|Posted: April 19, 2011, 1:16 pm - IP Logged|
Why don't these lotteries just offer the cash value. The winners always take the cash anyway. They promote the annunity to inflate the numbers. But the numbers don't lie. Once you take the cash and pay the taxes your take-home prize is about 1/3 of the advertised annunity. No matter how much I win, I am taking the cash and run!!! I also think the cash payout will attract more players. Most people are not financially savvy. That is why in the past lottery winners would sell some of their annunity checks to these rip-off companies for pennies on the dollar.
That is why in the past lottery winners would sell some of their annunity checks to these rip-off companies for pennies on the dollar.
To be fair I've seen some shows where people who sold some of their annuity checks admitted that they sold them knowing full well they were essentially throwing money away and that they did it just because they didn't feel like waiting 1-2 years for that extra money.
Though I suppose you could argue that it was not financially savvy of them since if they had patience they would have more money.
However I don't think there would be more players if they used the CVO as the number would be lower so those who play only after a certain number would most likely wait longer to play, even though it's still the same amount they would be playing for before.