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Question about Cash or Annuity

Topic closed. 20 replies. Last post 5 years ago by KY Floyd.

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HiFi's avatar - police

United States
Member #3792
February 21, 2004
198 Posts
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Posted: March 10, 2012, 7:41 am - IP Logged

listen , never ever take the annuity, unless you lack the confidence in yourself to hold onto your money.  u are way better at having the lump sum invested even at the bare minimum u would make 4 percent on municipal bonds, u could live off this interest or grow your money way better than that 26 year annuity.  and who knows what the dollar will be worth 26 years from now.  just take the cash option.

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    NH
    United States
    Member #83352
    December 5, 2009
    223 Posts
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    Posted: March 10, 2012, 10:52 am - IP Logged

    I agree that you will make more money with the cash option if and only if you have the right people in place putting your money to work and you don't go on too many wild spending sprees. But we've all seen time and time again that people who win large amounts of money and don't really know what to do with it, lose it quick. Wouldn't my senerio on a very large jackpot bring some peace of mind to someone who has no idea what to do with a large sum of money?

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      Kentucky
      United States
      Member #32652
      February 14, 2006
      7309 Posts
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      Posted: March 11, 2012, 11:52 am - IP Logged

      Maybe you're thinking about the disclaimer in the rules that says that you can only win one prize per game played.

      That should be obvious in a game like PB where you only play one combination, but some games give you two combinations for the cost of the bet. NY lotto is one example. Suppose the winning combination was 3 4 5 6 7 8 and the two combinations you had played were 1 2 3 4 5 6 and 1 2 3 4 5 7.  In that case you'd collect the prize for matching 4 numbers, but not a prize for matching 3 numbers with the 2nd line. You can still win multiple prizes on one ticket if the ticket has multiple bets.

      As for one person having two jackpot winning tickets for PB, MM or another jackpot game, imagine that another person also had a winning ticket. How much would you expect each person to get? It should be pretty obvious that the 3 winning tickets each win 1/3, so one winners gets 1/3 of the jackpot and the other gets 1/3 for each winning ticket, for a total of 2/3 of the jackpot. To the lottery each jackpot winning ticket is a separate prize, regardless of who the prize is paid to, so there would be no problem taking cash on one and annuity on the other.

      "but not a prize for matching 3 numbers with the 2nd line. You can still win multiple prizes on one ticket if the ticket has multiple bets."

      There probably are people that believe if they match 4 numbers, they should win the four 3 number prizes too so the lotteries made it clear in their rules "only the top prize will be paid" or something like that.

      The rules of the game say if there are more than one jackpot winning ticket, the jackpot will be split by that number. If there are two jackpot winning tickets, the jackpot is split between the two ticket holders. The rules also cover the cash value or annuity choices. One player may elect to take the cash value and the other may elect to take the payments. One player gets half the cash value and the other gets half of the annuity value. If there are three winning tickets, all three players still get their choice.

      Because of the rules, if one player has two jackpot winning tickets, they can chose to get the cash value on one ticket and the payments on the other.

        CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
        TX
        United States
        Member #121193
        January 4, 2012
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        Posted: March 11, 2012, 12:15 pm - IP Logged

        My question is about the cash option and the annuity option in say Powerball. If I was lucky enough to win the jackpot and I bought two seperate tickets of the exact set of numbers which won, can I pick the cash option for one of the tickets and the annunity on the other? I thought about this when the Powerball got over 300 million. Obviously each ticket would only be half of the Jackpot if I was the only two winners...

        G.R.    Great question you posed. Wouldn't it be nice to be confronted by that particular scenario ?.....2 or 3 or 4 winning tickets always mean a split from all rules I have read. Wouldnt that be similar to when a group wins a lotto and the option split into cash and annuities by each member? I realize its not 2 seperate tickets but it is seperate winners and each person or group is represented by that winning ticket.....After all, those vets that had the 7 winning tix from W.V. claimed their 14 milllion. should be able to do the same with the big jackpot.
        Cheers Heres hoping one of us wins or runs into that particular issue

        Stay Positive, Believe and good things will come your way

          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: March 12, 2012, 2:30 pm - IP Logged

          listen , never ever take the annuity, unless you lack the confidence in yourself to hold onto your money.  u are way better at having the lump sum invested even at the bare minimum u would make 4 percent on municipal bonds, u could live off this interest or grow your money way better than that 26 year annuity.  and who knows what the dollar will be worth 26 years from now.  just take the cash option.

          Roger that plus I would add real estate at this particular time.

          Away from big cities.


                                                       
                               
                                                   

           

           

           

           

                                                                                                             

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

                                                                                                      --Edmund Burke

           

           

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            NY
            United States
            Member #23835
            October 16, 2005
            3474 Posts
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            Posted: March 13, 2012, 1:07 am - IP Logged

            You lost me. Your example shows two lines, both of which match 4 numbers. (3-4-5-6 on the first line, 3-4-5-7 on the second.)  Why would you not win two Match 4 prizes?

            NY lotto costs $1 for one bet that gives you one chance of winning one prize. Your one chance is in having either of two combinations match enough winning numbers to win a prize.