|Posted: January 25, 2005, 5:39 pm - IP Logged|
Source: California Lottery website
What is the Cash Value option?
If you mark the Cash Value box, and you win, you will receive the present cash value of the announced jackpot in one lump sum. This amount will be less than the announced jackpot. For example, if the announced jackpot is $7 million, the winner would receive about 52.008% or $3.64 million in one lump sum (less tax withholding). This example is based on average market costs, as of Jan 2005, of 26 annual payments funded by the U.S. Treasury Zero Coupon Bonds.
But I guess what irks me about this and any other jackpot lottery with a reduced payout for a lump sum is that they're already into the player for 50% - taking the lump sum option increases the take for the state because otherwise they can defer payments over a long period and normal inflation of the dollar will reduce the liability.
Blessed Saint Leibowitz, keep 'em dreamin' down there.....
Next week's convention for Psychics and Prognosticators has been cancelled due to unforeseen circumstances.