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Looking at that 586 million...I think I want the annunity

Topic closed. 26 replies. Last post 3 years ago by mikeintexas.

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Posted: December 16, 2013, 5:53 pm - IP Logged

There is no way I myself would ever spend that 316 million or 215 after tax...so Ive been checking an annunity pay out site and my first check would be 5.9 million and the last (if I lived to 71) would be like 24 or 25 million and that's if I win tommorrow night. I dont have kids my brothers and sisters are older than me so Id probably take the annunity and then set up a trust and when I died some charity could just have it, but I think it would be cool getting that check every year, that big check every year LOL

    gnozahs's avatar - Lottery-029.jpg
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    Posted: December 16, 2013, 5:55 pm - IP Logged

    There is no way I myself would ever spend that 316 million or 215 after tax...so Ive been checking an annunity pay out site and my first check would be 5.9 million and the last (if I lived to 71) would be like 24 or 25 million and that's if I win tommorrow night. I dont have kids my brothers and sisters are older than me so Id probably take the annunity and then set up a trust and when I died some charity could just have it, but I think it would be cool getting that check every year, that big check every year LOL

    Cool story bro. But in all seriousness, I'd take the lump sum because of inflation.

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      Posted: December 16, 2013, 6:08 pm - IP Logged

      Cool story bro. But in all seriousness, I'd take the lump sum because of inflation.

      If I had kids or something to leave it to I would, but since it's jus me...it's going to end up the same for me. So I think I want a fat check every month. I dont think inflation will effect it that much, if it does oh well I'll still be a millionaire til the day I die

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        boston,ma
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        Posted: December 16, 2013, 6:48 pm - IP Logged

        I've been thinking long and hard about this. For a long time I always said I would take the lump sum, but the horror stories I've read about and seen are an eye opener. It would be nice having 316 million on hand, but i'm sure after taxes it's much less, but getting  a check every year would be nice. Also, I would be 75 if i live to the end, but i could leave the rest to my children.

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          Posted: December 16, 2013, 6:54 pm - IP Logged

          190 million after taxes for the cash option.

          I think I'm taking that.

            Coin Toss's avatar - shape barbed.jpg
            Zeta Reticuli Star System
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            Posted: December 16, 2013, 7:18 pm - IP Logged

            Mattapan,

            How many jackpot winners have taken an annuity and then sold it to one of those structured settlement companies - for dimes on the dollar?

            Also, someone here used to have a signature, "You can always buy a better annuity".

            Just a couple of things 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.

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              Morrison, IL
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              Posted: December 16, 2013, 9:03 pm - IP Logged

              Taking an annuity instead of the cash option does not insulate against stupidity.  Many of those winners may just end up borrowing against the future payments anyway.

              ---

                mediabrat's avatar - 18z0typ
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                Posted: December 16, 2013, 9:14 pm - IP Logged

                Mattapan,

                How many jackpot winners have taken an annuity and then sold it to one of those structured settlement companies - for dimes on the dollar?

                Also, someone here used to have a signature, "You can always buy a better annuity".

                Just a couple of things to think about.

                Coin Toss,

                How many jackpot winners have taken the cash and ended up flat broke a few years later?

                There's probably more of those than there are "failed" annuity winners.

                Just something to think about.

                Patriot

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                  boston,ma
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                  Posted: December 16, 2013, 9:19 pm - IP Logged

                  Mattapan,

                  How many jackpot winners have taken an annuity and then sold it to one of those structured settlement companies - for dimes on the dollar?

                  Also, someone here used to have a signature, "You can always buy a better annuity".

                  Just a couple of things to think about.

                  I have no idea of that number, but I do think it would be a lot harder to go broke if you have checks coming every year, especially for a couple of million. With that much money all at once(lump sum), you could be tempted to do a lot of stupid things. Granted, I know it would be very hard to blow through that much money(somehow jack whitaker did it) but it is possible.

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                    Posted: December 16, 2013, 9:19 pm - IP Logged

                    Taking an annuity instead of the cash option does not insulate against stupidity.  Many of those winners may just end up borrowing against the future payments anyway.

                    That's true too ryan but Im thinking I couldnt spend 5 million in a year..and that is just your first years payment, I know I wouldnt have to sell any payments to a peachtree or jg wentworth type agency to make it

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                      boston,ma
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                      Posted: December 16, 2013, 9:21 pm - IP Logged

                      Taking an annuity instead of the cash option does not insulate against stupidity.  Many of those winners may just end up borrowing against the future payments anyway.

                      Tru dat. But if you spending so much that you need to borrow against future checks, you would most definately go broke if you had taken the lump sum.

                        rdgrnr's avatar - walt
                        Way back up in them dadgum hills, son!
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                        Posted: December 16, 2013, 9:24 pm - IP Logged

                        I'd be afraid they'd hire Jon Corzine to manage it.

                        I'll take the cash.

                          mediabrat's avatar - 18z0typ
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                          Posted: December 16, 2013, 9:50 pm - IP Logged

                          Lump sum vs. annuity will always be an argument for the ages.  Many people here are quick to dismiss the annuity; I've made no secret of my opinion that the annuity is not necessarily a fool's choice and is at least worth looking into.

                          A case can be made for either option; I'm not going to rehash them here.  Besides, it'll detract from the point I'm about to make:  When the jackpot gets this high, it doesn't really matter.  Unless you plan to splash out so large that you would immediately blow through more than the first year's payments, I fail to see how you can go wrong taking the annuity.  Check out the Jackpot Analysis page over on USA Mega; you're averaging $13-14 million a year after taxes.  (Because the Mega Millions adopted Powerball's sliding scale, it actually starts at around $6M and finishes at over $24M post-tax.)  I don't know about anybody else, but that's just fine for me.

                          It is entirely possible that one could buy a better annuity.  Keep in mind that you're starting behind the 8-ball, though; not only are you losing about half of the money right off the top (because you're forgoing 30 years worth of interest), you're also getting most of your taxes taken out immediately.  So if you think you can buy an annuity -- or make any other kind of investment -- that is so good that it overcomes both of those obstacles AND is structured so that you're not being taxed again when it pays out, go right ahead.  You really should take the time to do the math first, though.

                          Do what you want.  But don't automatically dismiss those who would take the opposite side of yours as morons.  Come to think of it, this applies to a lot more than the lottery.

                          Patriot

                            dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
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                            Posted: December 16, 2013, 10:11 pm - IP Logged

                            I'd be afraid they'd hire Jon Corzine to manage it.

                            I'll take the cash.

                            Aint that the truth Thumbs Up

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                              mikeintexas's avatar - tx avatar-1.gif
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                              Posted: December 16, 2013, 10:38 pm - IP Logged

                              I'd be afraid they'd hire Jon Corzine to manage it.

                              I'll take the cash.

                              Yeah, same here. 

                              Mediabrat, there are advantages/disadvantages to either option, but as I've said before, in 30 years - IF I make it that far - I might not even remember my name, much less that I've got a huge last check coming.  There's also the matter of taxes;  we recently had a 4.6% increase in the top bracket and unless things start looking up, I don't see the tax rate doing anything but rising from the current 39.6%.  Have a gander at the history of top bracket rates and you *might* change your mind.  The rate has been 70% in the fairly recent past ('81) and they could very well be that again...or higher. Me?  I'll take the bird in hand minus a few feathers rather than the promise of a peafowl* in full plumage by the end of the annuity.

                              Also, I wouldn't think someone a moron who opted for either one.  What I think is right for me might not be right for someone else.  Unless I get cheated out of my money by unscrupulous people - or the govt., same thing - I can guarantee you I wouldn't blow through 200 million in my lifetime.

                              *peafowl - LP wouldn't let me put in the name of a male peafowl


                              A people that elect corrupt politicians, impostors, thieves and traitors are not victims...but accomplices.
                               - George Orwell