The state of Florida has just mandated that all Lottery Winners must take the lump sum approach.

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The state of Florida has just mandated that all Lottery Winners must take the lump sum approach. The Federal government will take 30% taxes and the new State Lottery Tax will be 7.5%.So, if an individual wins $1,000,000, they will pay $300,000 federal taxes and 75,000 state taxes. Now you have made a determination that if you invest the Tech stocks only --Facebook, MicroSoft, Amazon, Google, And another tech company, you would earn 7% a year.How many years would it take to payback the first year taxes to get back to the $1,000,000?Assume a 5% growth on stocks plus 2.5% in dividends every year?

Posted Date: May 11, 2024 05:24 AM

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The state of Florida has just mandated that all Lottery Winners must take the lump sum approach.

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