For the Millionth Time...

Reply #9

DC81 — Fri, 02 Oct 2009 09:14:26 GMT

I came back to edit it and was a minute too late with clicking the submit button. I wanted to clarify and correct something I forgot to subtract the first payment from the annuity as well.

Reply #8

DC81 — Fri, 02 Oct 2009 08:50:37 GMT

Madoff wasn't the first person to pull this sort of thing, it's just a variation of an old, scam. The Ponzi version of the scheme has been happening for a very, very long time he's just the most recent and currently well known example because of how much money he suckered out of people. You know why people got screwed by Madoff? They were suckers who were far to trusting and hands off with their money.

Take a current advertised jackpot (Mega Millions at 105M/67M for this example) and see w... [ More ]

Reply #7

rdgrnr — Thu, 01 Oct 2009 21:57:03 GMT

Lump sum without question. This stems from the fact that I have ZERO faith or trust in the government when it comes to handling money.

I'll gladly give half of the potential annuity value just for the peace of mind of knowing the government is not involved in it's disposition.

Reply #6

KY Floyd — Thu, 01 Oct 2009 19:14:12 GMT

What sticks out to me is the, the risk of loss rests with the prize winner.

That part refers to the cash, not the annuity, and is connected to the part that says The gross cash option will represent the sum of the first annuityinstallment plus the net proceeds from the sale of the governmentsecurities originally purchased to fund the annuity prize.

The risk they're talking about is that the value of the of the securities on the day of sale may be different than the original cost. That va... [ More ]

Reply #5

MrJackpot — Thu, 01 Oct 2009 16:36:52 GMT

As much as people say that if your young you should take the annuity, I don't believe it's 100% safe due to on the Ohio Lottery website and I quote Upon claiming the Mega Millions jackpot, the prize winner is given the option to receive the prize winnings in a single cash payment. The gross cash option will represent the sum of the first annuity installment plus the net proceeds from the sale of the government securities originally purchased to fund the annuity prize. Government securities are s... [ More ]

Reply #4

ThatScaryChick — Thu, 01 Oct 2009 16:29:54 GMT

I would take the cash option.

Reply #3

tiggs95 — Thu, 01 Oct 2009 14:03:25 GMT

I believe a lot has to do with your age..If your young take annuities and if your old take a lump sum..Try to control yourself if your young which is hard to do but try...

Reply #2

Coin Toss — Thu, 01 Oct 2009 13:53:55 GMT

Nino224

Consider that some jackpot winners who take the annuity wind up turning around and selling the annuity to one of those compnaies that buy them, and only offer pennies on the dollar.

Someone here at LP has or had a signature,

You can always buy a better annuity .

Reply #1

diamondpalace — Thu, 01 Oct 2009 08:14:52 GMT

Lump sum, aka cash option. Yes, investment and spending.

For the Millionth Time...

Nino224 — Thu, 01 Oct 2009 07:54:24 GMT

This question has been asked at least a million times: Lump sum or annuities?

From what I understand, the reason most people go with the lump sum is that they can invest the money and make more, right?

Okay, but in a post-Madoff, widespread fraud world is that still the wisest choice? I'm just wondering.