These are just questions for the discussion. I am in MI and don't play Powerball but the same line of thoughts could be applied to MM.
According to the jackpot figures here http://www.usamega.com/powerball-jackpot.htm
Important: All annuity amounts shown are the average amounts a jackpot
winner would receive. Powerball annuity payments are made on an
annually-increasing rate schedule
Based on the Gross Prize
Annuity Lump-sum Cash
Powerball Jackpot for Sat, Oct 15, 2005 $290,000,000 $141,900,000
30 average annual payments of $9,666,667 $141,900,000
- 25% Federal Tax -$2,416,667 - $35,475,000
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Subtotal $7,250,000 $106,425,000
-----------------------------------------------------------------------------------------------
Roughly $148,100,000 difference.
Now the questions. You take the cash...you know you are going to spend a
lot of it. So your plan is to invest and make as much as you would have made
if you took the annuity? I can tell you, none of my investments ever produced
anywhere near $1,000,000 let alone $148,100,000.
Too many things go wrong with investments too much of the time. $148 mil
is richer than most millionaires have. Why would you think you can accomplish
that kind of feat? You are willing to gamble with $148 million at stake?
Just a thought....If you are married and get divorced, you will have half as
much cash to "invest."
Someone here has a sig saying to take the cash and buy a bigger annuity.
Can that realistically be done?
Take the annuity and have an income for 30 years of $7 million. Who can't
live on that? Anything happens along the way, you have $7 mil coming in the
next year. Should you die, the annuity becomes part of your estate and gets
passed on to whoever you included in your estate plan.
I used to think I would take the cash, now I pose these thoughts to all of you.