| Posted: June 30, 2008, 12:55 pm - IP Logged | |
Your net 1,127,096 for now until tax time...lol
but if you multiply that x 26=$29,304,496
your net from the lump is 17,940,000. So it does to pay to wait. If you invest the (lump sum) money, you will be still paying taxes on the interest, no???
One thing you have to consider with the annuity is that what $1,127,096 is worth now, will not be the same in the future with inflation and the valuation of the dollar. Better to take it now so you can grow it for the future. Even if you just put it into t-bills, it will grow.
For example - The year I was born, my Father made $3,800 annual salary at his first full time job out of college. Eighteen years later, I made $3,800 working parttime at K-Mart. These days nearly 30 years later, I make more than that each month.
Another thing to consider with annuities is that everyone assumes you won $43m and you have that in your bank account right now. 
I'll take the cash thankyouverymuch, and take my chances.
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