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Why is the new cash option so low for MM?
October 4 - $12,000,000 annuity - $6,150,000 cash October 8 - $14,000,000 annuity - $7,200,000 cash December 20 - $15,000,000 annuity - $6,000,000 cash I remember when the $12,000,000 rollover used to be $6,750,000 cash option at the minimum. $15,000,000 before the change used to be over $8,000,000 cash option. I was excited for a minute seeing the raised the minimum but then I saw how misleading they were. Raise the annuity but drastically lower the actual amount. I wish Tex
Dec 18, 2013, 6:39 pm - ttech10 - Lottery Discussion Forum

Was that the official concession speech from Mega Millions?Reply
Yeah, the annuity change could be most of the difference in sales. That's what gets people pumped up is the annuity JP value so pumping that up pumps up sales. Lots of players probably don't even know or care about the new matrix. But they did several changes at once, so it's hard to say which contributes more now and going forward. - increase annuity from 26 to 30 annual payments - change annuity payments from fixed to graduated, 5% inc per year, higher than PB 4% - increase JP prize p
Dec 12, 2013, 3:45 pm - Jon D - Lottery Discussion Forum

Annuity or Lump Sum?Reply
I know that the annuity looks like a better bet, but it isn't. If you do what you're supposed to do and get a financial advisor, you end up making more than the full $80 the annuity guy gets. If you're concerned about how much money your financial advisor can manage, get more than one. Give each a certain amount to invest for you. If anyone has every watched an episode of American Greed on CNBC you'll see it's never a good idea to invest everything with one person. Last year, the federal
May 14, 2013, 1:39 am - Teddi - Lottery Discussion Forum

Mega Millions in Trouble?Reply
This. MM is at the same cash value on 3rd draw as usual, $16m. I do agree the first roll was.... mmm... odd. What I find more odd is that PB is less cash value after 12 draws with the $2 price than after 12 draws at $1 the last time draws were $1. Yes, possibly the economy has something to do with it, but from February to now, not so much. Remember that the first time PB was $2 was in the middle of the last of the $1 rollovers. Feb 8th, after 12 rolls, cash value at $156m ($250m annuity
Aug 5, 2012, 6:03 pm - Piaceri - Lottery Discussion Forum

$241 MILLION: Mega Millions lottery frenzy ramps upReply
When you take cash, you pay the maximum federal and state income tax rates on nearly all of the dollars (because the U.S. has a graduated tax system). When you take the annuity, more of the money is taxed at zero and lower rates that the maximum rate. But the BIG reason to consider annuity is that if you take the annuity, then the lottery can invest the money BEFORE taxes. If you take cash, then you end up with about half the money left over to invest. It is tough to invest $100 million and c
Mar 18, 2012, 12:50 am - chuck32 - Lottery News

$241 MILLION: Mega Millions lottery frenzy ramps upReply
ooOOoo I can try to sound intelligent! ready? ok! Taxes now vs. taxes then. It's not really a question of that, as much as a question of whether you believe that you will make better long term investment choices than the return you would receive via: the annuity. Example: you are an impulsive person and believe sincerely that glass slippers are about to make a HUGE comeback... and invest ALL your money in this SURE THING. recommendation? take the annuity. However, should be on a more earth-b
Mar 18, 2012, 12:32 am - maximumfun - Lottery News

New England states start new lottery game ThursdayReply
Annuity options exist in U.S. lottery games because of taxes. However, Canada (with tax-free lottery prizes) has a successful annuity game. Players like the idea that they can screw up for a year or two and still look forward to a payment next year. CASH is not always the best option. The are known factors to consider. Imagine a financial advisor coming to you and saying - let's take your income BEFORE taxes, invest it, then pay it out over XX number of years as a graduated annuity (to keep
Mar 14, 2012, 12:10 am - chuck32 - Lottery News

Virginia man claims $200M Mega Millions lottery jackpotReply
Nope. He is unintelligent by doing the media interview and selecting the cash option. How long he took to claim the prize has nothing to do with what kind of person he is - I can see right through it, it's mere ego. He might have been able to do amazing things with the money..but only if he took the annuity and refused the media interview. Megamillions is watched by the whole country daily, his privacy is over from now on and he is officially going to be viewed as a money source, rather than as
Mar 14, 2010, 8:03 am - shortysonicg - Lottery News

Weak bond market lowers lottery annuity jackpotsNews Story
Situation serves as reminder of how jackpots are calculated The nation's financial crisis is causing a dip in one of the optional jackpots offered in Wisconsin's Megabucks lottery game. The lottery said Tuesday that the annuity option which has a jackpot paid in installments over 29 years will decline for the first time because of a weak bond market. State lotteries fund their annuity options by using ticket revenue to buy conservative, government-backed bonds. For the Wisconsin lott
Oct 29, 2008, 9:06 am - Todd - Lottery News

How are payments invested?Reply
That's what I was saying regarding how money is invested. A 20 year annuity has to have a higher interest rate to reach the same jackpot as a 30 year annuity. MM is 26 years, so it's somewhere in the middle. PB cash option is usually a little less than 50% and MM is usually around 60%. I know I've said this before when people have asked why the cash option for MM is higher than PB when the jackpots are similar. It's all based on what initial investment is required to payout the jackpot after XX
Aug 14, 2008, 3:09 pm - justxploring - Jackpot Games Forum