Hello everyone

Reply #33

Guest — Tue, 02 Apr 2002 20:46:51 GMT

I'm only saying that the annuity should be an OPTION rather than mandatory. Complicating matters is that SOME games still require the choice be made when you play. If the game REQUIRES you to choose when you play, CASH/LUMP SUM gives you control of your winnings. If you were to choose annuity you're giving up the chance to invest a major portion of your winnings however you wish. If you play a game where the choice must be made when you play, choose CASH; then after you win, hire someone who w... [ More ]

Reply #32

Guest — Tue, 02 Apr 2002 19:34:54 GMT

I've been reading all the posts (past and present) aboutthe Pros and Cons of choosing an annuity. You all must not have family. Because you're talking like the money would never be split any further after Uncle Sam and your state gets their chunk of your change. What about the million that your siblings will ask for? What about your parents, assuming their still living? And let's not forget those with grown children... and the grandchildren. All these people/relatives will have their hands out.... [ More ]

Reply #16

Guest — Sun, 31 Mar 2002 22:40:26 GMT

I am with you, patrick, on the lump sum. Besides I am 69 and who knows where I will be 26 years from now or whenever I might win.

Reply #15

Guest — Sat, 30 Mar 2002 16:51:49 GMT

and then you get to choose, and you ask for professional financial advice, they'll probably tell you LUMP SUM.

Reply #14

therock — Sat, 30 Mar 2002 16:42:08 GMT

Hey what is the current interest rate that you can get on HH savings bonds these days if one was to win the big game. I know alot about money and I know that it would not be all glory as you all say if one was to choose the lump sum. I know that there are know guarantee in investments and you stand a good of a chance if not a greater chance of loosing your money doing all of these nice little pre-investment runs that you all are talking about unless your investments are very conservative which w... [ More ]

Reply #13

Guest — Sat, 30 Mar 2002 13:00:31 GMT

The company that SELLS the annuity to the lottery gets to profit from your winnings. The lottery has NOTHING to gain when a winner does not want the lump sum (or sometimes is forced to receive annuity payments).

Reply #31

Guest — Sat, 30 Mar 2002 10:13:51 GMT

You can set up a trust and if you won the lottery, you'd most certainly need a good will. An Estate/Tax Lawyer will advice you on protecting your family and the best way to set it up. We have our Will set up so our children would have needs taken care of, and they would not have any large sums of money until the last of our chilren turns 25 years of age. Reason lots, for those of you over 25...what would you have done,I would have had a nice apartment(would not have wanted a home...none of my fr... [ More ]

Reply #30

Guest — Sat, 30 Mar 2002 05:01:50 GMT

Unfortunately you are giving away a lot more than $36 million. If you were to double your money every 8 years you would double that by 16 and another double by 24 so if you figure you get half as a cash option of $36 million it will become $72 million in 8 years ( 7% investment) $144 million at 16 and $288 at 24 years. SO you take your $72 million over $26 years and I will have much more than that. Don't short change yourself unless you know nothing about money then you keep your annuity

Reply #12

Guest — Sat, 30 Mar 2002 04:42:09 GMT

A person can take the lump sum cash invest it @ 7.5% within 7 or 8 years the money would double or be around the same amount as the total payout on the Annuity. In fact the lotteries are making money on 18 years of your money without you realizing any benefits for the extra amount they made on your money

Reply #29

Guest — Fri, 29 Mar 2002 20:13:42 GMT

I'm sure there's a way you could take the lump sum, and write a contract/will or something where your kids would not get any large amounts of money until at least their 18th birthday(s).

Reply #28

Guest — Fri, 29 Mar 2002 20:05:12 GMT

If you take the annuity option you are letting the Lottery people invest the same $40 million and the return they are paying on and annuity is pitiful only about 3%. You still would have to pay about 45% tax rate on the money (depending upon your State tax rates) if you end up with $22 million and invest it in AAA miniciple bonds at 6% which is about average you can have $1.3 million a year tax free and still have the $22 million . It will probably take a good 10-15 years or more to save $22 mil... [ More ]

Reply #27

Guest — Fri, 29 Mar 2002 19:44:45 GMT

If the game you're playing requires the choice be made at time of ticket purchase, CASH/LUMP SUM is the proper choice even if you want annuity payments. Choosing the lump sum allows you to shop around for the annuity, and, of course, leaves other investment options open. It's a myth that choosing cash means you get less money-taking the lump sum, and then investing it wisely should mean you'll come out ahead vs opting for the annuity. And, if you're allowed to choose AFTER you win, make sure y... [ More ]

Reply #26

therock — Fri, 29 Mar 2002 19:30:58 GMT

You all make a good argument about taking the cash option but I am a young single man without any kids or anything and pretty much healthy and God Willingly be live to see the final check so I would take the annuity option because I want all of my money. I just have a problem with giving up $36 million dollars, that is alot of money to throw away, I understand that the lump sum of $29 million is alot of money to put in the bank and gives one a lot of power with the bank but on the opposite end

Reply #22

Guest — Fri, 29 Mar 2002 17:43:29 GMT

Tom: Except for Series HH bonds, you are limited in how much in bonds you may buy in any one year.

Reply #21

Guest — Fri, 29 Mar 2002 17:25:27 GMT

Not being a high finance type person, I would buy savings bonds, which like savings accounts, are federally insured.The money would be safe earning interest while you tooksome time to figure things out - if you really wantedto dedicate your life to finance. Tonight's jackpot is 40 million, after taxes about 27 million. Imagine you could live off 12 million invest 15 million in savings bonds at 4% (in real lifeyou could do better I'm sure). After 7 years you'll havemade 4.8 million in interest... [ More ]

Reply #25

Guest — Fri, 29 Mar 2002 14:17:59 GMT

If the game requires you to choose when you play, choose CASH/LUMP SUM. If the annuity does not have a cash option (this also applies to scratch tickets) DO NOT PLAY. The trust that you mentioned CAN be opened with a lump-sum lottery check.

Reply #24

pegleg — Fri, 29 Mar 2002 14:06:40 GMT

As I stated in other posts, if you have to take an annuity, put it into a trust or an incorporated idenity. If you die before all the yearly payments are made to you, your heirs will have to pay inheritance taxes on the full amount up front that is due you. By having a trust the payments are still made annualy and you or your heirs would pay taxes on the interest when it is drawn out. pegleg

Reply #7

Guest — Fri, 29 Mar 2002 11:40:37 GMT

Virgil: It's a problem many of us would like to have. If you were to choose CASH if the choice must be made when you play, and then you won, or if you win AND THEN you get to decide, the best thing to do is get financial/legal/tax etc advice. Choosing annuity when you play is taking any financial leverage you would have (if you chose cash) and giving it to the company selling the annuity to the lottery-THEY want to make money on your winnings when it should be YOU who calls the shots .

Reply #6

Guest — Fri, 29 Mar 2002 11:30:28 GMT

my concern about the cash option is that I as many out there would not know what to do with that much money. that would put one self at the mercy of so called experts. I have heard of many winners that took the cash option and lost it all to the money experts.

Reply #20

Guest — Fri, 29 Mar 2002 11:01:04 GMT

Under MUSL rules, the winner(s) will have 60 days to decide whether to take the lump sum or 25 annual payments. Pennsylvania players will have the same after-win option when it sells Powerball tickets starting this summer (although PA Super-6 Lotto still requires the choice at time of purchase.) BTW, we know that because of LA state law, the winner is at least 21 (perhaps another thread will debate the 18 v 21 minimum age for buying lottery tickets.) You have to wonder why Massachusetts still

Reply #23

emilyg — Fri, 29 Mar 2002 00:44:27 GMT

take the money and mke your own investments.

Reply #19

someday22 — Thu, 28 Mar 2002 19:48:12 GMT

Todd: I agree and I'm with ya on that one.. Another thought that came to mind a long time ago andalways made me wonder was where do put that much cash.. seeing how FDIC insurance is only up to100k for a normal account. I'm a small bank type person, I've been screwed by Fleet way too many times.Sadly though, it would seem that (at least in MA) Fleet, Chase or one of the other major banks. I did read that there is other insurance for amounts over 100k and I'm sure this whole issue would be a great... [ More ]

Reply #18

Todd — Thu, 28 Mar 2002 19:36:47 GMT

For me, taking the cash is key for the following reason: you can do so much MORE!Think of it this way: what kind of power and control do you have over your life having $29 million in the bank (under your immediate control) vs. getting paid an annual salary of $2 million? (These are actual numbers based on the BigGameLottery.com Jackpot Analysis feature -- click the link below.)I know the numbers are pretty big. Getting $2 mil a year is life-changing, but getting a lump-sum $29 mil means that m... [ More ]

Reply #17

Guest — Thu, 28 Mar 2002 19:20:48 GMT

The best reason I can think of to take the cash instead of annuity is not strictly a financial one. It is that the money would be in your hands, not the state's. You wouldpay your taxes on it one time and what's left would be yours to spend invest as you see fit - if the lottery was outlawed and vanished tomorrow you would have your money out of their corrupt little hands. You would no longerhave to have yearly dealings with the state and would bein the clear in case the annuity company had so... [ More ]

Reply #11

someday22 — Thu, 28 Mar 2002 18:29:03 GMT

Patrick: Makes sense, and I do respect and agree with your opinion. I will admit that ifMA millions or megabucks gets high enough I will play it. yeah it would be nice to have thelump sum option, but annuity isn't all bad. :)The Hot Lotto game sounds interesting, I'll research that one.Thanks again!Michael

Reply #10

Guest — Thu, 28 Mar 2002 18:23:13 GMT

It's rather simple. If I play, don't you think I should be the one who decides how my money is invested should I win (minus withholding, etc)-after all, it's MY money! I respect your opinion and of those who play either game-but I disagree with MA forcing me to receive annuity payments should I win. As for NH Hot Lotto, it starts April 7. Its jackpot will be the same as Powerball-choose AFTER you win, 25 annual payments or lump sum. I mentioned the CT game because I didn't know where in MA you... [ More ]

Reply #9

someday22 — Thu, 28 Mar 2002 18:10:25 GMT

Todd, Patrick et al,Thanks for the welcome.. May we all win big one day! (just not all the same day :) )Patrick: Not to sound rude, but reading through past posts from yourself and other members,I already understand you don't like MA's millions or megabucks.. What I'm looking for is WHY..Why do you feel that lump sum is better than annuity? For the record, I'm 27 so I would hope that 26 years from now will still see me breathing.. Besides that age factor, do you see anything else?I have always t... [ More ]

Reply #4

Guest — Thu, 28 Mar 2002 18:07:39 GMT

Remember that companies which sell annuities to lotteries want to make money off YOUR rightful winnings. They don't care about who won the lottery, only about how THEY can make a profit off of the jackpot, rather than letting you invest your winnings however you wish.

Reply #2

Guest — Thu, 28 Mar 2002 18:01:26 GMT

I'm assuming you live in California by the 5-digit number. As long as CA Super Lotto Plus requires the choice ahead of time, you should ALWAYS choose lump sum. This way you still have control over your money.

Reply #8

Guest — Thu, 28 Mar 2002 17:53:37 GMT

I would avoid both Mass Millions and Megabucks since, as you said, there is NO cash option. MA is wrong in forcing winners of either game to receive annuity payments rather than letting players have a choice like in the Big Game. If you were to hit the Big Game, you still can collect in lump sum provided you claim within 60 days. If you're near Connecticut, Classic Lotto is a very worthwhile game (choose after you win.) And, New Hampshire will soon have a Hot Lotto (MUSL multistate game... [ More ]

Reply #5

Todd — Thu, 28 Mar 2002 15:19:58 GMT

Welcome to Lottery Post!I know that Patrick has some very strong (and well-formed) opinions on the cash vs. annuity choice.-Todd

Reply #3

Sandy K — Thu, 28 Mar 2002 14:19:36 GMT

I think alot depends on your age. I am 54 years old. I would take the cash....spend a bit and invest the rest. If I invested properly, I bet I could be near the annuity amount in 26 years. If I were 21, I would take the annuity. But since I am getting up there in age, heck I might not live but a few years. Actually, I just got out of the hospital a couple weeks ago with a life threatening situation. My second in 4 years. So I would take the cash, invest the rest and see a tax attorney to see how... [ More ]

Reply #1

Golgo13 — Thu, 28 Mar 2002 14:10:26 GMT

Well i basically think of it like this, being that i'm 33 i would choose the annuity because i still have a good portion of my life ahead of me, While say someone who is up there in age lets just say in there 50's on up might want to take the lump sum because you never know if you can kick out another 26 years. Thats just my way of looking at it, there could be something more to it which i really dont know. Welcome and good luck

Hello everyone

someday22 — Thu, 28 Mar 2002 13:59:19 GMT

Hello everyone,Great site, and this is my first post. I've been reading through some of the posts and havea question that I'm hoping someone can answer for me. There seems to be common thought from those who know that annuity options are notworth playing. I live in MA and we do have MA Millions and Megabucks which only offerannuity. My questions is WHY is that such a bad thing? Is there a better chance to endup with more of your winnings by choosing lump-sum vs. annuity? I do understand that h... [ More ]