-No Explanation-

Reply #29

KY Floyd — Fri, 07 Mar 2008 21:06:07 GMT

They say that truth hurts. Coincidence or causation

Reply #28

KY Floyd — Fri, 07 Mar 2008 21:03:39 GMT

It's certainly possible that a lottery invested the money with a company that had financial problems, but the prize is paid by the lottery. Unless the lottery runs out of money they're obligated to pay the prize.

Reply #27

GASMETERGUY — Fri, 07 Mar 2008 20:46:31 GMT

You people in Illinois might have better information than I but there was a jackpot winner up there some years ago who took the yearly payments. Lotto then invested the jackpot in some dubious company. The company went belly up. The winner stopped recieving his yearly payments. He sued the Illinois lotto saying they picked the investment company and should be held liable. I never learned the outcome of that suit.

So if I win the big one, I will take the cash option. Then I get to pick the inv... [ More ]

Reply #26

JWBlue — Fri, 07 Mar 2008 16:20:09 GMT

Rubber,

Here is an explanation.

I like you so I am going to give you $1,000,0000. I then tell you I will pay you over 1,000,000 years. Doesn't that $1,000,000 become just about worthlesss?

It certainly isn't the same as being paid a jackpot over 26 years, but it proves a point.

Reply #25

lottolaughs — Fri, 07 Mar 2008 16:03:00 GMT

Good one,Raven!

With all due respect, it seems you have a chip on your shoulder,rubber. How come? You get more bees with honey, that's all I can say.

Reply #24

Raven62 — Fri, 07 Mar 2008 15:53:01 GMT

If that were the case your LP ID would be: rubberbandwoman! LOL

Reply #23

rubberbandman — Fri, 07 Mar 2008 14:03:56 GMT

Dude that hurts!

And how would you know that I'm not a woman

Reply #22

KY Floyd — Fri, 07 Mar 2008 06:20:18 GMT

Have you paid any attention to the other threads this guy is in? I'd say there are three possibilities.

1. He's hasn't read more than a handful of old posts, but think the 3 he might have read make him an expert on our opinions.

2. he has read a reasonable number of posts, but didn't undertsand what he read.

3. He's just a troll.

No matter which it is, responding is a waste of time.

Reply #21

Stack47 — Fri, 07 Mar 2008 01:06:17 GMT

In retrospect I could say had I bought and held $10,000 worth of Wal Mart stock 30 years ago it would now be worth $3 million. I could have sold the stock when it was worth $20,000 and spent the profits on toys or bought other less valuable stock. Just because we know the results many years later doesn't mean that's how we would have acted. They didn't have $200 million jackpots 30 years ago so we don't know if somebody had taken the cash, they would have made more than the annuity.

All these... [ More ]

Reply #20

sirbrad — Thu, 06 Mar 2008 21:41:38 GMT

Oh man not this again. Cash makes A LOT more sense, as the interest earned each year will actually exceed the annuity. Annuities are for people who do not trust themselves with money, and want to get less each year due to inflation. I have already argued this to death in other threads, but that is the basics.

Reply #19

tiggs95 — Thu, 06 Mar 2008 20:47:23 GMT

I said on another thread I'd take lump some being my age and If I was in my 20's or 30's I'd take payments..I guess you missed the other thread about this..

Reply #18

pacattack05 — Thu, 06 Mar 2008 19:50:09 GMT

At this stage, Id be happy if I won I won a tote bag from a PBS contest....

Reply #17

ThatScaryChick — Thu, 06 Mar 2008 19:18:31 GMT

I know right? I couldn't possibly be happy with a measly $80 million it's just not enough! lol.

Reply #16

pacattack05 — Thu, 06 Mar 2008 19:04:03 GMT

You're right. 80 million isn't nearly enough to make my dreams come true. It would take 81 million.

Thanx for the heads up.

Reply #15

rubberbandman — Thu, 06 Mar 2008 18:22:31 GMT

all of you are double teaming on me huh, well Ill still stay with my explanation

Reply #14

Coin Toss — Thu, 06 Mar 2008 18:18:23 GMT

For you they might be, but not for everyone.

One major factor in such a choice is a person's age, or in the world according to rubberbandman is someone up there in their years that hits a jackpopt suppossed to choose a 26 to 30 year annuity because, hey, that's what the rubberbandman said.

I guess you've ignored all the posts about the amount being advertised in the annuity being non-existent.

Both choices have advantages, and disadvantages. It's a person by person choice, there is no... [ More ]

Reply #13

lottolaughs — Thu, 06 Mar 2008 17:16:00 GMT

How people decide to cash in the jackpot is their business. I think these kinds of questions are silly. You have to win the jackpot first before you decide ANYTHING! Do you know how hard a task that is in itself? Don't worry about how people decide to take their winnings! My God,we all wish we could have this problem

Reply #12

Guru101 — Thu, 06 Mar 2008 17:09:49 GMT

Cash option makes no sense, you get half the jackpot.

Half the jackpot? We have yet another person who thinks that the annuity is calculated first which then determines the cash value. THAT'S NOT HOW IT IS! They take the amount of cash and spread it over 29 years and 30 payments including the interest which determines the annuity! So using you get half the jackpot holds no credibility.

Reply #11

Todd — Thu, 06 Mar 2008 16:37:50 GMT

Debated and explained many times in great detail. If you have something to add, definitely do so, but read-up on past discussions first

Reply #10

rubberbandman — Thu, 06 Mar 2008 16:12:44 GMT

thanks, i guess

Reply #9

jarasan — Thu, 06 Mar 2008 16:11:43 GMT

There are dozens upon dozens of threads you need to read thru them and you'll find what you seek.

Reply #8

Uff Da! — Thu, 06 Mar 2008 16:11:02 GMT

Rubberbandman, I taught personal finance for years, and from your questions and comments it is apparent to me that you do not have some of the basic understandings of finance. No, you haven't done your research.

You stated, Cash option makes no sense, you get half the jackpot and Annuities are the logical choice. You called pacattack's comments ridiculous. So why do you ask for our opinions? Your mind is already made up, it seems. So what would you do with our opinions

Reply #7

rubberbandman — Thu, 06 Mar 2008 15:43:42 GMT

ok man I see that were not going anywhere beyound technicalities, so ill just say this

-I JUST WANT YOUR OPINION-

i know the technicalities, believe me ive done my research

Reply #6

Uff Da! — Thu, 06 Mar 2008 15:35:49 GMT

I repeat, I suggest you do a Google search on 'time value of money.' It is a basic financial concept. If you don't use Google, use another search engine. But search the whole web on the concept, not just this website. I know you are anxious to get to the specific cash versus annuity point, but IMO you'd be better off drawing your own conclusions after you get some more basic financial knowledge behind you.

And if you really want to understand, don't just read what it says on one or two websi... [ More ]

Reply #5

rubberbandman — Thu, 06 Mar 2008 15:28:48 GMT

Ridiculous nobody would do that, you win 200 mil in powerball, cash option near 80 after tax

Reply #4

pacattack05 — Thu, 06 Mar 2008 15:21:32 GMT

I'll gladly take half of anything that has the word Million in it...lol

I'm no spring chicken, so I want all half of it right now

Reply #3

rubberbandman — Thu, 06 Mar 2008 15:07:24 GMT

they didnt explain they just said what they would do with money

Reply #2

jarasan — Thu, 06 Mar 2008 15:04:35 GMT

https://www.lotterypost.com/search.asp?q=annuity+vs.+cash

Reply #1

Uff Da! — Thu, 06 Mar 2008 15:02:28 GMT

I suggest you do a Google search on time value of money. It is a basic financial concept.

Also be aware that the IRS expects that in the event of a person's death that estate taxes be paid within nine months. If money is tied up in annuities, the executor may not have enough cash in the estate to pay the taxes. Depending upon how a jackpot winner has arranged his estate and to whom he leaves it, the estate taxes might be millions of dollars. Sometimes there are ways around this, but it depend... [ More ]

-No Explanation-

rubberbandman — Thu, 06 Mar 2008 14:39:43 GMT

You guys say you will take cash option over annuity but never explain the reason, why is that?

Cash option makes no sense, you get half the jackpot.

Annuities are the logical choice.

Gee Brain, what do you want to do tonight?

The same thing we do every night, Pinky Try to take over the world.