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If you really were brave/crazy enough to choose the annunity...

Topic closed. 29 replies. Last post 4 years ago by dallascowboyfan.

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United States
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September 7, 2011
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Posted: March 18, 2013, 11:44 am - IP Logged

I found this article from the Straight Dope that explains the strength and weakness of lump sum vs annuity.

He sounds really good at writing long winded articles.Yes Nod


    United States
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    Posted: March 18, 2013, 11:48 am - IP Logged

    Do you think you or your estate would actually get the advertised payout or would it grow or do you think you'd lose money? I was looking at the jackpot analysis here and your first payment would be well over $3 million dollars and your last three are over $9 million!!!! I would be sorely tempted to take that annunity...

    if you really really want an annuity, don't you think it might be BETTER to wait a few years til rates go back up and buy one that your heirs will get (instead of the state) in the event that the annuity outlives you?

      djklaugh's avatar - Lottery-031.jpg
      Portland,Oregon
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      April 25, 2005
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      Posted: March 18, 2013, 2:11 pm - IP Logged

      From Powerball FAQ on USA MEGA:

       

      What happens if I win an annuity and die before all the installments have been paid?

       Your designated beneficiaries will receive the remaining payments.

      Djklaugh

        Some things have to be believed to be seen.

      "I have not failed. I have just found ten thousand things that don't work".  Thomas Edison

        Coin Toss's avatar - shape barbed.jpg
        Zeta Reticuli Star System
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        Posted: March 18, 2013, 5:08 pm - IP Logged

        Nobody can foresee what prices are going to be decades down the road.

        Someone who won a state lotery some 30 years ago might have thought an annuity was a great idea, but towards the end of the payments it might have bought a car but not a house.

        In the 1970s Mercury (Remember them?) used to run an ad in the car mags, "Capri, the Sexy European for under $2300."

        Just something to think about.

        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.

          zinniagirl's avatar - flower avatar_0026.jpg
          nc
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          Posted: March 18, 2013, 5:14 pm - IP Logged

          Tax rates only go one way....up!  Prices overall only go one way... up.   Seems the answer lyes with the person who actually makes the decision.   What's best for him or her when they actually win the money.  RIght now it is easy for armchair winners to say one way or the other.  Me, I lean toward give it to me now, pay taxes once, dump some of it in the prepaid tax IRA and do what is necessary with the rest.   Of course, what I would actually do depends on if I actually win..

           

          Good luck to all, and to all a good night.

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            NY
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            Posted: March 18, 2013, 6:06 pm - IP Logged

            I seem recall that your estate doesn't get squat if you die before the annuity payment is complete???

            I Agree! Taking the a-nun-ity is the same as making the state your heir.

            Except that the anuity is yours and goes to your heirs if you die before collecting all of the payments.


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              Posted: March 18, 2013, 6:43 pm - IP Logged

              Nobody can foresee what prices are going to be decades down the road.

              Someone who won a state lotery some 30 years ago might have thought an annuity was a great idea, but towards the end of the payments it might have bought a car but not a house.

              In the 1970s Mercury (Remember them?) used to run an ad in the car mags, "Capri, the Sexy European for under $2300."

              Just something to think about.

              I Agree! But you dont have to "foresee" anything to know that rates are at historic lows.


                United States
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                Posted: March 18, 2013, 7:08 pm - IP Logged

                Tax rates only go one way....up!  Prices overall only go one way... up.   Seems the answer lyes with the person who actually makes the decision.   What's best for him or her when they actually win the money.  RIght now it is easy for armchair winners to say one way or the other.  Me, I lean toward give it to me now, pay taxes once, dump some of it in the prepaid tax IRA and do what is necessary with the rest.   Of course, what I would actually do depends on if I actually win..

                 

                Good luck to all, and to all a good night.

                Now that's what I call keeping it simple. Perhaps a Vanguard annuity may be of some interest to you?

                https://personal.vanguard.com/us/funds/annuities/variable


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                  Posted: March 21, 2013, 1:19 pm - IP Logged

                  Wow just checked out the annunity payout on jackpot mega for the 320 million and its astronomical!!! Almost 4 million for your first payment and 12 million for your last....so so tempting!!!!

                    helpmewin's avatar - dandy
                    u$a
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                    Posted: March 21, 2013, 1:30 pm - IP Logged

                    I'm a happy camper if I get my money back, LOL

                    thats cute LOL

                    Let it Snow Snowman

                      rdgrnr's avatar - walt
                      Way back up in them dadgum hills, son!
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                      Posted: March 21, 2013, 1:38 pm - IP Logged

                      Wow just checked out the annunity payout on jackpot mega for the 320 million and its astronomical!!! Almost 4 million for your first payment and 12 million for your last....so so tempting!!!!

                      I'll take the 200 plus millions in cash.

                      I like to make my own decisions on what I'll put into annuities if I so desire.

                      The government's track record with other people's money isn't one that's conducive to gaining trust from me.

                      I'd get it out of their hands at the soonest possible moment.

                        haymaker's avatar - Lottery-012.jpg
                        Egg Harbor twp.south Jersey shore
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                        Posted: March 21, 2013, 2:58 pm - IP Logged

                        I'll take the 200 plus millions in cash.

                        I like to make my own decisions on what I'll put into annuities if I so desire.

                        The government's track record with other people's money isn't one that's conducive to gaining trust from me.

                        I'd get it out of their hands at the soonest possible moment.

                        "Roger that" as you like to say. LOL

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


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                          Posted: March 21, 2013, 4:12 pm - IP Logged

                          I'll take the 200 plus millions in cash.

                          I like to make my own decisions on what I'll put into annuities if I so desire.

                          The government's track record with other people's money isn't one that's conducive to gaining trust from me.

                          I'd get it out of their hands at the soonest possible moment.

                          Yeah bird in hand...but Im wondering...are there any stories out there where people didnt get all their money in an annunity....not them selling future payments either Im talking  like the powerball or megamillions issued annunity gone bad....Does anyone know??

                            joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

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                            Posted: March 21, 2013, 7:11 pm - IP Logged

                            few people understand 1,  annunity,aka govt bonds,at this point is  taking suicide route option for your money

                             

                             

                            few people understand anything about  keeping,let alone growing your Purchasing power.

                            Purchasing Power is More Important than Investment Profits long term

                            .Purchasing power is a calculation of how much you could buy with X amount of money.

                            ofc u get your  "would i actually get the advertised payout" 

                            lottery got that thing backed by us govt. as big as a joke as it is atm.

                             

                            here the thing,  Inflation a real beep,   

                             govt t bills, are at all insane lows thx to govt morons in charge buying trillions of there own bonds

                             

                            your much better off

                            going to smart money people

                            who manager say cilents above 100m,there all over place u just look at large legal/banking world etc.

                            if your so clueless to learn for your darn self

                            they look at lottery annunity and laugh for u.   

                            sad truth is, people who win that much money should

                            , learn how to invest,  read for 100s of hours ever investment book that was best sellers, etc

                            , to u understand

                            ever thing about how to make money, there many diff ways, many diff levels of risk vs safe etc, all pay diff over long term

                             

                            u got 2 weeks  form winning jackpot, to lottery has all money in 1 bank account to give or buy t bills anyway

                            so learn then, as   anyone who wants max returns and to grow  a lot of money, will have to just put time in to learn...................

                             

                            am going to take a bet , must winners just party.............................................

                             can u beat stupid ?

                             

                            the fact of matter is u would not be brave to do it, just "crazy" stupid to take them up on there annunity offer

                            u know  will  what your returns will be , all laid out for u in govt bonds lottery buying for u

                            its not brave, its cowards way out, its letting fear pick your investment. 

                            fear u cant find better investment/ fear of having to learn how invest world is,

                            why do u think vest majority of all recent winners pick the  cash.  sense i know any person worth there salt in the investment world, knows  returns u get via govt is a joke and TELLS the freaking winners that.

                            its just there to market much larger jackpots to dumb public. sense all they see is amount of 30 years, think that somehow better investGreen laugh

                            , it is very bad investment, compared to  options u got in free market to pick form.

                             

                            but just remb this, if u pick the  annunity

                            your  Purchasing Power atfer u collect your last check,

                            WILL not be same as it is today, 10m  NOW wont be what it will be in   25ish years,   WILL not be anything near  10m now what can buy.

                             there ways to earn sold returns, and NOT lose , but grow your purchasing power,

                             

                            thro being honest,  if anyone wins 100m plus,  they will just not care, and do stupid stuff with money, that's your right as a american, spend/waste it however  u will want,        that's why i love the lottery winners stories,

                            its intresting to see how  total broke people, with no understanding at all about reality of money and how to be apart of rich get richer world

                            they have no idea how to become wealthy in first place,they may think they do, but no they freaking don't

                            give them  insane amounts of money, and then just watch as they spend there hearts out.  will they be richer then they was in 30 years then atfer first day of win, i doubt it ever happen half the time

                            thro lucky there winners who do grow richer ,year atfer year,   there kids ,grindkids will thank them for it

                             

                            ..hell u have to reinvest ever paycheck ever year anyway with govt option , so u SURE have to learn how to invest right way ,  if it costs them millions  to learn hard lesson is not taking lazy way out, that's life .Bash

                             

                             gl to  anyone who wins it thro, there going to need it

                            No bees, no honey.

                              dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                              Oklahoma
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                              Posted: March 22, 2013, 5:35 am - IP Logged

                              hell matching five numbers would work

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