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why taking the annuity a very bad idea atm

Topic closed. 5 replies. Last post 5 years ago by rdgrnr.

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joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

United States
Member #32537
February 12, 2006
698 Posts
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Posted: September 24, 2011, 10:35 pm - IP Logged

annuity for lazy investers i think

however people have made the case its a wise invest, i like to point out some thing

they take cash jackpot,and invest full amount tax free investment, for you collect and pay taxes on later

1 issue, they use govt bonds, aka Treasure Bonds

funny thing about a govt in 14+ trillion in debt,   we have the fed reserve printing money out of Thin air, and funny thing is their buying Treasure bills, billions upon billions

its like your right hand writing a check to your left hand. so your left hand can  pay for Your bills ,just  you don't have money to pay for in first place.

only is n govt now insane , buying their own debt out of thin air money just made paper.

, does anyone not see a major issue with this?

 

anyway, funny result happens, Treasury bonds set new lows for interest rate,    ya, that's what happens when  us govt ups the "demand" by buying  their own debt

you can now give lower rates to buyers, as you have all buyers you could ever want"your self"

as their tons of buyers demanding your "debt"  aka  your self. 

their no need to lore buyers of debt with better returns for their money.  we don't need them, anymore, we got our selfs!

its 100% crazy land up in govt funding departments "us treasury department and fed reserve"


to give you my point

the current 96 million MM Annuity, gives in cash $72,000,000  if you take cash, in others words,

$72,000,000 invested in t bills in late 2011 gives o about 96m atfer 25 years 

now lets go back in time,

Mega Millions Jackpot for Mar. 28, 2006  , MM anuity 96M,  cash $56,000,000

so they invested 56m cash, and got you  96m over 25 years

anyone see something here

Them investing the cash jackpot , is looking more and more retarded option.

so take the cash, learn  give invests like divide stocks, aka being a owner who gets hes share of profits based on stock ever year.

or trust the us govt t bills to give you best investment.     with record low rates and them buying their own debt................ do you trust someone who makes money out of thin air and then buys up their own debt in real world?

 

so go ahead, take the annuity. and get screwed. if you want to be lazy.

us govt bonds are worst investment on returns  atm,      even pre tax full amount investment can't  get you more money over 20+ years of  take the 35% tax hit and invest majority of it in  best 5 to 10% dividend paying stocks etc over long term.

    savagegoose's avatar - ProfilePho
    adelaide sa
    Australia
    Member #37136
    April 11, 2006
    3316 Posts
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    Posted: September 25, 2011, 8:24 am - IP Logged

    say you want to go out of USA and invest in ohh  someplace that actually pays interest. theres a withholding tax of i think %20. so if you take out that $72MM $14.4mm will be withheld by the tax office , incase you ever owe them taxes later.

    good luck  earning that %10 in brazil, or %6 in australian banks.

    2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

    keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318

      joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

      United States
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      February 12, 2006
      698 Posts
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      Posted: September 25, 2011, 10:29 am - IP Logged

      who said anything about banks? its like your post came form left field.

      also dividend stocks have a 15% max tax on income,   

      hance why  you see misleading reports of super rich don't really pay 35% max fed income rate. , cease will majority of their income is dividends form companys

      dividend income is lowest taxed way to make future money from your investments

      i like how your not even defending t bills, just trying to bash other option"banks" that are a joke to begin with.

      as if to make taking the cash " to make it look worst option"

      also anyone that trust a bank to make them more money then to make their own investments  is at best, a lazy person that does not deserve to make much money if any.

        Raven62's avatar - binary
        New Jersey
        United States
        Member #17843
        June 28, 2005
        51255 Posts
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        Posted: September 25, 2011, 3:34 pm - IP Logged

        who said anything about banks? its like your post came form left field.

        also dividend stocks have a 15% max tax on income,   

        hance why  you see misleading reports of super rich don't really pay 35% max fed income rate. , cease will majority of their income is dividends form companys

        dividend income is lowest taxed way to make future money from your investments

        i like how your not even defending t bills, just trying to bash other option"banks" that are a joke to begin with.

        as if to make taking the cash " to make it look worst option"

        also anyone that trust a bank to make them more money then to make their own investments  is at best, a lazy person that does not deserve to make much money if any.

        Invest in the Stock Market & Get Screwed!

        A mind once stretched by a new idea never returns to its original dimensions!

          joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

          United States
          Member #32537
          February 12, 2006
          698 Posts
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          Posted: September 26, 2011, 4:54 pm - IP Logged

          don't let the tax tail wag the investment dog

          i say Take annuity govt bond and Get Screwed!

          also stock market is really 2 diff ways people use it.

          1 forCapital gains,  buy low , sell stock high to someone else

          its freaking called,  gambling. and you deserve to get Screwed if you use  gambling ,

           

          then their real stocks, stocks that pay their owners  % of their profits  out to share holders

          you buy stock, not to resell to someone later for a profit, but for sake of dividend payments

          people who could care less the humans world out freak out and crash the stock market

          got some news for you.  people with dividend payments, sure get their money

          such companys with safe dividends are , AT&T , verison, Johnson & Johnson ,intel, microsoft , etc       

          buying their stock= you get profits they give out per share owned

          its called investment   ,        However  buying stock  that gives you Not a dime , aka no divindend payments to share holders,  but just has a price that goes up and down, is called gambling. , yes get Screwed indeed raven62.

          i just hate how people group  stockmarket into its all gambling. its not the same.

            if you think investing into large solid  companys via owning their stocks.   that Pay out profits to share holders ever year.  a way to get Screwed, your crazy.

           

          the point of dividend stocks is,   its better to invest your money into Proven company's, that have a proven track record of giving  their owners a share of their profits ever year , for many years, then to take your money and risk it starting your own startup company, etc.   their no need be boss, its ran by smart, highly paid people, doing the work for you.  you just take your cut.        and if you look at stock market dividend companys track record,    it beats all other long term investers

          its also how the billioners play"dividend income"  is king majority of time.

            rdgrnr's avatar - walt
            Way back up in them dadgum hills, son!
            United States
            Member #73904
            April 28, 2009
            14903 Posts
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            Posted: September 26, 2011, 7:49 pm - IP Logged

            I'll take the cash.

            Even if we weren't under the unstable government we have now, I'd still take the cash.


                                                         
                                 
                                                     

             

             

             

             

                                                                                                               

            "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                        --Edmund Burke