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Why people who won the jackpot frequently decide to choose money cash over annuity money?
Why people who won the jackpot frequently decide to choose money cash over annuity money? Someone told me that the money annuity can not be inherited; because, when owner dies the annuity money the U.S. government take possession this money annuities? This is true? are there some other reason?
Feb 10, 2015, 5:24 pm - febausa - Lottery Discussion Forum

Can one spouse take lump while the other takes an annuity?Reply
I was responding to Tucker's suggestion that you take lump sum (and pay max taxes on EVERYTHING), then (with a lesser amount) you buy an annuity. So he is going to buy his on annuity with 40% less starting money (of half the winnings). On top of that, the lump sum BEFORE TAXES is about 55-60% of the list prize amount. Very hard to get annuity that gets a better rate then 40%+ to make up the 40%+ loss you started with. Most places allow you to split the winning on the ticket BEFORE you cash i
Feb 2, 2019, 7:59 pm - Sarge0202 - Lottery Discussion Forum

For the Millionth Time...Reply
What sticks out to me is the, the risk of loss rests with the prize winner. That part refers to the cash, not the annuity, and is connected to the part that says The gross cash option will represent the sum of the first annuityinstallment plus the net proceeds from the sale of the governmentsecurities originally purchased to fund the annuity prize. The risk they're talking about is that the value of the of the securities on the day of sale may be different than the original cost. That v
Oct 1, 2009, 3:14 pm - KY Floyd - Lottery Discussion Forum

would you take cash or payments on the PBReply
some additional considerations:1. The top tax rate is roughly 40% including both the federal and state income tax. Because of Powerball's size, the jackpots and the annual annuity payments are probably both going to be taxed at the top rate. Hence there's no significant tax advantage to choosing the annuity. PLUS FOR LUMP SUM.2. The stated interest on the annuity is roughly 4.7 percent. The higher it goes, the more favorable it is to choose the annuity. I think it needs to approach 6 to 6.
Oct 13, 2005, 7:49 pm - lchoro - Lottery Discussion Forum

annuity is the way to goReply
I would take the annuity. It's probably possible to invest the lump sum to get a better rate of return than the annuity, but it isn't probable. Unless you want to risk losing your money you'd have to invest in very conservative investments, which is basically what would happen if you took the annuity, so why bother? Let the lottery people invest it for you.If you took the lump sum you wouldn't actually have access to the lump sum, because the majority of it would be tied up in investments. Same
Jul 1, 2004, 1:29 am - Fwup - Lottery Discussion Forum

Was that the official concession speech from Mega Millions?Reply
That the cash/annuity ratio is different for this drawing than the last one doesn't guarantee that a changing rates resulted in an inability to fund the previously advertised annuity. I'm assuming that the announce the jackpot based on expected sales and a commitment for the annuity value based on the cash expected to fund it. Do you have specific information to the contrary? Assuming they do get acommitment, that would mean that rather than having a shortfall if there had been a winner (and the
Dec 11, 2013, 7:02 pm - KY Floyd - Lottery Discussion Forum

So how come MM cash values are always considerably closer to their annunity than PBReply
It's both the length of the annuity and the varying amount of the Powerball payments. Besides being 4 years longer, the powerball annuity pays a much smaller portion in the early years, and a much higher portion in the final years. That results in significantly more money to earn interest over the life of the annuity. Right now the MM annuity is 135% of the cash value, while the powerball annuity is almost 160%. I don't remember the exact chronology or details, but in the past Powerball's ann
Apr 4, 2013, 11:54 am - KY Floyd - Lottery Discussion Forum

Lottery money: How much gets returned?Reply
Powerball puts 30 cents of each dollar into the jackpot...explained better in their own words... WHY HAS THE CASH JACKPOT GONE DOWN?Actually, it is the annuity jackpot that has gone UP. Most people assume that we start with the annuity. We start with the cash jackpot. In the Powerball game, thirty cents of every dollar sold goes into the cash jackpot pool. The difference between the cash jackpot and the annuity jackpot depends on how much we can make in interest earnings. The more interest that
Nov 18, 2005, 9:31 pm - hypersoniq - Lottery Discussion Forum

Is a 400 million jackpot possible?Reply
Hey ScubaSki,The difference in percentages are mainly due to the different terms of length of the Annuity that is bought with the cash pool. Megamillions has a 26 year annuity payout, while powerball has a 30 year annuity payout. So they can advertise powerball at a higher number (though lower percentage) then they would be able to a MM jackpot because the initial prize money has another four years to earn interest in the annuity. The lottery association does not actually have the 340 millio
Oct 18, 2005, 12:45 am - WakeUpDifferen - Lottery Discussion Forum

cash vs. annuity
if you won would you pick lump sum cash or annuity
Feb 17, 2005, 7:59 pm - LOTTOMIKE - Lottery Discussion Forum