Welcome Guest
Log In | Register )
You last visited December 8, 2016, 10:57 am
All times shown are
Eastern Time (GMT-5:00)

Why Do You Think Lottery Winners Always Take The Cash Option?

Topic closed. 62 replies. Last post 3 years ago by Win$500Quick.

Page 2 of 5
56
PrintE-mailLink
noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
Bay Area - California
United States
Member #136477
December 12, 2012
4108 Posts
Offline
Posted: February 11, 2014, 6:44 pm - IP Logged

noise-gate,

Well we've already seen five years worth of what not having any business or work experience does for someone running the government.

I'm with rdgrnr on the question in the OP - what's not to say lottery annity payments aren't a future government grab? Or at leasr jackin up the taxes on them to make someone who took the annuity really wish they had taken the cash?

The current regome doesn't look for ways to produce, actually stimulate the economy, as nauseam.

All it does is looke for more and more ways how to leach of of those that do succeed.

My Dad always says - Stay away from the 3 P's.
Priests, Politicians & Prostitutes.

    lejardin's avatar - Lottery-014.jpg

    United States
    Member #118609
    November 4, 2011
    935 Posts
    Offline
    Posted: February 11, 2014, 7:05 pm - IP Logged

    Whoa -Where did you read that being a businessman translates into being good at running the Govt?
    There is no such thing as an honest politician,  they all lie to some extent... from " Well, l am not a crook- " l did not have sex with that woman"..they all lie.if you looking for honesty, better get out your dictionary. .

    He is successful, whether or not he is good at running the government would have remained to be seen but again I will say, I would choose him over what we have.  What I WILL agree with you on is no such thing as an honest politician, at least I could have hoped?

      mikeintexas's avatar - tx avatar-1.gif
      Texas Panhandle
      United States
      Member #136843
      December 20, 2012
      1280 Posts
      Online
      Posted: February 11, 2014, 9:23 pm - IP Logged

      I agree with RDGRNR and MIKE.  I would take the cash because I do not trust our ever expanding, invasive government and this admin is the worst.  The President lied from day one and I feel 100% he won his re election by fraud.  Romney would have made a vast improvement, first being he is a businessman and I think HONEST, imagine that, an HONEST President?  That aside, I would take the cash, who can be assured we would have a government?  What happened in Cypress can happen here.  While I dont have an exact plan where to put BIG win money, a huge amount would be in cash, gold, silver and real estate.  The idea Mike has for the taxes is an excellent idea and what state would turn down cash?  I dont think that is silly in the least, it is prudent and looking out for your future the best you can under the circumstances.  For banks, the FDIC only covers $250K per account altho some special deal might be worked out.  The bankers (big banks) are just as crooked as our government, I trust neither. 

      Doubtful I could use up $100 million in my lifetime but looking at some of the past winners I guess it is possible but not likely.  Can I have the chance to find out?

      Thanks, lejardin.  My own (fantasy) plan includes not only some land where I could try to be as self-sufficient as possible, but also along the lines of a "prepper" or survivalist, but not really to the extreme.  I'd have a large cellar built (practical for Texas since it's in Tornado Alley) and keep freeze dried food down there...again, not thinking I'd be a holdout against zombie hordes or a nuke attack, but just to have the basic things f/ survival.   I'd start eating on it a few yrs. before it reached expiration date and if I didn't finish it, I'd donate to a food bank (or if they didn't want it, I'd feed it to my hogs)...then I'd replace it.

      You're exactly right about Mitt and I couldn't understand why more people didn't vote f/ him, at least more freedom loving Democrats who were concerned about where the current administration was - and still is -  taking the country.  After all, he/Romney was basically a social liberal and fiscal conservative. Wouldn't have been MY choice to run against Obama, but the low information primary voters and the media put him up to run.

      New York said: "Who cares about liberal or republican."  Well, I do and most concerned Americans do.  What you said, though, was basically "who cares about Granny Smith or Gala apples?"  Different types, different tastes, but both are still apples.   Many Democrats are liberals, but far too many are nanny state progressives.  Many Republicans are moderate to liberal in the strictest definition, but far too few of them are truly conservative. (the RINOs you always hear about)  WAY too many - most of either - are big govt. statists.  There's not many at all who are strict Constitutionalists and that's the real sin of the present day politician.

        mediabrat's avatar - 18z0typ
        upstate NY
        United States
        Member #108791
        March 31, 2011
        549 Posts
        Offline
        Posted: February 11, 2014, 9:39 pm - IP Logged

        Because they want it one shot. Its like winning a $500 scratcher, some cash it instantly. Some wait. I don't know. Humans just become so excited when a huge amount of money is theirs. They want it all!

        Who wouldn't? As for others who choose annuity, they have a plan I guess. But in my opinion, the lump sum is the better way to go.

        As for politics, screw politics. Who cares about liberal or republican.

        The 3 branches of government ain't doing squat! No reform in the past 20 years, nothing!

        We're never gonna move in this country because there is never agreement. It's like I win $1 and decided to give that to charity, the other party member would vote it down because he/she believes that $1 could be invested into a liquor store. Wow! Disgusting!

        As for politics, screw politics. Who cares about liberal or republican. 

        Some people on this site care more about that than they do about the lottery.  And they all seem to lean in the same direction; somehow I think that's not a coincidence.

        Frankly, I disagree with their paranoid visions of an impending apocalypse.  If we managed to survive the Bush administration, full of people who thought it was their spiritual duty to bring about the Second Coming, we'll get through the Obama administration just fine.

        Patriot

          rdgrnr's avatar - walt
          Way back up in them dadgum hills, son!
          United States
          Member #73904
          April 28, 2009
          14903 Posts
          Offline
          Posted: February 11, 2014, 9:44 pm - IP Logged

          As for politics, screw politics. Who cares about liberal or republican. 

          Some people on this site care more about that than they do about the lottery.  And they all seem to lean in the same direction; somehow I think that's not a coincidence.

          Frankly, I disagree with their paranoid visions of an impending apocalypse.  If we managed to survive the Bush administration, full of people who thought it was their spiritual duty to bring about the Second Coming, we'll get through the Obama administration just fine.

          I believe all that gubmint cheese done made you null and void, son.

            mikeintexas's avatar - tx avatar-1.gif
            Texas Panhandle
            United States
            Member #136843
            December 20, 2012
            1280 Posts
            Online
            Posted: February 11, 2014, 9:48 pm - IP Logged

            "...full of people who thought it was their spiritual duty to bring about the Second Coming..."

            Dumbest thing I've read today and I spent a couple hours on Facebook, YouTube and reading comments under Yahoo articles earlier, so that's saying something.

              Teddi's avatar - Lottery-008.jpg

              United States
              Member #142499
              May 13, 2013
              1183 Posts
              Offline
              Posted: February 11, 2014, 11:31 pm - IP Logged

              Wow, so we've moved from reasons to choose cash over annuity to name calling, mud slinging and political diatribe. How about everyone agree to disagree and get back to the actual point. 

              To that end, very good points LottoMetro. Between history and the numbers, you get less in the long run taking the annuity. And for those who think annuity payments mean that bankruptcy is unlikely because you don't have access to all the money upfront, that's a fallacy. JG Wentworth has made a lot of money from desperate annuity takers who overspend their yearly checks. Think about the fact that jackpots never used to have a cash option. It was all annuities.  Andd think of how many of those early winners have anything left.

                Coin Toss's avatar - shape barbed.jpg
                Zeta Reticuli Star System
                United States
                Member #30470
                January 17, 2006
                10351 Posts
                Offline
                Posted: February 11, 2014, 11:56 pm - IP Logged

                My Dad always says - Stay away from the 3 P's.
                Priests, Politicians & Prostitutes.

                Good one, wisdom there!

                In the Army when things went whacky it was the 5 P's:

                Pi$$ Poor Proper Prior Planning.

                Green laugh

                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.

                  weshar75's avatar - Lottery-042.jpg
                  Mcminnville, Oregon
                  United States
                  Member #3013
                  December 13, 2003
                  3052 Posts
                  Offline
                  Posted: February 12, 2014, 12:19 am - IP Logged

                  If I am lucky enough to win powerball or mega millions I would struggle to decide which is better when the jackpot is high like they are now.  I would not want to have a big chunk of money in the bank so all my so called relatives could try and mooch off of me.  But I guess that I do not see myself spending all of the powerball money or mega millions money in my lifetime.  But I have lived so long off of little bit of money that millions would be a shock to me.  So I would probably take the annuity and will it to my niece who is in college right now.  But I would take cash if the older I get is when I win because lady luck decides when you win.-weshar75

                  US Flag

                    helpmewin's avatar - dandy
                    u$a
                    United States
                    Member #106665
                    February 22, 2011
                    19843 Posts
                    Offline
                    Posted: February 12, 2014, 5:02 am - IP Logged

                    Why Do You Think Lottery Winners Always Take The Cash Option?

                     

                    some say old age has something to do with it.

                      Teddi's avatar - Lottery-008.jpg

                      United States
                      Member #142499
                      May 13, 2013
                      1183 Posts
                      Offline
                      Posted: February 12, 2014, 7:04 am - IP Logged

                      Why Do You Think Lottery Winners Always Take The Cash Option?

                       

                      some say old age has something to do with it.

                      Another good point. I'd have been shocked if Gloria took the annuity. Banana

                        Candlelight777's avatar - nw saucyelf.jpg
                        Indiana
                        United States
                        Member #150273
                        December 18, 2013
                        495 Posts
                        Offline
                        Posted: February 12, 2014, 7:19 am - IP Logged

                        If you planned to do zero investing, even in U.S. Treasury bonds or whatnot, then the annuity makes a little more sense. For me, taking the cash is about taxes and returns. Honestly the way things are looking, the only way taxes can go is up, which means those annuity payments won't be as much as if you planned 39.6% tax as worst case scenario. Taking it now gets the tax business out of the way, and you will only have to pay taxes on gains (although there are crafty ways the rich use to reduce this). Also, investing even a portion, say 50-75% of the lump sum, at a very menial rate of return accumulates into a larger amount than the annuity in less time! This is because the annuity is restricted to compounding only 5% of the annual payment. For both cases it is important to take into account inflation. At average rate of 3% in 30 years your annuity will only be worth a little less than $88 million (using the $213M figure you provided). Taking the cash also allows you to exercise an active role in beating inflation.

                        Thumbs Up

                        "Without wood a fire goes out; without gossip, conflict calms down.

                        Like adding charcoal to embers or wood to fire, quarrelsome people kindle strife."

                        Proverbs 26: 20-21

                          Avatar

                          United States
                          Member #149820
                          December 9, 2013
                          644 Posts
                          Offline
                          Posted: February 12, 2014, 7:46 am - IP Logged

                          Wow, so we've moved from reasons to choose cash over annuity to name calling, mud slinging and political diatribe. How about everyone agree to disagree and get back to the actual point. 

                          To that end, very good points LottoMetro. Between history and the numbers, you get less in the long run taking the annuity. And for those who think annuity payments mean that bankruptcy is unlikely because you don't have access to all the money upfront, that's a fallacy. JG Wentworth has made a lot of money from desperate annuity takers who overspend their yearly checks. Think about the fact that jackpots never used to have a cash option. It was all annuities.  Andd think of how many of those early winners have anything left.

                          Im serious!! Why must we start talking politics? You are right Teddi it always ends up with mud slinging and name calling. We know where politics takes up cant we just leave it at the door on this site?

                            Win$500Quick's avatar - Lottery-050.jpg
                            Florida
                            United States
                            Member #77815
                            August 1, 2009
                            3460 Posts
                            Offline
                            Posted: February 12, 2014, 9:04 am - IP Logged

                            Another good point. I'd have been shocked if Gloria took the annuity. Banana

                            I Agree! Gloria should have taken the cash. But in past few years we have had a couple winners under 30 years old that also took the cash. Most lottery winners go broke within 5 years. Poor David Edwards took the lump sum and blew threw $27 million in cash and died broke.

                            Guess Who's Back?

                              Win$500Quick's avatar - Lottery-050.jpg
                              Florida
                              United States
                              Member #77815
                              August 1, 2009
                              3460 Posts
                              Offline
                              Posted: February 12, 2014, 9:08 am - IP Logged

                              If I am lucky enough to win powerball or mega millions I would struggle to decide which is better when the jackpot is high like they are now.  I would not want to have a big chunk of money in the bank so all my so called relatives could try and mooch off of me.  But I guess that I do not see myself spending all of the powerball money or mega millions money in my lifetime.  But I have lived so long off of little bit of money that millions would be a shock to me.  So I would probably take the annuity and will it to my niece who is in college right now.  But I would take cash if the older I get is when I win because lady luck decides when you win.-weshar75

                              US Flag

                              I Agree!

                              Guess Who's Back?