Welcome Guest
Log In | Register )
You last visited December 4, 2016, 7:09 am
All times shown are
Eastern Time (GMT-5:00)

Ohio Classic Lotto Cash Option

Topic closed. 3 replies. Last post 8 years ago by Bradly_60.

Page 1 of 1
PrintE-mailLink
Bradly_60's avatar - disney37
Atlantic Mine, Michigan
United States
Member #416
June 23, 2002
1614 Posts
Offline
Posted: December 24, 2008, 10:34 pm - IP Logged

I sent an email to them and asked how they expect a 50% cash option to double in their annuity time frame with today's interest rates.  I just don't see how they could get that return.  Unless they invest in a different way then US Treasuries but that doesn't seem right.  Still no response.

Brad

    Bradly_60's avatar - disney37
    Atlantic Mine, Michigan
    United States
    Member #416
    June 23, 2002
    1614 Posts
    Offline
    Posted: January 4, 2009, 12:11 pm - IP Logged

    I never got a response.  If someone wins this game from Ohio I would look into it.  The cash option needs to be more than 50%.

    Brad

      RJOh's avatar - chipmunk
      mid-Ohio
      United States
      Member #9
      March 24, 2001
      19817 Posts
      Offline
      Posted: January 4, 2009, 1:12 pm - IP Logged

      I never got a response.  If someone wins this game from Ohio I would look into it.  The cash option needs to be more than 50%.

      Brad

      I don't think it matters because they state the cash option is 50% of the jackpot amount.  If you go to jackpot calculation page, it states that the jackpot pay-out is an estimate and may vary depending on the interest rates for a 30 year annuity.  Maybe it's the jackpot amount that should be lowered. I entered $10M and got the following.

      CASH OPTION           
                   
      CASH VALUE:              $5,000.000
      FEDERAL TAX (25%):        1,250,000   
      STATE TAX (6%):             300,000
      ____________________________________
      ONE-TIME NET
      CASH VALUE AMOUNT:       $3,450,000


      ANNUITY PAYMENTS
                  ANNUAL PAYMENT  FEDERAL TAX (25%)  STATE TAX (6%) NET PAYMENT PER YEAR
      YEAR 1      $343,000        85,750             20,580           $236,670
      YEARS 2-30  $333,000        83,250             19,980           $229,770 

       * you don't need to buy more tickets, just buy a winning ticket * 
         
                   Evil Looking       

        Bradly_60's avatar - disney37
        Atlantic Mine, Michigan
        United States
        Member #416
        June 23, 2002
        1614 Posts
        Offline
        Posted: January 6, 2009, 10:01 am - IP Logged

        I understand that they are estimates but it has been a LONG time now since 50% cash could fund a jackpot.  If that is the cash they should just change it on their website.  If they are just inflating the jackpot then that is wrong.

        Brad