Welcome Guest
Log In | Register )
You last visited January 24, 2017, 4:10 pm
All times shown are
Eastern Time (GMT-5:00)

Annuity or Lump Sum?

Topic closed. 74 replies. Last post 4 years ago by redhot7.

Page 1 of 5
44
PrintE-mailLink

Which one? Please pick!

Annuity [ 15 ]  [23.44%]
Lump Sum [ 49 ]  [76.56%]
Total Valid Votes [ 64 ]  
Discarded Votes [ 4 ]  
New York's avatar - 103h4yr
NYC
United States
Member #117984
October 19, 2011
1843 Posts
Offline
Posted: April 21, 2013, 12:10 am - IP Logged

Which one? I need to know. It's important... I need feedback. 

    Original Bey's avatar - Lottery-022.jpg

    Bahamas
    Member #133462
    September 30, 2012
    5946 Posts
    Offline
    Posted: April 21, 2013, 12:15 am - IP Logged

    Take the lump sum. Hire a team of results oriented financial advisers who have a well established track record for growing wealth. Decide on a fixed amount to upgrade your current lifestyle and let them put you on an allowance. Thumbs Up

    "Everything works  ONCE!"

      helpmewin's avatar - dandy
      u$a
      United States
      Member #106665
      February 22, 2011
      19967 Posts
      Offline
      Posted: April 21, 2013, 12:20 am - IP Logged

      i would take Annuity but most people who are either over a certain age have the mind set that they want all their money right now thinking they might die within 20 years take the cash/Lump Sum which they lose half to get it that way, then suprized when they are still alive and Broke Green laugh

      Patriot

        whiteballz's avatar - Lottery-015.jpg
        Nutley, New Jersey
        United States
        Member #131058
        August 1, 2012
        875 Posts
        Offline
        Posted: April 21, 2013, 12:25 am - IP Logged

        I would pick the lump sum. Then I'd live in the American territory of Puerto Rico  183 days of the year so I could legally pay zero percent capital gains tax on my investments.

        http://dealbook.nytimes.com/2013/03/25/puerto-rico-creates-tax-shelters-in-appeal-to-the-rich/

        I'd still keep my US passport, so I'd be able to travel to the US anytime I want. Just as long I live 183 days in Puerto Rico, I get the favorable capital gains tax rate.

        .

          hearsetrax's avatar - 0118

          United States
          Member #52345
          May 21, 2007
          2680 Posts
          Offline
          Posted: April 21, 2013, 7:57 am - IP Logged

          I would pick the lump sum. Then I'd live in the American territory of Puerto Rico  183 days of the year so I could legally pay zero percent capital gains tax on my investments.

          http://dealbook.nytimes.com/2013/03/25/puerto-rico-creates-tax-shelters-in-appeal-to-the-rich/

          I'd still keep my US passport, so I'd be able to travel to the US anytime I want. Just as long I live 183 days in Puerto Rico, I get the favorable capital gains tax rate.

          curiouser and curiouser and thanks 4 the tip, wb

            maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
            Massachusetts
            United States
            Member #37433
            April 14, 2006
            2747 Posts
            Offline
            Posted: April 21, 2013, 9:26 am - IP Logged

            Lump Sum!

            With the US national debt standing at a whopping $16,789,582,986,524.07 its almost impossible getting it paid off.  It was telling when the BRICS met and deliberated on starting a new currency to rival the US Dollar at the world stage.

            That money's gone fo ever

              redhot7's avatar - SetforLifeLogo
              California
              United States
              Member #112364
              June 17, 2011
              661 Posts
              Offline
              Posted: April 21, 2013, 4:02 pm - IP Logged

              Anything below 50K per year, I would take the lump sum. Above that, it's a tough call.

              If I win $10 CA Set for Life, 260K per year for 25 years or 3,750,000 lump sum, I would most likely choose the annuity. But if I win $2 CA SFL, 52K per year for 25 years or 750K lump sum, that's right at the border and I don't know which one to choose.

                Avatar
                wisconsin
                United States
                Member #130754
                July 23, 2012
                199 Posts
                Offline
                Posted: April 21, 2013, 4:04 pm - IP Logged

                Depends on the amount that I won. 

                 

                Let's take Wisconsin's mega bucks as an example. The jackpot was just recently won, so it starts over at $1 million.

                If I were to hit it right now, my choices would be take the cash option at $400k before taxes(I'm guessing around $270k after taxes), or take $40k  a year for 25 yrs. At that the amount, I'd probably take the annuity. Invest about a third of it every year, invest a little more into my work 401k and just be a little more comfortable in life.

                I have given a lot of thought, and have decided that my "magic" number is 3, as in $3 million. Anything over $3million and I'll takle the cash, anything under, and I'll take the annuity.

                  Hallfamily8's avatar - tails
                  New Member
                  MD
                  United States
                  Member #139479
                  February 24, 2013
                  21 Posts
                  Offline
                  Posted: April 21, 2013, 4:13 pm - IP Logged

                  Honestly I'd prob just go for the lump sum.
                  Hey I seen a married couple on lottery changed my life, they split the ticket one got the annuity option the other lump sum. Didnt they pay more in taxes by doing it that way?

                    redhot7's avatar - SetforLifeLogo
                    California
                    United States
                    Member #112364
                    June 17, 2011
                    661 Posts
                    Offline
                    Posted: April 21, 2013, 4:16 pm - IP Logged

                    Honestly I'd prob just go for the lump sum.
                    Hey I seen a married couple on lottery changed my life, they split the ticket one got the annuity option the other lump sum. Didnt they pay more in taxes by doing it that way?

                    I thought if you split the ticket, like an office pool, all parties are required to take the same method. Either all annuity or all lump sum. At least that's how it works in CA.

                      Hallfamily8's avatar - tails
                      New Member
                      MD
                      United States
                      Member #139479
                      February 24, 2013
                      21 Posts
                      Offline
                      Posted: April 21, 2013, 4:20 pm - IP Logged

                      I just realized that was my first post, I've been lurking for a while lol
                      And for the married folk out there would you consider that option of one spouse picking lump and you pick the other option or vise versa? To have something RIGHT now and also having the annuity pmts coming in?
                      See Ya!

                        Guru101's avatar - rw6jhh
                        Indiana
                        United States
                        Member #48725
                        January 7, 2007
                        1958 Posts
                        Offline
                        Posted: April 21, 2013, 7:09 pm - IP Logged

                        Well I primarily play Hoosier Lotto, which is an in-state jackpot game. I rarely play PB or MM anymore. If I won the Hoosier Lotto, I would take the annuity. Unlike PB and MM, which have cash options usually between 65% and 72% of the annuity, Hoosier Lotto's jackpot is usually around 33%, which isn't that much. Then you take taxes out. Why play Hoosier Lotto then? Well, because my personal goal isn't to be mega rich necessarily, just to be able to retire and live a comfortable lifestyle the rest of my life. Then there's the fact that the odds are 1 in 12 million compared to 1 in 175 million with PB and MM.

                        Gonna win.Big Smile

                          helpmewin's avatar - dandy
                          u$a
                          United States
                          Member #106665
                          February 22, 2011
                          19967 Posts
                          Offline
                          Posted: April 21, 2013, 7:12 pm - IP Logged

                          Well I primarily play Hoosier Lotto, which is an in-state jackpot game. I rarely play PB or MM anymore. If I won the Hoosier Lotto, I would take the annuity. Unlike PB and MM, which have cash options usually between 65% and 72% of the annuity, Hoosier Lotto's jackpot is usually around 33%, which isn't that much. Then you take taxes out. Why play Hoosier Lotto then? Well, because my personal goal isn't to be mega rich necessarily, just to be able to retire and live a comfortable lifestyle the rest of my life. Then there's the fact that the odds are 1 in 12 million compared to 1 in 175 million with PB and MM.

                          $9.5 Million Good Luck Smiley i got me 5 tickets today

                          Patriot

                            Avatar
                            Inland Empire
                            United States
                            Member #118116
                            October 22, 2011
                            323 Posts
                            Offline
                            Posted: April 21, 2013, 8:14 pm - IP Logged

                             I will take the lump sum and find a way to legally get tax breaks. The gov doesn't run on a song and it sucks.

                              PlayToWin47's avatar - Lottery-041.jpg
                              Joplin MO
                              United States
                              Member #138489
                              January 28, 2013
                              190 Posts
                              Offline
                              Posted: April 22, 2013, 10:35 pm - IP Logged

                              I'm pretty sure that I would do the annuity.  I like the idea of guaranteed yearly income for 25 years.