Does anybody else disagree with graduated annuities?

Reply #8

JAP69 — Sat, 23 Jan 2010 22:37:12 GMT

You might want to check on inheritance taxation with that kind of money. I understand it has been stopped for 2010 on inheritance tax. Might kick back in in 2011.

From what I read the tax is pretty stiff. 50% or better I heard.

Reply #7

LadyMylena — Sat, 23 Jan 2010 22:30:25 GMT

You took the words right out of my mouth, just like always. lol

Well, there's always the chance, too, that the dollar crashes, all of our states go bankrupt, and the lottery gets suspended. Our unemployment funds are almost depleted http://projects.propublica.org/unemployment/, and how long do you think it's going to take, for everything else to be in the same boat?

I hope to God I win before that happens.

I used to always say I'd take the annuity, and that way I'd be set for life...b... [ More ]

Reply #6

Coin Toss — Sat, 23 Jan 2010 20:36:28 GMT

Lucky4Life,

I'm sorry I don;t remember who but someone here on LP has or had a signature,

You can always buy a better annuity .

Pretty good observation, really. Let's face it, the lottery isn;t really going to compairson shop the annuity for a jackpot winner that chooses to go that route.

Reply #5

KY Floyd — Sat, 23 Jan 2010 17:04:58 GMT

The real reason for graduated annuities is to increase the advertised value of an imaginary jackpot even more.

In terms of practicality to the rare winners that take the annuity, I figure they're looking for a steady and predictable income. If the cost of living goes up every year (and it almost always does), it makes sense for your income to go up by at least that much so that you don't lose any ground. Sure, most of us carry some amount of debt and most of us could think of a way to splurge... [ More ]

Reply #4

Raven62 — Sat, 23 Jan 2010 14:50:19 GMT

Are you going to do something about your concern

Reply #3

Lucky4Life — Sat, 23 Jan 2010 14:17:18 GMT

Maybe my statement wasn't clear. The annuity itself isn't an issue, i would take it. The system of payment of the annuity is my issue.

Thanks for the link, though.

Reply #2

rdgrnr — Sat, 23 Jan 2010 13:56:26 GMT

Any government agency is the last place on earth I would trust with the future of my money. I'll take the cash option and buy everything I need right away before the dollar loses any more value. I'd trade a big chunk for precious metals, get off the grid and prepare to hunker down in case the current government succeeds in destroying the currency and the country before we can vote them out. No way I'd take an annuity in the current environment. It could be worthless in short order.

Things hav... [ More ]

Reply #1

Jack-C — Sat, 23 Jan 2010 13:50:59 GMT

This has been discussed many times here on LP.

Here is one of the discussions:

https://www.lotterypost.com/thread/199002/1384289

What I have observed in the past is that most people, including me, think that the cash value is the way to go. Even some people that thought they wanted yearly payments changed their minds after some discussion.

Does anybody else disagree with graduated annuities?

Lucky4Life — Sat, 23 Jan 2010 13:30:29 GMT

I can understand the logic behind graduated annuities. For example, PB goes up in payments 4% every year. But if you invest wisely you don't NEED the cost of living adjustment!! I would need most of it the first year, not the least of it. I would be paying off things and enjoying my new life. I know it's pretty much a pointless argument, but if I have invested at least 10% in 30-year municiple bonds I will be sitting pretty by the time my annunity runs out. Logic dictates at the end of 30 years... [ More ]