OT- 1 winning Mega Lotto ticket sold in Illinois

[Da Coach]

You must be looking just at bank CDs.
There are mutual funds that can do a lot better.

I am no investment expert, but here are some government bond funds that are pretty safe and have much higher returns-
http://investing.money.msn.com/inves...P&Symbol=%24HF

http://investing.money.msn.com/investments/top-performing-funds?Category=GI&Symbol=%24HF

and there are a lot of mutual funds that have double digit percentage returns if you are willing to take more risk

http://investing.money.msn.com/investments/top-performing-funds?Category=LG&Symbol=%24HF

http://biz.yahoo.com/p/tops/all.html

Also, the Illinois Lottery pays a winner who chooses a lump sum cash payout 51% of the total, minus 28% more deducted for taxes-

http://www.lotto-insider.com/us/li-illinois-lotto.html

Therefore, a $200 million prize-winner will only get $73.44 million in a lump sum payout. And they are still required to pay any additional taxes not covered by that 28% deducted amount.

[Deadguy35]

You must be looking just at bank CDs.
There are mutual funds that can do a lot better.

I am no investment expert, but here are some government bond funds that are pretty safe and have much higher returns-
http://investing.money.msn.com/inves...P&Symbol=%24HF

http://investing.money.msn.com/investments/top-performing-funds?Category=GI&Symbol=%24HF

and there are a lot of mutual funds that have double digit percentage returns if you are willing to take more risk

http://investing.money.msn.com/investments/top-performing-funds?Category=LG&Symbol=%24HF

http://biz.yahoo.com/p/tops/all.html

Don't forget about REITs or BDCs, which offer high percentage yields with dividends, some of which give monthly payouts. My Roth IRA is loaded with those and since they are in a Roth IRA, I don't have to pay taxes on the dividends.

Even with all of the secondary offerings that REITs do, they are not that volatile and are less effected my market swings. Look at Annaly Capital, which is a company that not only survived the great recession, but kept paying out fats dividends the entire time. I bought into the company in September of 2007 at around a $17 PPS, and the stock is currently trading at a PPS in the $16.40s.

Also, the Illinois Lottery pays a winner who chooses a lump sum cash payout 51% of the total, minus 28% more deducted for taxes-

http://www.lotto-insider.com/us/li-illinois-lotto.html

Therefore, a $200 million prize-winner will only get $73.44 million in a lump sum payout. And they are still required to pay any additional taxes not covered by that 28% deducted amount

Yes, they are. This will put them in the 35% tax bracket, so they will have to pay the additional 7% when they file their taxes next year, or they could make an estimated payment now. I don't think they will be hit with an estimated payment penalty, though, since the US FORM 2210 takes into account their prior year earnings.

They will also end up having to pay more on their "ordinary income", as they probably do not have it set up to have 35% withheld. If they are a retired couple, however, they may just have 401K Income or social security income, which at least is exempt from Illinois Income Tax.