How are annuities created and paid?

Reply #7

macrowiz — Mon, 22 Feb 2016 16:50:35 GMT

That's great input! Thanks

Reply #6

savagegoose — Sun, 21 Feb 2016 06:01:42 GMT

they should have a paid in gold eagles option. and thanks Mergatroyd. nothing like going to the source to get correct facts, something i should do more often

Reply #5

ArizonaDream — Sun, 21 Feb 2016 04:11:25 GMT

From the powerball.com FAQ page---

WHY IS THERE A DIFFERENCE BETWEEN THE CASH PAYOUTS IN THE POWERBALL AND MEGA MILLIONS GAMES?

There used to be a larger difference between the two games, but the Mega Millions game was recently changed to mirror the Powerball annuity option. The difference (spread) between the cash and annuity jackpots amounts are now about the same. Both games offer an annuity that pays out in 30 payments over 29 years (the first payment is immediate). Both annuity optio... [ More ]

Reply #4

Murgatroyd — Sun, 21 Feb 2016 03:57:59 GMT

According to the State Lottery Act, the funds must be invested in such a way as to ensure the payment of the prize.

If the company providing the annuity goes bankrupt, you might be in trouble, but even then, the law will be on your side.

Reply #3

LiveInGreenBay — Sat, 20 Feb 2016 18:45:25 GMT

I'm wondering, if the stock market crashes is there the possibility of losing your annuity

Reply #2

Murgatroyd — Sat, 20 Feb 2016 00:20:43 GMT

From the Texas Lottery website:

It's important to understand what happens when a Lotto Texas jackpot is won. If the jackpot winner has chosen 30 Annual Payments, Texas Lottery officials provide the Texas Treasury Operations Division of the State Comptroller's Office with the jackpot amount. The Division submits a request for bids from previously approved investment firms. The contract is awarded to the investment firm that will provide the jackpot amount, paid over 30 years, at the lowest cos... [ More ]

Reply #1

savagegoose — Fri, 19 Feb 2016 20:06:48 GMT

they take the cash jackpot and invest it in muni bonds for the state that won. and pay out part of the captal+ interest over 30 years. thats my understanding anyhow. if you took the cash and bought tax free state bonds you could sit pretty and not worry about taxes lol

How are annuities created and paid?

macrowiz — Fri, 19 Feb 2016 18:38:04 GMT

I can t find a really good description of annuities for lottery winners and have a couple of questions: How is an annuity created for a Texas lottery winner? Is it done through an insurance company or some other way? And then who actually issues the annuity payments (checks, direct deposits, etc.) to lottery winners? An insurance company, TLC, the Texas State Comptroller, somebody else