Experts advise to take cash option

Comment #19

CASH Only — Fri, 11 Jun 2004 20:07:54 GMT

I'll second that.

Comment #18

four4me — Mon, 24 May 2004 01:00:15 GMT

Take the cash and if your worried you'll spend it all do what the lottery does buy yourself a bond or bonds with whatever amounts you can afford when it matures. Take the interest throw yourself a party. Then buy some more bonds.

Comment #17

LottoBuddy — Sun, 23 May 2004 05:35:15 GMT

The cash option is much better for most people. The value of the annuity is based on the interest rate on long-term bonds, so if your financial advisors invest the cash properly in a diversified portfolio that includes stocks, you can earn much more. One of the few instances where the annuity option may be better is if the winner is stupid, undisciplined and refuses to follow good advice; such a person may blow his millions quickly while an annuity will limit his losses for each year.

Comment #16

rdarmand — Fri, 21 May 2004 12:17:59 GMT

Annuities are a bad investment.The estimated Powerball jackpot is currently $33M (29-yr payout), or $16.7M (lump-sum). Historically, common stocks average between 10% and 11% annually -- but let's assume they are depressed for 30 years and only average 8%. Let's further assume that the winner decides to live on $30,000 per month, indexed for inflation at 3.49% -- thus pulling $360,000 or more per year out of the system.At the end of 29 years, the winner will have more than $67M -- more than doub... [ More ]

Comment #15

bowldog — Fri, 21 May 2004 05:41:09 GMT

We do understand that we will pay taxes on lump sum and on the annuity after before your yearly payout don't we? I say take the lump sum and learn how to manage your investments, so when you pay someone else to do it you understand what is going on with your account(s).(less chance of getting ripped of) I'm not saying get a college degree, but you can get someone to teach more than the basics in a way that you totally understand(you've got the money and the time). Take the money and run I say.... [ More ]

Comment #14

keystonechas — Fri, 21 May 2004 04:35:37 GMT

Quote: Originally posted by DoctorEw220 on May 20, 2004that's what i'm trying to say. we all can express our opinions, but when we take it too far, we take it too far.CASH Only does rant on the cash/annunity and hot lotto debate a bit at times. That's his right. It's also my right to rib him about it.Chas

Comment #13

keystonechas — Fri, 21 May 2004 04:23:31 GMT

Quote: O

Comment #12

weshar75 — Fri, 21 May 2004 04:09:26 GMT

I think it is funny that the expert in this news article stands to benefit from the lottery winners money. I guess I would tell them to take the cash too if I standed to gain something from it too. When I win I will choose whatever option I feel like because that is what a winning jackpot ticket gives you. The freedom to choose whatever you want

Comment #11

DoctorEw220 — Fri, 21 May 2004 03:04:55 GMT

that's what i'm trying to say. we all can express our opinions, but when we take it too far, we take it too far.

Comment #10

st.germain — Fri, 21 May 2004 02:58:16 GMT

All right doctor, First of all this society is free country where we can express opinions....it is called freedom of speech...second,... I am a former member of the u.s.marine corps who volunteered for two tours in vietnam in a combat capacity whereas you witness that of soldiers who are participating in the present day age of war on terroism...I am a american....you sir, are a fool.

Comment #9

rabbitfoot — Fri, 21 May 2004 02:35:18 GMT

With an amount of 5-million dollars or less, I would take a lump sum payment and keep it all in CDARS. That way I could reinvest right along with inflation.Rabbitfoot

Comment #8

DoctorEw220 — Fri, 21 May 2004 02:19:08 GMT

CASH Only: Alright. It was nice that you expressed your preference for the cash option, but I think you have taken it a little too far. WE KNOW YOU PLAN ON TAKING THE CASH OPTION!!! It's nice that you have formed your own opinion, but it seems as if you are trying to push it on everyone else, and that is Communist.

Comment #7

st.germain — Fri, 21 May 2004 00:12:46 GMT

Take the cash option. History has shown that businesses fail as well as countries too. Who is not to say that legislators change the laws on lotteries affecting whatever money is left...and or affect the way future payments are handled.

Comment #6

smd173 — Thu, 20 May 2004 23:49:02 GMT

Quote: Originally posted by tg636 on May 20, 2004I'm still not persuaded. I may be locked into it, but I am locked into getting the amount of the jackpot I won, so what have I lost? Why not take the cash and buy your own annuity? Then YOU control it, not the state.

Comment #5

CASH Only — Thu, 20 May 2004 20:16:06 GMT

Dr: EW:That explains why you didn't win the recent $213 million Powerball.

Comment #4

DoctorEw220 — Thu, 20 May 2004 18:08:19 GMT

i'm still going to take the annuity.

Comment #3

keystonechas — Thu, 20 May 2004 15:05:37 GMT

Quote: Originally posted by CASH Only on May 20, 2004Duh...I smell a setup. CASH Only wrote this article did'nt he?LOL, Chas

Comment #2

tg636 — Thu, 20 May 2004 14:36:05 GMT

I'm still not persuaded. If you take the lump sum, you start your investing minus 30% in fed/state taxes, minus whatever cash you want to spend or have on hand to live the good life, say 5%...and minus investment fees, say 1%. So you have to invest it in such a way to make 36% interest just to equal an annuity payment. Nevermind making more than the annuity, and never mind living the good life which to me does not involve incessent thinking about investments or money. Since the people giving... [ More ]

Comment #1

CASH Only — Thu, 20 May 2004 13:34:53 GMT

Duh...

Experts advise to take cash option

Lottery Post — Thu, 20 May 2004 11:19:04 GMT

Finance 101 for lottery winners: Take the cash, advisers say. Annuities could be a bad bet.Say you win $110 million in the Pennsylvania Powerball drawing, as Steve and Kristine White did on May 8. Is it best to take the money in a lump sum or in an annuity over time?Some experts think the answer is clear: Go for the big bucks. Now.That could explain why the Whites are electing to take a check instead of a guaranteed annual payment of about $7 million, and why the state's three previous Powerball... [ More ]