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Annuity or Cash??

Topic closed. 19 replies. Last post 4 years ago by KY Floyd.

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Chicago
United States
Member #90133
April 22, 2010
26 Posts
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Posted: May 4, 2010, 8:52 pm - IP Logged

How will you take your Powerball or Mega Millions winnings; annuity or cash?  Is there any way to tell how past winners took their winnings?

    rcbbuckeye's avatar - Lottery-043.jpg
    Texas
    United States
    Member #55889
    October 23, 2007
    2970 Posts
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    Posted: May 4, 2010, 9:32 pm - IP Logged

    At my age it's cash, cash, cash.

    On the Tx lottery website, when it's a Texas winner, it says whether they took cash or annuity.

    CAN'T WIN IF YOU'RE NOT IN

    A DOLLAR AND A DREAM (OR $2)

      Avatar
      CA
      United States
      Member #84266
      December 26, 2009
      410 Posts
      Offline
      Posted: May 4, 2010, 11:27 pm - IP Logged

      With the jackpots this high, cash is enough! Lol.

        Avatar
        Massachusetts
        United States
        Member #78798
        August 21, 2009
        328 Posts
        Online
        Posted: May 4, 2010, 11:40 pm - IP Logged

        I'm going with the cash. I didn't win anything on Mega tonight. If I won this 266 mil jackpot, I would have took in about $115,000,000 after taxes. It's just crazy to think that I could have had that amount on me. I wouldn't know what to do.

          guesser's avatar - Lottery-017.jpg

          United States
          Member #41383
          June 16, 2006
          1969 Posts
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          Posted: May 9, 2010, 10:52 pm - IP Logged

          I look at it this way:

          How much is the annuity?

          That said, could you handle $200,000?    One Million?

          If someone handed you even $100,000 today would you be better off?

          How old are you?

          Would you be able to make ends meet with an annual annuity payment?

          Do you really need; let's say 50 million dollars RIGHT NOW?

          WHY?

          If you are over 40 take the cash, if under 40, take the annuity.

            joshuacloak's avatar - avatar 23415.gif

            United States
            Member #32537
            February 12, 2006
            639 Posts
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            Posted: May 10, 2010, 11:55 am - IP Logged

            need the cash now

             

            buy a gaint 1000 plus arce land somewhere in middle to east tn,

            build a gaint like 20m buck home/reach, with ever thing you could think of

            living like a king

             

            my own dirt bike trails, helicopter with pad,

            very own air strip,

            gaint sky tower for views of my kingdom

             

            start a massive farm growing herbs.rare fruits in gaint green house's  aka atriums

            hell i could go on and on,

            once you start thinking, their easy a million diff ways to spend them bucks now

            i rather own stock in companys or build my own company then relay on us bonds to pay me my money over 29 years like with pb

             

            besides, you would create jobs for people while making money your self, its what makes the world go around and around :p

             

            get a game like the sims 3,  and get building, you will come up with all kinds of  ideas of things to give your self if you won the lotto

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
              United States
              Member #30470
              January 17, 2006
              8764 Posts
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              Posted: May 10, 2010, 8:10 pm - IP Logged

              CASH.

              • 2012,The Mayan Calendar Ends
              • The Galactic Alignment that goes along with the Mayan Propghecy for 2012
              • The Galactic alignment could include a black hole
              • Possible asteroid striked
              • The current administration in D.C.

              Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

              Lep

              There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                Magnolia, Delaware
                United States
                Member #18795
                July 20, 2005
                789 Posts
                Offline
                Posted: May 12, 2010, 10:36 am - IP Logged

                How will you take your Powerball or Mega Millions winnings; annuity or cash?  Is there any way to tell how past winners took their winnings?

                I can't see any reasonable rational person taking an annuity, can you?

                1) Why trust the US dollar to be around until your last payment is paid?

                2) We all know that the current tax rate is going to go up and not down, so why pay more in taxes over the life of the annuity than you have too!

                3) Trusting foolish people will be parted from their "Aunnuity" by their Bankrupt Government!

                4) "CASH IS KING" < that's the only rational way to think in this day and age of all the Government Bailouts of the world going on!

                Keep dreaming the impossible dream, it just may come true! Thumbs Up

                  rdgrnr's avatar - walt
                  -Ridge Runner- Oracle of the Appalachians
                  Way back up in them dadgum hills, son!
                  United States
                  Member #73904
                  April 28, 2009
                  14717 Posts
                  Online
                  Posted: May 12, 2010, 7:04 pm - IP Logged

                  Cash.

                  The Government has already "borrowed" all the money out of Social Security and replaced it with IOU's.  They are constantly searching for new sources of revenue to "borrow" money from. I wouldn't want my jackpot just sitting there tempting those thieving sob's. Gimme the cash - now. 


                                                               
                                       
                                                           

                   

                   

                   

                   

                                                                                                                     

                  "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                              --Edmund Burke

                   

                   

                    guesser's avatar - Lottery-017.jpg

                    United States
                    Member #41383
                    June 16, 2006
                    1969 Posts
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                    Posted: May 13, 2010, 1:45 pm - IP Logged

                    Joshua - it is people like you that would win, and be broke, homeless and bankrupt in three years. But you can have a lotta fun in those three years.

                    Barista - what if you put it in a bank and the bank fails?   What if you invest it and the market is cut in half?  Keep in mind each account at each bank is FDIC insured for only X amount, to be fully protected you have to have several accounts spread across lots of banks.

                      sully16's avatar - sharan
                      Listens to the wind

                      United States
                      Member #81740
                      October 28, 2009
                      17830 Posts
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                      Posted: May 13, 2010, 6:15 pm - IP Logged

                      cash cash cash cashHyper

                      There's only one US Flag

                        THRIFTY's avatar - gold number-8.jpg
                        NEW YORK
                        United States
                        Member #90537
                        April 29, 2010
                        2638 Posts
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                        Posted: May 13, 2010, 8:24 pm - IP Logged

                        How will you take your Powerball or Mega Millions winnings; annuity or cash?  Is there any way to tell how past winners took their winnings?

                        cash 100%. I don't like future dollars dealing with inflation.

                          BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                          Magnolia, Delaware
                          United States
                          Member #18795
                          July 20, 2005
                          789 Posts
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                          Posted: May 14, 2010, 2:37 pm - IP Logged

                          Joshua - it is people like you that would win, and be broke, homeless and bankrupt in three years. But you can have a lotta fun in those three years.

                          Barista - what if you put it in a bank and the bank fails?   What if you invest it and the market is cut in half?  Keep in mind each account at each bank is FDIC insured for only X amount, to be fully protected you have to have several accounts spread across lots of banks.

                          OK Guesser, this is the prime reason for anyone who wins a MM or PB Jackpot to get a lawyer and a financial adviser before claiming the winnings! BTW I will have all of those people in place before going to claim the Jackpot! That way all of my bases are covered before claiming the Jackpot! Thumbs Up 

                           

                           

                          Ownership Categories
                          Revocable Trust Accounts

                          This section explains FDIC insurance coverage for revocable trust accounts, and is not intended as estate planning advice or guidance. Depositors should contact a legal or financial advisor for assistance with estate planning.



                          A revocable trust account is a deposit account owned by one or more people that identifies one or more beneficiaries who will receive the deposits upon the death of the owner(s). A revocable trust can be revoked, terminated or changed at any time, at the discretion of the owner(s). In this section, the term "owner" means the grantor, settlor, or trustor of the revocable trust.

                          When calculating insurance coverage, trustees, co-trustees and successor trustees are not relevant. They are administrators and have no impact on insurance coverage unless they also are the owners or beneficiaries of the trust.

                          This ownership category includes both informal and formal revocable trusts:

                          • Informal revocable trusts – often called payable on death, totten trust, in trust for or as trustee for accounts – are created when the account owner signs an agreement – usually part of the bank's signature card – directing the bank to transfer the funds in the account to one or more named beneficiaries upon the owner's death.
                          • Formal revocable trusts – known as living or family trusts – are written trusts created for estate planning purposes. The owner controls the deposits and other assets in the trust during his or her lifetime. The agreement establishes that the deposits are to be paid to one or more identified beneficiaries upon the owner's death. The trust generally becomes irrevocable upon the owner's death.

                          Coverage and Requirements for Revocable Trust Accounts

                          In general, the owner of a revocable trust account is insured up to the SMDIA, currently $250,000, for each different beneficiary, if all of the following requirements are met:

                          1. The account title at the bank must indicate that the account is held pursuant to a trust relationship. This rule can be met by using the terms payable on death (or POD), in trust for (or ITF), as trustee for (or ATF), living trust, family trust, or any similar language, including simply having the word “trust” in the account title. Account title includes information contained in the bank’s electronic deposit account records.
                          2. The beneficiaries must be named in either the deposit account records of the bank (for informal revocable trusts) or the beneficiaries must be identified in the formal revocable trust document. For a formal trust agreement, it is acceptable for the trust to use language such as “my issue” or other commonly used legal terms to describe the designated beneficiaries, provided the specific names and number of eligible beneficiaries can be determined.
                          3. To qualify as an eligible beneficiary, the beneficiary must be a living person, a charity or a non-profit organization. If a charity or non-profit organization is named as beneficiary, it must qualify as such under Internal Revenue Service (IRS) regulations.

                          An account must meet all of the above requirements to be insured under the revocable trust ownership category. Typically, if any of the above requirements are not met, the entire amount in the account, or the portion of the account that does not qualify, is added to the owner's other single accounts, if any, at the same bank and insured up to the SMDIA. If the trust has multiple co-owners, the amount that does not qualify would be added to each owner's share as his or her single account.

                          An owner who identifies a beneficiary as having a life estate interest in a formal revocable trust is entitled to insurance coverage up to the SMDIA for that beneficiary. A life estate beneficiary is a beneficiary who has the right to receive income from the trust or to use trust deposits during the beneficiary's lifetime, where other beneficiaries receive the remaining trust deposits after the life estate beneficiary dies.

                          For example: A husband is the sole owner of a living trust that gives his wife a life estate interest in the trust deposits, with the remainder going to their two children upon his wife's death. Maximum insurance coverage for this account is calculated as follows: $250,000 times three different beneficiaries equals $750,000.

                          Insurance coverage for revocable trust accounts is calculated differently depending on the number of beneficiaries named by the owner, the beneficiaries’ interests and the amount of the deposit.

                          Two calculation methods are used to determine insurance coverage of revocable trust accounts: one method is used only when a revocable trust owner has five or fewer different beneficiaries; the other method is used only when an owner has six or more different beneficiaries.

                          If a trust has more than one owner, each owner’s insurance coverage is calculated separately.

                          Revocable Trust Insurance Coverage - Five or Fewer Different Beneficiaries

                          When a revocable trust owner names five or fewer beneficiaries, the owner’s trust deposits are insured up to the SMDIA, currently $250,000, for each different beneficiary. This rule applies to the combined interests for all beneficiaries the owner has named in all formal and informal revocable trust accounts at the same bank. Therefore, when there are five or fewer beneficiaries, the calculation of the maximum deposit insurance coverage for the trust owner is determined by multiplying $250,000 times the number of different beneficiaries, regardless of the dollar amount or percentage allotted to each different beneficiary.

                          Maximum insurance coverage for a trust owner when there are five or fewer different beneficiaries
                          Number of Different Beneficiaries
                          Maximum Insurance Coverage
                          1 Beneficiary
                           $   250,000
                          2 Beneficiaries
                          $   500,000
                          3 Beneficiaries
                          $   750,000
                          4 Beneficiaries
                          $1,000,000
                          5 Beneficiaries
                          $1,250,000

                           

                          Example: POD accounts for one owner when there are five or fewer different beneficiaries
                          Account No.
                          Account Title
                          Owner
                          Beneficiaries
                          Deposit Type
                          Account Balance
                          1
                          John Jones POD
                          John
                          Jack, Janet
                          MMDA
                          $  10,000
                          2
                          John Jones POD
                          John
                          Jack, Janet
                          Savings
                          20,000
                          3
                          John Jones POD
                          John
                          Jack, Janet
                          CD
                          470,000
                           Total   
                          500,000
                           Amount Insured   
                          500,000
                           Amount Uninsured   
                          $          0

                          Explanation:
                          John Jones has three revocable trust accounts at the same insured bank. Maximum insurance coverage for these accounts is calculated as $250,000 times two beneficiaries, which equals $500,000. John Jones is fully insured.

                          Example: Multiple revocable trust accounts with five or fewer different beneficiaries
                          Account Number
                          Account Title
                          Account Balance
                          1
                          Paul & Lisa Li Living Trust, John and Sharon Li (Beneficiaries)
                          $700,000
                          2
                          Lisa Li POD, Sharon and Bill Li (Beneficiaries)
                          $450,000

                           

                          OwnersBeneficiaries
                          Owner's Share
                          Amount Insured
                          Amount Uninsured
                          PaulJohn, Sharon
                          $   350,000
                          $   350,000
                          $         0
                          LisaJohn, Sharon, Bill
                           800,000
                           750,000
                          50,000
                          Total 
                          $1,150,000
                          $1,100,000
                          $ 50,000

                          Explanation:
                          When a revocable trust owner has five or fewer beneficiaries, the owner’s share of each trust account is added together and the owner receives up to $250,000 in insurance coverage for each different beneficiary.

                          • Paul share: $350,000 (50% of Account 1)
                          • Lisa’s share: $800,000 (50% of Account 1 & 100% of Account 2)

                          Because Paul named two different beneficiaries, his maximum insurance coverage is $500,000 ($250,000 times two beneficiaries). Since his share of account 1, $350,000, is less than $500,000, he is fully insured.

                          Because Lisa has named three different beneficiaries between accounts 1 and 2, her maximum insurance coverage is up to $750,000 ($250,000 times three beneficiaries). Since her share of both accounts, $800,000, exceeds $750,000, she is uninsured for $50,000.

                          Revocable Trust Insurance Coverage - Six or More Different Beneficiaries

                          Equal Beneficial Interests
                          When a revocable trust owner names six or more different beneficiaries, and all the beneficiaries have an equal interest in the trust (i.e., every beneficiary receives the exact same amount), the insurance calculation is the same as for revocable trusts that name five or fewer beneficiaries. The trust owner receives insurance coverage up to $250,000 for each different beneficiary. As shown below, with one owner and six beneficiaries, where all the beneficiaries have an equal beneficial interest, the owner ’s maximum insurance coverage is up to $1,500,000.

                          Maximum insurance coverage for each revocable trust owner when there are six or more different beneficiaries with equal beneficial interests
                          Number of Different Beneficiaries
                          Maximum Insurance Coverage
                          6 Beneficiaries with Equal Interests
                          $ 1,500,000
                          7 Beneficiaries with Equal Interests
                          $ 1,750,000
                          8 Beneficiaries with Equal Interests
                          $ 2,000,000
                          9 Beneficiaries with Equal Interests
                          $ 2,250,000
                          10+ Beneficiaries with Equal Interests
                           add up to $250,000 for each additional different beneficiary

                          Unequal Beneficial Interests
                          When a revocable trust owner designates six or more beneficiaries and the beneficiaries do not have equal beneficial interests (i.e., they receive different amounts), the owner's revocable trust deposits are insured for the greater of either: (1) the sum of each beneficiary's actual interest in the revocable trust deposits up to $250,000 for each different beneficiary, or (2) $1,250,000.

                          Determining insurance coverage can be complex when a revocable trust has six or more different beneficiaries whose interests are unequal. In such cases, the FDIC recommends that depositors or their financial or legal advisors contact the FDIC for assistance.

                          Keep dreaming the impossible dream, it just may come true! Thumbs Up

                            Avatar
                            Atlanta, GA
                            United States
                            Member #1265
                            March 13, 2003
                            3326 Posts
                            Offline
                            Posted: May 14, 2010, 3:37 pm - IP Logged

                            CASH.

                            • 2012,The Mayan Calendar Ends
                            • The Galactic Alignment that goes along with the Mayan Propghecy for 2012
                            • The Galactic alignment could include a black hole
                            • Possible asteroid striked
                            • The current administration in D.C.

                            I Agree!   Cash for me too.     ROFL   Excellent list!

                            Good luck to everyone!

                              rdgrnr's avatar - walt
                              -Ridge Runner- Oracle of the Appalachians
                              Way back up in them dadgum hills, son!
                              United States
                              Member #73904
                              April 28, 2009
                              14717 Posts
                              Online
                              Posted: May 19, 2010, 8:50 am - IP Logged

                              CASH.

                              • 2012,The Mayan Calendar Ends
                              • The Galactic Alignment that goes along with the Mayan Propghecy for 2012
                              • The Galactic alignment could include a black hole
                              • Possible asteroid striked
                              • The current administration in D.C.

                              Yes, I've heard the Earth could invert on its axis and actually turn upside down.

                              I just hope the Jack Daniels Distillery is on top of this situation and has installed some type of swivel apparatus on all the vats so they don't empty out if this occurs.


                                                                           
                                                   
                                                                       

                               

                               

                               

                               

                                                                                                                                 

                              "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                          --Edmund Burke