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Annuity vs Cash Value

Topic closed. 57 replies. Last post 3 months ago by TheMeatman2005.

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If you won a jackpot, which would you take?

Lump sum cash (1 payment) [ 64 ]  [77.11%]
Annuity (30 payment) [ 12 ]  [14.46%]
Undecided at the moment [ 7 ]  [8.43%]
Never going to win so what difference does it make [ 0 ]  [0.00%]
Total Valid Votes [ 83 ]  
Discarded Votes [ 1 ]  
TheMeatman2005's avatar - lightening
Brooklyn, NY
United States
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October 29, 2015
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Posted: July 14, 2016, 12:58 pm - IP Logged

Whit the low interest rates available today, the cash value is approximately 71% of the annuity jackpot amount.

Which would you take if you won a jackpot?

The Meatman

“The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

    Kingofearth's avatar - Kinnak
    Upstate NY
    United States
    Member #174656
    May 5, 2016
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    Posted: July 14, 2016, 1:48 pm - IP Logged

    Whit the low interest rates available today, the cash value is approximately 71% of the annuity jackpot amount.

    Which would you take if you won a jackpot?

    I'm leaning towards taking the Annuity at the moment though I really don't know because the variables will change and so I would have to look at the situation when it happens before I decide.

      music*'s avatar - nw bookeep.jpg
      Happy California
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      August 2, 2014
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      Posted: July 14, 2016, 1:49 pm - IP Logged

      At this time in my life, I will take the cash. The factors in my decision are the interest rate, my age, my health, plans to share with others, plans to invest, not having to talk with those factoring companies who want to buy my annuity, and to celebrate life! Party

       I've been rich and I've been poor. Believe me, rich is better. 

       Attributed to Joe E. Lewis and others

        LiveInGreenBay's avatar - driver
        Green Bay
        United States
        Member #169391
        October 15, 2015
        1249 Posts
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        Posted: July 14, 2016, 2:57 pm - IP Logged

        I chose the lump sum.  A bird in the hand is worth two in the bush.  A lot can happen in 20 years.  Politically and economically things seem to be getting screwier and screwier every year.  What happens if things go south and the government decides to confiscate annuity funds?  Look at the national debt, 20 trillion and counting.  Wouldn't hurt to move some of that money to off-shore accounts.

        Never give up.  Banana

          Kingofearth's avatar - Kinnak
          Upstate NY
          United States
          Member #174656
          May 5, 2016
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          Posted: July 14, 2016, 3:59 pm - IP Logged

          I chose the lump sum.  A bird in the hand is worth two in the bush.  A lot can happen in 20 years.  Politically and economically things seem to be getting screwier and screwier every year.  What happens if things go south and the government decides to confiscate annuity funds?  Look at the national debt, 20 trillion and counting.  Wouldn't hurt to move some of that money to off-shore accounts.

          That's my main reason for why i would choose cash. If i win and things get tough, I'm not just moving my money off shore, I'm moving my body off shore. 

            LiveInGreenBay's avatar - driver
            Green Bay
            United States
            Member #169391
            October 15, 2015
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            Posted: July 14, 2016, 4:14 pm - IP Logged

            But but but I thought you were a committed leftist?  Eek  I thought you wanted a much higher tax rate for the rich to pay for the poor? No Pity!   So why would you leave?  Roll Eyes  LOL!  I hear Venezuela is nice this time of year.  LOL

            Never give up.  Banana


              United States
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              July 10, 2016
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              Posted: July 14, 2016, 4:48 pm - IP Logged

              I see both options having benefits: Much depends on the persons age, if they want leave an inheritance, the life style they see themselves as having, their current financial status, tax considerations, the amount of the jackpot, and their ability to invest sensibly,

              The 30 year graduated annuity is pitiful but could be a better choice depending on the particulars. The 20 year evenly distributed annuity of years ago was much better. Most people playing would likely want to get started with as much funds as possible so they take the lump sum.

              I suppose some would want to gift to family, friends, and charities.Smile

                Tatototman65's avatar - Lottery-009.jpg

                United States
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                February 4, 2013
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                Posted: July 14, 2016, 5:40 pm - IP Logged

                Lump sum please...

                Smile

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                  QuickDrawDude's avatar - Lottery-031.jpg
                  Indiana
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                  June 15, 2016
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                  Posted: July 14, 2016, 6:16 pm - IP Logged

                  I would take the lump sum and throw it into an S&P 500 Index fund.

                  It's a Cinderella story
                  On a tumble of the dice - (Rush - The Big Money from Power Windows)

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                    south el monte
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                    May 4, 2014
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                    Posted: July 14, 2016, 6:17 pm - IP Logged

                    ill take the annual payment. if i mess up one year i have many more payments to look forward to . if i mess up one year with the lump sum. Thats it.

                      ArizonaDream's avatar - Lottery-009.jpg

                      United States
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                      October 10, 2015
                      630 Posts
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                      Posted: July 14, 2016, 7:43 pm - IP Logged

                      For a lower jackpot, no.

                      Once the jackpot gets as large as the current PB, I start thinking about the annuity.

                      I'm not young, but the life expectacy tables say I'm likely to live long enough to collect it all.

                      but  there are 2 big reasons the answer is still no.

                      1. Taxes are far more likely to go up than down in the future.
                      2. Locking in the current low interest rate with a 29 year investment just doesn't make any sense.
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                        Ohio
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                        June 25, 2016
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                        Posted: July 14, 2016, 7:43 pm - IP Logged

                         Gimmie the lump sum... One shot and I'm out. 

                        It's at least a nice day dream here and there...

                          LottoLucy's avatar - hereslucy header.jpg

                          United States
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                          August 14, 2012
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                          Posted: July 14, 2016, 7:56 pm - IP Logged

                          Whit the low interest rates available today, the cash value is approximately 71% of the annuity jackpot amount.

                          Which would you take if you won a jackpot?

                          Lump sum!  I used to have a complicated set of variables that determined what I would do but after seeing people not get paid because of budget issues with their state I decided I want the money upfront and in my pocket!

                          Lotto Lucy

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                            Zeta Reticuli Star System
                            United States
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                            January 17, 2006
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                            Posted: July 14, 2016, 8:18 pm - IP Logged

                            Cash. 

                            How many winners have taken their annuity and sold it eventually to a need-cash-now company?

                            What did a house cost 30 years ago and what do they cost now?

                            Due to inflation the actual value of an annuity shrinks every year.

                            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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                              Bay Area - California
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                              December 12, 2012
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                              Posted: July 14, 2016, 9:29 pm - IP Logged

                              You know what Cuba is saying...

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