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cash vs. annuityReply
A friend of a friend won $54 million in the CA lottery. They took the annuity option. They were always broke, because they spent every last penny. They always had the mentality that another dispersement was coming next year, so they did not manage their money wisely.I would want the lump sum, because it forces me to manage a finite amount that could likely grow to be more than the annuity sum even with me spending some of it. Plus, if you invest the lump sum, you can live off the interest ear
Jun 15, 2005, 12:41 pm - danisiri - Lottery Discussion Forum

JackpotsReply
here's how i determine it.I take into account the cash value and (if applicable) annuity amounts. If I feel that the cash amount and annuity amount are right, with the annuity amount equaling $1 million a year before taxes, then it may be worth it.I take into account the odds. If the Mega Millions jackpot, with it's 135 million to 1 odds, is at $30 million, it isn't worth playing. If the OH Super Lotto Plus jackpot, with 14 million to one odds, is at $20 million, it's worth playing. If the OH Ro
Apr 29, 2005, 3:28 pm - DoctorEw220 - Lottery Discussion Forum

cash vs. annuityReply
Once you choose your option that's it. However, there are many places that will buy your annuity and charge you a healthy fee for it. Overall, if you win Powerball and have somewhat of a sane and intelligent mindset after the initial rush settles, you'll never have to really worry about money again (within reason of course). That goes for either cash or annuity. If you're a knucklehead you'll get into trouble no matter which you choose. With regards to the IN couple that chose annuity...it
Mar 26, 2005, 11:45 pm - secretagent - Lottery Discussion Forum

cash vs. annuityReply
The only scenario that I would consider an annuity is if the jackpot annuity amount was pretty small. I think there is a gray area where you have won say $400,000 - 800,000 and feel pretty wealthy, but you know you aren't wealthy enough to quit your job, travel and live it up until you are 80 years old on your winnings alone. So you have lots of money and still have to work, pretty depressing. If I had the lump sum, that big pile of cash, just sitting there in the bank, I might start to thin
Mar 9, 2005, 2:48 pm - tg636 - Lottery Discussion Forum

powerball matrixReply
Cash is simply tbe best option if you like having more money. Ask any financial expert and they will tell you the same thing. As far as I can tell, every single Powerball winner from the past two years has chosen cash instead of annuity. There's probably a reason for that.If you want an annuity you can get exactly the same effect by investing in treasury bonds (which is what the state does for you if you pick annuity) and if you get sick of the Annual Payments later down the road and change your
Mar 1, 2005, 5:28 pm - Blalron - Lottery Discussion Forum

Penn. Lottery's Midday Mistake Leads to Questions About DrawingsReply
Quote: Originally posted by four4me on October 02, 2004WHY WHY WHYif you don't like annuity paymentssell your annuity for alump sum cash paymentI don't think Lucky for Life wins will be an easy sell to an annuity-buying company because it has no fixed end-of-payment schedule... if a 30 year old wins it it will be potentially worth more than if a 75 year old wins it.If they go off of insurance company lifespan averages and you live longer than that, then you get ripped off... if you die sooner an
Oct 2, 2004, 11:38 am - hypersoniq - Lottery News

$40 Million Man's payments endReply
I am still waiting for the proof that a lottery winner would make more money after 20 years investing the lump sum than if they choose the annuity. Please post the link to an article that will make a believer out of anyone who isn't sure. To me, it seems like you have to make back 40% of your money just to get back to zero, assuming 35% in taxes and 5% to spend on enjoying life. Then you have to make an additional X% to match or beat the annuity. But maybe I'm wrong, and its easier than I think
Aug 31, 2004, 11:09 am - tg636 - Lottery News

Pepsi Billions... cash or annuity?
Pepsi billions sweeps comes up in september again...if you did get there and had the right 1 in a million number to win the billion, how would you take it?here is the payout schedule for annuity...year 1 thru 20 = $5,000,000 (running total $100,000,000 after 20 years)year 21 thru 39 = $10,000,000 (running total $290,000,000 after 39 years)year 40 = 1 payment of $710 millionthe lump sum payment is 250,000,000... it would take 35 years to equal the lump sum but you would have the money NOW (and m
Jul 18, 2004, 4:08 pm - hypersoniq - Lottery Discussion Forum

$290 MILLION:" Mega Millions lottery jackpot increasedReply
I forgot to mention in my post above that the taxes you would pay on an annuity vs. a lump sum are based on two different amounts. $290 million for the annuity and $165 million for the lump sum so naturally you will pay more taxes on the annuity. I thought I would mention this to fair in my analysis. I was just looking at it in terms of just paying taxes on winnings regardless of what the winnings may be. Even though $290 million is much more than $165 million, I would feel a heck of a lot bette
Jul 3, 2004, 12:02 am - whodeani - Lottery News

Powerball Jackpot Climbs to $205 MillionReply
Quote: Originally posted by tsai3904 on May 06, 2004With the jackpot amount this large, would it still be wise to take the cash option? If you choose the annuity option, you would be paid an average of $7 million a year for 29 years ($205 million over 29 years)!I mostly hear arguments for the cash option, but if you were to receive $7 million per year, I might think about the annuity.Thank you Thank you... somebody step up to the plate on large jackpots, I know I don't have 205 million just layi
May 6, 2004, 6:41 pm - mken35 - Lottery News