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Cash option and taxes

Topic closed. 42 replies. Last post 8 years ago by eproducer.

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Espanola NM
United States
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March 25, 2009
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Posted: April 23, 2009, 7:59 pm - IP Logged

The problem with an annuity is it assumes the investment over the future.   We don't know what the future will hold.   The government might change that changes the "ownership" of an annuity therefore stopping future payments depending on the regime of a particular government.

Also INFLATION is a certainty with the future.   Even though the definition of an annuity "guarentees" said amount in total payments over the life of the annuity.   $100 million today is different than $100 million 30 yrs from now.         A sound investor will invest his/her money to out-pace inflation.  

Also it is better to enjoy your life NOW while it lasts.   We have no idea what fate holds for us.

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    NY
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    Member #23835
    October 16, 2005
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    Posted: April 27, 2009, 1:44 am - IP Logged

    No,it WAS necessary!The lotterys have rules that are clearly stated and to argue that they are using false advertisement just because you don't agree with the rules is STUPID!!!

    What's stupid is thinking that advertising isn't false or misleading just because truthful information is available elsewhere. Apparently it's impossible in your world to run an ad that's false or misleading as long as you have some mechanism by which people can find the real information if they're willing to go looking for it.


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      Posted: April 27, 2009, 9:07 am - IP Logged

      What's stupid is thinking that advertising isn't false or misleading just because truthful information is available elsewhere. Apparently it's impossible in your world to run an ad that's false or misleading as long as you have some mechanism by which people can find the real information if they're willing to go looking for it.

      What IS stupid is to post the few Lottery websites that DO NOT post the annuity AND the cash value amounts just so you can attempt to prove your point.The overwhelming amount of lottery websites that advertise PB & MM jackpots DO POST BOTH OPTIONS.Go find someone else to argue your stupidity with.

        DC81's avatar - batman39
        MI
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        August 31, 2007
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        Posted: April 27, 2009, 10:43 am - IP Logged

        There are still a lot of people who do not have computers or internet access and thus can't look it up. Somehow there are still many people who actually think the advertised amount is something other than a annuity. After all this time, if one does that know that then it's their own ignorance. But it would be nice if they did clearly advertise the cash option amount more publicly. It really wouldn't be hard for the signs in stores to have "Cash Value: ____" under the big numbers showing the annuity value.

        You can't predict random.


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          Posted: April 27, 2009, 2:27 pm - IP Logged

          There are still a lot of people who do not have computers or internet access and thus can't look it up. Somehow there are still many people who actually think the advertised amount is something other than a annuity. After all this time, if one does that know that then it's their own ignorance. But it would be nice if they did clearly advertise the cash option amount more publicly. It really wouldn't be hard for the signs in stores to have "Cash Value: ____" under the big numbers showing the annuity value.

          The stores in my area DO advertise both the annuity and the cash value.I'm sure that the same thing happens almost everywhere but people read the annuity amount and neglect to read the cash value amount and then jump to the conclusion that its false advertising.It seems to me that the lotterys bend over backwards to advertise both amounts.Just because some people are to dense to read the rules doesn't make the lotterys the evil people that some folks suggest they are.False advertisement?...what a laugh!!

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            Member #73512
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            Posted: April 27, 2009, 6:11 pm - IP Logged

            The stores in my area DO advertise both the annuity and the cash value.I'm sure that the same thing happens almost everywhere but people read the annuity amount and neglect to read the cash value amount and then jump to the conclusion that its false advertising.It seems to me that the lotterys bend over backwards to advertise both amounts.Just because some people are to dense to read the rules doesn't make the lotterys the evil people that some folks suggest they are.False advertisement?...what a laugh!!

            Well, maybe in your state they show both, but it's not at the stores I go to.  On the ML website, it advertises the jackpot, but doesn't say if it's an annual payment or a lump sum.  You must go to a certain part of the site to find info on it, and it's still confusing because of taxes and all that jazz.


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              Posted: April 27, 2009, 7:06 pm - IP Logged

              Well, maybe in your state they show both, but it's not at the stores I go to.  On the ML website, it advertises the jackpot, but doesn't say if it's an annual payment or a lump sum.  You must go to a certain part of the site to find info on it, and it's still confusing because of taxes and all that jazz.

              I stand by my statement that the overwhelming majority of lottery websites (PB & MM) DO advertise both annuity AND cash value jackpot amounts.Your state only advertises the annuity jackpot amount but that still doesn't make it false advertisement because you CAN receive the full annuitized amount (minus taxes) if you so choose.It will just take you 29 or 30 years to get it.I have never been in a lottery retailer that does not advertise both methods of payments.Granted,the annuitized amount is more prominate but you'd need to be blind not to see the cash option amount.I honestly don't believe that anyone needs to make a special effort to find the differences in the two types of jackpots,unless paying attention is a special effort.Rant over.

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                Posted: May 6, 2009, 1:46 pm - IP Logged

                I stand by my statement that the overwhelming majority of lottery websites (PB & MM) DO advertise both annuity AND cash value jackpot amounts.Your state only advertises the annuity jackpot amount but that still doesn't make it false advertisement because you CAN receive the full annuitized amount (minus taxes) if you so choose.It will just take you 29 or 30 years to get it.I have never been in a lottery retailer that does not advertise both methods of payments.Granted,the annuitized amount is more prominate but you'd need to be blind not to see the cash option amount.I honestly don't believe that anyone needs to make a special effort to find the differences in the two types of jackpots,unless paying attention is a special effort.Rant over.

                Why do you feel the need to defend the state so much?  An average joe who wouldn't even think about an annuity option and would need some clarification indicating so. 

                And on the state site, if you look under the classic 47 part, you will see that it does say you have a choice between annuity and cash option, but it doesn't say exactly what the cash option would be.  It just says that it's about half of the estimated annuity jackpot. 

                But that's beside the point.  It's bad enough that the odds are close to impossible, but then finding out you can't get the whole jackpot at once really bites.


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                  Posted: May 6, 2009, 3:19 pm - IP Logged

                  Why do you feel the need to defend the state so much?  An average joe who wouldn't even think about an annuity option and would need some clarification indicating so. 

                  And on the state site, if you look under the classic 47 part, you will see that it does say you have a choice between annuity and cash option, but it doesn't say exactly what the cash option would be.  It just says that it's about half of the estimated annuity jackpot. 

                  But that's beside the point.  It's bad enough that the odds are close to impossible, but then finding out you can't get the whole jackpot at once really bites.

                  From one of your posts on another thread.  "What I am tired of is all this emphasis on education, like it's sooooooooooo important."

                   

                  A little bit of education might do you some good!Learn to read!!!

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                    Posted: May 6, 2009, 3:47 pm - IP Logged

                    From one of your posts on another thread.  "What I am tired of is all this emphasis on education, like it's sooooooooooo important."

                     

                    A little bit of education might do you some good!Learn to read!!!

                    Then go on the Michigan lotto website, and show me where I am missing it, then maybe your adhominum insults may hold some value.


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                      Posted: May 6, 2009, 4:05 pm - IP Logged

                      Then go on the Michigan lotto website, and show me where I am missing it, then maybe your adhominum insults may hold some value.

                      Find it yourself.I'm through arguing with you.

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                        Posted: May 6, 2009, 6:03 pm - IP Logged

                        Find it yourself.I'm through arguing with you.

                        Fine by me.

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                          Posted: May 10, 2009, 1:48 pm - IP Logged

                          If you take the cash option and invest wisely( with the help of a good financial advisor) you can end up with more money than if you take the yearly payments!

                          Using the last few years as a time line if you were to have followed the vast majority of "advice" from a good financial advisor you would have lost half or more of the value invested. That being your would have been advised to have a large mix in stocks because of the long term growth you would need to make up the difference in taking the smaller amount. What real estate would have gone up in this time frame? Bonds are safe but do not offer that long term growth.  Perhaps your lucky with starting a new company if you want to devote the time. Where is Brad Davis on his goal to turn his $80 million into 1 billion????? At least with yearly money coming you can follow one of the most basic rules of investing  'Dollar Cost Averaging'. I think taking the cash offer question is based more on how old you are.