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Financial analyst looks at lottery jackpot cash/annuity optionsNews Story
Q: I've just won a $50 million lottery. Should I take all cash or an annuity?A: It depends on a lot of things, one of which is the interest rate the lottery uses in calculating the annuity value vs. the immediate payout. Another is the uncertainty associated with future income taxes.The conventional wisdom is to take the money as a lump sum. That's because the lottery takes the cash prize (today's dollars) and uses that money to buy investments that will fund the annual payments. That may mean t
Aug 23, 2005, 6:06 pm - Todd - Lottery News

Tonight’s PB, fun facts...
The posted annuity value is $90,000,000, this is a payout of $2,190,000 per year... of that amount, they only withhold 27%, leaving you responsible for paying the additional 8% ($240,000) for a realistic total of $1,950,000. Not bad... total payout will be $58,500,000The posted Cash value is $50,200,000, this is a one-time payout of $36,646,000... you will need to also pay the remaining 8% not withheld by MUSL ($4,016,000) leaving you with a one-time payment of $32,630,000 after all taxes are p
Mar 13, 2004, 6:27 pm - hypersoniq - Jackpot Games Forum

Cash vs Annuity, Part 3
It's hard not to be tempted by the idea of winning one million dollars -unless, perhaps, the fine print reads $50,000 a year for 20 years .
Jun 18, 2003, 11:04 pm - CASH Only - Lottery Discussion Forum

Another CASH vs ANNUITY poll
Some lottery winners STILL are forced to receive annuity payments if they win (ie, Mass. 6/42 and 6/49; various scratch games in NY and Mass., and probably in some other states.)Do you believe all games with annuity prizes (other than lifetime prizes) should allow the winner to collect in LUMP SUM within 60 days of the ticket's validation?
Apr 17, 2003, 9:45 am - CASH Only - Lottery Discussion Forum

Annuity vs. Cash Option
Been readin' most of this stuff about this subject.Sometimes I forget to mark the CASH box and sometimes, not. I'm not going to reject my ticket, if I didn't mark it. As the Dude says: if I'm meant to win, I will , no matter WHAT box is marked.Now, the way I see it, IF you win and you didn't take the CASH option, and THAT mistake that you made is more stressful than you can handle, then by all means: GIVE YOUR TICKET TO SOMEONE ELSE WHO DOESN'T GIVE A DARN ! Lighten the load on your
Jan 22, 2003, 6:17 pm - OldHank - Lottery Discussion Forum

$485 MILLION: Powerball jackpot raisedReply
I'm guessing that even the MUSL people don't really have a good idea how big it will be. The biggest PB jackpot by cash value jumped $262 million from 325 to 587 for the annuity value. The advertised annuity value for current run went from 324.5 (final tally, originally advertised as 317) to 395.5, an increase of only $71 million. The cash value percentages are a bit different (65.5% then vs 67.6% now), but that's an 80% increase 27 months ago vs. a 22% increase now. If this one tops out at 5
Feb 10, 2015, 4:04 pm - KY Floyd - Lottery News

MM jackpot $47M/$36.1M and PB jackpot $50M/$33.3Reply
If you want to compare PB and MM jackpot amounts and increases, you can only compare the cash values. As everyone SHOULD know, the annuity jackpot estimate is calculated based on the cash that is estimated to be on-hand. Since PB and MM have different annuity lengths (29 vs. 25 years) and different payout increments (annually-increasing vs. fixed year-to-year), it is not valid to compare the annuity jackpot amounts as a raw number. Only the cash values can be compared as raw numbers. I'm not
Jun 25, 2012, 10:52 pm - Todd - Jackpot Games Forum

$800 MILLION: Powerball lottery jackpot surges on rolloverReply
Why is the cash amount so much less then only a few months ago. In July when the annuity prize was 830 million the cash prize was 488 million. now it is only 383 million for 800 million annuity. I would like to know why? I know it is the powerball vs the mega million but if you go back into the powerball history then you would see the same trend. Why almost 100 million difference?
Oct 27, 2022, 10:25 am - vcme99 - Lottery News

$654 MILLION: Mega Millions lottery jackpot skyrocketsReply
The fluctuating bond yields have thrown this advertised jackpot (annuity vs. cash option spread) all out of whack. They base it off of the amount of cash in the pot, divide it by the current bond (treasuries, I guess) rates, and that is how they come up with the advertised jackpot. A month ago it was the cash amount divided by 0.60, last week it was cash divided by 0.58, last night's drawing was cash divided by 0.565, and now it's the cash in the pot divided by 0.57.
Oct 13, 2018, 1:08 pm - lowellm - Lottery News

Connecticut likely to stick with PowerballReply
I agree. These journalists who write these articles have no idea what they are talking about. They really need to educate themselves about cash vs. annuity. When you take the cash you are getting every cent the lottery commission starts out with if the annuity is chosen minus the taxes. When will these journalists ever learn?
Aug 17, 2005, 11:10 am - whodeani - Lottery News