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DO you really lose money if u take the annunity over the lump sum?

Topic closed. 125 replies. Last post 4 years ago by rdgrnr.

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rdgrnr's avatar - walt
Way back up in them dadgum hills, son!
United States
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April 28, 2009
14903 Posts
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Posted: August 13, 2012, 6:15 pm - IP Logged

I Agree! Make sure it's in a state where the govt doesn't presume ownership of the groundwater and rain (except when the roof leaks or your basement floods. That water, you own).

Yeah, funny how that works, ain't it.


                                             
                     
                                         

 

 

 

 

                                                                                                   

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

                                                                                            --Edmund Burke

 

 

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    Kentucky
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    Posted: August 14, 2012, 1:03 pm - IP Logged

    People who took the annuity when interest rates (or whatever benchmark they use) were higher may be in for an unpleasant surprise.

    I decided long ago to take the cash but anyone considering taking the annuity should consult with a credited financial planner before making that decision.

    The fine print of the $1 million prize given by America's Got Talent is a 40 year annuity at $25,000 a year. Wonder how much cash J.G. Wentworth would give for that annuity if the winner "needs their cash now".


      United States
      Member #130815
      July 25, 2012
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      Posted: August 14, 2012, 1:47 pm - IP Logged

      You dont believe it??? Email them and ask how they payout the jackpot amount...They will send you an answer within a couple days...I reread it too and I didnt see it but I know that how they do it caused I asked.


        United States
        Member #111442
        May 25, 2011
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        Posted: August 14, 2012, 1:54 pm - IP Logged

        You dont believe it??? Email them and ask how they payout the jackpot amount...They will send you an answer within a couple days...I reread it too and I didnt see it but I know that how they do it caused I asked.

          mediabrat's avatar - 18z0typ
          upstate NY
          United States
          Member #108791
          March 31, 2011
          549 Posts
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          Posted: August 14, 2012, 4:35 pm - IP Logged

          Exactly right GYM RICE, the liberal leftist has a habit of treating the "unelite" like they are stupid. It doesn't take a genius to realize that we pay tax in the amount of 70% after you add up all the different underhanded schemes they use to collect from us every day of the week.

          Conservative wingnuts do the same thing.  Congressmen, governors, presidential candidates, talk radio hosts, bubbly blondes on Fox "News"... they all think the average American is stupid.  In fact, they count on it.

          Patriot

            mediabrat's avatar - 18z0typ
            upstate NY
            United States
            Member #108791
            March 31, 2011
            549 Posts
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            Posted: August 14, 2012, 4:38 pm - IP Logged

            People who took the annuity when interest rates (or whatever benchmark they use) were higher may be in for an unpleasant surprise.

            Correct me if I'm wrong, but aren't the rates on the bonds that fund the annuity fixed?  Does anyone have documentation either way?

            Patriot


              United States
              Member #116268
              September 7, 2011
              20244 Posts
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              Posted: August 14, 2012, 4:59 pm - IP Logged

              Conservative wingnuts do the same thing.  Congressmen, governors, presidential candidates, talk radio hosts, bubbly blondes on Fox "News"... they all think the average American is stupid.  In fact, they count on it.

              Fox "news" is more left wing than CNN was 5 years ago, but they have to be in order to stay just right of the elected runnaway Marxist elite that are in power now.

                Coin Toss's avatar - shape barbed.jpg
                Zeta Reticuli Star System
                United States
                Member #30470
                January 17, 2006
                10345 Posts
                Online
                Posted: August 14, 2012, 7:25 pm - IP Logged

                Conservative wingnuts do the same thing.  Congressmen, governors, presidential candidates, talk radio hosts, bubbly blondes on Fox "News"... they all think the average American is stupid.  In fact, they count on it.

                FYI mediabrat, here's you "bubbly blondes" of Fox News:

                Brenda Buttner
                She graduated from HarvardUniversitywith honors
                with a bachelor's degree in social  studies.
                Buttner went on to be a Rhodes Scholar  at Oxford University,
                where she graduated with high honors and 
                a bachelor's degree in politics and  economics.
                 
                Shannon Bream
                She is a graduate of Liberty  Universityand earned a Juris Doctorate 
                with honors from FloridaStateUniversityCollegeof Law.
                 
                Gretchen Carlson
                Carlson graduated with honors from  Stanford  University
                and also studied at  Oxford  Universityin England.
                 
                Jamie Colby
                Aside from her journalism career, Colby  is an attorney and
                served in private practice for 10 years. 
                She is an attorney admitted to practice  in New York, California, the
                District of Columbiaand Florida. Colby is also a former law professor, 
                a member of Law Review and has been a  National Board member of
                American Women in Radio and Television  for the last several years.
                Attending the Universityof Miami  International Schoolof Business at age 14,
                she received a Bachelor of Business  Administration in accounting as well as her
                Juris Doctor degree from the University  of Miami Schoolof Law at age 22. 
                 
                Harris Faulkner
                A graduate from the Universityof Californiaat Santa Barbara
                with a degree in mass  communication
                 
                Jennifer Griffin
                A graduate of Harvard  Universityin 1992,
                Griffinreceived a Bachelor’s degree in  comparative politics 
                 
                 
                Kimberly Guilfoyle
                Guilfoyle is a magna cum laude graduate  of University of California, Davis
                and attended the Universityof San  Francisco Schoolof Law and TrinityCollege
                in Dublin, Ireland, where she studied  and was published for her research
                in international children's rights and  European Economic Communitylaw. 
                 
                Molly Henneberg
                Henneberg earned her bachelor's degree  from Vanderbilt University,
                graduating summa cum  laude.
                 
                 
                Catherine Herridge
                Herridge earned a Bachelor's degree from  Harvard  Collegeand
                a Master's degree in journalism from 
                the ColumbiaUniversityGraduateSchoolof Journalism.
                 
                Amy Kellogg
                Kellogg began to study Russian at  Phillips Academy in Andover, Massachusetts
                and then received her BA in Soviet  Studies from Brown  University
                She spent a semester at LeningradStateUniversity.
                She received her Masters from Stanford  Universityin Russian and
                East European Studies and also speaks  Spanish and French
                 
                Megyn Kelly
                Kelly earned her Bachelor of Arts degree  in Political Science from
                SyracuseUniversityand a J.D. From Albany  Law  School,
                where she also served as editor of the  AlbanyLaw Review.
                 
                Jenna Lee
                A graduate of the Universityof Californiaat Santa Barbara,
                Lee obtained her master's degree from 
                ColumbiaUniversityGraduateSchoolof Journalism.
                 
                Molly Line
                Line is a graduate of Virginia Tech  where she received her
                Bachelor of Arts in mass communication  and political science. 
                 
                Dagen McDowell
                A native of Virginia, McDowell graduated from 
                WakeForestUniversitywith a degree in art  history.
                 
                Heather Nauert
                She graduated from Mt.  Vernon  Collegein Washington, D.C.,
                with a bachelor of arts in  communications and
                she received her masters in journalism  from ColumbiaUniversity.
                Nauert is also a term member at the  Council of Foreign Relations. 
                 
                Dana Perino
                She graduated with a Bachelor of Arts in  Mass Communication from
                Colorado State University-Pueblo and  went on to receive
                a Masters in Public Affairs Reporting  from
                the University of Illinois-Springfield. 
                 
                Anita Vogel
                Vogel graduated from the Universityof Southern California
                with a Bachelor of Arts degree in  broadcast journalism and political science.
                 
                Lis Wiehl
                Wiehl received her undergraduate degree  from Barnard  Collegein 1983 and
                received her Master of Arts in  Literature from the Universityof  Queenslandin 1985. 
                In addition, she earned her Juris Doctor  from HarvardLawSchoolin 1987. 
                 
                 
                 

                Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                Lep

                There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.


                  United States
                  Member #111442
                  May 25, 2011
                  6323 Posts
                  Offline
                  Posted: August 14, 2012, 7:33 pm - IP Logged

                  FYI mediabrat, here's you "bubbly blondes" of Fox News:

                  Brenda Buttner
                  She graduated from HarvardUniversitywith honors
                  with a bachelor's degree in social  studies.
                  Buttner went on to be a Rhodes Scholar  at Oxford University,
                  where she graduated with high honors and 
                  a bachelor's degree in politics and  economics.
                   
                  Shannon Bream
                  She is a graduate of Liberty  Universityand earned a Juris Doctorate 
                  with honors from FloridaStateUniversityCollegeof Law.
                   
                  Gretchen Carlson
                  Carlson graduated with honors from  Stanford  University
                  and also studied at  Oxford  Universityin England.
                   
                  Jamie Colby
                  Aside from her journalism career, Colby  is an attorney and
                  served in private practice for 10 years. 
                  She is an attorney admitted to practice  in New York, California, the
                  District of Columbiaand Florida. Colby is also a former law professor, 
                  a member of Law Review and has been a  National Board member of
                  American Women in Radio and Television  for the last several years.
                  Attending the Universityof Miami  International Schoolof Business at age 14,
                  she received a Bachelor of Business  Administration in accounting as well as her
                  Juris Doctor degree from the University  of Miami Schoolof Law at age 22. 
                   
                  Harris Faulkner
                  A graduate from the Universityof Californiaat Santa Barbara
                  with a degree in mass  communication
                   
                  Jennifer Griffin
                  A graduate of Harvard  Universityin 1992,
                  Griffinreceived a Bachelor’s degree in  comparative politics 
                   
                   
                  Kimberly Guilfoyle
                  Guilfoyle is a magna cum laude graduate  of University of California, Davis
                  and attended the Universityof San  Francisco Schoolof Law and TrinityCollege
                  in Dublin, Ireland, where she studied  and was published for her research
                  in international children's rights and  European Economic Communitylaw. 
                   
                  Molly Henneberg
                  Henneberg earned her bachelor's degree  from Vanderbilt University,
                  graduating summa cum  laude.
                   
                   
                  Catherine Herridge
                  Herridge earned a Bachelor's degree from  Harvard  Collegeand
                  a Master's degree in journalism from 
                  the ColumbiaUniversityGraduateSchoolof Journalism.
                   
                  Amy Kellogg
                  Kellogg began to study Russian at  Phillips Academy in Andover, Massachusetts
                  and then received her BA in Soviet  Studies from Brown  University
                  She spent a semester at LeningradStateUniversity.
                  She received her Masters from Stanford  Universityin Russian and
                  East European Studies and also speaks  Spanish and French
                   
                  Megyn Kelly
                  Kelly earned her Bachelor of Arts degree  in Political Science from
                  SyracuseUniversityand a J.D. From Albany  Law  School,
                  where she also served as editor of the  AlbanyLaw Review.
                   
                  Jenna Lee
                  A graduate of the Universityof Californiaat Santa Barbara,
                  Lee obtained her master's degree from 
                  ColumbiaUniversityGraduateSchoolof Journalism.
                   
                  Molly Line
                  Line is a graduate of Virginia Tech  where she received her
                  Bachelor of Arts in mass communication  and political science. 
                   
                  Dagen McDowell
                  A native of Virginia, McDowell graduated from 
                  WakeForestUniversitywith a degree in art  history.
                   
                  Heather Nauert
                  She graduated from Mt.  Vernon  Collegein Washington, D.C.,
                  with a bachelor of arts in  communications and
                  she received her masters in journalism  from ColumbiaUniversity.
                  Nauert is also a term member at the  Council of Foreign Relations. 
                   
                  Dana Perino
                  She graduated with a Bachelor of Arts in  Mass Communication from
                  Colorado State University-Pueblo and  went on to receive
                  a Masters in Public Affairs Reporting  from
                  the University of Illinois-Springfield. 
                   
                  Anita Vogel
                  Vogel graduated from the Universityof Southern California
                  with a Bachelor of Arts degree in  broadcast journalism and political science.
                   
                  Lis Wiehl
                  Wiehl received her undergraduate degree  from Barnard  Collegein 1983 and
                  received her Master of Arts in  Literature from the Universityof  Queenslandin 1985. 
                  In addition, she earned her Juris Doctor  from HarvardLawSchoolin 1987. 
                   
                   
                   

                  You really know your girls! Hippy


                    United States
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                    September 7, 2011
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                    Posted: August 14, 2012, 10:08 pm - IP Logged

                    Wow, Id be happy to know one or two that well.... Coin knows almost 20.

                    Nice work Coin.

                      Avatar
                      NY
                      United States
                      Member #23835
                      October 16, 2005
                      3474 Posts
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                      Posted: August 15, 2012, 1:53 am - IP Logged

                      Correct me if I'm wrong, but aren't the rates on the bonds that fund the annuity fixed?  Does anyone have documentation either way?

                      It depends on how the annuity was funded. If a 25 year annuity is funded with 25 year bonds then the rate is fixed. If it's funded with shorter term bonds the rate may (almost certainly will) change when the bond reaches maturity and the principal is used to buy another bond.

                      Of course that's irrelevant. What matters is that an annuity is a promise to pay a certain amount of money on a certain schedule. How to fund it is up to the entity promising to make the payments. If interest rates are 8 or 10% buying long term bonds is a fairly sensible strategy, because there's not a big chance of getting a higher rate after 5, 10, or 15 years. OTOH, when rates are very low the sensible strategy may be to buy short term bonds, based on a belief that rates will be higher when the bonds mature.

                      The people who took the annuity 5 or 10 years ago are still collecting annual payments that are based on the higher interrest rates that were offered then. They may have made some bad investments with the money they've accumulated, but unlike a lot of other peope they didn't lose 50 or 70% of their annuity's future value when the economy melted down a few years ago. Many of the people who took the cash value, OTOH, lost a major portion of their winnings by investing in things that weren't as safe.

                        savagegoose's avatar - ProfilePho
                        adelaide sa
                        Australia
                        Member #37136
                        April 11, 2006
                        3300 Posts
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                        Posted: August 15, 2012, 2:04 am - IP Logged

                        its an interesting thought there ky floyd.  bond markets are liquid. and they trade to match the yield that current issues provide. ie 1 $100 bond that still attracts a 10%  rate will sell for $108 makeing the yield 2%. is the lotto  winners annuity tied even tighter than just bonds? or invested in ann illiquid market where there is no buyer?

                        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

                          mediabrat's avatar - 18z0typ
                          upstate NY
                          United States
                          Member #108791
                          March 31, 2011
                          549 Posts
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                          Posted: August 15, 2012, 4:25 am - IP Logged

                          It depends on how the annuity was funded. If a 25 year annuity is funded with 25 year bonds then the rate is fixed. If it's funded with shorter term bonds the rate may (almost certainly will) change when the bond reaches maturity and the principal is used to buy another bond.

                          Of course that's irrelevant. What matters is that an annuity is a promise to pay a certain amount of money on a certain schedule. How to fund it is up to the entity promising to make the payments. If interest rates are 8 or 10% buying long term bonds is a fairly sensible strategy, because there's not a big chance of getting a higher rate after 5, 10, or 15 years. OTOH, when rates are very low the sensible strategy may be to buy short term bonds, based on a belief that rates will be higher when the bonds mature.

                          The people who took the annuity 5 or 10 years ago are still collecting annual payments that are based on the higher interrest rates that were offered then. They may have made some bad investments with the money they've accumulated, but unlike a lot of other peope they didn't lose 50 or 70% of their annuity's future value when the economy melted down a few years ago. Many of the people who took the cash value, OTOH, lost a major portion of their winnings by investing in things that weren't as safe.

                          Informative post, thank you.  It confirms my thoughts about the annuity option, that it's not the fool's choice so many here would have you believe (and that the cash option isn't the stone-cold lock it's portrayed as).

                          This is not to say, though, that one should never take the cash or never take the annuity.  What I've been saying all along is that everyone has different wants and needs, so what would be a good decision for one person might be a bad decision for another.  For some people it makes sense to choose the lump sum, and for other people it makes sense to choose the annual payments.  Don't let anybody bully you into doing what you don't want to do.

                          Patriot


                            United States
                            Member #116268
                            September 7, 2011
                            20244 Posts
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                            Posted: August 15, 2012, 9:56 am - IP Logged

                            Informative post, thank you.  It confirms my thoughts about the annuity option, that it's not the fool's choice so many here would have you believe (and that the cash option isn't the stone-cold lock it's portrayed as).

                            This is not to say, though, that one should never take the cash or never take the annuity.  What I've been saying all along is that everyone has different wants and needs, so what would be a good decision for one person might be a bad decision for another.  For some people it makes sense to choose the lump sum, and for other people it makes sense to choose the annual payments.  Don't let anybody bully you into doing what you don't want to do.

                            Careful med, your sounding a little like someone who is capable of independent thought.

                            Your Marxist leaders will NOT approve of your move toward the "fringe"


                              United States
                              Member #111442
                              May 25, 2011
                              6323 Posts
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                              Posted: August 15, 2012, 10:22 am - IP Logged

                              Careful med, your sounding a little like someone who is capable of independent thought.

                              Your Marxist leaders will NOT approve of your move toward the "fringe"

                              LOL