Why isn't there a choice to split the Lump sum and the Annuity?

Reply #14

Lotto fanatic — Wed, 13 Jul 2022 08:28:18 GMT

Thanks for the encouragement.

Reply #13

Stack47 — Sat, 02 Jul 2022 23:41:10 GMT

If a state lottery would offer the half and half option, it should apply to groups too. And not sure if a group claims the jackpot that some members can ask for payments and others ask for cash.

l Lot more work.

Reply #12

noise-gate — Sat, 02 Jul 2022 02:25:57 GMT

* Because this guy said it best....

Reply #11

KY Floyd — Sat, 02 Jul 2022 01:57:12 GMT

Obviously an option, but it's an inferior option. The lottery invests the entire untaxed cash value, but if you take the cash you'll only be able to invest what's left after you've paid taxes.

Current cash/annuity values are a bit lower, but if we figured the cash value of the $50 million mentioned by the OP was 60% a split option directly from the lottery would give you $15 million cash (pre-tax, or about $7.5 to $10 million net) and a $25 million annuity. The DIY option would start as $30 m... [ More ]

Reply #10

ah1963 — Fri, 01 Jul 2022 17:20:22 GMT

If you invest your own money then risk always remain there. You can withdraw your money anytime and spend it.

Reply #9

Raven62 — Fri, 01 Jul 2022 14:26:24 GMT

You can do that now: Buy two tickets with the same numbers and select Annuity on one and Cash on the other.

Of course Playing that way will Cost you a few Bucks

Reply #8

Todd — Fri, 01 Jul 2022 13:43:53 GMT

Just in case anyone missed it:

VIDEO: How are lottery jackpots calculated?

Describes how jackpot money is invested to create the annuity.

Reply #7

Stat$talker — Fri, 01 Jul 2022 13:41:08 GMT

..for once, you're using dat Ole Noggin ta Think outside da Box ..!!

Ole Stat$ rubbin auwfph on ya eeh

Reply #6

rcbbuckeye — Fri, 01 Jul 2022 12:56:42 GMT

I agree

Reply #5

Artist77 — Fri, 01 Jul 2022 12:51:32 GMT

Great and logical advice

Reply #4

cottoneyedjoe — Thu, 30 Jun 2022 22:10:14 GMT

The way your state lottery invests money to pay out annuities should be public info. So first, file a public records request to find out how they invest the money. Next, when you win, ask for the lump sum and then invest half of it the way the lottery does. Pay yourself an annuity out of the interest. Boom, now you got an annuity and a lump sum.

Reply #3

ddude003 — Thu, 30 Jun 2022 20:03:58 GMT

Oops... In the case of the Powerball game the annuity pays out across 29 or 30 years... Other states games annuities pay out over 25 or 26 years...

Reply #2

ah1963 — Thu, 30 Jun 2022 19:06:36 GMT

It is an interesting idea, hope LO's notice your post.

Reply #1

ddude003 — Thu, 30 Jun 2022 18:17:36 GMT

In your example of a $50 million pot, the cash value lump sum would be approximately 1/2 of the $25 million ($12.5MM), while the $25 million annuity pays out across 25 or 26 years... So the approximate total payout would be $37.5 million... Still, seems like an interesting alternate choice...

Why isn't there a choice to split the Lump sum and the Annuity?

Lotto fanatic — Thu, 30 Jun 2022 06:56:55 GMT

I think that would be ideal. Let's say you win 50 Million in the Powerball. You should be able to get a Lump sum of say $25 million before taxes and $25 million before taxes in Annuity. I don't get why this isn't a thing. Half lump sum, half annuity.