Cash vs annuity, another factor to consider?

Reply #35

mightwin — Sat, 16 Feb 2013 00:50:44 GMT

Yes we complain about taxes and the amount of $ we would be giving up if we win. Its because we know that the $ they take isn't getting spent wisely. If it was being spent wisely we wouldn't have to pay in as much as we do and things would be way way better.

Reply #34

mightwin — Sat, 16 Feb 2013 00:44:04 GMT

I believe that's sales tax, income tax is either 4.25 or 4.35% am I wrong

Reply #33

Coin Toss — Thu, 14 Feb 2013 05:43:24 GMT

Prior to the 16th amendment there was no permanent income tax. In fact there headn't been income tax since after the Civil War.

The first federal income tax was adopted as part of the Revenue Act of 1861.[94] The tax lapsed after the American Civil War. Subsequently enacted income taxes were held to be unconstitutional by the Supreme Court because they were not given to the states. In 1913, the Sixteenth Amendment was ratified, permitting the federal government to levy an income tax without g... [ More ]

Reply #32

msharkey2001 — Thu, 14 Feb 2013 01:02:34 GMT

If I recall my US History courses prior to 1913 federal income taxes were used to help finance wars and were indeed temporary. The 16th amendment was passed in 1913 allowing for the first permanent income tax.

WW1 was not a factor. The war didn't even start until 1914, and the US didn't enter it until April of 1917.

Reply #31

Anfang71 — Thu, 14 Feb 2013 00:55:09 GMT

Many builders there have been

Since the world began,

Palace, cottage, mansion, inn

They have built for man.

Some were small and some were tall,

Long or wide or low...

But the best one of them of the all

Jack built long ago.

Was built in bygone days,

Yes, millions sing its praise

Reply #30

rdgrnr — Wed, 13 Feb 2013 23:36:00 GMT

**HUGZ out to RIDGE!!!** (giggle)

And HUGZ back, MAX!!!...

Reply #29

weshar75 — Wed, 13 Feb 2013 05:34:21 GMT

I would like the cash option myself and pay the taxes in one year not thirty. It would be fun to call the bank every day and check my bank account and have them tell me I am a multi-millioniare over and over again. That would be great!-weshar75

Reply #28

Mr Harford — Wed, 13 Feb 2013 05:33:31 GMT

The government will make cheaters out of all of us.

Reply #27

rdgrnr — Wed, 13 Feb 2013 05:15:33 GMT

This nation was founded by people who fought the system.

We're no more represented under the current government's crushing taxes than we were under those imposed by King George.

And he got his royal ass kicked for it.

But that was back when men were men.

And those men wouldn't put up with half the crap we put up with now.

I'd rather have lived then than now.

And never have witnessed what became of us.

Reply #26

billionaire2bee — Mon, 11 Feb 2013 22:14:01 GMT

Only because they're gonna take what they're gonna take....you can't fight it...we vote..... things dont change....hey if they want to take the 32% (my state) and I've got ooodles of cash left....ok I mean Im not fine with it 100%....but what you gonna do?? Fight the system and go to jail...no thanks.....i'll take the millions thank you

Reply #25

rdgrnr — Mon, 11 Feb 2013 22:10:26 GMT

they can take what they want long as Im still a millionaire in the end

Man, you're easy.

I thought you were the guy who knew how to say no?

Why are you so willing to be chumped by the politicians

Reply #24

billionaire2bee — Mon, 11 Feb 2013 20:53:09 GMT

If you consider someone handed you more money than you or your kids and great great grandkids could ever make combined...........they can take what they want long as Im still a millionaire in the end.....end of story....LOL

Reply #23

savagegoose — Mon, 11 Feb 2013 07:05:22 GMT

Peter Schilff said it best when he said a medeival peasant was only taxed, %20, 10 to the church and 10 to the local lord. I only wish I had it so good.

Reply #22

Coin Toss — Mon, 11 Feb 2013 06:05:02 GMT

Yes Floyd, and the income tax passed in 1913 was indeed a temporary tax to finance WW I.

I don't think your answer above considered the government is spending like it's never spent before and a few other things going on.

Nice answer, but you might want to consider a certain manifesto that is the current regimes' playbook. Has a lot to so with a steadily progressive tax system that eventually wipes out the middle class.

Reply #21

KY Floyd — Mon, 11 Feb 2013 05:48:38 GMT

There's just more things to consider with the new tax rates.

There's nothing new to consider. It's just the way it was last year, the year before that, and so on. You decide what your own goals and preferences are. You consider what current tax rates are compared to how they might change and what happens if they do. You consider current investmen rates and what they might be in the future.

Tax rates may go up in the future, they may stay the same or they may go down. The only thing that's... [ More ]

Reply #20

maximumfun — Sun, 10 Feb 2013 16:27:54 GMT

mediabrat! i had no idea that you had joined the 'we love ridge' fanclub! i am a member as well!!!

**HUGZ out to RIDGE!!!** (giggle

Reply #19

rcbbuckeye — Sun, 10 Feb 2013 15:59:27 GMT

Cash option. Always. Don't trust them with the money. Who says Oops, the markets crashed, we can't pay the annuity this year can't happen. Besides, at my age I don't care about the interest (non-existent), I would care about money preservation. With about 3 or 4 million I could just live off the principle for 25 years until I die.

Reply #18

mediabrat — Sun, 10 Feb 2013 15:50:32 GMT

Awww, I love you too, sweetie. Come 'ere, give us a big ol' kiss! Mmmmmmm-wha

Reply #17

rdgrnr — Sun, 10 Feb 2013 02:31:22 GMT

You might be miserable too if you didn't still live in mommy's basement, mediumbratwurst.

The rest of us actually have bills to pay believe it or not.

Ok now, back to your Gears of War or Grand Theft Auto or whatever you're playing today.

Reply #16

maringoman — Sun, 10 Feb 2013 00:44:43 GMT

Annuities are for those who fear challenges IMHO. I sure would not be waiting every january for checks that I could have had in one january.

YOLO is my lifelong philosophy

Reply #15

sully16 — Sat, 09 Feb 2013 21:57:52 GMT

Work your butt off and have someone take it away, tell us how happy you would be

Reply #14

Coin Toss — Sat, 09 Feb 2013 21:04:59 GMT

Miserable is your perception.

There's just more things to consider with the new tax rates.

Threads like this must make people in countries that don't tax gambling wins wonder why the U.S. does.

Reply #13

mediabrat — Sat, 09 Feb 2013 20:51:07 GMT

Good grief, ANOTHER thread complaining about taxes?!??! Are you people always this miserable

Reply #12

Piaceri — Sat, 09 Feb 2013 19:22:19 GMT

Cash option before the 2013 tax hikes, cash option after. Not a difficult choice for me regardless of tax rates. A good tax accountant will keep your initial taxes as minimal as possible. A good investment strategy and a good tax accountant will get you the best rates possible over the years after the initial win. Just ask Mitt.

Reply #11

maximumfun — Sat, 09 Feb 2013 18:29:42 GMT

tax wise... its anyone's guess... this year there is the obama care tax (3.8%?) and the increase to 39.6%... but isnt the better question that of potential/expected value of the money?

CT's (conspiracy theorists) are glomming onto the recent events to predict everything from the fall of the US in the next 6 months to Texas executing its option from its state charter and turning itself into 5 different states to...

but all the predictions seem to point to one thing... do i want to trust THE... [ More ]

Reply #10

PlayToWin47 — Sat, 09 Feb 2013 05:49:07 GMT

I wrote earlier...

Right now, taxes are better than they used to be in the not too distant past...

Ok ... early '80s ... a little more distant than I thought.

Reply #9

savagegoose — Sat, 09 Feb 2013 04:46:08 GMT

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Income_tax_rates_in_history has this chart. as you can see the top rates and when u start paying therm varied widely over the years. The best part of taking cash is determining what risk and rate of interest you will get for yourself.

History of income tax rates adjusted for inflation (1913-2010)[43]

Number of First Bracket Top Bracket

Year Brackets Rate Rate Income Adj. 2011 Comment

1913 7 1% 7% $500,000 $11.3M Firs... [ More ]

Reply #8

PlayToWin47 — Sat, 09 Feb 2013 04:05:04 GMT

That is definitely something to consider.

Even if the dollar doesn't completely lose it's value and die... if you take the annuity, you're always gambling on what the tax code changes will be from year-to-year. Right now, taxes are better than they used to be in the not too distant past ... but ... with all of the recent out-of-control government spending and the country's current deficit, I can't imagine tax rates getting any better from here out.

Even if you do take the cash on a huge am... [ More ]

Reply #7

rdgrnr — Sat, 09 Feb 2013 03:01:20 GMT

There's no tax in TN but I'd wanna get it all now and use some of it before it's not worth anything anymore.

I see Virginia is looking into printing their own money now, who knows how long the dollar will be worth anything

Reply #6

sully16 — Sat, 09 Feb 2013 02:51:21 GMT

Michigan is 6%, on everything except food.

Reply #5

helpmewin — Sat, 09 Feb 2013 02:43:42 GMT

Reply #4

dallascowboyfan — Sat, 09 Feb 2013 02:40:15 GMT

Oklahoma lottery tax is 4% so I will be taking the cash option.

Reply #3

sully16 — Sat, 09 Feb 2013 02:12:43 GMT

The way they change the tax codes every year, I think at this point I would take all the cash at once.

Reply #2

markp1950 — Sat, 09 Feb 2013 01:50:17 GMT

Geeze I would get my last check when I'm 92.........

Will the USA last 30 more years?

Convert it to gold?

I would be linked to the state of Wis for another 30 years...

Australia here I come

Reply #1

billionaire2bee — Fri, 08 Feb 2013 23:47:09 GMT

Since nobody here is rolling in it persay....I don't see a downside to either choice...I mean on one hand your a millionaire and growing...on the other your a multi millionaire up front...Since Ive never been either I can't say but it would be a problem Id love to have in the very near future..

Cash vs annuity, another factor to consider?

Coin Toss — Fri, 08 Feb 2013 22:32:29 GMT

Looking at USA MEGA jackpot analysis for Powerball at $40 for Pennsylvania (just an arbitrafry pick) I'm wondering if the new tax rates and the current regime going after those who make so much a year wiuld be another reason ro opt for cash, a one time payout.

Let's consider:

Pennsylvania: No State Tax on Lottery Prizes!

Your average net per year: $1,000,000 Your net payout: $18,825,000

After 30 payments: $30,000,000

Annuity Payment Schedule

So for those 30 y... [ More ]