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a poll about annuities and lump sumReply
if people understood how annuities worked they might fare better in the long run and example would be if you won 10 million or more and took the annuity. Take the first check minus say 100 grand and put the rest in the bank. do not touch any of the money for the first year. longer if you think you could. After the first year set up a portfolio with the second check and live off the interest on the first check you kept in the bank. There are many ways an annuity could work out better than a l
Sep 29, 2006, 1:48 pm - four4me - Lottery Discussion Forum

A Challenge to CASH Only from SirMetroReply
Lotteries aren't in the Annuity Business, so they go out into the Public Sector and Purchase an Annuity from an Insurrance Company. For example if you Win a $1,000,000 Annuity the Lottery goes to an Insurance Company and for $500,000 they Buy an Annuity that Pays You $50,000 per year for 20 Years. You get Your $1,000,000 from the Insurance Company and the Lottery is out of it. In the case of Lifetime Annuities the Age of the Winner would be considered when purchasing the Annuity. Two winners
Sep 21, 2006, 10:15 am - Raven62 - Lottery Discussion Forum

PB Challenge 9/6Reply
Powerball rolled to $119 million annuity and $55.8 million cash value.-weshar75
Sep 7, 2006, 12:05 am - weshar75 - Jackpot Games Forum

Possible disturbing newsReply
Cash annuity is an oxymoron. Annuity prizes are NOT cash.
Aug 28, 2006, 8:16 pm - CASH Only - Jackpot Games Forum

Wisconsin factory workers win $208M Powerball lotteryReply
I can appreciate if you see it as a matter of semantics, but if the lottery buys me an annuity all I get is an annual payment. Some investment company will have principal that they use to generate the annual payment, but I won't have a dime in principal. That's the nature ofthe annuity option. The investment company gets the principal in exchange for promising the payments. If they do well with the investment they might still have some principal left after making the final payment, and if I'm
Aug 11, 2006, 6:37 pm - KY Floyd - Lottery News

Wisconsin factory workers win $208M Powerball lotteryReply
chuck32 Here you say: If the annuity is $208.6 million and if there are 100 winners, then each share of the annuity would by $2.086 million. The cash amount was $95.82 million so a cash winner's share would be $958,211.70 (to be exact since the cash amount, based on sales, is known). And if there are exactly 100 winners. The lottery starts by dividing up the cash among all winners and then asks, anyone want that as annuity? If yes for some, then Powerball will buy go out to bi
Aug 9, 2006, 10:08 am - Coin Toss - Lottery News

Wisconsin factory workers win $208M Powerball lotteryReply
Hawking? Which at least implies pushing a bad choice in a marketing envirnment? With all of the cash only propoganda out there, sometimes a little truth is needed. The best option, as always, is probably somewhere in between. Lotteries can only offer two options under the tax rules and so they offer the two extremes - cash and a long-term graduated annuity. The best case for all winners would be to allow them to set up their own annuity stream (X% as cash; X% as annuity over X years
Aug 9, 2006, 9:59 am - chuck32 - Lottery News

Wisconsin factory workers win $208M Powerball lotteryReply
We are making this Waaaay too complicated. Lotteries have cash. If the winners want the annuity, then the lottery invests the cash, pre-tax, and puts the cash and the interest earnings together to come up with the annuity amount (the amount paid over time). The annuity is estimated based on current quotes but can't be known until bids to buy the securitites (which doesn't happen unless a winner wants the annuity). OK, I guess it is complicated. If the annuity is $208.6 million an
Aug 9, 2006, 9:31 am - chuck32 - Lottery News

Wisconsin factory workers win $208M Powerball lotteryReply
The WI Lottery will offer each winner the choice to take cash or annuity. Basically, you first split up the cash for each winner ($958,211.70 if there are 100 winners) and then, for those that want the annuity, Powerball will go to competitive bids for the securities to fund those who want the guaranteed, graduated annuity (perhaps $2.086 million). Powerball will use the full cash amount, BEFORE any taxes are taken out to buy securities to fund the annuities. The annuity winner then pays taxe
Aug 8, 2006, 2:20 pm - chuck32 - Lottery News

Mass. Megabucks Improvements.Reply
$200,000 annuity? how sad
Jun 27, 2006, 11:27 am - ryanm - Jackpot Games Forum