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Lump Sum and Annuity? :)
I was watching one of the countless, Stupid Lottery Winners, videos on YouTube and someone commented, I would buy two exact tickets and if I win the big Lottery, I would make one ticket a Lump Sum and the other ticket an Annuity. That way I have money to splurge(Lump Sum) and still have a check coming every year(Annuity) . :) Not bad thinking. :) I do remember asking why the Lottery doesn't allow you to SPLIT the choices, half a Lump Sum and half an Annuity on a single Winning Ticket. Th
Oct 9, 2021, 9:08 pm - Karen Nathan - Lottery Discussion Forum

A call to boycott Mega Millions loto game.Reply
Only the minimum rollover amount ($10 million annuity for PB; MM appears to have none) added is guaranteed to any extent. In respect to Powerball, the estimated annuity jackpot is $75 million. If it rolls, as you point out, it will likely be advertised as $90 million or so annuity. However, both the cash and annuity numbers are NOT guaranteed. The winner could receive less. This has happened in the past. Prime example was the widely advertised $600 million annuity Powerball jackpot back in 20
Nov 8, 2017, 8:25 pm - Ron5995 - Lottery Discussion Forum

$450 MILLION: Powerball sales bonanza sparks early jackpot increaseReply
It's been a long time since I paid attention to such details, but I thought they honor the advertised annuity. There's extremely little risk in doing so, because they generally make conservative estimates, and almost nobody takes the annuity. I'd guess that there's less than a 10% chance of having to honor the annuity value, and perhaps a 10% chance of not having enough to fund the annuity if somebody takes it. That's a 1 in 1000 chance of losing the few million it would take to fund th annuity.
Jan 6, 2016, 2:56 pm - KY Floyd - Lottery News

Cape Cod fisherman reels in $10M lottery prizeReply
No, there is no such thing as taking money away when choosing the cash option. The cash option IS the jackpot, and the annuity is calculated based on the cash on-hand, plus the amount of money the lottery earns in interest (by purchasing various investments) over the period of time covered by the annuity. The lottery advertises the annuity value because it is a larger amount, but the cash value is the actual jackpot. Powerball or Mega Millions may get the lotteries better investment rates, be
Dec 9, 2015, 7:57 pm - Todd - Lottery News

$344 MILLION: Mega Millions lottery jackpot skyrocketsReply
Jill, I always love your educated analysis on this. Thank you so much for giving us your input. While not quite in the same topic, wouldn't a huge deterrent for accepting the annuity option come from the fact that estate taxes are due on the entire amount (as in the advertised annuity) after someone dies prior to their annuity completing? So, sure, the money would be guaranteed regardless of which option, but the taxes would be overwhelming. Correct me if I'm wrong. Even though I don't have
Dec 10, 2013, 11:40 pm - DisplacedLurker - Lottery News

$337 million Powerball jackpot ticket sold at gas station in small Michigan cityReply
I have just updated the news story to reflect the exact cash value reported to me by MUSL $244,655,690.17. (i.e., $244.7 million.) It's the second-highest cash value in history even higher than the $380 million Mega Millions jackpot on Jan. 4, 2011, when the cash value was $240 million. I'm really shocked by that, because Mega Millions almost always has a bigger cash value-to-annuity ratio, because of its fixed annuity (vs. Powerball's annually-increasing annuity), as well as Mega Million's s
Aug 16, 2012, 4:43 pm - Todd - Lottery News

lump sum confusionReply
A lump sum is the cash value of the advertised annuity jackpot. The current estimated cash value of PB is $50.4 million and the estimated annuity is $80 million. If the winner decides to take the annuity, they will get 30 annual payments of about $2,166,667. 25% is deducted for Federal taxes and an average of 6% for state taxes so the net payment will be $1.84 million annually. Depending on deductions, the winner might owe another 9% in Federal taxes. If the winner takes the cash, they shoul
May 11, 2012, 12:04 am - Stack47 - Lottery Discussion Forum

Winning the Jackpot and taxes.Reply
That would just guarantee that you would pay the maximum amount of taxes. If you took the annuity and then moved to a tax friendly state, you can argue that your centers of interests had changed and you were no longer subject to Wisconsin state taxes on subsequent payments. You would still have to file but you may get more back from the state taxes as you would no longer be resident there. In general, most lottery commissions will allow you to opt for the cash option at the point of claiming
Feb 20, 2010, 3:53 pm - jwhou - Lottery Discussion Forum

Powerball cash value amountsReply
That particular search was fairly useless. It's all about how the money is invested. That's true even if the winner does choose cash value, because the advertised amount is based on the expected investment. The actual prize is always determined by sales, because that's where the money comes from. If a winner chooses annuity the cash will be invested. Interest rates have gone up again, so the annuity value of a given amount of cash is higher. The PB annuity is paid out more slowly than the MM
Jun 30, 2009, 2:13 am - KY Floyd - Jackpot Games Forum

Powerball Annuity Makes Good SenseReply
Oh this is classic! It'll come as no surprise to anyone that I think the Powerball annuity makes absolutely no sense whatsoever. But just for kicks let's take the points one by one: 1. It forces you to stick to a budget. Please refer to the story on Lottery Post about the family in Florida who was recently arrested for tax fraud. THEY took the annuity. 2. The kids and family will be well aware that there is an annual limit of funds. See the same story. 3. The annuity can be
Apr 20, 2006, 12:44 am - Uncle Jim - Jackpot Games Forum