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How are payments invested?Reply
A while back we had a thread about this and someone pointed out that the advertised jackpot doesn't even actually exist. In other words, let's say PB or MM has a jackpot of $100,000,000 for an upcoming drawing. There is no $100 million. That amount is based on the winner taking an annuity over a drawn out period of years. That's why the cash value for the same jackpot is 50% or less.
Aug 14, 2008, 2:53 am - Coin Toss - Jackpot Games Forum

Lancaster County man claims $86M Powerball lottery jackpotReply
Are you sure this isnt just a first payment amount? Win you win big and take the cash dont they give you one check to hold you over till they transfer the big dollars? Atleast that was what i thought. i may be wrong!!1 Wasnt the annuity 86 million 43 million cash? minus 25 percent for federal would be 30 million divided by 5 would be 6 million a piece? Again i may be wrong but but i still think they are due another 5 million a piece.
Aug 10, 2008, 2:37 pm - aaaok - Lottery News

Lottery officials to name $86M Powerball winnersNews Story
Who won last week's Powerball jackpot? That's the $86 million question and Pennsylvania lottery officials have the answer. Officials plan to announce the winners at a news conference Friday at lottery headquarters in Middletown. The winning Powerball ticket was sold at a Turkey Hill convenience store in Lancaster County. The jackpot from the Aug. 2 drawing is worth an $86.3 million annuity or $42.5 million cash minus 25 percent in federal taxes.
Aug 8, 2008, 8:28 am - Todd - Lottery News

Nice Gift!Reply
Most of the games in FL offer a cash option as well, but you have a point. The story is on the FL site, but I didn't think we were supposed to post links to state websites. Just go to the home page and click on media center and news releases. Now you've got me wondering if she didn't take the cash option and took the 20 year annuity. Usually every news release says either the winner will get $50,000 a year for 20 years or the winner took the cash option of .... So maybe she just gave him
Aug 1, 2008, 12:25 am - justxploring - Instant ("Scratch-Off") Games Forum

What jackpot would you prefer?
I know that most people would obviously take the highest amount possible, you know 100-200+, but realistically at what jackpot interval would you prefer to win; personally I would prefer to win 30 mill advertised amount which would be $10,162,5000 lump sum after tax considering the 25% fed and the 7.25 state tax of MN for 2 reasons: If I were to choose annuity, 30 mil face value would be the lowest amount in which I would receive 1 mill at least once during the annual payments; plus 10 mill is s
Jul 27, 2008, 6:31 pm - rubberbandman - Lottery Discussion Forum

Ohio winner of $196M lottery jackpot claims prize anonymouslyReply
OMG, you have to be kidding... right? I guess it does take all kinds..... Capitol Gains Tax is just that... it's a tax on any gains you made on any investment! And it's better to be paying a 15% capitol gains tax vs a 35% income tax! Capitol gains tax is the tax you pay on the return you earn on your investment (like interest or gained value on a stock...etc). But like I said before.... go ahead and wait and who knows what your tax rate will be 5,6, 10 years down the road into collecting thos
Jun 29, 2008, 12:51 am - BaristaExpress - Lottery News

Ohio winner of $196M lottery jackpot claims prize anonymouslyReply
That probably is smart. But I don't think it was a smart idea to go with the annuity. You can easily beat the return on treasuries. Brad
Jun 27, 2008, 10:52 pm - Bradly_60 - Lottery News

Man claims $16M Florida Lotto prizeReply
No matter how you slice, choosing the annuity equals loosing control of the base value. You have no control over it what-so-ever. You have no guarantee that the end prize promised will happen. The state will transfer the money to some group and they are no longer involved. No state has the resources to manage annuitys for year after year. Can you name a state that does not need extra money for something? No, they always need extra money. Some day they will need money, and look around for resourc
May 29, 2008, 2:55 pm - MeFirstYouLast - Lottery News

Why is it beneficial to collect a lottery jackpot as a LLC?Reply
i believe an email will stand up in court, otherwise why did W's Whitehouse delete all theirs? emails are also dated, which would predate the drawing so i think i'm covered. of course a powerball jackpot of 25 million has an annuity pretax payout of 450 thousand so why would you take the cash. later jim
May 28, 2008, 11:23 pm - river1 - Lottery Discussion Forum

Man claims $16M Florida Lotto prizeReply
Florida doesn't have MM or PB. This article is about the Florida Lotto. It is a 6/53 game that starts at $3 million and rolls each time nobody wins. The extra $1 adds $10 million as a bonus and, if you spend $3 per ticket, the bonus is increased to $25 million. In all cases, you can choose to take your prize as a lump sum (averaging 55% of the total) or a 30 year annuity. The winner in this story won $6 million and added $1 for a total of $16 million and took the lump sum. All I was saying is th
May 24, 2008, 1:06 pm - justxploring - Lottery News