if you won over $70 mil- would you settle for the lump sum or annual installmentsPrev Topic Next Topic

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hearsetrax

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Mar 7, 2013, 6:48 am

Quote: Originally posted by savagegoose on Mar 7, 2013
you have to do some soul searching, and know who you are. Can you really say no? its a lot easier to ssay no on 1.5 mill a year, than 35 mill in a lump sum.

If you know you cant say no, and maybe you know you cant ever save money and always spend spend spend. then maybe just maybe installments are in order.

after all if you can live on 1.5 mill in the 1st year and money saved at the end, then after the 2nd year you should have more saved up.

and as you say, if yopu blow it in 10 months, its only 2 months to wait till you can start again.

we all say lump sum, but are we smart enough to actually manage that money well?

bottom line, is listen to your own heart. not advice. what oters would do is for when they win, this is you and all about whats best for you. only you know that.

wise words ,Goose
msharkey2001

New Hampshire
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Mar 7, 2013, 7:29 am

For a win of this size I would take the cash option.

For a smaller win of say $1-$10 million in a state game I would go annuity for sure to avoid the newly inacted high income and SSI taxes.
ryanm

Morrison, IL
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Mar 7, 2013, 7:34 am

Quote: Originally posted by noise-gate on Mar 6, 2013
I read where it said the annual installment program gives one multiple chances to avoid the screw up in the event one blew through their first payout. For instance if your 1st installment was over $1, 500, 000 and you decimated that amount in under 10 months, you have time to readjust your mental attitude the next go round and plan accordingly.
Do you agree with that thinking

Don't be so sure taking the annual installment option will make you smarter about spending your winnings. Winners can still foolishly borrow against the future annuity payments.

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hearsetrax

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Mar 7, 2013, 7:45 am

Quote: Originally posted by ryanm on Mar 7, 2013
Don't be so sure taking the annual installment option will make you smarter about spending your winnings. Winners can still foolishly borrow against the future annuity payments.

keywords : moronically borrow against the future payments
msharkey2001

New Hampshire
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Mar 7, 2013, 7:54 am

Quote: Originally posted by noise-gate on Mar 6, 2013
I read where it said the annual installment program gives one multiple chances to avoid the screw up in the event one blew through their first payout. For instance if your 1st installment was over $1, 500, 000 and you decimated that amount in under 10 months, you have time to readjust your mental attitude the next go round and plan accordingly.
Do you agree with that thinking

I totally agree with the last two posters. It's one thing to say "adjust your attitude", but to do it in practice is a different story. I think it's along the same lines of telling a smoker or drinker to adjust his/her attitude to quit but it's never that simple, and help is often needed to stop.

Unless someone with poor money management seeks out help from a professional planner it's probably likely they'll continue to quickly blow through their annuity payments and stay behind the 8 ball.
redhot7

California
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Mar 7, 2013, 8:00 am

I will be more tempted to do stupid things with the money if I take the lump sum. So, if it's over 100K per year, I would choose the annuity. I am not an overly greedy person who must get it all at once. And I am not a doom and gloom survivalist guy owning a bunker and worrying if the government is going to collapse and unable to pay the next annuity. I can't live like that kind of mentality, with or without winning the lottery.

Besides, remember if you choose annuity, typically you only get 50 to 60% of it before taxes. And you are going to have to pay higher tax bracket.

Just my 2 cents.
mcginnin56

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Mar 7, 2013, 8:05 am

Quote: Originally posted by redhot7 on Mar 7, 2013
I will be more tempted to do stupid things with the money if I take the lump sum. So, if it's over 100K per year, I would choose the annuity. I am not an overly greedy person who must get it all at once. And I am not a doom and gloom survivalist guy owning a bunker and worrying if the government is going to collapse and unable to pay the next annuity. I can't live like that kind of mentality, with or without winning the lottery.

Besides, remember if you choose annuity, typically you only get 50 to 60% of it before taxes. And you are going to have to pay higher tax bracket.

Just my 2 cents.

And as a resident of the great state of kaleefornua, your views make the most sense for my money.
redhot7

California
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Mar 7, 2013, 8:07 am

Quote: Originally posted by mcginnin56 on Mar 7, 2013
And as a resident of the great state of kaleefornua, your views make the most sense for my money.

The good thing about California is you don't pay state taxes. Only federal taxes. This could change of course but at the present time, you don't pay state taxes for the lottery.
mcginnin56

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Mar 7, 2013, 8:15 am

Quote: Originally posted by redhot7 on Mar 7, 2013
The good thing about California is you don't pay state taxes. Only federal taxes. This could change of course but at the present time, you don't pay state taxes for the lottery.

Wow, what a coincidence. It's the same for my "Live, Freeze and Die" state of NH.

We both need to count our blessings.
savagegoose

adelaide sa
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Mar 7, 2013, 9:03 am

Quote: Originally posted by hearsetrax on Mar 7, 2013

wise words ,Goose

thanks heresetrax ,having said all that i would still take the lump sum. but i am tight fisted. would invest and only ever spend earnings. So 1st month would be the hardest lol.

" Still swinging, still missing "
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CinCin

Columbia, SC
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Mar 7, 2013, 9:09 am

Quote: Originally posted by rdgrnr on Mar 6, 2013
I'd rather take the lump some and buy stuff before the dollar collapses.

What He said ^^^^^^^

"If you can DREAM it, you can DO it!"- Walt Disney
BuyLow

Florida
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May 22, 2008
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Mar 7, 2013, 9:17 am

Show me the CASH NOW!!!! Trust good ole' Mother Govt to pay me over 20-30 years, LOL....No thanks!!
Ronnie316

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Mar 7, 2013, 9:24 am

Quote: Originally posted by savagegoose on Mar 7, 2013
you have to do some soul searching, and know who you are. Can you really say no? its a lot easier to ssay no on 1.5 mill a year, than 35 mill in a lump sum.

If you know you cant say no, and maybe you know you cant ever save money and always spend spend spend. then maybe just maybe installments are in order.

after all if you can live on 1.5 mill in the 1st year and money saved at the end, then after the 2nd year you should have more saved up.

and as you say, if yopu blow it in 10 months, its only 2 months to wait till you can start again.

we all say lump sum, but are we smart enough to actually manage that money well?

bottom line, is listen to your own heart. not advice. what oters would do is for when they win, this is you and all about whats best for you. only you know that.

we all say lump sum, but are we smart enough to actually manage that money well?

Cash please. Yes Im smart enough. Thank you.
billionaire2bee

United States
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July 25, 2012
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Mar 7, 2013, 10:17 am

Quote: Originally posted by noise-gate on Mar 6, 2013
I read where it said the annual installment program gives one multiple chances to avoid the screw up in the event one blew through their first payout. For instance if your 1st installment was over $1, 500, 000 and you decimated that amount in under 10 months, you have time to readjust your mental attitude the next go round and plan accordingly.
Do you agree with that thinking

I would love to take the annunity....but I dont necessarily trust the accounts they may haver it set up in....I'd rather take the lump then set up my own annunity payments, dividends and such....but hey does anybody know if you can take the annunity and tell them how you want it invested? Or do they already have the money in the account and turn it over to you??
Ronnie316

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Mar 7, 2013, 10:25 am

Quote: Originally posted by billionaire2bee on Mar 7, 2013
I would love to take the annunity....but I dont necessarily trust the accounts they may haver it set up in....I'd rather take the lump then set up my own annunity payments, dividends and such....but hey does anybody know if you can take the annunity and tell them how you want it invested? Or do they already have the money in the account and turn it over to you??

You take whatever they give you, and call JG Wentworth about a later.