Dropping cash values?

Reply #14

CASH Only — Sat, 09 Aug 2003 19:35:13 GMT

Look at Colorado Lotto; AFAIK their cash value has ALWAYS been 40% of the annuity. If there's one game where cash option winners are cheated, it's the Colorado 6/44 game.CO would do well to replace its 6/44 with Hot Lotto , since CO is a MUSL member.

Reply #13

a002 — Thu, 07 Aug 2003 00:36:23 GMT

Yeah, honestly I hope

Reply #12

smd173 — Thu, 07 Aug 2003 00:04:03 GMT

a002,You make some valid points. The even scarier Annuity vs. Cash situation is for PA's Super 6. It hasn't been hit in like 10 months now. Well for about 9 of those months the Cash value was 50% of the annuity value. Then one foggy Friday in late May/early June they switched it. Now ever since the cash value has grown at roughly $500K per drawing and the Annuity grows at $200K.By my calculations in about another 55-60 rollovers the Cash Value will actually EXCEED the Annuity! I sincerely hope i... [ More ]

Reply #11

a002 — Wed, 06 Aug 2003 23:08:22 GMT

T-Bills at 5.25%? That's a bit high, no?http://wwws.publicdebt.treas.gov/AI/OFBillsI know they're extremely stable.. but they do fluctuate. Their rates are considerably lower now than they were in 1999 for example.I'm saying that their change isn't enough to warrant Powerball and Megamillions advertising a larger annuity jackpot vs their cash amount on hand.It is also my understanding that both MM, MUSL and most lottery commissions in the US, purchase zero coupon bonds (probably STRIPS) and not... [ More ]

Reply #10

vincejr — Wed, 06 Aug 2003 19:59:55 GMT

Part of the problem may be

Reply #9

Pick-4_Master — Wed, 06 Aug 2003 19:16:41 GMT

And don't let anyone talk you into CASH if you decide to take ANNUITY

Reply #8

a002 — Wed, 06 Aug 2003 19:13:24 GMT

Quote: O

Reply #7

CASH Only — Wed, 06 Aug 2003 16:52:19 GMT

a002:Good question. It could very well be that LONG-TERM interest rates (ie, the length of lottery annuities) have increased, while SHORT-TERM percentages have yet to do so.Don't let anyone talk you into switching to annuity, a002.

Reply #6

Pick-4_Master — Wed, 06 Aug 2003 16:31:10 GMT

I was just messing around in the previous post about it being better to get an ANNUITY there both good choices.

Reply #5

Pick-4_Master — Wed, 06 Aug 2003 16:26:34 GMT

CASH is good if that's your Choice,but ANNUITYis a good decision also.Honestly having 2 choices in a Lottery Winfall can be based on how a person wants to handle there winnings not everyone wants a LUMP sum and there are reasons for that.You can't say that CASH is better just like you can't say ANNUITY is better it all depends on the situation.There equal as far as how they would benefit the winner in the long or short term.

Reply #4

a002 — Wed, 06 Aug 2003 15:50:31 GMT

CASH Only, where are you? Back me up against Pick-4_Master! Clearly cash is the only way to go. :D

Reply #3

a002 — Wed, 06 Aug 2003 15:48:30 GMT

I know that. But the point is that the opposite is happenning, while the rates are getting closer to 0. :)So the exact opposite of what you said is happenning.. which is why I wrote my original post in the first place.Taking annuity or cash over one another is a personal choice. I will always choose cash. I don't care what someone else will do. What I do care about is what I wrote in my original post.. it troubles me that they would advertise a higher annuity jackpot for the sole purpose of high... [ More ]

Reply #2

RJOh — Wed, 06 Aug 2003 15:10:52 GMT

It has been discussed before somewhere in this forum, that the value of a Jackpot is the amount that the cash would earn if invested in a 28 or 30yrs annunity. If the interest was more the jackpot would be more. If the interest was 0%, the jackpot and cash amount would be the same, so the closer the interest rates get to 0, the closer the cash amounts and jackpots are. Some are saying with interests on investments being so low and many people actually losing on their investments, the choice of... [ More ]

Reply #1

Pick-4_Master — Wed, 06 Aug 2003 14:55:44 GMT

That's why it's better to get an ANNUITY

Dropping cash values?

a002 — Wed, 06 Aug 2003 14:26:09 GMT

Whoah, what's going on here? I've been watching cash values for over a year now (CASH ONLY is the way to go!) and I've noticed a sudden drop in the cash values based on the advertised annuity value for both Powerball and Megamillions during this past few sets of drawings (ie: since the last time someone won).Megamillions is currently $50m annuity and $28m cash. That's a cash value of 56% of what's advertised. But the last time it was $50m the cash value was $32m! Which puts it at 64%. Megamilli... [ More ]