Cash or annuity ?

Reply #19

st.germain — Wed, 28 Apr 2004 00:27:49 GMT

Hi everyone..I would take the cash option for two reasons...first..we have all seen that businesses fail and sometimes governments do too and then of course,there will be no more games(legally) and second is, that i think that I could invest my money more wisely then these people down at wall street for the next 20 or 26 years...just look at the real estate market which is still going through the roof, not to mention urban sprawl and rural sprawl. When thinking about the future and how to capit... [ More ]

Reply #18

CASH Only — Tue, 27 Apr 2004 20:23:54 GMT

Why not

Reply #17

repat — Tue, 27 Apr 2004 20:22:56 GMT

No, I don't .

Reply #16

Paid 2 Lotto — Tue, 27 Apr 2004 12:20:48 GMT

Maybe they should change the rules and go for a lump sum tax free like in Europe.They have their reasons for not to do it that way , for sure, but tell me guys ..wouldn't you like it that way

Reply #15

plnwebguy — Thu, 22 Apr 2004 04:46:37 GMT

Speaking from experience, I would underestimate and I would be surprised :) Actually it may be a good poll, something along the lines do the people you know or work with who only play in office pools understand how the jackpots work :)later,plnwebguy

Reply #14

DoctorEw220 — Thu, 22 Apr 2004 04:25:01 GMT

they probably do look at that number, but i wouldn't underestimate their knowledge of how lottery jackpots work. i wouldn't be surprised if they were aware that that is the annuity value, and that there is a cash option offered.

Reply #13

plnwebguy — Thu, 22 Apr 2004 04:19:56 GMT

The hardcore lottery pools probably look at the cash option, but the pools that will crop up now in offices because the Powerball is at $103 million are looking at that number. plnwebguy

Reply #12

DoctorEw220 — Thu, 22 Apr 2004 03:02:59 GMT

Quote: Originally posted by plnwebguy on April 21, 2004I thought I'd throw this in because of personal experience - if you're part of a pool buying tickets, such as an office pool, sometimes the choice is made for you. Everyone seems enthralled by the well-publicized annuity amount, so if the pool won (haven't experienced that part yet) everyone else would probably want the annuity amount. plnwebguyi disagree. i've sold tickets to people representing lottery pools, and most of the pools would... [ More ]

Reply #11

plnwebguy — Thu, 22 Apr 2004 02:46:33 GMT

I thought I'd throw this in because of personal experience - if you're part of a pool buying tickets, such as an office pool, sometimes the choice is made for you. Everyone seems enthralled by the well-publicized annuity amount, so if the pool won (haven't experienced that part yet) everyone else would probably want the annuity amount. plnwebguy

Reply #10

tg636 — Wed, 21 Apr 2004 21:22:32 GMT

I think the choice is more psychological than financial. If you take the cash, you can end your dealings with the lottery and IRS after one year and you'll feel in charge of your money. However, since you have to make your investments after paying 35% in income taxes (and withholding whatever cash you want to have on hand) and the state can invest the full amount in the annuity, you will probably not equal the amount of the annuity by investing it yourself. If you take the annuity - the state... [ More ]

Reply #9

JAP69 — Tue, 20 Apr 2004 22:02:00 GMT

Quote: O

Reply #8

CASH Only — Tue, 20 Apr 2004 21:43:47 GMT

Cash v annuity is still an issue because:Mass 6/49 and 6/42 are still annuity-onlyOR and WA each have a Lotzee -type game with a top prize of $1000-a-week-for-life with no lump-sum option availableAnnuity-only scratches are still offered in Mass, NY, and possibly elsewhere, not to mention instants with lifetime prizesCA, NY, TX still require the cash/annuity choice when you PLAY, instead of after winningSome states (eg FL) start the 60-day clock with the DRAWING, instead of whe... [ More ]

Reply #7

Wet Dog — Tue, 20 Apr 2004 13:51:02 GMT

Doing a search on this subject, I see this question has already been asked several times. Sorry

Reply #6

CASH Only — Tue, 20 Apr 2004 13:31:28 GMT

We've been down this road before

Reply #5

plnwebguy — Tue, 20 Apr 2004 13:08:23 GMT

Personally I would take the cash value, pay off any debts and buy a few things, keep a little bit more of it aside for future spending and investments, and then with the rest I would buy my own annuity. Even if only half of it was put into an annuity it would be quite an annuity amount.plnwebguy

Reply #4

keystonechas — Tue, 20 Apr 2004 05:08:23 GMT

Its a falsehood that the state lottery pays you a jackpot. They have contracts with large investment and insurance companies. The lottery gives the investment companies a yearly lump sum of money. The money is invested in stocks, bonds, etc. The investment companies pay off the yearly lottery players annuity payment. The investment and insurance firms make a profit, plus the state lottery gets a return on their money.Could the investment firms go bankrupt? Sure, the final obligation to pay falls... [ More ]

Reply #3

twisted — Tue, 20 Apr 2004 02:51:46 GMT

I would definitely take cash over annuity. I do understand and think yours is a very good point Wet Dog. But taking cash is the only way to go for me. The truth is no one really knows how the world economy is going to work in 20 or 30 years. Anything could happen and the annuity money you get just wont be enough (i know its highly unlikely but its possible). In todays insecure world, anyone can die any day. I would rather have control over the winnings myself and invest it.Hey if i'm suppos... [ More ]

Reply #2

bowldog — Tue, 20 Apr 2004 02:44:30 GMT

Do you really trust the budget crunchers at the state level to leave your winnings alone? All it takes is a few of these idiots to get together and change the rules or laws to whatever they need at the time. In the meantime you could take the cash and invest in some t-bills or bonds(3-4% return)or anything conservative and backed by the good faith of the US Govt., because if they change those rules the global economy crashes. Not much return on investment but the security of knowing where your m... [ More ]

Reply #1

keystonechas — Tue, 20 Apr 2004 01:38:22 GMT

Every persons situation is different. For a young couple it makes sense to have the that long term security and take the annuity.For a old dog like me, who won't be around twenty five or so years from now, the cash is the way to go.Chas

Cash or annuity ?

Wet Dog — Tue, 20 Apr 2004 01:22:05 GMT

I know a lot of people who