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who know the statistics of lottery winners who go brokeReply
I bet almost all of them took the payout rather than the annuity. I think an annuity would be safer. That way you wouldn't be as pressured to give to so many friends/relatives/charities. I would be like..oh well I only get so much every year and my financial advisor has it all planned out for me, sorry.
Apr 25, 2008, 9:49 pm - GamerMom - Lottery Discussion Forum

Paying a jackpot over 26 years is too long of a time frameReply
I agree that the advertising makes the jackpot seem very inflated, but it's like the ad in the newspaper that says chairs from $99. I'd say it's more like a car dealer promising they'll pay at least $5000 for any trade. When you come in, or if you look carefully at the website, they disclose the details and tell you that the $5000 will be paid as $50 per month for 100 months. That means it isn't fraud, but if all they advertise is at least $5000 for any trade then the advertising is false a
Mar 5, 2008, 2:14 am - KY Floyd - Lottery Discussion Forum

$220M Mega Millions lottery jackpot advice offeredReply
In terms of actual dollar value, they save a lot of money and you get a lot less when you take the annuity. With that amount of money, there are a lot of different investments you can have access to as an accredited investor that can protect your principle and deliver a nice income stream (like untraded REITs). Taking the annuity just so you don't spend it all at once is absurd.
Feb 27, 2008, 11:22 am - cgcg - Lottery News

Lump Sum or payments?Reply
Lump sum pays less in taxes over time vs annuity! Yes, no matter what you are going to be hit the first payment with 25% right off the top and another 10% at the end of the year for either the lump sum or annuity! But this is where the difference begins. The lump sum is now all paid up in the tax department and now you can invest it to yield the most possible income in the years to come. Now with that you now have to pay taxes on capitol gains (I see light bulbs going off) Yep you pay that at th
Feb 20, 2008, 1:44 pm - BaristaExpress - Lottery Discussion Forum

Lump Sum or payments?Reply
Yaddamean We've had many discussions about this topic, but one thing no one has ever mentioned is for people who take annual payments (annuity) there are companies out there that are very, very aggressive and try to talk people into a lump sum from themselves- for a lot less than they'd get keeping the payment. Someone hits a jackpot, opts for an annuity, one of these companies comes along and says, We'll pay you NOW .....so they turn over their annuity, get musch less for it than they wou
Feb 10, 2008, 1:08 am - Coin Toss - Lottery Discussion Forum

Hoosier LottoReply
There is definitely something hinky going on because if you go to the Hoosier Lottery website and check the press release they not only confirm the $40 million cash payout but also state the estimated annuity is $2.3 million a year for 30 years. That is a total annuity payout of $69 million on a $54 million jackpot! How can the total of annuity payments be $15 million more than the total jackpot? First they give us what..?...a 65% to 70% cash value and now the total annuity payments are gre
Nov 10, 2007, 12:36 pm - Uncle Jim - Jackpot Games Forum

Book: Money For NothingReply
It all boils down to the Time Value of Money, whether it be a Loan or an Annuity. In the case of an Annuity the Value Today is less than the Value in the Future.
Sep 24, 2007, 11:12 am - Raven62 - Lottery Discussion Forum

Retired auto worker, 2 children claim $314M Powerball lottery jackpotReply
It's not misleading. You get the prize you choose. You're trying to say that because Jack Whitaker's cash value was $170M and this one was $146M, that the cash value has gone down, but that's not true. It is the interest rates that have gone UP. The cash value is determined first, then they calculate the annuity value. So now, PowerBall can offer a higher annuity prize with less cash than it could 5 years ago.
Sep 15, 2007, 12:48 pm - Guru101 - Lottery News

Cash Options of JackpotsReply
But the MSM reports based on the useless annuity value. Bloomberg actually reported that a $300 million powerball was worth more than a $250 million Euromillions pot that was $250 in cash. With poor reporting like that, one has to wonder how wrong the rest of the reports are at Bloomberg. Maybe companies should report their earnings as an annuity value so reporters with poor understanding of math can help inflate corporate valuations.
Aug 26, 2007, 1:52 pm - dvdiva - Jackpot Games Forum

What about taxes on remaining Anuity?Reply
That's not true if the owner of the annuity dies. The estate is taxed on the cash value of the annuity at once. Yet another reason why people who talk it over with professionals choose cash.
Aug 25, 2007, 11:40 pm - dvdiva - Lottery Discussion Forum