Cash Vs Annuity PaymentsPrevious TopicNext Topic

I like Cash too

Amen to that. I will take thecash and then buy as many books of scratchers

as I can. Then I will finally hit a 1000 on a ten dollar ticket. (They won't be in South

Carolina though).I will do this after I get Britney Spears to sing at my celebration

party.

Take the money and run. We can't even be sure the world doesn't come to an end in 20 years, nevermind the state being able or willing to pay out for that long. There's just no guarantee, you'll see it all. I would ABSOLUTELY TAKE THE CASH OPTION.

"I have a structured settlement and I need cash NOW!!!".

The way the economy is going, there's no guarantee the money will paid over 25 or 30 years.

On the other hand, there's no guarantee the the dollar is going to be worth a penny either when you have taken the cash.

In truth, my state has taken the lottery money designated for schools, and used it for other things. Who is to say they won't take the money you won in the lottery? And yes, it's illegal, but I'm sure they could find a way around it. They figure, you've gotten a few payments, you should be able to live on that.

I'd take the cash. 

I'm not a conspiracy theory person, but the older I get, the less I trust politicians.

    For me it depends on the amount and the age at which you win. If you are in you late teens or earlier twenties I would suggest taking the annuity. I know how I was at that age and at least if you blow your money those first couple of years at least you have an annuity coming for the next 20 yrs or so. Also I would suggest that you never sell your future payments to those brokerage firms you will end up being broke in no time. If you are 35 or older I would take the cash option and purchase my own annuity through a reputable investment firm such as Edward Jones or Merrill Lynch. Also you should make sure that you set aside enough money to cover your taxes. For example if you were to win a 12 million dollar California jakpot the cash option on that money is currently 8.3 million. Then count on at least 25% from the cash option amount netting you about 6 million. But wait......there's more, you will still owe money at the end of the year when you pay your taxes because you are now in the 35% tax bracket as far as the I.R.S. is concerned. Although you get the the 6 million up front the actual amount you net after paying your taxes at the end of the year is apprx 5.3 million.  That being said I would set aside at least 35-45% of the cash option for investments and to cover my tax liability. That would still leave you approx 3.5 million to do as you please. At least that's how I would do it. Just hope that one day I can exepierence the shock of winning a jackpot for myself. Like most people there is nothing like having financial security and if I was to win I would never jepordize it by being foolish with a "once in a lifetime opportunity."

dk1421,

Not just North Carolina gets 'creative' with lottery money supposedely going to schools. It's common for states to claim 'Lotto bux for education' and put them in the school system and take out an equal or greater amount somewhere else in the school system. They just make it look like it's going to the schools.

PS

A long overdue thanks for the sig reference.

oh not me...I want the annuity so I can pay potentially less taxes on it for years to come cause our government is so effecient and theres no doubt that the tax rate for millionaires will definitely be less in the future 29 installments.....Boy, if that statement cause projectile vomiting............
SHOW ME THE CASH RIGHT NOW  !!!!! 

I would do half and half.

Dear Jackpot Winner,

Please be patient while the temporary restraining order on the disbursement of your annuity funds is in effect during this national emergency.

This will coincide with the temporary suspension of the Constitution and Bill of Rights.

The sundown till sunup curfew will remain in effect until the rioting stops and the lawless roving bands of militia are disarmed and executed.

Unfortunately, I have found it necessary to cancel all elections until my new secret police can guarantee security and fair elections at some time to be determined.

Please coperate fully with the house to house searches for guns and enemies of the state.

Report any suspicious activity at once to your local Democratic Committee Office.

Thank you for your obedience,

President for Life,

Barry Hussein Soetoro/Obama

------------------------------------------------------------------------

Uhh... I'll take the cash.

why should he have been sent to a rubber room? oh  I shouldn't ask. I already know the answer to that.

Excellent post, Ridge, and not that far fetched.

Let's see, just for one thing, the fans of the hammer and sickle detest property ownership in any form, cars, houses.........gee, what does everyone think all the foeclosures are about?

And let's see, what else? Oh yeah, czars...gee the root word of the Rusdian woird czar is...caesar!

Those who have ears, let them hear.

If there was ever one solid argument for cash your post above should be it.

Amen and amen!

I'll take the $$$CASH$$$! While I've seen financial articles for and against the cash option, the one I thought made the best sense was one I read last year (can't recall where...darn). The person writing the article was a financial planner who pointed out that since most lotteries use government notes (bonds) to earn the money for annuity payments (they currently earn around 3% annually, I believe), it would be the wisest, and lowest risk choice to take the cash option, pay off any and all outstanding bills (mortgage, car loans, student loans, unsecured debt, etc.), set aside a REASONABLE amount to live on and make RESPONSIBLE purchases with, and then use the majority of the money as investment "seed money". There are quite a few options for investing that will yield as much or in some cases more money over the course of 26+ years, versus the annuity option. So....that's the way to go, IMHO, and as such, that's exactly what I WILL do WHEN I hit the big one ANY DAY NOW! 

$CASH$  is KING!  I already have a plan.  Payoff bills, help out family and friends and continue to live pretty much the same lifestyle, with a few upgrades.  I don't need to travel, I enjoy living in a quiet place.  I would spend more time with my parents.