Welcome Guest
Log In | Register )
You last visited December 6, 2016, 7:06 am
All times shown are
Eastern Time (GMT-5:00)

Annuity vs Cash Value

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

Page 4 of 4
4.85
PrintE-mailLink

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 ]  
purpleheart's avatar - f029 hdr.jpg
Navy Combat Veteran
United States
Member #150432
December 22, 2013
22 Posts
Offline
Posted: August 2, 2016, 11:08 pm - IP Logged

Investments to an IRA can only be from earned income (work) and are subject to an annual limit, $5500 for 2016, per IRS rules. The contribution also can't be more than your earned income up to annual limit.

Hope I said this correctly...

When Knowledge speaks...Wisdom Listens

    Avatar
    Maryland
    United States
    Member #162434
    January 2, 2015
    887 Posts
    Offline
    Posted: August 3, 2016, 6:42 am - IP Logged

    Taken from: http://www.megamillions.com/difference-between-cash-value-and-annuity

    Difference Between Cash Value and Annuity 

    If you win a Mega Millions jackpot, you will choose how to be paid: Cash Option or Annual Payout. Prize claim parameters vary from state to state. Contact your Mega Millions lottery for detailed information. 

    Annuity option: The Mega Millions annuity is paid out as one immediate payment followed by 29 annual payments. Each payment is 5% bigger than the previous one. We used to pay the jackpot in equal installments, but players expressed concern that the cost of living would be increasing while their payments were not. We changed to payments that increase each year to help protect winners’ lifestyle and purchasing power.

    For a typical jackpot of $50 million, the initial payment would be more than $750,000, and future annual payments would grow to almost $3.1 million.

    When the jackpot is $100 million, each payment is twice as big. When the jackpot is $25 million, each payment is half as big, etc. 

    Cash option: A one-time, lump-sum payment that is equal to the cash in the Mega Millions jackpot prize pool.

    WOW!! 

    So first, thanks for the info.

    Second, the comment of 'players expressed concern about the cost of living increase' is a bunch of CRAP!! They dont do anything that doesn't benefit THEM.  They are just using that as an excuse for doing it. 

    If you are living 'paycheck to paycheck' and your paycheck is $500,000 -- SHAME ON YOU

      TheMeatman2005's avatar - lightening
      Brooklyn, NY
      United States
      Member #169723
      October 29, 2015
      877 Posts
      Offline
      Posted: August 3, 2016, 5:14 pm - IP Logged

      You're welcome

      Thinking of...

      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

        Avatar
        wisconsin
        United States
        Member #130754
        July 23, 2012
        198 Posts
        Offline
        Posted: August 3, 2016, 6:18 pm - IP Logged

        Investments to an IRA can only be from earned income (work) and are subject to an annual limit, $5500 for 2016, per IRS rules. The contribution also can't be more than your earned income up to annual limit.

        Hope I said this correctly...

        Thank you, I was unaware of that. But still, I would invest some of it into a retirement type of fund.

          Unluckyone's avatar - lib

          United States
          Member #176419
          August 4, 2016
          111 Posts
          Offline
          Posted: August 4, 2016, 1:18 pm - IP Logged

          Show me the money!!

            TheMeatman2005's avatar - lightening
            Brooklyn, NY
            United States
            Member #169723
            October 29, 2015
            877 Posts
            Offline
            Posted: August 9, 2016, 10:32 pm - IP Logged

            Show me the money!!

            You can look, but don't touch

            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

              Avatar
              Portland, OR
              United States
              Member #145973
              August 20, 2013
              226 Posts
              Offline
              Posted: August 12, 2016, 3:55 pm - IP Logged

              Well, Mark Cuban said idiots who don't have their ducks in a row in the financial department prior to winning the lottery, choose the lump sum and risk losing it all to those in suit and tie, including their life, marriage, etc..  due to stress, worry, inexperience.  Barbara Corcoran suggests you put all your money in one bank account and not worry about the $250K limit while you are figuring things out; that your bank won't ever fail.

              And no dude, Portland is the total opposite you described; except being full of liberachies.  If it weren't for the friends I left there and Mary's Club in downtown, I wouldn't mind if the US government nukes it off the map.  Peace.

              "Understand... people are more complicated than the masks they wear in society... everyone is playing to win, and some people will use moral justifications to advance their side"

                                                                                                                                                                        Robert Greene

                mypiemaster's avatar - 2015021003pileofcash
                JACKPOT HUNTER

                United States
                Member #141034
                April 2, 2013
                1408 Posts
                Offline
                Posted: August 13, 2016, 11:39 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 Agree!That pretty much says it all.

                Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

                Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

                  mypiemaster's avatar - 2015021003pileofcash
                  JACKPOT HUNTER

                  United States
                  Member #141034
                  April 2, 2013
                  1408 Posts
                  Offline
                  Posted: August 13, 2016, 11:42 pm - IP Logged

                  I don't care what the person's age or circumstance is, opting for a 30 year backweighted annuity considering America's taxation history and a global financial system which becomes more interconnected and more turbulent by the week, is insanity. 

                  Anyone winning the CV tonight will end up with a minimum of $100 million. If someone actually thinks that they'd rather have the annuity so in case they make a bad investment they don't lose the $100 million all at once, isn't someone with the financial maturity to handle a jackpot of any size or payment structure. 

                  Choosing an annuity simply to force yourself to budget makes no sense whatsoever. An annuity doesn't enforce financial discipline, but the false belief that it does is probably the reason so of those who choose the annuity still go bankrupt.

                  Thumbs UpWell said!

                  Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

                  Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

                    Avatar
                    New Member
                    los angeles,calif
                    United States
                    Member #173510
                    March 5, 2016
                    4 Posts
                    Offline
                    Posted: September 3, 2016, 9:51 pm - IP Logged

                    Thumbs UpWell said!

                    ALWAYS take cash value,then pay your full amount of taxes due.When you taker an annuity you WILL get hounded by the 'J G Wentworth creeps that find your UNLISTED number and hound you for years! They send you t shirts,credit cards,checks and more.They aren't any good,til you call these thieves and agree to get scammed by selling them a portion of your annuity.NEVER,start buying big ticket items too soon.With a 7 figure win,they will offer you credit and even those from 'My lottery dream home;will contact you,if your on facebook.And they sell crappy,over priced homes that you may end up having 'buyer's regret' soon enough.FOR A LIFE CHANGING EVENTS,take YOUR TIME! Good luck everyone!

                      Avatar
                      Arizona
                      United States
                      Member #165073
                      March 24, 2015
                      220 Posts
                      Offline
                      Posted: September 5, 2016, 9:35 pm - IP Logged

                      ALWAYS take cash value,then pay your full amount of taxes due.When you taker an annuity you WILL get hounded by the 'J G Wentworth creeps that find your UNLISTED number and hound you for years! They send you t shirts,credit cards,checks and more.They aren't any good,til you call these thieves and agree to get scammed by selling them a portion of your annuity.NEVER,start buying big ticket items too soon.With a 7 figure win,they will offer you credit and even those from 'My lottery dream home;will contact you,if your on facebook.And they sell crappy,over priced homes that you may end up having 'buyer's regret' soon enough.FOR A LIFE CHANGING EVENTS,take YOUR TIME! Good luck everyone!

                      Just get your lawyer to draw up a standard "do not contact me again" letter to send to these leeches.

                        LottoAce's avatar - WWI Flying_Ace.gif
                        N.C.
                        United States
                        Member #56005
                        October 28, 2007
                        830 Posts
                        Offline
                        Posted: September 11, 2016, 4:09 pm - IP Logged

                        Depends on the amount.  25,000 a year prize for life, I take the payments.
                        5 million or more, I take the lump sum.

                        "know your limitations, but excede your expectations"

                          TheMeatman2005's avatar - lightening
                          Brooklyn, NY
                          United States
                          Member #169723
                          October 29, 2015
                          877 Posts
                          Offline
                          Posted: September 11, 2016, 4:12 pm - IP Logged

                          Depends on the amount.  25,000 a year prize for life, I take the payments.
                          5 million or more, I take the lump sum.

                          You lose a big chunk of cash by taking the lump sum on for-life games, but it's worth it since you never know how much longer you have to live.

                          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