Comments on: The Reality of Reality TV Show Top Prizes

By: Cory

Cory — Tue, 21 Oct 2008 22:08:14 +0000

Sure, almost $500 a week would be cool, BUT, they won’t be getting that much. As Peter shows, after taxes it’s closer to $300/week… at first. But don’t forget inflation. Sure, you’ll still be getting your $1300+/mo after taxes during the 40th year, but by then it’d only buy $350 worth compared to today’s prices. (Assuming the standard of 3.5% inflation.) In all, the total after-tax purchase power of the $ you would get is close to $350,000.00

From what I’ve seen a lump-sum of $300,000 is probably accurate enough. You can purchase pretty much the same amount of “stuff” over the next 40 years, but you can do it NOW instead of in 40 years. Pay that $25k in debt you have (average american) and buy a $275k house. Don’t go back into debt and stick the extra $ you are no longer paying on debt interest or housing into a retirement fund or something.

Still, that pales to the $600k or so you’d have in your pocket after taxes from a flat $1 mil payout.

By: Donna C

Donna C — Sun, 12 Oct 2008 18:21:32 +0000

Too bad it was him at all! I thought Nuttin’ But Stringz should have won. And the money? Sucks to have to pay it all to the IRS to pay for your stupid war!

By: Goldie

Goldie — Sat, 11 Oct 2008 02:05:16 +0000

If he don’t want the money, i sure as hell could use $500 / week.

By: Rose

Rose — Fri, 10 Oct 2008 01:06:32 +0000

I live on less than $800 a month. Comfortably I might add. So that $1300 would be a huge increase in my standard of living. It would make my house payment (I’m buying), pay all my utility bills, my food, and give me extra spending money. I like my job, so I’d keep doing it, and have even more money.

The people on these shows more than likely weren’t really going for the million dollar prize. They were going for a shot at big time fame, contracts that could net them far more than a million dollars in their lifetime, and a chance to follow a dream, which is worth more than any amount of money.

By: ExitRamp

ExitRamp — Wed, 08 Oct 2008 21:21:43 +0000

The winner on all these giveaways is the IRS. ALWAYS take the cash equivalent, whatever they reduce it to.

The most insidious are the luxury prizes. The car, the cruise for two or some “fabulous” piece of jewelry. TAKE THE CASH.

Ready for the 1099 on January 31? Oh yes, the Caribbean cruise for two, that you could have could have purchased on the net for $1,200 will be billed at the full retail rate, probably close to $5,000, so at 20% tax rate, you pay $1,000. Was it worth “winning?”

It’s even worse with high-markup jewelry.