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Man claims $16M Florida Lotto prizeReply
Well everyone has their own way of figuring what jackpot to play for. I figure out the yearly amount in todays dollars then multiply that by recent historic worst case inflation scenarios for 20, 25, 26 or 30 years depending on the game and then I multiply that by the annuity duration to get the jackpot that I play for. As an example - $50,000 * 4.831(30 years inflation) = $241,550 * 30years = 7.3 million advertised annuity amount. Actuall figures will vary but that is as good a way to
May 24, 2008, 11:49 am - Think - Lottery News

$275 MILLION: Powerball lottery jackpot raised againReply
That sounds cool, but i wouldn't want to BUY a annuity, pay to get paid my own money!!! I will just set up my own annuity, lol!!! Good luck to everyone for saturdays drawing, i got my two dollar quick pick early thursday, and oh boy im telling you these numbers are it!!..... not like the crappy ones i usually get, It's going to happen this time, I feel it!!! Does anyone know if Indiana has the option to be anonymous???
Mar 14, 2008, 1:14 pm - INDANAMEOFJESUS - Lottery News

-No Explanation-Reply
For you they might be, but not for everyone. One major factor in such a choice is a person's age, or in the world according to rubberbandman is someone up there in their years that hits a jackpopt suppossed to choose a 26 to 30 year annuity because, hey, that's what the rubberbandman said. I guess you've ignored all the posts about the amount being advertised in the annuity being non-existent. Both choices have advantages, and disadvantages. It's a person by person choice, there is no
Mar 6, 2008, 1:18 pm - Coin Toss - Lottery Discussion Forum

-No Explanation-Reply
I repeat, I suggest you do a Google search on 'time value of money.' It is a basic financial concept. If you don't use Google, use another search engine. But search the whole web on the concept, not just this website. I know you are anxious to get to the specific cash versus annuity point, but IMO you'd be better off drawing your own conclusions after you get some more basic financial knowledge behind you. And if you really want to understand, don't just read what it says on one or two websi
Mar 6, 2008, 10:35 am - Uff Da! - Lottery Discussion Forum

-No Explanation-Reply
I suggest you do a Google search on time value of money. It is a basic financial concept. Also be aware that the IRS expects that in the event of a person's death that estate taxes be paid within nine months. If money is tied up in annuities, the executor may not have enough cash in the estate to pay the taxes. Depending upon how a jackpot winner has arranged his estate and to whom he leaves it, the estate taxes might be millions of dollars. Sometimes there are ways around this, but it depend
Mar 6, 2008, 10:02 am - Uff Da! - Lottery Discussion Forum

Payout of winnings less than jackpotReply
Coin Toss, Powerball is a 30 year annuity. (MM is 26) However, the annuity for PB is graduated. The first check is the smallest and then it will increase every year for 29 years. The lower tier prizes are paid as a lump sum, less tax. Bagent, you wrote whatever tax they withhold which isn't entirely true. If you get 5/5, chances are you will still owe some money to the IRS. Most states only withhold 25%, but you will be in at least a 30% tax bracket, probably 35%. After you go to an acco
Jan 7, 2008, 12:40 pm - justxploring - Lottery Discussion Forum

Large Jackpot in 2008 PB and/or MMReply
I'm skeptical that making the prize tax free would do much to increase sales. Sure, it would make the net prizes bigger, but what percentage of lottery players use that number in deciding whether or not to play, and how much? You're one of the regulars here, but your post in the powerball matrix thread suggests that you dodn't know where the cash and annuity values even come from. Why would you expect the average lottery player to be aware of the actual net when a lot of players are confused by
Dec 31, 2007, 1:21 am - KY Floyd - Jackpot Games Forum

Book: Money For NothingReply
Every situation is different. However, the more I think about the cash option, I more I prefer it. I used to think that it made sense to take the annuity payments, especially if someone is afraid of making a bad investment or spending it frivolously. Knowing every year you'll be receiving a check must be a comforting feeling. However, so many things can happen, that maybe taking the lump sum is best. It's also better for my beneficiaries when I die, but it depends on the amount too. If I o
Sep 24, 2007, 10:55 am - justxploring - Lottery Discussion Forum

Mega Millions and Powerball's Less than Exciting JackpotsReply
Lotteries are all about being statistically average, and in the long run it will all average out. A run of bigger jackpots can only be more common if there are also periods when smaller jackpots are more common. For MM there are just over 175 million possible combinations, so we should expect 1 winner for every 175 million tickets that are sold. With about 30 cents from each ticket going to the jackpot we could expect that jackpots would average about $56 million for the cash option. Over
Jul 24, 2007, 12:34 pm - KY Floyd - Jackpot Games Forum

would it irritate you if....(multiple jackpot winners on one jackpot)Reply
Mike, Under your scenario a $35 million annuity divided by 35 winners would be $1 million annuity or roughly $480,000 cash before taxes. So say the tax man takes half and you have $240,000. You still traded $1 for $240,000 because your one line won. I doubt that we would see more than 5 multiple winners of a multi-state jackpot game in the next 100 years. But you never know. I still think I would be excited that I won the winnings that I got off a $1 ticket and not concentrate on the wha
May 24, 2007, 3:58 pm - weshar75 - Lottery Discussion Forum