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1000 a week for life after taxes

A girl bought her first lottery ticket on her 18th birthday — and won $1,000 a week for life

Charlie Lagarde won’t forget her 18th birthday anytime soon.

When the teenager popped into a Québec convenience store to buy a celebratory bottle of bubbly and a lottery ticket, she had no idea that she would walk away with the grand prize of $1,000 Canadian dollars ($775 US dollars) a week — for the rest of her life.

According to HuffPost, Lagarde bought a bottle of champagne and a scratch-off ticket at the store. She scratched the ticket once she was back home and realized she had won the grand prize with the first lottery ticket she ever bought, Brian LeCompte, a representative from Loto-Québec, told INSIDER. Lagarde is not giving interviews at this time.

LeCompte added that Lagarde bought the ticket for $4 Canadian dollars, and her chances of winning were one in 6 million.

“She rushed to tell her family the news; everyone was overjoyed by this stroke of luck,” he told INSIDER.

“To celebrate her 18th birthday, she bought her first lottery ticket and. won the grand prize! Charlie will receive $1,000 per week for the rest of her days!” Loto-Québec tweeted on March 26.

Lagarde then had a difficult choice to make: receive weekly payments of $1,000 for life or a lump sum of $1 million ($780,000 US dollars).

“She decided to think it over for a few weeks before choosing between the weekly income and the lump sum,” LeCompte said. “She ended up opting for the former.”

“It’s without taxes so it’s equivalent to a salary of more than $100,000 a year, so it’s a great start in life for that young lady,” lottery spokesman Patrice Lavoie told People.

Douglas Boneparth, certified financial planner and president of Bone Fide Wealth , said that although taking the lump sum would most likely be more lucrative, Lagarde probably made the right decision when it came to how she would collect her winnings.

“This might have been appropriate for her, and I say that because it really comes down to how disciplined and how understanding of personal finances you are,” Boneparth told INSIDER.

Most 18-year-olds are not financially disciplined enough to make prudent decisions on their own with that money, he said.

A post shared by Loto-Québec (@lotoquebec_officiel) on Mar 26, 2018 at 10:39am PDT Mar 26, 2018 at 10:39am PDT

The choice between a lump sum and weekly payments ultimately comes down to what would be more prudent financially versus what would make the most sense for a particular individual, Boneparth said.

He said this issue often comes up with pension payouts.

“Take my mom, for example,” he said. “[She] feels more secure knowing there’s a steady stream of income than getting that lump sum.”

That could be the case for Lagarde, he said.

The next step for the young winner is to figure out what her goals are because there are many ways she could spend her newfound income, Boneparth said.

“If she wants to start a business — and $1,000 a week is great money to make that happen — then she can take the risk of starting a business,” he said.

Or maybe it can help her afford a better apartment, he added.

“It’s very hard to say what she should do, but it’s easy to say now is the time to figure out what are your goals and how can this money help you achieve those goals,” Boneparth said.

Boneparth said he hopes Lagarde is aware that this money can have a significant impact on her life.

“This is an opportunity to better one’s life, and if used constructively, it could really turn into something amazing,” he said. “At the very least, it can help deal with the day-to-day expenses. Sounds like this person has $4,000 a month to not have to worry about. It’s pretty cool. There are a lot of people in this world that are raising multiple kids on that kind of money.”

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Canadian teenager Charlie Lagarde got quite the 18th birthday present when she scratched off a lottery ticket to discover she had won $1,000 a week for life.

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March 26, 2018

Tell Me About The Taxes On The ‘For Life’ Prizes In Lucky for Life

A woman named Kris recently sent us a question on Facebook asking about how the taxes work in the Lucky for Life game for its top two prizes: $1,000 a day for life and $25,000 a year for life.

You likely already know that Lucky for Life is a $2 lotto game with drawings twice a week, on Mondays and Thursdays. The game’s top two prize levels are described as “lasting as long as you do,” meaning that they are truly for life. The minimum guaranteed payout for those two prize levels is 20 years, and there is a lump-sum option for players who want that rather than lifetime annuity payments.

If you were to win at either of the game’s top two prize levels here in Iowa and you chose to receive your prize in annuity payments for life, you would receive your winnings in annual payments. Federal and state withholding would apply to each payment. (The current federal withholding rate is 24 percent, while the state withholding rate is 5 percent.)

So, for the game’s top prize of $1,000 a day for life, you would receive an annual payment after withholding of $259,150. And for the game’s second prize of $25,000 a year for life, you would receive an annual payment of $17,750 per year after withholding.

Four Iowa Lottery players so far have won the game’s prize of $25,000 a year for life. We’re still waiting for our first top-prize winner in Lucky for Life!

And don’t forget: There are eight other ways to win in Lucky for Life, so be sure to check your ticket after each drawing.

Comments

Hi, George. I think you’re referencing potential income tax questions, while what I addressed are the withholding taxes that are taken out when the prize is paid. While the withholding amounts are designed to account for the tax liability that someone would have for the prize, you are correct that a winner may owe more than or less than that amount, depending upon his or her individual circumstances outside of winning a lottery prize. In some instances the withholding may be too much, in others, it may not be enough. That’s why we always suggest that our winners consult a lawyer or financial planner as quickly as possible to go over all of the details that may apply to them.

After all taxes are paid at the end of the year you will will have 204,900 left . Fed tax for 365,000 is 35% state income for 365,000 is 8.9% one of the highest in the country.

Oh, that makes sense, Mark! I will pass along your comment. Thank you for sharing your insight.

Hi Mary! Sorry to have to put this here, but could you pass along a suggestion to whomever runs the poll on the main page?

It would be nice to be able to answer the poll with the answer “I don’t like this game” or something similar when applicable- it will give you a better feel for the correct answers of your players. There has been more than once I have either had to give an incorrect answer, or not participate because none of the available answers fit!

A woman named Kris recently sent us a question on Facebook asking about how the taxes work in the Lucky for Life game for its top two prizes: $1,000 a day for life and $25,000 a year for life. You… ]]>