MM going to 30 year annuity

Reply #10

RJOh — Sat, 12 Oct 2013 20:50:12 GMT

So is Ohio's Classic Lotto jackpot. It just make sense to advertise the cash amount for as much as possible.

Reply #9

EdG1955 — Sat, 12 Oct 2013 18:24:50 GMT

The cash payout is more valuable when interest rates are low but rising or expected to rise. You will get a larger cash payout because it takes more cash to fund the annuity and the prize you receive is the equivalent of what it costs them to purchase the annuity. When interest rates are high but falling or expected to fall, it is better to take the annuity because the cash payout will be lower.

Reply #8

LottoMetro — Sat, 12 Oct 2013 18:10:16 GMT

I'm with JonD on this one, these days it really doesn't make sense to take the annuity. I am fairly young but 30 years is a long time. I'm not married and my family is small so it would just be wasting time/money. A bird in the hand is worth two in the bush. It's only a matter of time before the country will default, honestly, it's simple math. It might be a long time from now but I'm not taking any chances. I've seen other places where they say annuity is better because of the huge discount tak... [ More ]

Reply #7

BuyLow — Sat, 12 Oct 2013 16:32:01 GMT

If I am not mistaken in FL we can take some of the winnings cash value and some annuity. That could actually be a smart move for a small amount of the money, just incase you BLOW THE WAD and lose the cash value. A safety net if you will.

Reply #6

Romancandle — Sat, 12 Oct 2013 16:30:31 GMT

Is it a graduated annuity like PB? Or did they keep it like is now?

If so, PB still has the advantage there...

MM annuity option is not enticing at all as is... cash option only way to go.

Reply #5

sookie — Sat, 12 Oct 2013 15:14:59 GMT

I will take the cash option. Annuity has too many risks involved, the company who owns it can go bust and who knows how or when the next check would be sent, if it ever was. The process of leaving it to heirs is messy.

If the cash sum is given up front, I know exactly how much I have and pay the taxes and then the rest is up to me. If my state lottery goes under or the company who funds annuities does then I don't have to worry about my money. I'll have enough to concentrate on having tens of... [ More ]

Reply #4

Jon D — Sat, 12 Oct 2013 14:26:07 GMT

The annuity option really doesn't make sense anymore for the multi-state Jackpot games. It's just a marketing gimmick now.

It might have made sense in the old days, when jackpots were small like a couple million, as a way to boost them higher.(similar to a state lotto) But with a several hundred million jackpots now being more common for MM/PB, it's antiquated. Especially with those large jackpots, your annual payment comes in well above the top tax bracket, so there's not even any benefit th... [ More ]

Reply #3

mikeintexas — Sat, 12 Oct 2013 14:07:29 GMT

The Texas Lotto is now using a 30 yr. annuity, too. If I were younger, say 30 or under w/ a family, I'd opt for the annuity, but since I'm not (sigh), I play the cash option. I believe I read a story in here about a woman who inherited a Texas Lotto annuity only a yr. after her brother had won it and was hit w/ such a huge tax bill (income and estate taxes) that she wasn't going to get any of the money for ten years and was going to have to chip in a substantial amt. of her own money towards the... [ More ]

Reply #2

billionaire2bee — Sat, 12 Oct 2013 12:44:12 GMT

I wonder if anyone will ever take an annunity again though

Reply #1

BuyLow — Sat, 12 Oct 2013 11:58:20 GMT

Powerball is a 30 year annuity as well.

MM going to 30 year annuity

Think — Sat, 12 Oct 2013 02:41:43 GMT

Well I just finished reading the back of the new playslip and it says Jackpot winners will receive their prize in annual payments over a 30 year period..... unless cash option chosen

Geeze I didn't see that anywhere before