Search

Almost-millionaire on a 15-year political pilgrimageReply
You hit upon a good point that I found very interesting. Why is there a deadline in the first place? I agree with you that there should not be a deadline, or if the states wanted to impose some sort of penalty let it expire over the period of time the annuity would have been paid out. So say if the jackpot would be paid as an annuity over 26 years like in New York then let that be the penalty, for each year that the ticket is not claimed you lose that years payments. So my time period would
Mar 19, 2012, 4:36 pm - mjwinsmith - Lottery News

$241 MILLION: Mega Millions lottery frenzy ramps upReply
My question isn't really about whether annuity is better than cash option . My question is about whether a state can tax you on the INTEREST that is earned after you leave the state when you choose the annuity option. There are all kinds of things that go into picking an annuity over a cash option including factoring in the unknown future...my question pertains to just one aspect of making that choice. Thus I didn't need that poster to pontificate to me about what other lottery winners have d
Mar 18, 2012, 10:22 am - searching4luck - Lottery News

$241 MILLION: Mega Millions lottery frenzy ramps upReply
Future tax rates are the unknown. If US income tax rates go as high as European countries, which is the target 'ideal' to some, then your annuity could be taxed at 50% or more. Your $9.3m annual annuity becomes at best $4.6m before state taxes. And what if inflation goes nuts? Think about the crazy inflation we had back in the 70's, what cost $1 in 1970, cost $44 26 years later. Your $4.6m could be worth $1.1m in 26 years. And no, you cannot get out of paying taxes to either the state or the
Mar 18, 2012, 9:46 am - Piaceri - Lottery News

Cash Vs Annuity PaymentsReply
For me it depends on the amount and the age at which you win. If you are in you late teens or earlier twenties I would suggest taking the annuity. I know how I was at that age and at least if you blow your money those first couple of years at least you have an annuity coming for the next 20 yrs or so. Also I would suggest that you never sell your future payments to those brokerage firms you will end up being broke in no time. If you are 35 or older I would take the cash option and purchase my o
Feb 12, 2012, 3:44 am - s5thomps - Lottery Discussion Forum

Iowa Lottery security chief bent on determining identity of jackpot winnerReply
The annuity value is what the cash value will buy at the time of the drawing. While the cash value was sitting in the bank waiting for the winner, the annuity value dropped by $2.2 million. The cash value remains the same with the state keeping whatever interest was made. The winner still can decide either option but won't get the same annuity offered two weeks after the drawing. All states have decided their security measures through legislation before paying off any jackpot winner, but the
Jan 13, 2012, 6:21 pm - Stack47 - Lottery News

help with annuity rates of return vs. CD returns
*Assuming investing at a fixed rate of return* (certificates of deposit, money market, etc) do the below numbers look right? Assuming: the State in question has no lottery prize tax.. And assuming that interest income is taxed at: 10% by the State, and 30% by the Fed Using an online Compound Interest Calculator, these numbers came up.. The last MegaMillion annuity was 173 while the lumpsum was 130. That's a return of 33%, over 26 years. After taxes - That
Dec 24, 2011, 12:00 am - thelottery - Jackpot Games Forum

A bad idea for a winnerReply
I would have to say that starting a business is perhaps the best idea a lottery winner could make. The problem some businesses have is they are too niche, have too much competition, or are not well positioned for success. As a lottery winner, I would only commit a certain percentage to any business venture. I would consult with an attorney to properly shield the remaining proceeds from any lawsuits and invest conservatively. So should business go belly up, I would not be destitute. Above all, I
Dec 12, 2011, 1:06 am - OldSchoolPa - Lottery Discussion Forum

Part annuity Part cashReply
Stack has it exactly right. You can always buy your own annuity so that you can continue to collect annual (or quarterly) payments in an effort to control your spending. Unfortunately you can also borrow against the annuity or sell it outright to get cash now. You can do all sorts of things to protect yourself from others and from the economy, but lottery winners are almost always their own worst enemies. As for the idea of buying two tickets in order to split the winnings between cash and an
Apr 5, 2011, 3:30 am - KY Floyd - Lottery Discussion Forum

Can you divide a large winning this way?
Say you won the Mega Million jackpot, and you are the only winner. Will they divide the prize for you if you request? What I mean is, can you take half cash, and ask for them to put the other half in an annuity for you, with you getting a check each year for 26 straight years? For example, say you won tomorrow's drawing, for 88,000,000. Can you ask for half the cash (44 million, but the cash value is only 27 million, and after taxes it's down to around 18 million), and ask for the annuit
Mar 1, 2011, 5:16 am - Sammy1966 - Jackpot Games Forum

The Next Financial CrisisReply
Ok, so if they seize lottery funds - only the people that have ALREADY won and are getting annuity payments would have to worry??? The rest of us who have not won would just STOP playing and not give them any money. So based on that, everyone out there who has an annuity coming in from a state lottery - you might want to RUSH out and cash it in at one of the many reputable () 'covert your annuity to cash' companies .
Dec 22, 2010, 4:13 am - kapla - Lottery Discussion Forum