Can a lottery Cash Value be more than the Annuity Certain?

Reply #6

realtorjim — Tue, 19 Jul 2016 04:46:30 GMT

The premise of a Cash Value being more than the Annuity Certain was posted facetiously. Although, never say never...

Reply #5

winoneday — Sun, 17 Jul 2016 22:50:13 GMT

Your question is based on a false premise. Bonds have not been earning a negative interest rate. In fact, they never have.

Reply #4

LiveInGreenBay — Sun, 17 Jul 2016 20:01:49 GMT

If someone wins 300 million or so, why squabble over a few thousand one way or another. Take the money and run! At least the government has no control over it after you pay the taxes on the lump sum. And incidentally, what will the tax rate be in 10 or 20 years? That's right, no one knows.

Also...Currently there's talk in DC where the feds would confiscate pensions to cover the debt and re-pay retirees over time with something similar to social security payments. LOL! If they did that, what... [ More ]

Reply #3

LOTTOKING2016 — Sun, 17 Jul 2016 19:41:59 GMT

I want to see Cash Jackpots....Let that Bond go down to death so CA$H can keep climbing...

Reply #2

TheMeatman2005 — Sun, 17 Jul 2016 19:15:48 GMT

I don't think the lottery would ever advertise the jackpot that way.

If it came down to where the annuity would be less than the cash value, I think they would just forgo the annuity amount and make it a cash only jackpot.

Reply #1

KY Floyd — Sun, 17 Jul 2016 01:06:45 GMT

I'd say there's absolutely no chance at all that you'll see a jackpot advertised that way.

While it might theoretically be possible for an annuity to have a negative rate I'm sure there's zero chance that a lottery is going to advertise an annuity of $500 million if the cash value is $535 million. If those were the options we'd just see lotteries advertising the cash value that the overwhelming majority of winners choose anyway, because the advertising is all about promoting the biggest numbe... [ More ]

Can a lottery Cash Value be more than the Annuity Certain?

realtorjim — Sat, 16 Jul 2016 22:29:24 GMT

Since the lotteries often invest in government bonds for the Annuity Certain, and since bond rates have been earning negative interest of late, could the cash value of a lottery jackpot be more than the annuity?

Current Estimated Jackpot $500 Million

$535 Million Cash Value