Can a lottery Cash Value be more than the Annuity Certain?Prev TopicNext Topic

• realtorjim

  

  United States
  Member #106,918
  February 27, 2011
  556 Posts
  Offline
  Jul 16, 2016, 6:29 pm

  ▲▼

  Since the lotteries often invest in government bonds for the Annuity Certain, and since bond rates have been earning negative interest of late, could the cash value of a lottery jackpot be more than the annuity?

  Current Estimated Jackpot $500 Million

  $535 Million Cash Value

    I'm feeling a $312,000,000.00 jackpot win coming my way!
• KY Floyd

  

  NY
  United States
  Member #23,834
  October 16, 2005
  4,772 Posts
  Offline
  Jul 16, 2016, 9:06 pm

  ▲▼

  I'd say there's absolutely no chance at all that you'll see a jackpot advertised that way.

  While it might theoretically be possible for an annuity to have a negative rate I'm sure there's zero chance that a lottery is going to advertise an annuity of $500 million if the cash value is $535 million. If those were the options we'd just see lotteries advertising the cash value that the overwhelming majority of winners choose anyway, because the advertising is all about promoting the biggest number they can.

  I suppose they could still offer the smaller annuity, but it would be much easier to just  offer a cash option and leave it to the winners to choose an investment.
• TheMeatman2005

  

  Brooklyn, NY
  United States
  Member #169,716
  October 29, 2015
  1,699 Posts
  Offline
  Jul 17, 2016, 3:15 pm

  ▲▼
  In response to realtorjim

  Quote: Originally posted by realtorjim on Jul 16, 2016

  Since the lotteries often invest in government bonds for the Annuity Certain, and since bond rates have been earning negative interest of late, could the cash value of a lottery jackpot be more than the annuity?

  Current Estimated Jackpot $500 Million

  $535 Million Cash Value

  I don't think the lottery would ever advertise the jackpot that way.

  If it came down to where the annuity would be less than the cash value, I think they would just forgo the annuity amount and make it a cash only 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! 
• LOTTOKING2016

  United States
  Member #172,408
  January 23, 2016
  3,795 Posts
  Offline
  Jul 17, 2016, 3:41 pm

  ▲▼

  I want to see Cash Jackpots....Let that Bond go down to death so CA$H can keep climbing...
• LiveInGreenBay

  

  Green Bay
  United States
  Member #169,383
  October 15, 2015
  2,901 Posts
  Offline
  Jul 17, 2016, 4:01 pm

  ▲▼

  If someone wins 300 million or so, why squabble over a few thousand one way or another.  Take the money and run!  At least the government has no control over it after you pay the taxes on the lump sum.  And incidentally, what will the tax rate be in 10 or 20 years?  That's right, no one knows. 

  Also...Currently there's talk in DC where the feds would confiscate pensions to cover the debt and re-pay retirees over time with something similar to social security payments.  LOL!  If they did that, what makes anyone think they will stop there?  Maybe confiscate lottery annuity accounts?  Think this is BS?  In 1933 executive order #6102 signed by FDR required every American to turn any gold they held or face a 10,000 fine and/or 10 years in prison.  Back then lots of people had gold coins.

  Never give up. 
• winoneday

  

  Canada
  Member #154,373
  April 14, 2014
  354 Posts
  Offline
  Jul 17, 2016, 6:50 pm

  ▲▼
  In response to realtorjim

  Quote: Originally posted by realtorjim on Jul 16, 2016

  Since the lotteries often invest in government bonds for the Annuity Certain, and since bond rates have been earning negative interest of late, could the cash value of a lottery jackpot be more than the annuity?

  Current Estimated Jackpot $500 Million

  $535 Million Cash Value

  Your question is based on a false premise. Bonds have not been earning a negative interest rate. In fact, they never have.
• realtorjim

  

  United States
  Member #106,918
  February 27, 2011
  556 Posts
  Offline
  Jul 19, 2016, 12:46 am

  ▲▼

  The premise of a Cash Value being more than the Annuity Certain was posted facetiously.  Although, never say never...

   

  

    I'm feeling a $312,000,000.00 jackpot win coming my way!