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Lump Sum or payments?Reply
Exactly. David Edwards just blew it on crap. I would not even buy more than three cars TOPS, probably only two. I don't need a lot to be happy, just the security to know that I will not be without money ever again. All I would have to do is invest in a 60 month CD at 5.5%, and I would be sitting pretty for a long time, then renew as needed. Now annuity payments on say $200 million might be worth it if I had no choice, but still would never compare to the interest rates of the lump sum. About
Feb 11, 2008, 1:51 am - sirbrad - Lottery Discussion Forum

Single winner in $314M Powerball lottery drawingReply
The winner can take the annuity or cash option. Most people just want one big lump sum because they don't want the smaller checks over 29 years in 30 payments. Now, as far as someone saying that it's better than taking the annuity, I don't agree with that. It all depends on the person who won. I don't think there's anything wrong with taking the annuity. At the same time, these people also seem to complain about not getting the whole prize when in reality they are. They seem to think Well $
Aug 30, 2007, 1:08 pm - Guru101 - Lottery News

What about taxes on remaining Anuity?Reply
An annuity is a tax deferred product sold by insurance companies. The interest accumulates tax deferred. You only pay income tax when you withdraw the money. There are different types of annuities and the lottery is a usually a structured, immediate annuity. That is, you get the same payment for a certain amount of years. PB is now a graduated immediate annuity. You can do that with your own savings, that is, invest so interest isn't taxed while the money is building. If you buy an ann
Aug 25, 2007, 7:57 pm - justxploring - Lottery Discussion Forum

MM Payout
Just curious, in the past most folks have said they would take the cash payout, but the annuity payout per year with a MM jackpot of this size would be enough to 'get by' on to where you should be able to take the annuity instead of the cash, spread across 20 years. If the MM jackpot was 400 mill, the annuity would be 20 mill a year, less taxes of course. Would you now be swayed enough to take the annuity ?
Mar 7, 2007, 1:22 am - guesser - Jackpot Games Forum

Poll #5Reply
I say Wisconsin Supercash is better since the OR game's cash option is exactly half of the annuity, instead of a (higher) floating percentage, since it's a relatively short annuity. (While the Powerball cash option is less than half of the annuity, PB lump-sum winners are not cheated because the cash value represents the true present-day value of the annuity.) BTW both states should have Hot Lotto (Wisconsin has a game with the same name as OR's.) As both states are computerized they cannot u
Feb 19, 2007, 9:55 am - CASH Only - Jackpot Games Forum

Saturday's PB WinReply
Cash Only...regarding the Federal tax rate, my comment is that if someone took the annuity, using current tax rates, for the first seven years the federal tax would be 33%. This is because in the current federal tax schedule the tax rate for income between $195k and $349k is 33%. The Powerball graduated payout schedule for a $15 million jackpot puts the payouts below $349k for the first seven years. Based upon the above the tax rate for the annuity is 33% for the first seven years and then 35
Jan 30, 2007, 11:02 am - CA LotteryGuy - Jackpot Games Forum

To my fellow LP membersReply
konane the annuity Clark Howard is referring to is a variable annuity, far different from the annuity that the lottery utilizes. The variable annuity Mr. Howard refers to is a controversial investment on its own. The lottery purchases government securities, typically zero coupon bonds from the US Treasury. For example, for Mega Millions the lottery would purchase 25 separate bonds. The bonds mature one at a time over the next 25 years at or near the anniversary date of the winning lotte
Dec 18, 2006, 11:39 am - CA LotteryGuy - Lottery Discussion Forum

Kansas Powerball lottery winner claims jackpot anonymouslyReply
The thread in which Chuck explained things was in a thread about a pool winning PB, when the usual debates about annuity vs cash started. You can start here: https://www.lotterypost.com/news/139681.htm?p=2 As Todd pointed out, MM pays out on a different schedule, but other than that the procedure is similar. Seek bids, buy the annuity, send a check each year. It is, naturally, the annuity that is determined by interest rates. Ticket sales generate cash, and the cash is used to buy the
Oct 6, 2006, 12:32 am - KY Floyd - Lottery News

State TaxReply
It depends on which payment option you pick. If you select the lump sum option, you would most likely pay taxes in the year you gave your social security number and the lottery verified you were holding a valid ticket and the lottery deducted any delinquent debt owed to the state. Worst case scenario, you would have to file for an extension and/or file an Estimated Tax for Individuals. If you pick the annuity option, for your first payment you would most likely pay taxes in the year you gav
Oct 5, 2006, 12:27 am - Preppy - Lottery Discussion Forum

a poll about annuities and lump sumReply
I am a total lump sum fan. The annuity prize is a marketing gimmick to inflate the jackpot. The annuity prize is also an easy way to shirk responsibility and discipline. A good to excellent financial advisor could easily beat the low returns of zero's/strips government bonds and establish a financial plan. I agree with four4me that the only reason a person should take the annuity is if that person has poor money habits. However, if a person has poor money habits taking the annuity wil
Oct 1, 2006, 7:46 pm - Preppy - Lottery Discussion Forum