Welcome Guest
Log In | Register )
You last visited December 3, 2016, 6:52 pm
All times shown are
Eastern Time (GMT-5:00)

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.

Page 6 of 9
51
PrintE-mailLink

United States
Member #116268
September 7, 2011
20244 Posts
Offline
Posted: August 17, 2012, 2:56 pm - IP Logged

Now that's the mixed up mediabrat we all know and love. You had me concerned with that rational and reasonable post about annuities.

You may not be a Marxist mediabrat, and you may not be willing to admit that our leader is one, BUT HE IS............ and he has been from his youth, so its not too hard to decipher.

Ignore and avoid is a common tactic of the left wing government propaganda news networks.

No surprise that you enjoy using it as well mediabrat.


    United States
    Member #116268
    September 7, 2011
    20244 Posts
    Offline
    Posted: August 17, 2012, 3:17 pm - IP Logged

    It's hard to go wrong with an annuity that will pay $1 million or more for 20 to 30 years. The lottery gets to invest the cash value without paying any taxes on it. The winner who takes the cash only gets to invest the 55 to 65% they get after paying taxes. That means that to generate the same annual income the winner need to get 1.5 to 1.8 times the rate of return that the lottery gets. Of course the lottery annuity is a conservative investment because they want to make sure the investment doesn't lose value. The people who sell annuities hope to make a lot more than they pay out. They'll take a minor risk of losing money, but they're not going to offer an annuity based on the hope that a bunch of high rate high risk investments will pan out.

    That means that it's not hard to find opportunities that offer the potential to yield a significantly higher rate. If you took the cash value in 2007 and invested it in Netflix you could have earned about 12% in the first year, nearly 100% the second year, and 200% the year after that. Of course you could also have taken the cash in 2010, invested in Netflix, and lost about 60% over the following year. That's the problem with all those plans the optimists have to take the cash and invest at a rate that's so much higher than what the lottery annuity offers. One is guaranteed, and the other isn't.Especially with the low rates that today's annuities are locked into there are a lot of advantages to taking the cash, but it depends on what your own needs and wants are.  Especially if you're not likely to outlive the annuity payments there's a lot to be said for avoiding the hassles of managing a big investment, and just cashing the checks as they come in. It's also a bit harder to spend your principal when you're not in direct control, though it will certainly be easy to borrow against it. Whichever way you go, it's your future decisions that will matter the most.

    Awesome post KY Floyd, the one thing that hasn't been talked about much is the fact that there are (mucho) money managers out there whose sole purpose in life is to manage large amounts of money for people. It makes sense to me for a person to get the same safe return that the state gives, only on a smaller portion of the money and allow the rest to go for the higher returns that a money manager is paid to provide.

      rdgrnr's avatar - walt
      Way back up in them dadgum hills, son!
      United States
      Member #73904
      April 28, 2009
      14903 Posts
      Offline
      Posted: August 18, 2012, 9:10 am - IP Logged

      First I need to know what an "annunity" is.

      Is that like a convent?

        haymaker's avatar - Lottery-012.jpg
        Egg Harbor twp.south Jersey shore
        United States
        Member #112968
        June 29, 2011
        3854 Posts
        Offline
        Posted: August 18, 2012, 4:55 pm - IP Logged

        First I need to know what an "annunity" is.

        Is that like a convent?

        LOL 77 replies and you're the only one to catch that.

        Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.


          United States
          Member #116268
          September 7, 2011
          20244 Posts
          Offline
          Posted: August 18, 2012, 4:57 pm - IP Logged

          First I need to know what an "annunity" is.

          Is that like a convent?

          Its more like a Nunnery.


            United States
            Member #116268
            September 7, 2011
            20244 Posts
            Offline
            Posted: August 18, 2012, 5:07 pm - 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.

            It is a fools choice. Here is a link from this very page offering a 7% annuity.

            http://www.advisorworld.com/Guaranteed-Income/?utm_source=Google-Content&utm_campaign=current-annuity-rates&sfcampid=701E0000000Pi4t&_kk=current%20annuity%20rates&_kt=f8f7f8d1-04a0-4489-b8d0-858951f4a91e&gclid=CKPq2dCI8rECFchdTAodvigA_g

            As far as I'm concerned anyone who is dumb enough to put their wealth in the hand OF THE STATE is also dumb enough to call "CASH NOW" and pay HUGE FEES on top of PAYING THE TAX FOR CASHING OUT.

            Please don't pay attention to the PRO-GOVERNMENT USEFUL IDIOT TROLLS.

              mediabrat's avatar - 18z0typ
              upstate NY
              United States
              Member #108791
              March 31, 2011
              549 Posts
              Offline
              Posted: August 18, 2012, 9:29 pm - IP Logged

              Ignore and avoid is a common tactic of the left wing government propaganda news networks.

              No surprise that you enjoy using it as well mediabrat.

              Just because you have no life and spend every waking moment here doesn't mean I'm required to do the same thing.  If you don't like the fact that I'm not johnny-on-the-spot responding to your every inane thought, TOUGH.  I have better things to do than to chase lunatics all over the place.

              Patriot

                rdgrnr's avatar - walt
                Way back up in them dadgum hills, son!
                United States
                Member #73904
                April 28, 2009
                14903 Posts
                Offline
                Posted: August 18, 2012, 11:10 pm - IP Logged

                The lunatic is on the grass.
                The lunatic is on the grass.
                Remembering
                games and daisy chains and laughs.
                Got to keep the loonies on the path.


                The lunatic is in the hall.
                The lunatics are in my hall.
                The paper holds their folded faces to the floor
                And every day the paper boy
                brings more.

                And if the dam breaks open many years too soon
                And if
                there is no room upon the hill
                And if your head explodes with dark
                forebodings too
                I'll see you on the dark side of the moon.

                The
                lunatic is in my head.
                The lunatic is in my head
                You raise the blade,
                you make the change
                You re-arrange me 'til I'm sane.
                You lock the door

                And throw away the key
                There's someone in my head but it's not me.


                And if the cloud bursts, thunder in your ear
                You shout and no one
                seems to hear.
                And if the band you're in starts playing different tunes

                I'll see you on the dark side of the moon.

                "I can't think of
                anything to say except...
                I think it's marvelous! HaHaHa!"


                                                             
                                     
                                                         

                 

                 

                 

                 

                                                                                                                   

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

                                                                                                            --Edmund Burke

                 

                 

                  savagegoose's avatar - ProfilePho
                  adelaide sa
                  Australia
                  Member #37136
                  April 11, 2006
                  3300 Posts
                  Offline
                  Posted: August 19, 2012, 3:28 am - IP Logged

                   i would guess the real diff is there is little chance you will lose your money with an anuity.   but if you  manage your money privatly there is.

                  the possibility to make over double the amount from interest  on a cash payment is very real, and thats why most would go for it.

                  either way i would be a happy man,. and there are countless records of people going bankrupt even when winning the annuity and   collecting that. because they cannot say no. and  have no financial self control.

                   

                  annuity is either fed treasurries or  muni bonds. and yeah the world will end when they stop paying.  of course USD buying as much as it used to is a different story. and purchaseing power of your millions maybe worth less, in the future . but thats something we all face rich or poor.

                  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
                    Member #116268
                    September 7, 2011
                    20244 Posts
                    Offline
                    Posted: August 19, 2012, 10:29 am - IP Logged

                     i would guess the real diff is there is little chance you will lose your money with an anuity.   but if you  manage your money privatly there is.

                    the possibility to make over double the amount from interest  on a cash payment is very real, and thats why most would go for it.

                    either way i would be a happy man,. and there are countless records of people going bankrupt even when winning the annuity and   collecting that. because they cannot say no. and  have no financial self control.

                     

                    annuity is either fed treasurries or  muni bonds. and yeah the world will end when they stop paying.  of course USD buying as much as it used to is a different story. and purchaseing power of your millions maybe worth less, in the future . but thats something we all face rich or poor.

                    Here's the deal.......... you don't need the STATE to buy an annuity for you.........

                    You can buy THE VERY SAME ANNUITY on your own without the STATE.

                    Or you can but a better paying annuity, or use a savings account and get 1%.

                    Once you hand your wealth over to the STATE is absolutely perminate.

                    You lose ALL ability to chose and "cash now" will be waiting for your call. 


                      United States
                      Member #116268
                      September 7, 2011
                      20244 Posts
                      Offline
                      Posted: August 19, 2012, 11:28 am - IP Logged

                      Just because you have no life and spend every waking moment here doesn't mean I'm required to do the same thing.  If you don't like the fact that I'm not johnny-on-the-spot responding to your every inane thought, TOUGH.  I have better things to do than to chase lunatics all over the place.

                      Hey mediabrat, are you one of those girls who drives an oversized golf cart in traffic and calls herself "SMART"???

                       

                        mediabrat's avatar - 18z0typ
                        upstate NY
                        United States
                        Member #108791
                        March 31, 2011
                        549 Posts
                        Offline
                        Posted: August 19, 2012, 6:23 pm - IP Logged

                        Does anyone else hear that?  It's a buzzing noise, but it's got sort of a whine to it...

                        Patriot


                          United States
                          Member #116268
                          September 7, 2011
                          20244 Posts
                          Offline
                          Posted: August 19, 2012, 6:42 pm - IP Logged

                          Oh wait, I left my Hummer running.


                            United States
                            Member #116268
                            September 7, 2011
                            20244 Posts
                            Offline
                            Posted: August 19, 2012, 6:45 pm - IP Logged

                            Never mind, it was just another pro-government troll.

                              Avatar
                              NY
                              United States
                              Member #23835
                              October 16, 2005
                              3474 Posts
                              Offline
                              Posted: August 20, 2012, 3:24 am - IP Logged

                              Here's the deal.......... you don't need the STATE to buy an annuity for you.........

                              You can buy THE VERY SAME ANNUITY on your own without the STATE.

                              Or you can but a better paying annuity, or use a savings account and get 1%.

                              Once you hand your wealth over to the STATE is absolutely perminate.

                              You lose ALL ability to chose and "cash now" will be waiting for your call. 

                              You can't get the "very same annuity" for two reasons

                              One is that you won't have the very same amount of money for buying an annuity. What you can do is buy a similar annuity with the same terms, but for only 55 to 65% of the one the state offers.

                              The second is that it won't come with the same guarantee as the one from the state. The one from the state will be guaranteed by both the state and the company the state buys it from. If a lottery annuity had been bought from, and was guaranteed by, AIG and they had gone down the tubes instead of being bailed out the winner would continue to receive payments from the state. Anyone who took cash and then used it to buy an annuity from AIG would just be another in the long list of creditors hoping the bankruptcy process would result in getting at least a few cents on the dollar.