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$290 MILLION:" Mega Millions lottery jackpot increasedReply
If 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% taxes the winner does, which is why it seems to me th
Jul 2, 2004, 12:41 am - tg636 - Lottery News

mega million ANNUITYReply
to someone who makes let's say $45,000 a year, a annuity of a million or so every year sounds incredible. certainly if handled right it is all the money a person could ever need. you would have enough left over for your favorite charity (friends , relatives , charities and mr. happy). but that is not the point. it is a not a matter of greed, it is a matter of good economics. just three points alone do not make sense for an annuity. (1) you could be 18 years old and think that you have 26 years
Jul 4, 2002, 10:06 pm - visiondude - Lottery Discussion Forum

taxes on lottery winnings :(Reply
You've filed a tax return in the past and either owed a bit or got a refund, right? Just like it is with an employer, the 25% is only what the state withholds from the payment and sends to the IRS. Withholding 25% is a simple cookie cutter approach designed for much more average incomes. As Uff Da notes, you can reduce your tax obligation (and how much you put in your pocket) by making charitable contributions, but as a practical matter anyone who wins several million will be in the 35% bracket
Feb 6, 2012, 12:47 am - KY Floyd - Lottery Discussion Forum

Question about the "Cash" or "Annuity" OptionReply
I love searching for information. This is what I found: http://www.state.nj.us/lottery/about/faq-finance.htm#finance7 Can I change my mind about annuity and cash when I win a prize? Should you hold a winning Pick-6 Lotto, Powerball or Mega Millions ticket and it has been purchased as an annuity ticket, the New Jersey Lottery will immediately purchase the annuity at the rate available. You do have the option of requesting that the New Jersey Lottery sell that annuity on your behalf with
Jul 5, 2011, 11:28 pm - Longarm - Jackpot Games Forum

Colorado man wins lottery second timeReply
Different annuitized games have different annuities. Therefore the actual cash value percentage varies from game to game, even between MM and PB. The MM annuity is 26 equal payments; PB is 30 graduated installments. Because of the longer annuity AND the increasing annual payments, the cash value percentage of the PB annuity is significantly lower than the cash value percentage of the MM annuity. In both games, however, cash option winners get their full share of the cash in the jackpot pool.
Jan 12, 2007, 3:59 pm - CASH Only - Lottery News

Annuity vs. Cash Analysis
I have done an analysis of the annuity vs. cash on a spreadsheet. I wanted to see, when factoring in taxes and interest, how much you would wind up with over the same time frame. I used Powerball as the test thanks to their helpful email about how the graduated annuity is calculated (via a spreadsheet). With Wednesday's Powerball jackpot, the annuity is $93 million and the cash option is $44 million. Over a time period between 2006 and 2035, if you never spent a penney of your winnings, you w
Oct 29, 2006, 11:49 am - rdc137 - Lottery Discussion Forum

Powerball Annuity Makes Good Sense
I was checking the FAQ at the Powerball site and to me, the annuity makes the best sense. It forces you to stick to a budget. The kids and relatives will be aware that there is an annual limit of funds. The annuity can be willed on after you die. The annuity can be cashed out at anytime. The annuity will gain 4% interest per each annual payment. The annuity is worth more overall than the cash value. There are so many positives, I can't see any other way but to take the annui
Apr 19, 2006, 7:56 pm - sfilippo - Jackpot Games Forum

$800 MILLION: Powerball lottery jackpot approaches billion-dollar rangeReply
Know why most big prize winners actually end up growing broke? Because they think they know how to handle a jackpot when they haven't a clue. 1st, the annuity is 30 payments over 29 years. Not 20. 2nd, the annuity is back weighted so you receive the larger chunk of your money in the last decade. That's money you have no access to and isn't being invested. 3rd and a big point to keep in mind, the annuity is a sitting duck for additional taxes. A few years ago, they were paying ~35% on
Jan 9, 2016, 10:22 am - Teddi - Lottery News

Cash Vs Annuity PaymentsReply
You are not necessarily getting more money by taking the annuity option. For example, the current Powerball cash value (43.3M) is 61 percent of the advertised annuitized jackpot (70M). After taxes, the net cash value a potential Saturday winner could take home is $28,145,000 (I used 35 percent tax rate as some may pay both federal and state taxes). Now presuming the winner is an astute person who knows how to conservatively invest his/her winnings, let's assume the person invests and achieves a
Feb 24, 2012, 1:11 pm - OldSchoolPa - Lottery Discussion Forum

MegaMillions advertised annuityReply
This subject has been nearly beaten to death, and you can find a lot of opinions on it by using the search feature. For starters, ignore anybody who offers a cookie cutter approach, whether it's to always take the cash, always take the annuity, take cash up to some amount and annuity over that, or anything else. It's a personal decision that should be the result of considering what you'd like to do with the money and what the financial realities are. What's a perfectly good decision for on
Apr 9, 2007, 2:54 pm - KY Floyd - Jackpot Games Forum