Welcome Guest
Log In | Register )
You last visited December 4, 2016, 9:25 pm
All times shown are
Eastern Time (GMT-5:00)

cash vs. annuity

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

Page 7 of 18
PrintE-mailLink

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
Member #7853
October 15, 2004
11338 Posts
Offline
Posted: March 27, 2005, 5:30 pm - IP Logged

i wondered if the indiana couple was influenced to choose annuity like you said,but then again nothing is normal when it comes to the indiana lottery commission.....

    LOTTOMIKE's avatar - cash money.jpg
    Tennessee
    United States
    Member #7853
    October 15, 2004
    11338 Posts
    Offline
    Posted: March 28, 2005, 6:37 am - IP Logged

    looks like lump sum is the choice for most people polled so far.......


      United States
      Member #379
      June 5, 2002
      11296 Posts
      Offline
      Posted: March 28, 2005, 11:37 am - IP Logged

      secret:

      The IN couple made the WRONG choice.

        LOTTOMIKE's avatar - cash money.jpg
        Tennessee
        United States
        Member #7853
        October 15, 2004
        11338 Posts
        Offline
        Posted: March 28, 2005, 3:34 pm - IP Logged

        they might change their minds if they had the chance......

          MMGuy's avatar - waveform
          Houston, Tx
          United States
          Member #13043
          March 28, 2005
          119 Posts
          Offline
          Posted: March 28, 2005, 5:57 pm - IP Logged

          The Cash-Value Option is definitely a better deal! As some others on this topic said before, the annuity payments can be highly volatile in the long run. The dollar could be in high inflation in the coming years. The cash value option is better because you can invest part (or all) in stocks, bonds, mutual funds, etc.

           

          (BY THE WAY I'M NEW. )

            LOTTOMIKE's avatar - cash money.jpg
            Tennessee
            United States
            Member #7853
            October 15, 2004
            11338 Posts
            Offline
            Posted: March 29, 2005, 4:26 pm - IP Logged

            inflation is one of the bad parts of the annuity...

              LOTTOMIKE's avatar - cash money.jpg
              Tennessee
              United States
              Member #7853
              October 15, 2004
              11338 Posts
              Offline
              Posted: March 30, 2005, 6:19 am - IP Logged

              i've had several long thoughts on this and i'd choose lump sum and get it over with,annuity is risky because who knows what would happen in the next few years?  what if the lottery paying that annuity had problems paying in future years

                Avatar

                United States
                Member #972
                December 30, 2002
                465 Posts
                Offline
                Posted: March 30, 2005, 9:01 am - IP Logged

                I agree that cash is the best option just because it gets you out of the hands of the state and puts you in control of your money and gives you real freedom here and now.  But I don't think you would come out ahead financially. Feel free to prove me wrong, but I have never seen any article or explanation from any of the "cash only" people on here about how you would equal the annuity payments by investing your lump sum.  There must be some accountant or investment banker on here that can explain it. It's one thing to say "cash only blah blah blah" but it's another to offer a real case to demonstrate that you will make more money by taking the cash.  

                My thoughts on why you couldn't equal the lump sum with the cash. 1)The state invests the jackpot without paying any taxes on it; you would be starting at minus 30% after taxes and 2)The state invests the entire jackpot; In the real world people want to spend money and buy things. I don't think any lottery winner wants to invest the whole thing and then wait for another year or several years for the annuity to mature.

                But it's okay to say "You wouldn't come out ahead, but cash is better anyway."  Which is what I think.

                  LOTTOMIKE's avatar - cash money.jpg
                  Tennessee
                  United States
                  Member #7853
                  October 15, 2004
                  11338 Posts
                  Offline
                  Posted: March 30, 2005, 1:38 pm - IP Logged

                  good point,but i'd still choose lump sum and get it over with.....

                    Avatar
                    Morrison, IL
                    United States
                    Member #4657
                    May 13, 2004
                    1884 Posts
                    Offline
                    Posted: March 30, 2005, 6:24 pm - IP Logged

                      I'm pretty sure that by taking the lump sum you could still live off the interest it would generate if invested properly.  Also, with this method, you live off it forever instead of 25-29 years.

                      LOTTOMIKE's avatar - cash money.jpg
                      Tennessee
                      United States
                      Member #7853
                      October 15, 2004
                      11338 Posts
                      Offline
                      Posted: March 31, 2005, 6:44 am - IP Logged

                      i wonder if the tennessee powerball winner chooses cash or annuity.........

                        LOTTOMIKE's avatar - cash money.jpg
                        Tennessee
                        United States
                        Member #7853
                        October 15, 2004
                        11338 Posts
                        Offline
                        Posted: March 31, 2005, 6:47 am - IP Logged

                        i hope they choose cash.....

                          Todd's avatar - Cylon 2.gif
                          Chief Bottle Washer
                          New Jersey
                          United States
                          Member #1
                          May 31, 2000
                          23260 Posts
                          Offline
                          Posted: March 31, 2005, 8:46 am - IP Logged

                          LottoMike - I hoped that you were the lucky Tennessee winner!  Then you would have the funds to tour the country and help eliminate computerized drawings.

                           

                          Check the State Lottery Report Card
                          What grade did your lottery earn?

                           

                          Sign the Petition for True Lottery Drawings
                          Help eliminate computerized drawings!

                            Avatar

                            United States
                            Member #972
                            December 30, 2002
                            465 Posts
                            Offline
                            Posted: March 31, 2005, 1:39 pm - IP Logged

                            I agree. Take tonight, $30 million cash after taxes. If you took $20 million of that and got just a 3% return on it, you'd make $50,000 a month, or $608,000 compounded in 1 year. When your money is making so much money, that's when you are on easy street.  That's how the rich get richer.  Whether the annuity could make more in the long run is a moot point when you've got all you need and more.  Why wait 26 long years for payments when you can have the power of $20-30 million working for you right now making $50,000 or more a month?

                             

                            Quote: Originally posted by ryanm on March 30, 2005







                              I'm pretty sure that by taking the lump sum you could still live off the interest it would generate if invested properly.  Also, with this method, you live off it forever instead of 25-29 years.






                              LOTTOMIKE's avatar - cash money.jpg
                              Tennessee
                              United States
                              Member #7853
                              October 15, 2004
                              11338 Posts
                              Offline
                              Posted: March 31, 2005, 3:12 pm - IP Logged

                              todd i wish that i had won but i didn't,but if i ever do i'll put whatever it takes into helping finish computer drawings forever.the winner was from a small town near chattanooga....

                                 
                                Page 7 of 18