Latest Powerball Winner Chooses ANNUITYPrev TopicNext Topic

• ryanm

  

  Morrison, IL
  United States
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  May 13, 2004
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  Mar 8, 2005, 4:23 pm

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    For the first time in a long time, a Powerball jackpot winner actually chose to receive the prize in 30-year payments instead of as a lump sum.  So much for Cash Only's theory that those who choose annuity will never win a jackpot!

  http://www.powerball.com/powerball/pb_stories.asp

    BTW, the latest winner was from Indiana, not Idaho.  They've messed up on that page.
• twisted

  

  New Jersey
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  September 25, 2003
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  Mar 8, 2005, 5:00 pm

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  I dont think they were prepared to win. Since they didnt wait long before clamining the prize, they probably didnt consult a financial advisor or a tax accountant/attorney before claiming. Hence, they selected to receive the yearly installments.
  
  
• RJOh

  

  100

  mid-Ohio
  United States
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  March 24, 2001
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  Mar 8, 2005, 5:34 pm

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  Quote: Originally posted by ryanm on March 8, 2005
  

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  So much for Cash Only's theory that those who choose annuity will never win a jackpot!

  
  

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  They both look to be under 30 yrs. old, so annuity could be a good choice for them, beside what does Cash Only really know about winning a lottery jackpot?

  RJOh 

   * you don't need to buy every combination, just the winning ones * 

         
  
• DoctorEw220

  

  Yinzer Country, PA
  United States
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  March 18, 2004
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  Mar 8, 2005, 5:53 pm

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  that and $10.8 million is too small a cash option. perhaps they wanted to have it there for their kids' future.

  I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.
• ryanm

  

  Morrison, IL
  United States
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  May 13, 2004
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  Mar 8, 2005, 6:01 pm

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    That could be true.  However, they could have accomplished the same thing by purchasing their own annuity, perhaps municipal bonds, so they could get the interest tax-free, at least at the federal level.

    Also, didn't someone here once say that it's more of a gamble to take the annuity than to take cash because of the uncertainty of future payments?  You don't know what will happen to lotteries and the related laws over the next thirty years.
• bd2lucky

  

  United States
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  November 21, 2004
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  Mar 8, 2005, 6:04 pm

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  Being 20 years old myself I would choose annunity.
• RJOh

  

  100

  mid-Ohio
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  Mar 8, 2005, 8:09 pm

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  Quote: Originally posted by ryanm on March 8, 2005
  

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  they could have accomplished the same thing by purchasing their own annuity *
  

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  *If you're not financially smart, then the State is probably as good of an organization to trust with your annuity as you can find.

  RJOh
  

   * you don't need to buy every combination, just the winning ones * 

         
  
• ryanm

  

  Morrison, IL
  United States
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  May 13, 2004
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  Mar 8, 2005, 9:10 pm

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    Sad, but true.  I guess for some people, the annuity would be slightly better as they would blow all their winnings in 30 years instead of just two-five!
• Blalron

  

  Oregon
  United States
  Member #11,764
  February 23, 2005
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  Mar 8, 2005, 10:49 pm

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  "Barbara, who is 28, works at the Meijer gas station on Indiana Highway 37 in Noblesville. Her boss happened to call her last night to offer her a half day off for putting in so many hours recently. She asked for a full day, given her Powerball win, and her boss easily allowed her the leeway." http://www.powerball.com/powerball/winners/2005/030505in.shtm

  A day off? I'd just quit.
• ryanm

  

  Morrison, IL
  United States
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  May 13, 2004
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  Mar 8, 2005, 10:55 pm

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    Maybe she doesn't want to quit her job as it would set a bad example for her children.
• Annual Payments

  

  Houston, TX
  United States
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  December 23, 2004
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  Mar 9, 2005, 12:36 am

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  YEAHHHHHHH!!!!!

   

  finally someone took annual payments.  ohhhhh that's so great!!! 
• Annual Payments

  

  Houston, TX
  United States
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  December 23, 2004
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  Mar 9, 2005, 12:37 am

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  I'm 23 and i think everyone know what my choice would be =)
• Blalron

  

  Oregon
  United States
  Member #11,764
  February 23, 2005
  46 Posts
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  Mar 17, 2005, 2:05 pm

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  Quote: Originally posted by ryanm on March 8, 2005
  

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    Maybe she doesn't want to quit her job as it would set a bad example for her children.

  
  

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  Ok. I can see the value in that, but would you really want to keep working at a gas station if you were a Powerball winner?