The Florida Lottery announced recently 19-year-old Quinn Kofler won $15 million from a scratch-off ticket.
He chose to receive a one-time payment of $11, 175,000 instead of yearly payments but he won’t get all of that moola.
The Florida Lottery has to withhold 24% for federal taxes on the winnings. Which would leave him with 8.4 million?
That’s still not all! That money puts him in the highest federal income tax bracket when he files his taxes next year. Which will be 37.9% but since 24% was already taken out, he would only have to pay the remainder.
Which means say bye-bye to 13.9% of that 8.4 million!
Now, if he doesn’t spend any money in the next year, he’ll have about 7 million dollars left over. That’s still about $114,754 a year if he plans to live to be eighty. Still a lot of clams.
In fact, he could buy 8,834 pounds of clams a year for the average national price of 12.99. But instead of being very jealous of the guy, which I am, we went to financial advisor John Nicolosi to get some advice if you are ever in this position.
John Nicolosi: “I’ve seen people loose this amount of money in about 3 months.”
The most common thing most people who get a financial windfall often do…
John Nicolosi: “People are good in nature so when they’re in this kind of position, they give all the money away to family, friends, people in need, and someone who has come to them with their own dream and would like them to fund it.
What’s most important with any amount of money, is to you use it in a way that is meaningful to you and to achieve your own goals. But the one thing John Nicolosi strongly suggests…
John Nicolosi: “Hire a good Financial team to guide you to where you want to go.”