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help with annuity rates of return vs. CD returnsReply
Also - with an annuity, you can be investing a portion of each years payment. Say you invest $1mil each year into a 1.5% CD. After 26 years you'd have made $4mil in after-tax interest. In 30 years, it'd be $6mil. When the annuity is $5mil a year, it's easier to save and invest more. If $2 mil was invested each year at 1.5% there would be an extra $9mil from the interest, after-tax, after 26 years. Or $12mil after 30 years, after-tax.
Dec 24, 2011, 12:55 am - thelottery - Jackpot Games Forum

Question about the "Cash" or "Annuity" OptionReply
Thank you all very much. I appreciate you taking the time to respond to my question. The answers are very helpful. In NJ, players are still required to select Cash or Annuity at the time they purchase their tickets. If I am fortunate enough to win, I like having the option to decide later, rather than making the decision about more money than I've ever had in my lifetime standing in the middle of a convenience store. :) I have mixed feelings about both options for the same reasons that were
Jul 8, 2011, 10:49 am - karinda - Jackpot Games Forum

Tax Strategies For Lottery Winners - Lump Sum vs InstallmentsReply
Annuity for me....... Gives me a good reason to go to the mailbox. Helps keep me on a tight budget. I'd view my annuity payment like a child support payment....... It might come ....... It might not come........ Either way it goes my life will go on and at the end of the alloted time the payments stop.........
Feb 1, 2011, 11:28 pm - PERDUE - Lottery Discussion Forum

Merry Christmas indeed! Lucky N.Y. lottery player wins $49MReply
RJOh, Batiatus, HaveABall, Thanks for your interest in this question. It turns out, the answer is at the Link I've been tacking onto my (Summaries) postings every week! http://en.wikipedia.org/wiki/Powerball Scroll down to the section entitled Winning Expectation. It's all spelled out there. The table even details examples of various cash and annuity amounts. I was correct that about 1/3 of ticket sales is what the cash option should be, and wrong in assuming it is not, because IT IS! I
Dec 28, 2010, 11:51 pm - jimmy4164 - Lottery News

$140M Mega Millions lottery ticket sold in MichiganReply
Thanks RJOh, a lot of online lottery ticket buyers still don't know about this mandatory switch to annuity if not indicated by them, the claimant, within 60 days of the DRAWING DATE. Even though vital information is clearly printed on the state and particular lottery's website under the FAQ section, yet not the back of the ticket. When there is a contradiction between the multi-state lottery won and the state ticket was purchased in's state lottery headquarters rules, the state's rules win. By t
Nov 4, 2010, 1:15 pm - HaveABall - Lottery News

Winning the Jackpot and taxes.Reply
Keep in mind that the tax bracket you'll be in will be much higher than 25% so the with holdings will not cover your taxes. You can be fairly certain that you will have to pay taxes and a lot of taxes at that. The entire concept of taxation has traditionally been based on 50%. It's only legislative exceptions that makes the lowest tax bracket 17%. Even if the millions and millions that a jackpot win would be placed you in the 50% tax bracket, you would not be paying 50% just close to it becau
Feb 19, 2010, 1:59 am - jwhou - Lottery Discussion Forum

How many hoops do you have to jump through...
to collect your winnings? I guess you could call this a sequal to the cash option and taxes thread. I've been looking this stuff up (key phrases on google) and they advise not cashing it in right away, but speaking to financial advisors, lawyers, and deciding on a lump sum or annuity. I'm sure there's a lot of legal hoops to jump through once you get their (making an appointment, signing contracts, ect), but is it just one meeting at the lotto office or are there other trips you have to make
Apr 23, 2009, 12:33 pm - Classic47 - Lottery Discussion Forum

If you won a jackpot, how mcuh would you give to your parents?Reply
40 millions annuity? I don't like annuity so let's say I receive 18 millions after tax and everything. (lump sum) 10% goes to my parents. That's it. Another 10% goes to my two sisters. That's it. Still, I get to keep about 14.4 millions. I'd spend about 1 million for the house and 0.4 million for furnishing the house with usual geeky stuff. What should I do with 13 millions then? Some goes to CD. Some goes to Ginnie Mae fund (which seems to be recession proof). Some stays in the goo
Dec 4, 2008, 11:56 pm - ambelamba - Lottery Discussion Forum

Don't Spend Your Jackpot!Reply
If you take the cash option the you already lose more than half the jackpot. In this case you might as well continue spending your win anyway you want. If you take the annuity then it might be a good idea to sit on your first check for a year. However if you decide to quit your job then you need to put enough money in an account to live off of. The only reason for doing this in my opinion is so you always have a check in escrow so to speak if you decide on a big purchase it would be a mone
Aug 10, 2008, 7:04 pm - four4me - Lottery Discussion Forum

Ex-boyfriend charged with killing $5M lottery winnerReply
My, my. This is just too sad. And she had four children. This man is the kind that deserves the death penalty! Lethal injection is too good. And all this talk about humane executions. Were the victims ever murdered humanely!?? Perhaps he should be executerd the way he executed. I wish she had chosen lump sum. It appears that she had done some planning. I know nothing about these things and would have definitely hired a financial advisor and lawyer. With the limited knowledge I have, I have al
May 11, 2008, 3:15 pm - mylollipop - Lottery News