Even before they won a $1 million prize in the Ohio Lottery, Gregory and Shelley West, of Marietta, were winners to their next door neighbor, Edee Starcher.
"I'm so excited for them. They are perfect neighbors," Starcher said.
"If Shelley makes a wonderful dessert, she'll bring some over and say, ‘Finish this.'"
The couple visited Starcher, of 622 Seventh St., Sunday to relay the good news that they had just won one of the 20 prizes of $1 million in the lottery's $200 Million Cash Spectacular instant game.
The Wests, of 620 Seventh St., chose a cash option and filed a claim at the Athens' regional office Monday for a lump sum of $357,500. They could have taken $50,000 annually for 20 years, adding up to $1 million. The Wests were unavailable for comment Tuesday.
"The numbers are so big I can't even compute them," Starcher said. "They came over Sunday and asked me to confirm what they were seeing."
The winning ticket was purchased at Marietta's Giant Eagle in the Frontier Shopping Center, only blocks from the Wests' own Seventh Street neighborhood. The store will receive an agent bonus of $10,000 for its part.
"It's great," Don Booth, store manager, said. "We're all tickled to death for them. The Wests are regular shoppers here — real good people. You always hear about someone winning in Cleveland or some place. This is pretty neat."
It's the first time in his 29-year career that his store had a $1 million prize winner, Booth said. He made some phone calls Tuesday to other store managers around the state to find out what happens next.
"It gets credited to this store," he said of the bonus. "All the other managers could say was ‘Wow.' It's the top prize in this game."
Starcher said her dogs love Gregory West.
"One year he gave my (dog) Annie white roses for Valentine's Day," she said. "That's just the kind of people they are. I certainly hope this doesn't make them move."
There is bound to be a period of change and lots of decisions for major money winners, said Robert W. Voisinet, certified financial planner with Raymond James Financial Services, 132 S. Fourth St.
"The first thing to do is say a little prayer of thanks," Voisinet said.
That being done, this investment specialist calls for some deft management of funds.
"Stick the money into a money market fund right away," Voisinet said. "This gives you time to think and to plan. Next, get an unlisted phone number, pay off your debts, and find a good financial planner."
If you don't have an expert to help with the newfound resources, interview two or three planners before making a choice, he said.
"Ask up front what services are offered and how he or she is paid," Voisinet said. "There are other issues too, like estate planning and insurance planning."
What not to do is "blow" the money won.
"Buying things not needed, blowing the money — it has happened to lottery winners before and certainly is not a good idea," he said.
Bill Page lives in the 500 block of Seventh Street and doesn't think he knows the Wests, although he might recognize them if he saw them out walking or mowing the lawn.
The big win was news to Page.
"Good for him," he said. "A million — wow — I'd go into shock."
This neighbor doesn't play the Ohio Lottery and never has.
Has to be after taxes. First thing I thought as I read this article was "typo" because who would play if the lump sum was less than 1/2 of the advertised jackpot? So I went to the Ohio site and they have a link to cash option calculation. If you put it 1.0 (for one million) this is what you get: Oops. somehow the figures aren't copying. Sorry. I'm trying to delete this. Anyway, it shows the way they get to $357,000.
After tax cash value usually comes out to about 1/3 the advertised annuity jackpot, or about 2/3 of the cash option. 50K/year would have been pre-tax. Lump sum of 1/2 of 1 million is 500K so the 357K is slightly more than 1/3 of 1 Mill, 2/3 of 500K.
Remember, Ohio is one of those states who has an obssession with screwing their citizens attempt to advance themselves. State taxes, county taxes, and city taxes on any winnings are common. Exactly what the "Founding Fathers" had in mind when they created America - NOT!
I don't think the taxes are high when you look at the above calculations. The prize was a lump sum of $500,000. That being said, I don't think lotto winnings should be taxed at all. In this case, either the lump sum was more than 50% of the $1M jackpot or they still might owe Federal tax next year when they file.
Your numbers didn't come through, althought the 3.,5% did. I remember several threads about Ohio winners where they wound up in court because the city added taxes to their annuity winnings, and the county jumped on board. NJ has that one thing in its favor, no tax on NJ winnings. They get you big time if you win one of the PA or NY lotto's and stay in NJ, but you're safe winning inside the state.
I agree that the taxes are too high almost everywhere. In FL there is no state income tax, but I always question the posts that state 28% Federal Tax. Isn't the maximum 35%? It used to be much higher. I always thought that 25% was deducted by the lottery and then the winner is responsible for any additional tax owed. I've done a lot of "googling" and I believe someone who earns a million dollars is in the 35% bracket. Please advise if I'm wrong. So in a state like NC where taxes can reach 8%, you could wind up paying 43% of your lump sum. On top of that there is gift tax. So of course the best thing is to find a tax savvy lawyer or CPA who knows how to deal with the IRS. There are lots of loopholes, but it's finding them and knowing how to apply them that really counts.
The interim problem is, not only don't we need a tax expert of the caliber a multimillionaire would need, but we can't afford one right now. So the real answer about taxes will be up for discussion until the world ends - unless one of us hits the big one. Then we probably wouldn't come back in a year and provide knowledge updates.
over 600,000 in taxes taken out????
insane.....
over 600,000 in taxes taken out????
insane.....
Mike
Where did you get that?
The way I read,,,,,, they took a lump sum payment of 357,500 rather than a 20 year annuity of 50,000 a year totaling 1 million
Say a Little Prayer of THANKS...Amen
So the lump sum was $ 357,500 BEFORE taxes ??
Probably after withholding. Although OH won't pay the full cash value in Lot O'Play if someone doesn't want the annuity.
Has to be after taxes. First thing I thought as I read this article was "typo" because who would play if the lump sum was less than 1/2 of the advertised jackpot? So I went to the Ohio site and they have a link to cash option calculation. If you put it 1.0 (for one million) this is what you get: Oops. somehow the figures aren't copying. Sorry. I'm trying to delete this. Anyway, it shows the way they get to $357,000.
ANNUAL
PAYMENT:
CASH VALUE:
CASH VALUE AMOUNT:
After tax cash value usually comes out to about 1/3 the advertised annuity jackpot, or about 2/3 of the cash option. 50K/year would have been pre-tax. Lump sum of 1/2 of 1 million is 500K so the 357K is slightly more than 1/3 of 1 Mill, 2/3 of 500K.
LOTTO PIE........"taste googoud"..........
Hope you get to sample it with your neighbor, Edeeeeee Starcher..........
LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
PSYKOMO
Remember, Ohio is one of those states who has an obssession with screwing their citizens attempt to advance themselves. State taxes, county taxes, and city taxes on any winnings are common. Exactly what the "Founding Fathers" had in mind when they created America - NOT!
I don't think the taxes are high when you look at the above calculations. The prize was a lump sum of $500,000. That being said, I don't think lotto winnings should be taxed at all. In this case, either the lump sum was more than 50% of the $1M jackpot or they still might owe Federal tax next year when they file.
Your numbers didn't come through, althought the 3.,5% did. I remember several threads about Ohio winners where they wound up in court because the city added taxes to their annuity winnings, and the county jumped on board. NJ has that one thing in its favor, no tax on NJ winnings. They get you big time if you win one of the PA or NY lotto's and stay in NJ, but you're safe winning inside the state.
I agree that the taxes are too high almost everywhere. In FL there is no state income tax, but I always question the posts that state 28% Federal Tax. Isn't the maximum 35%? It used to be much higher. I always thought that 25% was deducted by the lottery and then the winner is responsible for any additional tax owed. I've done a lot of "googling" and I believe someone who earns a million dollars is in the 35% bracket. Please advise if I'm wrong. So in a state like NC where taxes can reach 8%, you could wind up paying 43% of your lump sum. On top of that there is gift tax. So of course the best thing is to find a tax savvy lawyer or CPA who knows how to deal with the IRS. There are lots of loopholes, but it's finding them and knowing how to apply them that really counts.
The interim problem is, not only don't we need a tax expert of the caliber a multimillionaire would need, but we can't afford one right now. So the real answer about taxes will be up for discussion until the world ends - unless one of us hits the big one. Then we probably wouldn't come back in a year and provide knowledge updates.