Lump sum Vs Annuity

Reply #12

CASH Only — Tue, 27 Jan 2004 13:07:48 GMT

starchild:DO NOT choose annuity, regardless of your age. Take the lump sum, AND THEN consider using PART of your winnings to SHOP AROUND for an annuity.Besides, if there (currently) is no STATE income tax, it's ANOTHER reason to take the cash-in case Washington state dventually taxes lottery winnings.

Reply #11

dvdiva — Tue, 27 Jan 2004 04:46:32 GMT

considering the current tax rates and the likelihood of a vast increase in the near future i'd take the money as cash now.

Reply #10

prob987 — Tue, 27 Jan 2004 01:36:33 GMT

Take the cash.The annuity money is invested in Government bonds. Although we think it can't happen here, with the enormous profligate deficits our government is running, hyper inflation is a real possibility. The annuity money under these conditions will be almost worthless.Take the money, buy Euros, Yen, New Zealand dollars, British pounds, and invest overseas in solid companies. One the inflation kicks in (and it will - since our Government is being run on credit by a bunch of guys who ac... [ More ]

Reply #9

6of6 — Mon, 26 Jan 2004 21:18:33 GMT

take the cash, get an financial advisor, plan your money and lifestyle according to the jackpot amount after taxes.you'll fair better in the long run with the cash invested rather than the payments.

Reply #8

fja — Mon, 26 Jan 2004 18:21:32 GMT

I agree with hyper...it doesnt hurt to be prepared...you should have a file named Open in case of lottery win ...there has been some sound advice tossed around the lp in regards to annuity, lump sum, taxes trust....you should toss it into that file for reading when it does become a factor,,,hate to have people get all caught up in the win.... just like a dear caught in the headlights.

Reply #7

megamillionaire — Sun, 25 Jan 2004 23:42:38 GMT

Quote: Originally posted by Thomas Covenant on January 24, 2004 Most lottery winners (75%) go broke within 5 years after winning, So, is this really good advice? Thomas, where'd you get this statistic? Doesn't matter really, I'm taking the lump sum.

Reply #6

golotto — Sun, 25 Jan 2004 19:55:08 GMT

i agree, it would be very nice to have control over the funds... ie the cash option. would investing nearly all funds from the cash option equal the after tax annuity total over the same period of time without taking risks to get there? i don't know which path i'd take.

Reply #5

hypersoniq — Sun, 25 Jan 2004 19:25:34 GMT

The way I see it, the dreaming is behind me... all sorted out in various text files and a spreadsheet... Now I can concentrate on those numbers without jackpot distraction . There is no more Wow, what would I do with that much money? ... I am focused on What will the numbers be in the next draw? ... still no luck in that department...

Reply #4

mayan27 — Sun, 25 Jan 2004 19:17:21 GMT

Hey HYPERSONIQ,theres a saying Never count the chicks before it hatch ,however i know it is always good to prepare for the unexpected.To admit,i enjoyed your last statement on the topic pros and cons of annuity over cash.It don't hurt to fantasize.Have fun dreaming.,

Reply #3

hypersoniq — Sun, 25 Jan 2004 14:08:06 GMT

I know what I would do (Cas

Reply #2

Thomas Covenant — Sat, 24 Jan 2004 15:54:34 GMT

>>>Most financial advisors have stated that it would be better to take the cash.<<<<Most lottery winners (75%) go broke within 5 years after winning, So, is this really good advice

Reply #1

hypersoniq — Sat, 24 Jan 2004 11:21:31 GMT

Cash value is what the jackpot is worth today... investment income can be handled with the use of municipal bonds. I would take the cash. If you choose to, you could purchase a smaller annuity, and have the luxury of shopping around for a better rate.Most financial advisors have stated that it would be better to take the cash.use the search link above, pros and cons have been covered here ad nauseum.

Lump sum Vs Annuity

river ph — Sat, 24 Jan 2004 03:29:32 GMT

Does anybody has statistical facts about which is better? Lump sum or annuity Jackpot ?Here is some questions!! Suppose the Jackpot is $10 millions paid out in 25 yearsLump sum you get 5 Million- 40% taxes= 3 Millions cash and every year you will pay taxes on income from your 3 million investment IncomeAnnuity you will get $400000 - 40% taxes = $260000 for 25 yearsIs any CPA or accountant or somebody smart with numbers can tell which will come ahed ? Lump sum or Annuity ?Thanks