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Why people who won the jackpot frequently decide to choose money cash over annuity money?

Topic closed. 22 replies. Last post 2 years ago by PrinceRene.

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Lavender Rocket

United States
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March 16, 2012
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Posted: February 10, 2015, 10:07 pm - IP Logged

cash v. annuity.  I use to think it depends.  Now I vote cash.

    mikeintexas's avatar - tx avatar-1.gif
    Texas Panhandle
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    Posted: February 10, 2015, 10:08 pm - IP Logged

    And on my short list of first things to do with a lump sum jackpot:

    - create an annuity.

    ^This.  Ditto.  Me, too.  I'm certainly going to do something with some or all of the money to make sure I have an income until I kick the bucket.  I'm partial to the CDARS program, allowing for money above and beyond the FDIC normal insurable max to be insured.   I know more money can be made w/ riskier investments, but it's protecting the bulk of it I'm concerned about.  I did some quick figuring and if you could deposit $20 million in 5-yr. jumbo CDs at 1.5%, that would give you (after five years) an income of $25k/month before taxes.

      mikeintexas's avatar - tx avatar-1.gif
      Texas Panhandle
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      Posted: February 10, 2015, 10:52 pm - IP Logged

      cash v. annuity.  I use to think it depends.  Now I vote cash.

      I imagine I'll be in Depends before the 30 yr. annuity payout ends.


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

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
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        December 12, 2012
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        Posted: February 10, 2015, 11:07 pm - IP Logged

        I am reminded of those pictures of Mayweather counting his stash which looks like it's 2 feet high- and wondering what it would feel like to run your fingers through that sea of Benjamin's..

        Looking at your own personal fortune and knowing that it's all there, right in front of you instead of thinking about another delivery for the next 29 years for some reason does not feel right. As someone said " Show me the Money!"

        People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

          Teddi's avatar - Lottery-008.jpg

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          May 13, 2013
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          Posted: February 10, 2015, 11:10 pm - IP Logged

          ^This.  Ditto.  Me, too.  I'm certainly going to do something with some or all of the money to make sure I have an income until I kick the bucket.  I'm partial to the CDARS program, allowing for money above and beyond the FDIC normal insurable max to be insured.   I know more money can be made w/ riskier investments, but it's protecting the bulk of it I'm concerned about.  I did some quick figuring and if you could deposit $20 million in 5-yr. jumbo CDs at 1.5%, that would give you (after five years) an income of $25k/month before taxes.

          I'm definitely doing a cdars account. Up to $50 million insured is a wonderful thing. I read that the interest rate used to be lower on cdars than other high net worth interest bearing accounts because of how much paperwork and man hours are involved in managing the account, but as with everything to do with the wealthy, the interest rate is negotiable. I'd love to net a 3% return on $10 million per year. 

          That'll be my annuity.

            Drenick1's avatar - villiarna
            USA
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            Posted: February 10, 2015, 11:24 pm - IP Logged

            I imagine I'll be in Depends before the 30 yr. annuity payout ends.

            Or the world could be in complete chaos.

              mikeintexas's avatar - tx avatar-1.gif
              Texas Panhandle
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              Posted: February 10, 2015, 11:48 pm - IP Logged

              Or the world could be in complete chaos.

              There ya go.  I don't like to point that out because I've poked some fun at conspiracy theorists before, some in here but mostly in other forums. (I was a Ron Paul supporter, so I ran across a bunch of 'em)  I also tend to be more of a pessimist than optimist as I grow older.(doesn't make me a bitter old coot, just a wary and cautious one)

              At the risk of being called a conspiracy nut or survivalist, one of the things I'd invest in if I won would be a large supply of freeze dried foods and those types of things.  Keep the food in a cool place, watch the expiration dates and when they were close-dated, eat some, give some to family/friends/neighbors and donate the rest to a food bank and then replenish your stores.  I have a few "survival" items and try to keep a decent amount of food, but those freeze dried pouches/buckets are fairly pricey.

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                California
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                Posted: February 11, 2015, 1:35 am - IP Logged

                Take the cash. Interest rates are at record lows.