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MM Payout

Topic closed. 13 replies. Last post 10 years ago by BaristaExpress.

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OK, now that the Jackpot payout is of an obscene amount, would you take the annuity, or cash ?

Cash [ 22 ]  [68.75%]
Annuity [ 10 ]  [31.25%]
Total Valid Votes [ 32 ]  
Discarded Votes [ 0 ]  
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United States
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Posted: March 7, 2007, 1:22 am - IP Logged

Just curious, in the past most folks have said they would take the cash payout, but the annuity payout per year with a MM jackpot of this size would be enough to 'get by' on to where you should be able to take the annuity instead of the cash, spread across 20 years.

If the MM jackpot was 400 mill, the annuity would be 20 mill a year, less taxes of course.

Would you now be swayed enough to take the annuity ? 

    wannawin24's avatar - Lottery-001.jpg
    GA
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    Posted: March 7, 2007, 1:26 am - IP Logged

    I chose Cash, simply because I would want all my money up front...anything could happen.

     

    My NUMBER FELL!!!
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      guesser's avatar - Lottery-017.jpg

      United States
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      Posted: March 7, 2007, 12:53 pm - IP Logged

      I'm quite surprised so many would take the cash.

      If the Jackpot was 20 mill, I could see it, I would take the cash too, but if you are going to get 20 mill a year for 20 years, I don't think it's going to disappear, but as you said, you never know.   If it DID disappear, ALL lotteries would fail. IMO.

      CNBC said there are 2 winners of MM, they said if the 2 winners took cash, they will get 66 mill each.  How they get from 370 mill to 132 mill is sickening, but we've been through THAT discussion a million times.

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        New Member
        New Jersey
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        Posted: March 7, 2007, 1:09 pm - IP Logged

        As I understand it the annuity payments are bigger because they supposedly get interest on it over the years, while if you get it up front that interest never accumulates.

        Either way, I aways go with cash value, I'm too pessimistic to actually believe that things can stay the way they are for 26 years.

        --Racso

          MegaWinner's avatar - Lottery-029.jpg
          New Jersey
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          Posted: March 7, 2007, 1:17 pm - IP Logged

          I'd take the cash regardless of how much it was and put it to work for me with the help of some financial planners.  When I win (oh yes, I WILL win the jackpot), I will hire Goldman Sachs to manage my portfolio.

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            United States
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            Posted: March 7, 2007, 1:34 pm - IP Logged

            I'd take the cash regardless of how much it was and put it to work for me with the help of some financial planners.  When I win (oh yes, I WILL win the jackpot), I will hire Goldman Sachs to manage my portfolio.

            Your first mistake is having just one portfolio manager.

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              Posted: March 7, 2007, 1:47 pm - IP Logged

              Annuity

              love to nibble those micey feet.

               

                                           

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                NY
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                Posted: March 7, 2007, 2:02 pm - IP Logged

                If here had been 1 winner the annuity payments would be "only" $14.25 million because there are 26 payments, not 20. If you could select the annuity after winning you'd at least know if you were sharing the prize, but if you have to pick ahead of time you could get a lot less than you hoped. Realistically, getting just $1 million a year for 25 years would let you live a very nice lifestyle, but having the lump sum up front gives you a lot more options. If you take the annuity you can always borrow against it to make a large purchase, but the interest on the loan would effectively reduce the value, bringing to closer the lump sum, anyway. The annuity may offer a slightly better deal as far as taxes go, but I think the main advantage is that it reduces the chances of squandering the entire win, and even that requires that you don't just borrow against the anuity.

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                  United States
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                  Posted: March 7, 2007, 3:14 pm - IP Logged

                  I understand that Floyd, but what I find ironic is that sooo many folks have said they want to gift out money, and I'm thinking what better way than to gift out in increments, X amount a year.  For the folks that are not capable of the usage of the word 'no' - and there seem to be a lot of those type of folk - they can just step back and say 'sorry, I don't have it'.

                  I also find it ironic that we discuss amounts here of anywhere from $200,000, to 15 mill, to 370 mill, when most folks would just be ecstatic with a 5% payraise at their jobs....  I mean, so many folks have implied that a 15 mill jackpot 'isn't worth it'.... but they would be happy with a dollar an hour raise at work...  

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                    California
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                    Posted: March 7, 2007, 3:25 pm - IP Logged

                    Interesting to note how real life plays out on this topic.  Going back just a bit there was a big jackpot hit in Wisconsin.  There were 100 winners of a Powerball Jackpot worth $208.6 million.  Each winner could choose for themselves between annuity or cash;  99 took cash (worth about $967k each before taxes), ONE took the annuity (worth a liitle over $2 million before taxes) .

                     PS I wonder if CASH ONLY will surface??


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                      Posted: March 11, 2007, 8:44 pm - IP Logged

                      If I had won the jackpot, I would have chosen cash option as my vote.

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                        Posted: March 13, 2007, 1:42 am - IP Logged

                        im always an annual type of guy

                        Oogle  waiting patiently for my jackpot

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                          New Jersey
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                          Posted: March 13, 2007, 7:59 am - IP Logged

                          You could buy several smaller annuities if you wished.  The main annuity is just like making one investment, in this case US government bonds.    Historically US bonds have kept their value, but we have never had a government quite as irresponsible as we have now.    I'd take the cash just to diversify my holdings.

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                            Magnolia, Delaware
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                            Posted: March 13, 2007, 10:49 am - IP Logged

                            CASH, CASH, CASH for me!

                            I'll make the choice as to how much I may want in annuities for my family members (brother, sister and my daughter & son)!

                            Keep dreaming the impossible dream, it just may come true! Thumbs Up