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cash vs. annuity

Topic closed. 267 replies. Last post 11 years ago by CASH Only.

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if you won a jackpot,pick lump sum cash or annuity

i'd pick lumo sum cash [ 82 ]  [73.21%]
i'd pick annuity [ 22 ]  [19.64%]
undecided [ 8 ]  [7.14%]
Total Valid Votes [ 112 ]  
Discarded Votes [ 7 ]  
LOTTOMIKE's avatar - cash money.jpg
Tennessee
United States
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October 15, 2004
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Posted: February 17, 2005, 7:59 pm - IP Logged

if you won would you pick lump sum cash or annuity


    United States
    Member #379
    June 5, 2002
    11296 Posts
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    Posted: February 17, 2005, 8:00 pm - IP Logged

    We've had this kind of poll numerous times.

      MillionsWanted's avatar - 24Qa6LT

      Norway
      Member #9517
      December 10, 2004
      1272 Posts
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      Posted: February 17, 2005, 8:11 pm - IP Logged

      I would only pick annuity if it was possible for my relatives to "inherit" the annuity.

      So I wote lump sum.

        weshar75's avatar - Lottery-042.jpg
        Mcminnville, Oregon
        United States
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        December 13, 2003
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        Posted: February 17, 2005, 8:21 pm - IP Logged

        How much the jackpot that I would win would be a factor in my decision making.  But if I had to decide I would say anything under 100 million I would take the cash and over it I would choose annuity.

          ineed9million's avatar - scene sunovermountains.jpg
          Philadelphia, PA
          United States
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          February 13, 2005
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          Posted: February 17, 2005, 9:10 pm - IP Logged

          i'd go with the cash no matter what...because you can always make the money you have work for you...if you are waiting for money you dont have yet that money is depreciating because of inflation.  so when you think abou it...you could either be earning interest with a lump sum or losing money via inflation in an annuity...

          BUT...if you don't think you could handle the responsibility of being a millionaire you might want  go with the annuity so you dont go spending all your money in a few years

            emilyg's avatar - cat anm.gif

            United States
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            November 9, 2001
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            Posted: February 17, 2005, 11:55 pm - IP Logged
            Quote: Originally posted by ineed9million on February 17, 2005



            i'd go with the cash no matter what...because you can always make the money you have work for you...if you are waiting for money you dont have yet that money is depreciating because of inflation.  so when you think abou it...you could either be earning interest with a lump sum or losing money via inflation in an annuity...

            BUT...if you don't think you could handle the responsibility of being a millionaire you might want  go with the annuity so you dont go spending all your money in a few years




            good thinking. 

            love to nibble those micey feet.

             

                                         

              mrmst's avatar - disney14
              Glen Burnie, MD
              United States
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              Posted: February 18, 2005, 7:03 am - IP Logged

              This topic has been beat to death here - most agree lump-sum is best - you can always buy your own annuity with some or all of the winnings if you want to - the important thing is that YOU are in control.

              MrMST

              Good luck and have a Disney Day ºoºHiding Behind Computer

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                United States
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                Posted: February 18, 2005, 11:34 am - IP Logged

                Even if I would almost certainly get more money from the annuity than I could make from investing the cash, I would still take the cash. Why? 1)With one check, my dealings with the state, state lottery & IRS are done. I can move anywhere I want without notifying the state about where to send my next check. 2)Inflation. The check I receive for year 19 will be for the same amount as year 1, but it won't be worth the same. 3)Taxes. They could raise taxes, making your annuity take another hit. 4)The uncertain world. Maybe in 12 years seas will rise, society will collapse, and another great depression will come. Maybe I'll be dead. I want to use the money to buy what I want and help the people I want now. 

                  LOTTOMIKE's avatar - cash money.jpg
                  Tennessee
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                  Posted: February 18, 2005, 2:24 pm - IP Logged

                  tg has the perfect point,lump sum

                    SirMetro's avatar - center
                    East of Atlanta
                    United States
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                    August 11, 2004
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                    Posted: February 18, 2005, 5:14 pm - IP Logged

                    I am greedy and patient...if it takes 30 years to aquire 60 million (before taxes) and I would only get to see 21 million (before taxes) up front, I can be patient and GA does have a rule to pay any remaining payments to the estate of the person, so passing on to family is easy here.

                    I figure after 30 years, I will end up with over 30 million after tax where I would only get 10 million after tax on a 60 million pot for lump sum. I am greedy...I want it all.

                    Sir Metro

                    Lazy people are genius...who do you think invented the electric tooth brush?

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                      Poway CA (San Diego County)
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                      January 25, 2004
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                      Posted: February 18, 2005, 5:18 pm - IP Logged
                      Quote: Originally posted by mrmst on February 18, 2005


                      This topic has been beat to death here - most agree lump-sum is best - you can always buy your own annuity with some or all of the winnings if you want to - the important thing is that YOU are in control.



                        Annual Payments's avatar - annual 20payments.jpg
                        Houston, TX
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                        December 23, 2004
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                        Posted: February 18, 2005, 6:34 pm - IP Logged

                        Oh it's so cool.  So there are others that would choose annual payments =)

                        I think it's pretty clear what I chose. 

                          Annual Payments's avatar - annual 20payments.jpg
                          Houston, TX
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                          Posted: February 18, 2005, 6:37 pm - IP Logged

                          Let me add that the higher the jackpot the more likely it would be that i'd take annual payments. 

                            Annual Payments's avatar - annual 20payments.jpg
                            Houston, TX
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                            Posted: February 18, 2005, 6:41 pm - IP Logged

                            oh and Cash only, does it make u feel better that if I won a PB jackpot prize under $20m that I'd most likely take cash?

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                              Poway CA (San Diego County)
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                              January 25, 2004
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                              Posted: February 18, 2005, 6:50 pm - IP Logged
                              Quote: Originally posted by Annual Payments on February 18, 2005



                              Oh it's so cool.  So there are others that would choose annual payments =)

                              I think it's pretty clear what I chose. 





                              I can't speak for other states, but in California you get paid (if you select annual payments when you purchase the ticket) over 26 years.  Here is the schedule:



                              Payment NumberPayment Schedule
                              As % Of Jackpot
                              Annual Payment
                              Before Taxes
                              ($7 Million Jackpot)
                              12.5$175,000
                              22.7$189,000
                              32.8$196,000
                              42.9$203,000
                              53.0$210,000
                              63.1$217,000
                              73.2$224,000
                              83.3$231,000
                              93.4$238,000
                              103.5$245,000
                              113.6$252,000
                              123.7$259,000
                              133.8$266,000
                              143.9$273,000
                              154.0$280,000
                              164.1$287,000
                              174.2$294,000
                              184.3$301,000
                              194.4$308,000
                              204.5$315,000
                              214.6$322,000
                              224.7$329,000
                              234.8$336,000
                              244.9$343,000
                              255.0$350,000
                              265.1$357,000
                              Total100.0%$7,000,000




                              That is before taxes (they will withhold 20% for IRS and you make up the difference in April!) and remember that it is ONE check every year.  Most people have never had only one paycheck per year and history has shown that most of them also run out of money before the next paycheck!

                              If you select CASH, you can put the $3.5 Million (before taxes again) in municipal bonds (tax free!!) and live off the interest and STILL have the $3.5 Million year after year!!

                              To me, it's a no brainer.  CASH all the way.  If you can't find an investment that will double your money is 26 years, then I feel sorry for you and you probably should try the annual payments (if you can budget one full year!!).


                               

                                 
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