Welcome Guest
Log In | Register )
You last visited January 19, 2017, 8:41 pm
All times shown are
Eastern Time (GMT-5:00)

lump sum or annual payments

Topic closed. 36 replies. Last post 11 years ago by ryanm.

Page 3 of 3
PrintE-mailLink

winning a jackpot do you take lump sum or annual payments?

i take lump sum [ 36 ]  [78.26%]
i take annual payments [ 9 ]  [19.57%]
not sure at this time [ 1 ]  [2.17%]
Total Valid Votes [ 46 ]  
Discarded Votes [ 1 ]  
Avatar
Sparta, NJ
United States
Member #18331
July 9, 2005
1977 Posts
Offline
Posted: March 7, 2006, 6:02 pm - IP Logged

Taxes is always a confusing issue to me.  I am a proud American, and have no problem paying required taxes.  Without taxes, I wouldn't be where I am, or donw what I have done.  Having said that, wasting money through the tax route is confusing.  I feel, only the long-time rich really know how to avoid taxes.  They have been trough the loops for years, and the experts have been on their side for generations.  Just coming into the big world, through a $100M+ win, I have no idea of how to avoid useless taxes.  Sure a tax laywyer, accountant, and various experts would be able to spoon feed me.  But today, without the $100M, I don't see how I would know the true answers to the really deep questions.

Thus, the difference between cash, annuities, bonds, trusts, off shore, are things we talk about here.  But is there any one who really knows the answers?  Not some quote from the web, or article from Forbes.  Really, really know? Then again, does it really make any difference on March 7th 2006?

Cheers

|||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

I only trust myself - and that's a questionable choice

    justxploring's avatar - villiarna
    Wandering Aimlessly
    United States
    Member #25360
    November 5, 2005
    4461 Posts
    Offline
    Posted: March 7, 2006, 6:22 pm - IP Logged

    It's the gift tax that always gets me. You pay Federal and State income and then, in order to give the same money away, you have to pay a tax on that too!

    But in the end, nobody understands how taxes really work. Guess it's like the teenager who walks into the local drugstore to buy condoms for the first time. He timidly asks the pharmacist "how much for this box?" and he answers "Son, that will be $15.70." ... "$15.70? I thought the box said $14.95!" ..."Well that's true, but I had to add in the tax."   "OMG! I didn't realize I need tacks. That's gonna really hurt! My girlfriend said it would stay on by itself. Darn!"

     (sorry...groan)

      Avatar
      Sparta, NJ
      United States
      Member #18331
      July 9, 2005
      1977 Posts
      Offline
      Posted: March 7, 2006, 6:54 pm - IP Logged

      Hehehehe.  Florida humor?

      Cheers

      |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

      I only trust myself - and that's a questionable choice

        sirbrad's avatar - Lottery-062.jpg
        PA
        United States
        Member #22983
        October 6, 2005
        2226 Posts
        Offline
        Posted: March 8, 2006, 9:03 am - IP Logged

        Looks like I was right after all, and "principal" was not a typo.

         

        1. First, highest, or foremost in importance, rank, worth, or degree; chief. See Synonyms at chief.
        2. Of, relating to, or being financial principal, or a principal in a financial transaction.
        1. The capital or main body of an estate or financial holding as distinguished from the interest or revenue from it.
        2. A sum of money owed as a debt, upon which interest is calculated.

         

        Came to mind after seeing several other banks using the same spelling. Who is the laugh on now?  LOL

         

         

         Principal and principle are often confused but have no meanings in common. Principle is only a noun and usually refers to a rule or standard. Principal is both a noun and an adjective. As a noun, it has specialized meanings in law and finance, but in general usage it refers to a person who holds a high position or plays an important role: a meeting among all the principals in the transaction. As an adjective it has the sense of “chief” or “leading”: The coach's principal concern is the quarterback's health.

          Avatar

          United States
          Member #33085
          February 18, 2006
          744 Posts
          Offline
          Posted: March 8, 2006, 9:06 am - IP Logged

          It has to do with the present value of money. Over a period of 20-30 years the dollar will decrease in value as inflation and costs increase; therefore you will actually get less than the original dollar that you won. Get the lump sum invest in real estate and let your money work for you in other ways.

            sirbrad's avatar - Lottery-062.jpg
            PA
            United States
            Member #22983
            October 6, 2005
            2226 Posts
            Offline
            Posted: March 8, 2006, 9:23 am - IP Logged

            I also hate the gift tax. That is the IRS just trying to be even more greedy than they already are, and that it tough to accomplish. They don't want you helping someone else out so that they might not have to work and pay taxes. Do the IRS also pay taxes, or do they jus pay themselves?

              Avatar
              Morrison, IL
              United States
              Member #4657
              May 13, 2004
              1884 Posts
              Offline
              Posted: March 13, 2006, 9:31 pm - IP Logged

              The gift tax was invented to prevent dying people from circumventing the estate tax by giving away all their property.