Which is best, Lump Sum vs Annuity? (Super Lotto!)

Reply #11

Kingofearth — Wed, 26 Apr 2017 19:22:29 GMT

The median age in the US is 38 so your words of wisdom are only applicable to a small minority of players

https://www.cia.gov/library/publications/the-world-factbook/fields/2177.html

Reply #10

AlanHarvey — Tue, 25 Apr 2017 10:46:06 GMT

I have to agree with you on lump sum for my situation. I have known two Texas lotto winners here in Texas. The first one was a co-worker and had no choice but annuity as Texas didn't offer lump sum at the time. My friends our level headed people and have done well since their winnings. The other winner; well, let's just say lessons learned but doing well now. I would take the lump sum at my age I good if I'm alive to make to the bathroom when I need to pee. I think I would just make sure I tax i... [ More ]

Reply #9

zephbe — Tue, 11 Apr 2017 14:56:38 GMT

Younger than 60--take the annuity. 60 or over--take the lump sum and invest it.

Reply #8

noise-gate — Tue, 11 Apr 2017 02:49:58 GMT

That's right, show me the money

Reply #7

music* — Sun, 09 Apr 2017 20:52:23 GMT

and you do not know the tax rates either.

Reply #6

wander73 — Sun, 09 Apr 2017 20:35:08 GMT

Lump sum.

You don't know the interest rates for the following year

Reply #5

James78 — Sun, 09 Apr 2017 20:14:17 GMT

If I won a $26 million SuperLotto Plus jackpot, then I'd get advice before deciding on lump sum or annuity.

In either case, I might stick all of my winnings in CDARS, ICS, and other safe investments. Other kinds of investments would earn more interest or ROI, but would also require me to be more involved or require me to pay others to take care of it (something that I don't like doing). I wouldn't worry too much about inflation eating away at my principal; I'd rather just enjoy my free time a... [ More ]

Reply #4

Redd55 — Wed, 05 Apr 2017 13:55:45 GMT

I agree. But, if you are young and have a huge jackpot, annuity may be better way to go. You would start out taking home 7-10 mil and go up. That would tie me over until next yearly check.

And, if you have heirs, the annuity payments would be passed on to them. There may be tax consequences, tho, so again, the need to consult an expert.

But I'm old and I dont trust the state to have my money so, lump sum it is.

Reply #3

lottolaughs — Wed, 05 Apr 2017 12:44:20 GMT

Lump sum. You never know what tomorrow may bring or if you'll still be alive even 6 months from now. We all know life is short. As you age you realize that more and more. I never think years from now , lol. Once you hit 50 it's kind of hard to.

Reply #2

Redd55 — Wed, 05 Apr 2017 12:27:00 GMT

They withhold 25% for federal taxes. However, you will owe more and pay the top rate. I just multiply the lump sum by 0.604 to see what I would be left with after all federal taxes are paid. In Calif, after you submit your claim, you do not immediately have to choose whether you want the annuity or the lump sum. This is the time when you meet with a financial expert who will help you decide what is the best choice for you. And the annuity runs over 30 years - not 26. And of course, you wd be lia... [ More ]

Reply #1

Raven62 — Wed, 05 Apr 2017 10:24:46 GMT

https://www.lotterypost.com/search/forums?q=lump+sum+vs+annuity t=all

https://www.lotterypost.com/search/forums?t=all q=cash+value+vs+annuity

Which is best, Lump Sum vs Annuity? (Super Lotto!)

Timber! — Wed, 05 Apr 2017 09:32:29 GMT

I am 42yo, I have not won, but I play sometimes for fun, then I started to think which one would I choose. Lump Sum or Annuity? What about you guys?

We all claim to be good investors, even me, but 70% of people who win loose their fortune within the first 3-7 years. That is something to consider.

After crunching the calculator to death I think that annuity payments might give me a better return. What do you guys think?

Hypothesis: 1-2

1) If I win 26M Jackpot and choose the lump sum... [ More ]