is there any scenario where you take annual payments over the Lump sum?Prev Topic Next Topic

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haymaker

Egg Harbor twp.south Jersey shore
United States
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June 29, 2011
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Jan 13, 2014, 4:23 pm

Not as long as the current tax law demands full payment from your estate,

there by putting a burden on your beneficiaries.

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

Columbus, Ohio
United States
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June 5, 2012
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Jan 13, 2014, 4:46 pm

I'll take the lump sum, will be easier (in my opinion) to manage
a911scanner

CST
United States
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March 23, 2013
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Jan 20, 2014, 6:12 pm

A lump sum of any amount wisely invested will outpace the total annuity payments of any jackpot, even after a modest yearly paycheck & taxes.

Anybody that takes an annuity by choice does not trust themselves, does not trust any financial advisors but trusts the government to never raise taxes.

Sounds like the same people who live in the world of unicorns & daily rainbows.
RJOh

100

mid-Ohio
United States
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March 24, 2001
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Jan 20, 2014, 6:29 pm

Quote: Originally posted by haymaker on Jan 13, 2014
Not as long as the current tax law demands full payment from your estate,

there by putting a burden on your beneficiaries.

According to the PB and MM website, you beneficiaries have the option of cashing out your annuity and getting its cash value so it shouldn't be any more of a burden for them to pay the taxes than it to pay their regular taxes.

* you don't need to buy every combination, just the winning ones *
haymaker

Egg Harbor twp.south Jersey shore
United States
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June 29, 2011
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Jan 20, 2014, 7:28 pm

Quote: Originally posted by RJOh on Jan 20, 2014
According to the PB and MM website, you beneficiaries have the option of cashing out your annuity and getting its cash value so it shouldn't be any more of a burden for them to pay the taxes than it to pay their regular taxes.

Interesting, would I have to option of cashing them out myself ?

Do my beneficiaries have any downside to this ?

Is this anything like selling the structured settlement to J.G. Wentworth or some such ?

Extraordinary Popular Delusions & the Madness of Crowds -- Charles Mackay LL.D.
veganlife125

United States
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May 18, 2013
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Jan 20, 2014, 7:43 pm

Around 80% lose it all by taking the lump sum. They have no experience with money because they have never saved any. At least with multi year payments some of them might learn a lesson after losing it for several years and keep the rest. Choices carry a long time.

That reminds me of a choice senario when i was a kid. Two men in a mechanic shop were standing in front of a poster that showed a brand new red convertible corvette with a beautiful buxom blonde in a white bikini provocatively laying across the hood. The man with a cigarette took a long look and an even longer draw and then ask the other man which of the two he would rather have. The other man thought about it for a few seconds and then looked over and said: "You mean for keeps or for one night?"

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MillionsWanted

Norway
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December 10, 2004
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Jan 20, 2014, 8:27 pm

If I am under 50 y.o. (which I am) I would take annual payments. If I was in my 70s++ I would go for a lump sum.

That is if I lived in the USA. In Norway they only pay out the total winning sum, which is tax free.
onlymoney

United States
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June 2, 2012
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Feb 4, 2014, 11:27 pm

Quote: Originally posted by MillionsWanted on Jan 20, 2014
If I am under 50 y.o. (which I am) I would take annual payments. If I was in my 70s++ I would go for a lump sum.

That is if I lived in the USA. In Norway they only pay out the total winning sum, which is tax free.

You'll never win anyway, so who cares?
sookie

United States
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May 17, 2013
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Feb 5, 2014, 12:27 pm

Lump sum cash in one payment
CDanaT

Central TN
United States
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January 4, 2012
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Feb 5, 2014, 5:21 pm

NO ANNUITY----------Cash Only....Don't trust the federal government one bit to keep the tax level at/near 39.6 % over the next 30 years.

Si vis pacem, para bellum.
lejardin

United States
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November 4, 2011
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Feb 5, 2014, 8:20 pm

Quote: Originally posted by CDanaT on Feb 5, 2014
NO ANNUITY----------Cash Only....Don't trust the federal government one bit to keep the tax level at/near 39.6 % over the next 30 years.

Agree 100% CDana, cash only, the government and this admin is untrustworthy, taxes arent the only issue I have a problem with.
Shelby Mustang

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December 9, 2013
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Feb 6, 2014, 7:54 pm

Quote: Originally posted by lejardin on Feb 5, 2014
Agree 100% CDana, cash only, the government and this admin is untrustworthy, taxes arent the only issue I have a problem with.

Ehhh I think which ever you take the money will out live you unless you're trying to do stupid stuff like make it rain and crap like that
Mattapan

boston,ma
United States
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December 15, 2013
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Feb 6, 2014, 9:46 pm

I don't think the tax rate will stay at 39.6% either, so i would have to take the lump sum. in the past, if I could get an annual payment of over 5 mil, I would've taken that but I think it's safer to take the lump sum now.