth the entire $100.
    

• Note: After presenting the winning ticket you have 60 days to decide on cash option or annuity. After 60 days have passed, if you have not made a decision, the payment automatically becomes an annuity.
  

http://wilottery.com/faqs.aspx

The state gets the other percentage of the sale mentioned in the first bullet - that's how they make money off the lottery. Then, in either case, you'll get taxed in the top tax bracket on the winnings, which is 39% now. Still not much of an issue if you win the big jackpot.

[mudslag]

"They chose the one-time cash option of $136.4 million before taxes."

As opposed to what? Waiting a few weeks for more millions to clear ?

You can make more money on interest alone with the lump sum then you can on having the 20yr payout option

[x-scratch]

people never seem to invest or put the money in a ira (individual retirement account) & end up broke

[I am Reid]

You can make more money on interest alone with the lump sum then you can on having the 20yr payout option

lol yea, .05% is still around $70,000 a year.

[leesmithg]

First of all, why would you go public when you've just won a complete fortune?

Second why should they not get the whole jackpot?

They already paid taxes and the money they had left over they used to buy a ticket that should go also to good causes.

British and Euro-Millions doesn't charge any taxes and if you win ?200,000,000 you get the lot, lock stock the lot.

[mrp04]

First of all, why would you go public when you've just won a complete fortune?

Second why should they not get the whole jackpot?

They already paid taxes and the money they had left over they used to buy a ticket that should go also to good causes.

British and Euro-Millions doesn't charge any taxes and if you win ?200,000,000 you get the lot, lock stock the lot.

I believe going public is part of the lottery terms. I sure wouldn't want to go public if I had the option.

Are you really whining about how much of a ridiculous amount of money you actually hypothetically get? $137 is more than I'd ever know what to do with and I'd be just fine taking that.

[mudslag]

lol yea, .05% is still around $70,000 a year.

Depends entirely on how it's invested, even with a basic savings account you can find some that offer 1% of slightly more giving you a little over a million a year back. Other investments can get you a hell of a lot better rate then 1% and still be pretty safe. Most banks will be more then willing to offer you a better rate just for sticking 100 million into their bank.

First of all, why would you go public when you've just won a complete fortune?

Second why should they not get the whole jackpot?

They already paid taxes and the money they had left over they used to buy a ticket that should go also to good causes.

British and Euro-Millions doesn't charge any taxes and if you win ?200,000,000 you get the lot, lock stock the lot.

Depending on state law, some states allow you to remain anonymous others require you to go public. Stupid law but that is what it is.

[Growled Member]

I'd be just like them. I'd take the money and run.

[leesmithg]

I believe going public is part of the lottery terms. I sure wouldn't want to go public if I had the option.

Are you really whining about how much of a ridiculous amount of money you actually hypothetically get? $137 is more than I'd ever know what to do with and I'd be just fine taking that.

I am not whining.

I am pointing out how they're double taxed.