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MegaMillions Annuity Payout Schedule

Topic closed. 7 replies. Last post 9 years ago by danisiri.

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danisiri's avatar - Avatar all_for_Jesus.jpg

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Posted: June 22, 2005, 4:43 pm - IP Logged

Does anyone know the annuity payout schedule for MegaMillions?  For example, if the JP is $26 million, does the annuity pay $1 million gross for 26 years, or is it a graduated scale (e.g., 2.5% of the JP the first year and increasing to 5.1% in the 26th year)?  The USA Mega site seems to indicate that MegaMillions pays the same amount for 26 years.  CA SuperLotto Plus pays the annuity on the graduated scale.

I am a lump sum player myself, but I am just curious about this.

    danisiri's avatar - Avatar all_for_Jesus.jpg

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    Posted: June 22, 2005, 4:47 pm - IP Logged

    Also, how is the lump sum percentage determined?  The best answer I could find was that it depends on the amount of money needed to be invested in zero-coupon US Treasury securities to equal the announced jackpot amount once the securities mature.  How does the USA Mega site do its jackpot analysis to provide an estimate for the MM lump sum?

      DoctorEw220's avatar - alien helmet.jpg
      Yinzer Country, PA
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      Posted: June 22, 2005, 7:20 pm - IP Logged

      the lump sum is the actual amount of money the lotteries have to pay out the jackpot.  the annuity is the lump sum invested in securities that mature in 26 years (in this case).  they have it figured out so each payment is equal and that the total of the payments equals the jackpot won.

      I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.

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        Posted: June 22, 2005, 8:54 pm - IP Logged

        You can get the exact Cash Value on ohiolottery.com

        (insert signature here)

          dvdiva's avatar - 8ball

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          Posted: June 22, 2005, 11:12 pm - IP Logged

          Best site for breaking down the prize is www.usamega.com .Too bad they haven't started the Euromillions sales again though.

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            Chief Bottle Washer
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            Posted: June 22, 2005, 11:34 pm - IP Logged

            danisiri,

            Check out the FAQ page at www.usamega.com.  It has most or all of the answers to your questions.  Also, be sure to check out the Jackpot Analysis page there, which shows state-by-state breakdown of your prize after taxes.

             

            Check the State Lottery Report Card
            What grade did your lottery earn?

             

            Sign the Petition for True Lottery Drawings
            Help eliminate computerized drawings!

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              Morrison, IL
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              Posted: June 23, 2005, 12:33 am - IP Logged

                Apparently, Mega Millions still pays annuities in equal installments (although the first payment may be slightly larger due to them having to purchase securities by the $1000's).

                When Powerball changes their matrix, they will pay annuities in graduated installments though.

                danisiri's avatar - Avatar all_for_Jesus.jpg

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                Posted: June 23, 2005, 2:20 am - IP Logged

                So then the answer to my question is that the ratio of lump sum to JP is that there is no set ratio, it all depends on the current interest rate of T-notes. 

                The USA Mega site is okay, though it does not exactly answer my questions in the detail that I am looking for, but...

                Thank you for the link to the Ohio website - that really gives me what I was looking for on the ratio of lump sum to JP.

                Thank you also for affirmation on the equal installments for the annuity.

                As I am sure most of the Lottery Post members do, I keep an Excel spreadsheet to calculate my own amounts for what I would get after taxes and after I have used up some of the money.  Plus, I keep track of hypothetical investment returns and current interest rates on Treasury securities and other income investments.  This spreadsheet keeps me disciplined, so I figure that if I have it in place, I will be less likely to become one of the horror stories should I win.

                I live in CA, so I wanted to add the MM data to the sheet.

                Thanks all!