Annunity versus lump-sum payment

Reply #15

Kristin — Mon, 28 Jun 2004 03:06:49 GMT

I could live another 26 years off of $5 million per year, if I ever won Mega Millions. There will be no Cash Advance for me, I'll take it all and leave the rest whereever it goes.

Reply #14

Bradly_60 — Mon, 28 Jun 2004 02:30:34 GMT

I would like to know why you think you would pay less taxes by taking the annuity. Obviously by taking the annuity you get more actually cash over the annuities life. More cash equals more taxes. Take for instance you win Tuesday's Mega Millions jackpot. $210,000,000 annuity...$119,000,000 cash. If you elect to take the annuity for instance in Michigan (my home state) you would pay $2,350,385 a year for 26 payments. TOTAL = $61,110,010 in taxes. If you take the lump sum you would pay $34,6... [ More ]

Reply #13

rabbitfoot — Mon, 28 Jun 2004 01:28:25 GMT

Why not take the lump sum payment and then purchase a small annuity in an amount that you would feel secure with knowing that if you did make some mistakes along the way at least you are not going to end up broke

Reply #12

hypersoniq — Sun, 27 Jun 2004 16:06:42 GMT

I would take the lump sum..

Reply #11

acronym007 — Sun, 27 Jun 2004 14:28:37 GMT

I hate to tell you folks but you can technically go broke with annunity also. Aren't millions of Americans in debt today? Yet they are going to earn a salary next year and still can't pay off their debt with the next 3 years salary, can't a person with an annunity get into trouble still? Sure they can and most do, there alot of people that use shady services to get more money out ahead of time and allow these services to collect their winnings. In the end I think it's a very individual thing. I... [ More ]

Reply #10

golotto — Fri, 25 Jun 2004 21:22:29 GMT

Quote: O

Reply #9

Fwup — Fri, 25 Jun 2004 20:39:50 GMT

Quote: Originally posted by CASH Only on June 25, 2004 Almost everybody takes the LUMP SUM mostly because they have total control over their winnings.Yes, but in most cases total control over your winnings isn't a good thing. Isn't there an amazingly high percentage of lottery winners who end up broke after a few years

Reply #8

CASH Only — Fri, 25 Jun 2004 20:02:26 GMT

Almost everybody takes the LUMP SUM mostly because they have total control over their winnings.

Reply #7

phantomrainbow — Fri, 25 Jun 2004 06:53:22 GMT

I would take the annuity too,cause i would be afraid I would either spend it all,someone would steal it out of my account or something else like that. I wouldn't care about getting it all at once,because even 100,000 or more a year is more than I had ,and if i won 10 million or more I would consider it a good investment for my money i spend,usually no more than $5.00 for one draw(cause i am cheap,usually it is a dollar or two(but if you are meant to win all you need is one set of number). So I... [ More ]

Reply #6

Fwup — Thu, 24 Jun 2004 02:17:02 GMT

Most people take the lump sum because the financial advisors they hire encourage them to take the lump sum, which is benificial to the advisors because they make a lot of money managing it for the winner. Why not let the lottery people manage it for you for free, by taking the annuity?Even if you took the lump sum you couldn't spend it, because you'll need most of it set aside to invest. And, suprising as it may seem, it's very difficult to earn 10% consistantly on your investments. Plus, unless... [ More ]

Reply #5

ryanm — Wed, 23 Jun 2004 22:19:43 GMT

I would take the annuity payments if I won Mega Millions or Powerball because, as ChaosTheory said, many lottery winners go through their winnings in only a few years. Really, who needs more than $150,000 a year

Reply #4

MrSteel01 — Wed, 23 Jun 2004 22:16:09 GMT

take the payments the rest will go to your estate!why give the goverment more money!you can only spend so much!msIt takes 30 years to make a million @ 33,333 a YR

Reply #3

qutgnt — Wed, 23 Jun 2004 21:51:14 GMT

Seriously you take the 80 million lump sum, after taxes its probably say around 50 million. Blow 20 and do whatever you want with it right away and then take the other 30 million and invest it in tax frees, real estate etc, and even a moron could make 10% a year( and then you will have that 30 million for infinity not just 30 years. ) NO BRAINER.

Reply #2

ChaosTheory — Wed, 23 Jun 2004 21:27:49 GMT

Why would you take lump sum? If you won $145M and went with annunity, you'd get about $100M after taxes. If it's a 30 year pay out, you're getting $3.4M a year!! Can you seriously use that much? Another way to look at it: A lot of people who win the lottery actually end up in debt. If you take annunity payment and don't spend more than $3.4 million a year (stay away from credit cards!), you'll be set for AT LEAST 30 years. That's a 30+ year assurance that you'll be rich. :)And because thes... [ More ]

Reply #1

CASH Only — Wed, 23 Jun 2004 20:00:31 GMT

Phillips:TX requires the cash/annuity choice to be made when you PLAY, not after you win.Almost all BIG winners take the lump sum.

Annunity versus lump-sum payment

dphillips — Wed, 23 Jun 2004 16:09:11 GMT

Last night on the radio, I heard that the $145 million Texas winner chose a lump-sum payment (after the lottery official verified and validated the numbers on the slip.) Also, Texas assigns a person to work only with lottery winners. Personally, I think this is a good idea! I am not sure if New Mexico offers that service.If you win, do you want annunity payments: 20, 25, or 30 year payouts -- depending upon your state -- or do you want your lump-sum payment, now? Remember: there are LESS TAX... [ More ]