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Cash Vs Annuity Payments

Topic closed. 98 replies. Last post 5 years ago by rdgrnr.

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well..... Would you rather take the payments or the cash option?..feel free to explain why....

Annuity Payments [ 13 ]  [15.12%]
Cash Option [ 73 ]  [84.88%]
Total Valid Votes [ 86 ]  
Discarded Votes [ 2 ]  
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Finland
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February 23, 2012
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Posted: February 23, 2012, 6:35 pm - IP Logged

@BABEL

You made very good arguments, again. Explained as clearly as any natively english speaking person can only do. I am not American, I have limits in verbal matters.

All I know my professional background, earlier experiences, tax residency and business environment, do differ from USA and they all favour annuity due to taxation.

I am pretty sure annuity for the best option for non-resident tourist from high tax european country that taxes outside Europe lottery wins up to 52%.


Brad Duke is a good role model, but how successful he has actually been ? Any recents reappraisals on the subject ? I prefer facts, not hearsay.

    time*treat's avatar - radar

    United States
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    Posted: February 23, 2012, 11:02 pm - IP Logged

    Savagegoose, you made some good arguments and I thank you for doing it.

    While I decided to process only facts at first, I see it is that human mind processes fear first and desires instant gratification,

    all this explains why cash sum has become such popular, even the mathematical evidence is given.

    Yep, negative outcome (tax,inflation,collapse of society etc.) is remotely possible but why to worry about it TOO much before that actually happens ?

    If you visualize bad outcome, it may manifest easier, so better think positively instead. Have a good one, as they say at the cashier.

    I did know about historic extremes regarding interest rates, tax brackets or hyperinflation events while I wrote my 1st comment

    but decided to deleted guesstimates such as currency controls away from calculations made.

    We are living time of offshore investments, globalization and improved communications, not 1930 or 80 again.

    The real factors such as inflation still exists in food and power. Now it is cost-push inflation too because of more people will fight for "stuff".

    Inflation confiscates your savings and purchase power. For this reason having more starting capital and doing investing in tax free cocoon

    will most likely beat cash option, even the given sums or investments would be exactly the same, due to taxman.

    You might be wizard in investing, but I am not in the long run and I will not become better even after being lucky to win huge amount of money.

    E.g. commodity broker or bank goes under and your investments go poof too, even your were account fully funded, you can not recover there unless with annuity.

    I have had experience with 10 bagger stocks in my portfolio, but it still takes forever to get into millions if you pay taxes all the time, this why annuity is my choice because there are not such middlemen that can go completely fail. Your cash investments nullify too if US treasury notes cease to have any value left, but that is never going to happen, because US dollar is backed up by US military, petrodollar recycling etc. You can get insurance by possessing the real gold at hand before that bad day happens.

    Annuity means that you can rise from the ashes next year(s), even if debtors would their share paid out first, you can come back into business because of automatic firewall. Annuity is better in tax terms than cash.Not only taxes are more predictable but when also more money works for you, it will increase cash flow.

    I hate losses and also short-term paper money fluctuation, but saving the capital on purchase power terms means you have to stop making losses from the day one.

    Timing the market is nearly impossible for the long run.  I try to be positive and base my decisions on some facts, even in todays "rigged" investing environment.

    Surely you will have a blast with REIT income or land line telecoms for short term, until interest rates do rise again or government stops moneyprinting, both that they can not do right now without rising the prize of gas etc. Watering paper money is in global fashion now, just look gold since 2001. The same ounce it is.

    Companies come and go, companies can not tax you directly, but countries can tax you, even you live abroad as American.

    American infrastructure is surely aging, but authorities will collect taxes from you with cash option, just to pay my annuity :)

    With annuity you will get the proceeds from investments indirectly but it also means it gives you some protection and continuity. Mad Max scenarios aside.

    Some governments are more corrupted than others as as are politicians, but not too much here where I live so I did not give a tought to that aspect, my bad.

    But how can you make a killing with you cash option when American businesses are paying such lousy dividends, especially if they are dishonest entities, why on earth would support them if you know them as liars ?

    With annuity I feel like have really earned my income, after getting loaned out money back from road improvements etc. that will benefit everyone, bankers can go hell.

    I would sleep better knowing that with annuity I do some good, even it is so that I will receive less money to spend for the first years than with lump sum.

    Even it is actually the very opposite case after receiving annuity it few years and some malinvestments. You are here for your life, not for 2-10 years of spending &  bust.

    Cash option is promoted for in media and in advertisements. Ask yourself why is that ? With cash option lottery needs to put less money down and

    specialists will suck you dry with % fees etc, no wonder why false advice for choosing lump have been favoured in the media and thus programmed into public mind.

    You played for advertised jackpot, which was annuity payment BTW.

    Why would you then compromize your efforts by choosing cash option instead, or did you fool yourself at the first place ? Or are you over 50 years old / soon to die without anyone left behind ? Then cash option makes some sense.

    What you can not get you instantly with annuity, ask yourself do you really need it ? Remember operating costs down the road if you buy used space shuttle.

    I would buy a ticket to Virgin Galactic instead, actually get into the space or rent what I need before buying it. Renting makes sense today and so will annuity.

    I am sure somebody will post some annuity calculations with a better local state knowledge than I do, but I suggest you to consider annuity before turning it completely down. Taking cash sounds desperate to me. I have no debt or big problems, for which I am grateful, so if I could live with modest millions for every year, so can you !

    "[N]egative outcome (tax,inflation,collapse of society etc.) is remotely possible but why to worry about it TOO much before that actually happens ?"

    Because if you wait until it's obvious, you'll die with the rest of the everything-will-be-alright idgits.

    History has plenty of examples of people who got out of bad places before "bad" turned into "worse" and did much better than those who stayed behind.

     

    "If you visualize bad outcome, it may manifest easier, so better think positively instead."

    Best of all is to prepare. Disasters don't give a $#!t what you visualize.

     

    " ... if US treasury notes cease to have any value left, but that is never going to happen..."

    Never? Really? 100 years ago, 'the sun never sets on the British Empire' was literally true. Ask the British, French, Dutch, Portuguese, Ottomans, Romans, & Spanish how their empires are doing today. 

    "... because US dollar is backed up by US military, petrodollar recycling ..."

    US military? See Afghanistan. It's not called the Graveyard of Empires for nothing. They should've learned form the Russians. Speaking of Russia ...

    [P]etrodollar recycling? Nations are making bilateral currency deals with oil-exporting Russia that don't involve the dollar.

    "US dollar is backed up by US military" pt2

    The US dollar was a lot stronger when it was backed by gold. Compare the 1912 dollar price for an ounce to the 2012 dollar price.

    "American infrastructure is surely aging, but authorities will collect taxes from you with cash option, just to pay my annuity :)"

    If you're expecting the tax authorities to chose between their salaries, the infrastructure, the wrath of the voters, and your annuity payment, you should go buy some lube, because you are gonna get #^(&ed. Blush

    In neo-conned Amerika, bank robs you.
    Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

      dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
      Oklahoma
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      Posted: February 24, 2012, 8:40 am - IP Logged

      Cash, Cash,Cash..........

        helpmewin's avatar - dandy
        u$a
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        Posted: February 24, 2012, 9:09 am - IP Logged

        Annuity Payments  i feel would be the best because u will getall the Money that way not half/then they tax on that, so you wouldnt even get half, and you can set up it to go directly into any type of account so therefore if anything was to happen to that Lottery winner it won't matter the money will still be put into that account for the 30yrs or whatever the case maybe and drawing intrest at the same time....Smile

          savagegoose's avatar - ProfilePho
          adelaide sa
          Australia
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          April 11, 2006
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          Posted: February 24, 2012, 9:14 am - IP Logged

          there's only one way to prove this either way we need to experiment.

          i suggest we get mega millions to pay 1 of us in here an  annuities win ,  and power ball to pay the other in here a lump sum win .

          then over the next 30 years we track who has the buigger grin on their face.Jester

          i volunteer for either position, im not that opposed to annuities after al.

          2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

          keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297


            United States
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            Posted: February 24, 2012, 10:38 am - IP Logged

            there's only one way to prove this either way we need to experiment.

            i suggest we get mega millions to pay 1 of us in here an  annuities win ,  and power ball to pay the other in here a lump sum win .

            then over the next 30 years we track who has the buigger grin on their face.Jester

            i volunteer for either position, im not that opposed to annuities after al.

            Excellent suggestion savagegoose! I "volunteer" to have Powerball grant me a lump sum of cash via a bank wire to my business checking account. If

            your monitoring Powerball, I have my routing and checking account #'s all set for you. If you could wire that to me today, that would be most

            appreciated. This way I could have the funds available for me by Monday morning. Will you be sending me the lump sum based on the minimum

            $40 Mill. jackpot, or the current $70 Mill.???

             

            Thanks in advance,

             

            The grateful "volunteer"     Banana

              OldSchoolPa's avatar - Lottery-057.jpg
              Gurnee, Illinois
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              Posted: February 24, 2012, 1:11 pm - IP Logged

              Annuity Payments  i feel would be the best because u will getall the Money that way not half/then they tax on that, so you wouldnt even get half, and you can set up it to go directly into any type of account so therefore if anything was to happen to that Lottery winner it won't matter the money will still be put into that account for the 30yrs or whatever the case maybe and drawing intrest at the same time....Smile

              You are not necessarily getting more money by taking the annuity option.  For example, the current Powerball cash value (43.3M) is 61 percent of the advertised annuitized jackpot (70M).  After taxes, the net cash value a potential Saturday winner could take home is $28,145,000 (I used 35 percent tax rate as some may pay both federal and state taxes).  Now presuming the winner is an astute person who knows how to conservatively invest his/her winnings, let's assume the person invests and achieves a modest 5 percent interest/dividends over next 30 years and only spends $8.145M of the lump sum.  So 20M averaging 5 percent over 30 years would yield approximately $80M.  Those who don't know how I arrived at that figure may not be familiar with the rule of 72. 

              Those taking the annuity option will receive an initial payment plus 29 progressively higher annual payments, however, to simplify my calculations, I will use a straight average of 30 payments, which would come out to $2,333,333.  Using the same 35 percent tax rate for the calculations, which would yield $1,516,666 each year (again, based on nature of progressive annuity payments, the initial payments will be less than this calculations and the latter ones will be higher, but I am only trying to illustrate a point so I am keeping it simple).  So the net amount (after taxes) the winner would collect over 30 years would be approximately $45,499,995.  One would have to use a lot of assumptions for winners taking the annuity.  How much of the annual payment would the winner save?  How would the person invest it given that it is a much smaller amount than the overall jackpot amount, but likely much more than person earned from work?  I think no matter the assumptions used for annuitants, it would be highly unlikely that a person receiving the annuity option would double that net amount received over the same 30 year period. 

              So I think it is highly more probable that an astute person receiving the jackpot in a lump sum would be better off and with more money to show after the same period than a person receiving annuity payments.  Also, remember that the annuity selection does not shield a person from making poor business/personal decisions that may require them to obtain more of their jackpot winnings sooner than the regularly scheduled annual date of the annuity payment.  That might be the reason that one can see so many of those J.G. Wentworth ("It's Your Money....Use it When You Need It") and PeachTree Cash Settlement commercials running on TV.  So a person choosing annuity over cash value is no more likely to make smarter decisions than one who takes the cash value and vice versa.  I do think annuitants may be a bit less prepared to deal with the end of the rainbow of cash as evidenced by the ones who appeared on TLCML who decided to open a restaurant with remaining lottery monies (restaurants are very likely to fail, especially new ones not located in heavy traffic areas).   I would much rather take the lump sum and plot a long term strategy from the beginning rather than having to worry about the fluctuating tax treatment of income (in case you have been living under a rock, taxes will likely skyrocket if the man serving up that magical Kool-Aid is reelected...after all, lottery winners are a part of that 1% group and should be paying "their fair share of taxes!"). 

              So may I win soon before November so I can start planning my next moves to keep BHO from touching my dough!

              Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

              The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

                s5thomps's avatar - Lottery-033.jpg
                Hard Luck, Ak
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                Posted: February 24, 2012, 9:40 pm - IP Logged

                I Agree!   Well put Old School!

                "We make a living by what you get, You make a LIFE by what you give!"

                                                                               Sir Winston ChurchillSun Smiley

                  time*treat's avatar - radar

                  United States
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                  Posted: February 25, 2012, 12:08 am - IP Logged

                  You are not necessarily getting more money by taking the annuity option.  For example, the current Powerball cash value (43.3M) is 61 percent of the advertised annuitized jackpot (70M).  After taxes, the net cash value a potential Saturday winner could take home is $28,145,000 (I used 35 percent tax rate as some may pay both federal and state taxes).  Now presuming the winner is an astute person who knows how to conservatively invest his/her winnings, let's assume the person invests and achieves a modest 5 percent interest/dividends over next 30 years and only spends $8.145M of the lump sum.  So 20M averaging 5 percent over 30 years would yield approximately $80M.  Those who don't know how I arrived at that figure may not be familiar with the rule of 72. 

                  Those taking the annuity option will receive an initial payment plus 29 progressively higher annual payments, however, to simplify my calculations, I will use a straight average of 30 payments, which would come out to $2,333,333.  Using the same 35 percent tax rate for the calculations, which would yield $1,516,666 each year (again, based on nature of progressive annuity payments, the initial payments will be less than this calculations and the latter ones will be higher, but I am only trying to illustrate a point so I am keeping it simple).  So the net amount (after taxes) the winner would collect over 30 years would be approximately $45,499,995.  One would have to use a lot of assumptions for winners taking the annuity.  How much of the annual payment would the winner save?  How would the person invest it given that it is a much smaller amount than the overall jackpot amount, but likely much more than person earned from work?  I think no matter the assumptions used for annuitants, it would be highly unlikely that a person receiving the annuity option would double that net amount received over the same 30 year period. 

                  So I think it is highly more probable that an astute person receiving the jackpot in a lump sum would be better off and with more money to show after the same period than a person receiving annuity payments.  Also, remember that the annuity selection does not shield a person from making poor business/personal decisions that may require them to obtain more of their jackpot winnings sooner than the regularly scheduled annual date of the annuity payment.  That might be the reason that one can see so many of those J.G. Wentworth ("It's Your Money....Use it When You Need It") and PeachTree Cash Settlement commercials running on TV.  So a person choosing annuity over cash value is no more likely to make smarter decisions than one who takes the cash value and vice versa.  I do think annuitants may be a bit less prepared to deal with the end of the rainbow of cash as evidenced by the ones who appeared on TLCML who decided to open a restaurant with remaining lottery monies (restaurants are very likely to fail, especially new ones not located in heavy traffic areas).   I would much rather take the lump sum and plot a long term strategy from the beginning rather than having to worry about the fluctuating tax treatment of income (in case you have been living under a rock, taxes will likely skyrocket if the man serving up that magical Kool-Aid is reelected...after all, lottery winners are a part of that 1% group and should be paying "their fair share of taxes!"). 

                  So may I win soon before November so I can start planning my next moves to keep BHO from touching my dough!

                  I Agree! People don't get that future payments are subject to future inflation and tax rates.

                  As the tax base shrinks and inflation soars, that annuity payment looks better and better as a target.

                  Ask holders of Greek sovereign debt how their payments are going. Already, plans are under way to split creditors into at least two groups. One group (banksters) will have first dibs on being repaid, when/if there's a default. The others will be left with worthless paper.

                  We don't know future rates 10 or 20 years out, but over on BLS.gov under databases & tools then under calculators, we can compare the buying power of $100 today to the buying power of $100 ten or twenty years ago. And that's just the inflation (purchasing power destruction) they admit to.

                  In neo-conned Amerika, bank robs you.
                  Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

                    savagegoose's avatar - ProfilePho
                    adelaide sa
                    Australia
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                    Posted: February 25, 2012, 3:12 am - IP Logged

                    Excellent suggestion savagegoose! I "volunteer" to have Powerball grant me a lump sum of cash via a bank wire to my business checking account. If

                    your monitoring Powerball, I have my routing and checking account #'s all set for you. If you could wire that to me today, that would be most

                    appreciated. This way I could have the funds available for me by Monday morning. Will you be sending me the lump sum based on the minimum

                    $40 Mill. jackpot, or the current $70 Mill.???

                     

                    Thanks in advance,

                     

                    The grateful "volunteer"     Banana

                    dont look at me, i said powerball and mega ball should organize the payments, and ill ill look after the experimantal part. what you want me to do everything?

                    2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                    keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

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                      Finland
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                      February 23, 2012
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                      Posted: February 25, 2012, 11:32 am - IP Logged

                      @ OldSchoolPA

                      I do agree with you completely with many matters, like the principle that personal choices make our destiny.

                      But when a investment plan sounds so good on a paper, I am sure works too, but only on a paper.

                      Seriously, I would love to win jackpot and take cash and invest it, if such return of capital could be quaranteed as you suggested,                                                                   but I can not.We few can.

                      First I say it is dangerous to assume you will always get 5% dividend after tax
                      in investment return calculations for 30 years so typically used to promote choosing cash payment.
                      Even such estimated performance would be possible, it would require you to put ALL of your money
                      to high divvy reits, oil, telecom stocks etc. without having stressful stock price fluctutations
                      or bankkruptcies or key-technologies to become obsolete in next 30 years time, or even faster you can think.

                      Secondly lets do not forget every investor has to pay broker fees,specialists and taxes multiple time,
                      while in re-balancing portfolio between asset classes.
                      Suitable timing of stock purchases is continous challenge, this is why dollar cost averaging
                      has been used to cope with stock fluctuations. Even if you invest to index funds or ETF paying dividend,
                      better use more realistic dividend of less than 2% as assumption for calculations.
                      When you do that, reduce fund fees and note tax implications too, you may be surprised to find out why relative small sounding
                      annuity payment is not be bad choice after all. It namely all depends on how high percentage you can invest really,
                      but often it is less than half of cash, nearer to 30% for investing. The same applies to investing annuities
                      but there you can at least allocate capital smarter over good and bad years, while cash option requires investing money fast                                                                           or can you sit on top of your hands to prevent you buying or investing anything ? I can not and I know that.
                      Dividend chasers, thats me included, do often get the dividend, before it is cutted, at the expense of stock price losses
                      of more than dividends received. One, example Frontier Telecom, yahoo FTR. Experienced to choose annuity you may say.

                      In reality after choosing cash option winner usually invests only 30% of cash and reserve 25-40% for taxes / lawsuits, then
                      spends the rest for purchases and living expenses. With such capital allocation, return of investment calculation results
                      suddenly do not look so good at all, or do they ? Especially if there is a divorce to be expected soon to halve the cash.
                      Not even annuity receivers should put all eggs into one basket to maximise return, luckily they do have not to because annuities
                      increase gradually by 4% to cope with spending habits. Yes spending sprees do happen with annuities too, but
                      usually within yearly allowance paid to you.With annuity you can recover and start again, if you remain wise with big purchases.

                      Thirdly all other risks like a currency risk or risk of inflation or increases in taxation
                      do apply as well to stocks and as to annuities too, as well human behaviours, but lets be reminded that currently
                      annuities do work in more tax free environment from day one and the starting capital really is bigger with annuity than with cash.
                      For most of us (below 40 years old) we are talking about 30 plus years of investing challenge so better assume 16-32%
                      for future taxes from now. When using realistic rate of return for stocks, like 2% instead of 5% is used,
                      todays cash based yields are pretty comparable to annuity payment, after tax and fees paid. You do agree if you calculate it so.

                      You can argument that today stock dividends may be once again yielding more than bonds,
                      but if interest rates rise again those high dividend reit investors are not going to like it for reasons you already know.
                      Stock price may increase or decrease, but why to risk of loosing tens of percents of capital in stocks for getting the dividend ?
                      With 10 years perspective looking back, bonds were the correct place to be, but did you see money managers to promote them ?
                      No, neither did you see gold promoters since year 2001. But if we look to as back to 80s, zero rate coupons
                      did make 7-8% annually before those matured away. Years are not alike but like those good days would return anytime soon, no way.
                      As a matter of fact, just the opposite could be anticipated, like a lost decade in Japan or inflation.
                      Big inflation makes bonds a worse risk than stocks sure, both in either way land we are f*ck*d,
                      either we took cash or annuity option to invest it like ordinary people do.
                      Maybe it is only so that 30-year annuity prevents you to become a habitual big spender a bit more efficiently than receiving
                      that windfall cash, that so often has leads into financial or personal problem in just 5-10 years time.

                      How long you are going to live ?
                      Me, 107 years old... And also, yes I am volunteer to win first jackpot with annuity and then I will take cash for my 2nd jackpot win.

                       

                      PS. Where I live, there are NO TAXES in lottery wins, winners have FULL ANONYMITY too.

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                        Finland
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                        February 23, 2012
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                        Posted: February 25, 2012, 12:19 pm - IP Logged

                        @TIME*TREAT

                        You are 100% correct in state of current affairs with society, dollar etc.. I should have put my sarcasm ON warning lights on, I am sorry I did not that.

                        However I feel optimistic about my survival.

                        Do not tell anyone but Actually I am one of those hardcore preparers expecting for the end of society, stocking everything imaginable and practising a life without electricity etc. I just try keep "do not worry be happy" appearance here that nobody ever even thinks to enter my storage facilities.

                        All I am seeking from here is some flammable paper and cotton material with some ink on it, with federal reserve decorations.

                        I heard lottery would give me some such green stuff, if I apply for it. So here I am Wink

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                          Finland
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                          Posted: February 26, 2012, 9:29 am - IP Logged

                          While it is true that the received sum of cash option is currently relatively at highest level in history,
                          due to very low interest rates, decisive calculation results tend to appear be more favourable
                          for cash option with direct comparison to annuity today - but only on a short term basis.
                          Today cash option or "fast-track to riches" still is discounted, below "par level" when compared to annuity which is "slow-track".

                          Capital difference at its minimum now, but what matters are taxes and years of living ahead of you.
                          Taxes are paid differently. In cash option taxes must be paid immediately at first year,
                          which reduces available capital by 25-35%. This means capital is then 30-40% below of estimated total annuity.

                          With annuity taxes are paid yearly on receipt of each check, meaning that all accrued interest earned
                          remains tax free until payment is made to the winner. Powerball annuity gradually increases +4% per year too.

                          Certainly interest rates, taxes etc. are going change in next 30 years or so, but currently
                          Powerball cash winner buying "low risk long term dividends" can not enjoy from +4% increases and tax advantages.
                          Even yield curves are pretty flat out now, it is this capital difference of 30% minimum and yearly payment of taxes
                          that favours taking annuity in the long run, if you are below 40 years old player or intend to live over 30 years.
                           
                          The lower the interest rate is the more Powerball must invest to fund the annuity.
                          When interest rates rise, annuity value drops as well cash option, but cash option drops even more.
                          In this case capital difference gets wider again and yield curves separate to,o the longer of timespan.

                          Cash option taker should really earn 7% minimum after tax and fees more than annuity taker every year
                          to be on the safe side.
                          Clearly there must be premium in return of investment, or why risk the loss of the capital and pay more taxes ?

                          If you choose lump sum and "fast track" you may become penalized by
                          1. bigger loss in capital and more fees
                          2. taxes that erode both cash and return of investments
                          3. realized net interest rates or dividends are lower than originally expected for calculation, even below annuity
                          4. not being able to use all potential international tax savings schemes when receiving annuity
                          5. being able to spend more than one million fast, it may change social relations and lifestyle for bad consequences.   
                          6. buying a lot of stuff at the beginning as it will explode fixed costs, maintenance etc. down the road.
                          7. becoming totally broke very fast if things escalate on fast track, if there is no income like in slow-track annuity.

                          because of above arguments, just think about considering annuity too. 

                          PS. It may be also so that the world does not end immediately after all, so there is not a must to take cash and run, or is it ?

                            mediabrat's avatar - 18z0typ
                            upstate NY
                            United States
                            Member #108791
                            March 31, 2011
                            549 Posts
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                            Posted: February 26, 2012, 9:06 pm - IP Logged

                            For me, it depends on how much the advertised jackpot is.  If the annuity turns out to be $1 million (or more) a year, I'll take my chances with the annuity.  If it's less than that, it doesn't really seem worth it to go for the annuity, so in that case I'd take the cash up front and try to make hay with it.


                              United States
                              Member #123427
                              February 20, 2012
                              89 Posts
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                              Posted: February 27, 2012, 12:58 pm - IP Logged

                              cash on hand!!!  i could be dead tommorrow!!!Puke