Search

Powerball Lottery Jackpot Grows to New Record of $340 MillionReply
I wonder how much marketing they did to educate people of the new annuity schedule. Most people will believe that when there is a new record annuity jackpot that basically means a new record cash value (Most people at this jackpot level will choose cash). Powerball could tomorrow change the cash to annuity ratio to around 25% which could lead to a new record annuity jackpot of $400 million. Does that really mean its a new record? Not in my book.The record jackpot title should only be given to th
Oct 16, 2005, 11:24 am - twisted - Lottery News

new powerball scheduled payout infoReply
Cash value option or annuity?For just fun, I tried to calculate the present value of 30 annual payments based on 148M annunity and its payment schedule. I used the internal rate of return(IRR) method within finance function of MS Excell.The calculation indicates that the internal rate of return on the 73.4M cash value investment over the 29 year scheduled cash inflows(annuity payments) is approximately 5%.I wonder whether PB indeed uses that rate but, based on the result, I think a possible inte
Sep 26, 2005, 12:31 pm - anonymous77 - Lottery Discussion Forum

cash vs. annuityReply
Yes, you pay taxes on the yearly payout check. But the state doesn't pay taxes on the amount they invest to get that money. That's the key to the higher rate of return. If you started your own annuity with the cash, you would be starting with 35% less than the state invests to get its annuity.The question is: How would one equal or surpass the state lottery's annuity after 20 years with the cash you are left with after taxes? Let's assume you invest every penny.I would take the cash anyway, but
Feb 23, 2005, 11:02 am - tg636 - Lottery Discussion Forum

Lottery corruptionReply
Quote: Originally posted by DoctorEw220 on September 14, 2004Quote: Originally posted by CASH Only on August 17, 2004EW:Annuity-only payouts are still a problem where I live.life is how you make of it. if you think annuity-only scratch-offs are a problem, then avoid the problem, or contact the right people, bribe them, and get them offer a cash option on the prizes. it's either that, don't play them, or deal with it. also, you can go to someone outside the lottery, and arrange to recieve a lu
Sep 14, 2004, 3:17 pm - four4me - Instant ("Scratch-Off") Games Forum

Annunity versus lump-sum paymentReply
I would like to know why you think you would pay less taxes by taking the annuity. Obviously by taking the annuity you get more actually cash over the annuities life. More cash equals more taxes. Take for instance you win Tuesday's Mega Millions jackpot. $210,000,000 annuity...$119,000,000 cash. If you elect to take the annuity for instance in Michigan (my home state) you would pay $2,350,385 a year for 26 payments. TOTAL = $61,110,010 in taxes. If you take the lump sum you would pay $34,6
Jun 27, 2004, 10:30 pm - Bradly_60 - Lottery Discussion Forum

WINFALL winner takes annuity.
Why would you take annuity when the jackpot amount was only $5 million (I use the term only loosely)? I could see maybe a $100 million jackpot winner taking annuity but only $5 million. What do you guys think?The winner selected annuity payments for her jackpot winnings. She collected her first installment check of $182,470 (before taxes) during her recent visit to Michigan Lottery headquarters, to be followed by 29 annual installments of $180,200 per year (before taxes).Why wouldn't you ju
Mar 22, 2004, 9:25 pm - Bradly_60 - Lottery Discussion Forum

Probability of a rollover in PB and MMReply
No, it is the amount of cash that the lottery will invest in an annuity for you, before taxes. One advantage of the annuity is that deferred tax. However if the dollar collapses in the next twenty years, as it is likely to do because of enormous government deficits, that tax savings will be less than trivial.The advertised jackpot is the amount provided by the annuity; it corresponds to roughly 60%. The cash value corresponds to 32%. You still must pay income taxes on the money either way:
Jan 27, 2004, 12:54 pm - prob987 - Jackpot Games Forum

Powerball's Cash OptionReply
I've posted about this subject before. Don't look at it that way - the cash value is not determined based on the annuity value, it's the other way around. In this case, they determine how much cash is necessary in order to generate an annuity jackpot of $10 million. The fact that the cash value is less indicates that the returns on the bonds (or whatever they purchase) is higher. Less cash is necessary to generate the $10 million 30-payment jackpot.That is also why games with a shorter annui
May 10, 2003, 8:16 am - Todd - Jackpot Games Forum

Mega Millions getting boringReply
Whether to take the cash or annuity depends (in my opinion).....If the jackpot was within 10 or 14 million for powerball, and the winner was younger than 30 but had no investment experience with that kind of money, then I could understand the move to annuity. That is probably why Joe and Lili Anderson of Kentucky took the annuity option in June last year even though they could have taken the cash. Now that I think about it, they are the only ones who took the annuity last year. Furthermore,
Mar 30, 2003, 5:52 pm - rundown99 - Jackpot Games Forum

Question for Annuity
Lets say I won the Megamillion lottery this week and I took the cash option of 29 million. After withholding taxes I take home $21,170,000. I then spend all of it on an annuity. this annuity gives me $1,460,736 a year for 25 years. How is this taxed? I have already paid taxes on the original lottery winnings.Or I could just take the annuity offered by lottery commission. How is this taxed? I haven't paid any taxes on the money yet. I am trying to put some actual numbers to a comparision. Your in
Jan 18, 2003, 10:41 pm - Thomas Covenant - Lottery Discussion Forum