Jackpot : Annuity vs cash value

Reply #3

wander73 — Tue, 08 Aug 2023 15:23:49 GMT

Just to let you know, I used ai chat to look for the answer for you. As far as either or, that's up to you and your situation. Interest rates could be another factor but everyone has a different situation.

From things that I know of in my past, if you have a loved one that passed, you might want to talk to a lawyer, financial, and accountant. Ya might get a call from someone claiming to be a distant relative.

Reply #2

JWBlue — Tue, 08 Aug 2023 15:14:51 GMT

There seems to be an assumption the highest tax rate always goes up.

The facts indicate otherwise.

https://www.wolterskluwer.com/en/expert-insights/whole-ball-of-tax-historical-income-tax-rates

Taking the annuity might be a good decision.

Reply #1

wander73 — Tue, 08 Aug 2023 15:01:37 GMT

If you win a jackpot, you can choose to receive the jackpot in an annuity that is paid in 30 graduated payments over 29 years with an annual interest rate of 5% or as a lump sum 1 . A lump sum means you get a smaller payout immediately. An annuity spreads your payments out over several years and gives you a larger jackpot over time 2 .

The decision between taking the lump sum or annuity depends on your personal financial situation and goals. If you take the lump sum, you will pay all applica... [ More ]

Jackpot : Annuity vs cash value

JWBlue — Tue, 08 Aug 2023 14:58:43 GMT

There is a discussion in the MM thread about taking the annuity vs cash value.

I thought taking the cash value is 100% the right decision. Long term investments will almost always beat the return of a annuity right