Powerball Annuity Makes Good Sense

Reply #9

sfilippo — Thu, 20 Apr 2006 11:05:41 GMT

Hey Uncle Jim,

That story you refer to reminds me of the title of Toby Keith's newest country CD.

It wasn't the annuity that failed them. It was the way they filed their tax returns that cooked their goose.

Plus, they were virtually dead broke the day they bought their winning ticket. It's stupid to use one's food and gas money to buy lottery tickets. And as the comedian Ron Wyatt says, "You can't fix stupid."

Let's say a person wins a $100,000,000 jackpot and takes the cash.

He w... [ More ]

Reply #8

Uncle Jim — Thu, 20 Apr 2006 04:44:43 GMT

Oh this is classic!

It'll come as no surprise to anyone that I think the Powerball annuity makes absolutely no sense whatsoever. But just for kicks let's take the points one by one:

1. It forces you to stick to a budget.

Please refer to the story on Lottery Post about the family in Florida who was recently arrested for tax fraud. THEY took the annuity.

2. The kids and family will be well aware that there is an annual limit of funds.

See the same story.

3. The annuity can be... [ More ]

Reply #7

dvdiva — Thu, 20 Apr 2006 03:12:06 GMT

The annuity only makes sense to the crack addled, marketers and companies selling annuities. Death would force the sale of the annuity, kids or others would be hit with gift taxes or other taxes making the tax bill very large. The annuity is also an excuse not to offer something valuable like cash.

Reply #6

LOTTOMIKE — Thu, 20 Apr 2006 01:27:10 GMT

cash only don't you love it

Reply #5

Bradly_60 — Thu, 20 Apr 2006 01:25:28 GMT

I have to agree with Cash-Only on this one.....has a Finance major in college right now....always take the cash.

The state invests in treasury bills issued by the United States....they bills have the lowest interest rates possible.

Take the money and even investing it in something will give you a much higher return over the next 25 or 30 years then letting the state put your money in t-bills.

Brad

Reply #4

RJOh — Thu, 20 Apr 2006 01:15:27 GMT

When I started working 40yrs ago, the company I worked for had a saving and investment plan and I was surprised by the number of people who said it was bad because in 30 years money could be worthless and they were going to invest on their own. Five years ago when I retired they had changed their tunes, they hadn't invested or saved and they wanted to retire. Five percent of their salary at 3-4% over 35 years looked a lot better as they approached sixty.

If a person is young and doesn't hav... [ More ]

Reply #3

ryanm — Thu, 20 Apr 2006 00:46:30 GMT

Yeah, I think both Powerball and Mega Millions shouldn't have annuities, simply because there's too much uncertainty in the years ahead.

Reply #2

sfilippo — Thu, 20 Apr 2006 00:35:35 GMT

Well, yes, the economy could turn bad in ten years. There are a lot of fears to consider.

Reply #1

Prob988 — Wed, 19 Apr 2006 23:58:16 GMT

And the American currency can become worthless in 10 years, making your payout equal to the value of a hoagy sandwich.

There are plenty of ways to invest money. Diversity is good. Anyone who is mature and balanced can manage to say no.

Powerball Annuity Makes Good Sense

sfilippo — Wed, 19 Apr 2006 23:56:17 GMT

I was checking the FAQ at the Powerball site and to me, the annuity makes the best sense.

It forces you to stick to a budget.

The kids and relatives will be aware that there is an annual limit of funds.

The annuity can be willed on after you die.

The annuity can be cashed out at anytime.

The annuity will gain 4% interest per each annual payment.

The annuity is worth more overall than the cash value.

There are so many positives, I can't see any other way but to take the annui... [ More ]