|Posted: July 30, 2016, 11:05 pm - IP Logged|
I agree. The return on the lottery annuity is about 1.42%, where you can get over 2% on certain jumbo CD's, which are FDIC insured. Like you said, nothing is guaranteed but if it were my burden to make, I would chose the cash option as well.
A lot of people still don't understand what the difference is between the advertised annuity jackpot and the cash value amount.
They think they are losing money by taking the cash value. Acting like it's a penalty imposed on them for taking the cash and not the payments.
When you take the cash, all you get is what the lottery has accumulated from selling tickets.
When you decide to take cash, that's what you get. You get the cash, but without any of the interest that would have been earned over the annuity period.
If you are careful with the money and invest it wisely, without over-spending, over the next 29 years, you will end up with what the annuitized value of the drawing was...or more!
Yes, of course, you are going to buy a nice house, a nice car (or 2, or 3) and the best of what money can buy, but if you want it to last and become "GENERATIONAL WEALTH" you need to take things slow and easy.
“The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers
Winning happens in a flash, Like A Bolt Of Lightning!