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cash vs. annuity
if you won would you pick lump sum cash or annuity
Feb 17, 2005, 7:59 pm - LOTTOMIKE - Lottery Discussion Forum

MORT CRIM: Lottery winners can become losersReply
Quote: Originally posted by CASH Only on July 21, 2004Lottery winners become losers if they receive annuity payments.ok. the lottery winner in the article did recieve annuity payments, but she was able to get a LUMP SUM by selling the rights to the annuity. It was her option to go with the lump sum that made her in debt. Had she still gone with the annuity, she probably wouldn't be in debt too bad because she would still be recieving payments, and she would be able to pay her debt off. Annui
Jul 21, 2004, 9:09 pm - DoctorEw220 - Lottery News

Cash VS Annuity IV
In honor of my 40th birthday, I've served up another CASH vs ANNUITY poll.
Jul 29, 2003, 4:57 am - CASH Only - Lottery Discussion Forum

Cash Vs. Annuity
Crouse ran numbers to help determine whether it's better to take a windfall in payments over time - an annuity - or in a lump sum.Crouse used the Powerball jackpot as an example todetermine which pays off in the long run: the ticket thatpays the winner $ 104.3 million now or pays $ 7.7 millionannually for 25 years. (Both are before taxes.)The annuity represents a 5.4 percent return. That soundseasy to beat if you take the lump sum and invest it - until you consider the huge negative effect of pa
Jan 18, 2003, 7:25 am - Thomas Covenant - Lottery Discussion Forum

One more annuity vs cash discussion
One thing I haven't seen mentioned in these discussions, (or I missed), is any mention of someone taking a cash option not having the same buying power , let's say, of what the annuity offered. In other words, let's say the deal is a $100,000,000 annuity spread over 20 or 26 years as compared to a cash option that is about 40% of that, pre-tax. I've learned here on LP that the advertised jackpot amount (annuity) doesn't really exist in cash (and that's what the prize wouldl be, theorhet
Jan 13, 2007, 5:54 pm - Coin Toss - Lottery Discussion Forum

$290 MILLION:" Mega Millions lottery jackpot increasedReply
Quote: Originally posted by tg636 on July 02, 2004If you show me some good evidence that you could make the amount of the annuity by investing the lump sum, I would be a believer. Assuming taxes get 35% of the lump sum and 5% of what's left goes to spending and enjoying your money, then you start off down 40%. So you have to make that 40% back just be get back to where the state starts off investing the annuity. The state takes the same lump sum and invests it without having to pay the 35% tax
Jul 2, 2004, 11:13 pm - whodeani - Lottery News

Powerball reaches $643 million: highest lottery jackpot of 2025Reply
I'm surprised that you got that completely backwards. With fixed annual payments the advertised annuity would be less than the inflated advertising value they get by keeping more money invested for a longer time. Of course advertising that smaller annuity would almost certainly reduce sales a bit, making both the cash and annuity even smaller after any given number of rolls. They tell us the graduated annuity makes sense because of inflation, but I feel very confident that that's strictly PR abo
Aug 21, 2025, 9:18 am - Tucker Black - Lottery News

Why Do You Think Lottery Winners Always Take The Cash Option?Reply
I'll try to keep this simple since you're already confused. The lump sum is less than the annuity payments, because it doesn't include the interest earned by the annuity. A one time asset tax would be based on the entirety of the lump sum, but only the portion of the annuity that has already been received. An annual asset tax would tax the lump sum over and over, but would still only tax the portion of the annuity that had been received to date. That means that the tax would take more from th
Feb 14, 2014, 7:37 pm - KY Floyd - Lottery Discussion Forum

Question to people who won over $600? are prizes cut in half?Reply
Advertised Jackpot Game Prize Amounts are based on the Winner choosing the Annuity instead of Cash. The Lottery acts as the Agent for the Winner if they Choose Annuity: They take the Cash Amount and Purchase an Annuity for the Advertised Jackpot Amount. (Time Value of Money) The Winner then Receives the Annuity and Pays Taxes Annually as they Receive the Annuity Payout. If the Winner chooses Cash: They receive the Cash Amount minus Taxes. (Cash Amount is usually 50% of the Annuity Am
Mar 17, 2009, 9:31 am - Raven62 - Lottery Discussion Forum

Is your state a powerball or a megamillions stateReply
When the jackpot is at $20 million the lump sum or cash value amount represents the amount of money it takes to purchase a $20 million annuity. The Powerball annuity has 30 payments and Mega Million has 26 so MM's lump sum payoff is higher on a $20 million jackpot because the annuity term is shorter. A 26 year $20 million annuity costs more than a 30 year annuity and that why the MM cash value for the same advertised jackpot amount is higher. Today's Powerball cash value jackpot is $10.3 mill
Oct 10, 2008, 4:07 pm - Stack47 - Jackpot Games Forum