$102 million lottery winners - 17 years later

THAT is the only advantage in getting the annuity.  If you go crazy the first year or so (buying houses, Lamborghini sports cars in triplicate to fill your 3-garage homes, jewelry, with hangers-on asking for money), then you still have time to come to your senses.  You run out of money Year1, Year 2, by Year 3 you start getting smart.   They were getting $3.5 million per year for 20 years.  Nowadays the annuites are like 25 - 30 years.

The drawback nowadays about annuities, of course, if the political talk about higher TAXES on the "rich".  You don't know what they tax rate will be 5 or 10 years from now -- could be 50% or higher on "millionaires". 

I used to think it would be smarter to take the annuity, just so you can't go too crazy and spend it all.  But now I might take the cash.

Jackpot winners face the prospect of having a huge portion of their winnings confiscated by the government in taxes depending on the outcome of the upcoming Presidential Election.

Because if you win, you automatically become one of the evil, hated "rich people".

We all need to keep that in mind when we vote.

Will it be all yours or will the government be "entitled" to take 75% of it off the top?

Jackpot winners face the prospect of having a huge portion of their winnings confiscated by the government in taxes depending on the outcome of the upcoming Presidential Election.

Because if you win, you automatically become one of the evil, hated "rich people".

We all need to keep that in mind when we vote.

Will it be all yours or will the government be "entitled" to take 75% of it off the top?

ok... correct me if i am wrong... but tax law is passed in October for the CURRENT year... so you could - potentially - win now and then end up owing your 70-odd % in taxes retroactively this year... 

that would really be a new variety of ugly.

Yep, politicians love that word - retroactive.

criminy... i thought it was only going to be 70%...

If our current administation has it's way the top Federal tax rate would 91% which was in effect from 1945-1963...and that was a reduction from 94% which was in place during President FDR's final years.

Oh goody, the tax man paranoia is back.  Criminy, I could set my watch to this babble.

No tax rate in the United States of America will EVER reach WWII levels.  Heck, I'll eat my hat if it ever gets back to 50%, which it was during your beloved President Reagan's first term.

Seriously, folks, get a grip.

I can understand why exorbitant tax rates don't bother you a bit, mediabratwurst.

Being a Slushee Slinger at the 7-11 and firmly entrenched in the bottom 47% of wage earners who pay zero taxes, you have absolutely nothing to worry about.

Your rage for the rich comes from a sense of inferiority and jealousy.

But you have no skin in the game so it really doesn't matter what you think.

You assume many things.  As usual, you assume incorrectly.

If it matters at all, I ended up owing both the feds and the state on this year's tax return.  And I already told you you're wrong about what I do for a living, but you never let facts get in the way of a good drunken sneer-fest.

Speaking of facts, the top tax bracket encompasses about the top 10% of earners.  I highly doubt you're a part of that.

Why Do People Pay No Federal Income Tax?

"Commentators have often misinterpreted that percentage as indicating that nearly half of Americans pay no taxes. In fact, however, many of those who don’t pay income tax do pay other taxes—federal payroll and excise taxes as well as state and local income, sales, and property taxes."

"For example, a couple with two children earning less than $26,400 will pay no federal income tax this year because their $11,600 standard deduction and four exemptions of $3,700 each reduce their taxable income to zero. The basic structure of the income tax simply exempts subsistence levels of income from tax."

Ooooh, yeah, all those evil people who unfortunately struggle just to get by despite their hard work.  Yeah, they're the ones who are the problem.  A-yup.

Right!

When the "Bunky" won his 80+ million dollar jackpot  in Maryland, someone placed a hugh Safe on his front lawn.

How someone did that without being seen or noticed was puzzling.

And I couldn't understand what that message was.

THAT is the only advantage in getting the annuity.  If you go crazy the first year or so (buying houses, Lamborghini sports cars in triplicate to fill your 3-garage homes, jewelry, with hangers-on asking for money), then you still have time to come to your senses.  You run out of money Year1, Year 2, by Year 3 you start getting smart.   They were getting $3.5 million per year for 20 years.  Nowadays the annuites are like 25 - 30 years.

The drawback nowadays about annuities, of course, if the political talk about higher TAXES on the "rich".  You don't know what they tax rate will be 5 or 10 years from now -- could be 50% or higher on "millionaires". 

I used to think it would be smarter to take the annuity, just so you can't go too crazy and spend it all.  But now I might take the cash.

Unless you take out loans against the annuity or sell it like some fools have done which then usually follows with their getting into tax problems. Neither way is exactly safe really.