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annuity is the way to go

Topic closed. 16 replies. Last post 12 years ago by CASH Only.

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pensacola fl
United States
Member #4915
June 3, 2004
79 Posts
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Posted: June 30, 2004, 7:41 pm - IP Logged

 

 what  do  you say?

    Guest


    Member #0
    January 1, 2000
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    Posted: June 30, 2004, 9:20 pm - IP Logged

    If i won I would really like to help families. I would take annuity so that I could select ten families to have them also receive 10 million each as annuity also. They would be responsible for paying their own taxes. I would have $180 million left for myself. I would know that I really have help someone.

    Tom

      ONEDAY's avatar - DiscoBallGlowing
      OHIO
      United States
      Member #5328
      June 30, 2004
      1284 Posts
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      Posted: June 30, 2004, 9:32 pm - IP Logged

      I was just thinking that today..the lotto plus in ohio was 14 millon..so I played, usually it has to be bigger for me..well,I lost! (used Quick pick)

      I was thinking 400,000 a year after taxes is not bad for 30 years! thats a few hundred thousand more I have now!

        dphillips's avatar - littleuns
        Albuquerque, New Mexico
        United States
        Member #5128
        June 18, 2004
        377 Posts
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        Posted: June 30, 2004, 10:13 pm - IP Logged

        In my opinion, the annunity option is personal because each winner has different financial circumstances.  For example:

        1.  Age - if the winner wins between the ages of 20 and 30 and the annunity payments are over a 25-30 year payout, it would be economically feasible.  On the other hand, if the person is 40 years or older, perhaps the annunity payments would not be prudent: they could contemplate the cash payment. Since we do not know when we are going to die, annunity or cash options are major factors.

        2.  Family concerns - are you married with children? Married with no children? Are there sisters and/or brothers?  You may need to set up a Living Trust -- only if you like them.  However, it always amazes me that some family members cannot stand you when you are broke because you cannot do anything for them.  Now, when the big windfalls comes, there are first, second, third cousins -- even those twice removed -- loving you with the hugs and kisses!

        3.  Psychological development - where are you in terms of maturity when you hit the lottery?  Annunity or cash option -- you have to psyche your mind before you hit.  My attitude is -- toward myself and others (trying to maintain a level head) -- I keep repeating. I have always had money, so winning a big windfall is no big deal.  Psyching myself in that way, I do not become overwhelmed like Jack Whittaker, the man who won $315 million dollars, West Virginia resident, and was robbed twice. 

        Finally, whatever it takes for you to maintain your sanity and your peace of mind, you must get intuned now. Good luck!

        dphillips (also known as Blue)

         

        3.  Psychological

          hypersoniq's avatar - 8ball
          Pennsylvania
          United States
          Member #1340
          April 6, 2003
          2450 Posts
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          Posted: June 30, 2004, 10:19 pm - IP Logged

          There are as many reasons to choose cash or annuity as there are players...

          I would definitely take the lump sum... I have a plan, mostly set up in excel, I am prepared to deal with the winfall... I just can't seem to win...

          If you have no idea what to do, it's not rocket science...

          1. win

          2. consult an attorney, tax planner, financial planner

          3. decide the proper course of action for your situation... with expert advice!

          It's not fair when the state makes you choose before you play.... what if you DID win? Here in PA, the now dropped stupid6 made you choose at the time of ticket purchase... that's why I have a "battle plan". I always chose cash (default was annuity). Thankfully, MUSL gives winners time afterward to decide... I am all for cash, but if after consulting a "dream team" of advisors, they suggested an annuity and could show me more benefits than I could show them on the cash side, then I'd choose that... but they would really need to make a better case for annuity than I have seen so far anywhere.

          In the end it's a personal decision. one that should be reserved until after consulting with the pros. You need a goal plan... what I would want to do would be easier with the big lump sum... your goals may differ.

          I now play only one ticket per draw of the Powerball and Match6... I'm a long-shot to ever win... so I wouldn't lose any sleep over the cash/annuity debate because it is most likely a problem I will never get to deal with.

          Playing more than one ticket per game is betting against yourself.

            weshar75's avatar - Lottery-042.jpg
            Mcminnville, Oregon
            United States
            Member #3013
            December 13, 2003
            3056 Posts
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            Posted: June 30, 2004, 10:28 pm - IP Logged

            In my opinion if I was ever lucky enough to win I would choose the annuity because I am 28 years old and like the stablity of an annual payment.  I am sure as I get older my views will change to just taking the cash option once I pass a certain age. 

              Tx_Mega_Player's avatar - spider
              BIG D Texas
              United States
              Member #2539
              October 16, 2003
              148 Posts
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              Posted: June 30, 2004, 10:36 pm - IP Logged
              Quote: Originally posted by hypersoniq on June 30, 2004



              I would definitely take the lump sum... I have a plan, mostly set up in excel, I am prepared to deal with the winfall... I just can't seem to win...





              Hype,

                I agree with you. Lump sum all the way for me. I too have a detailed plan, and it includes who I will help, how I will help them, the type of busniesses that I plan to start, and how I will keep of blowing it all. I also have plans to establish a charitable foundation that will be my lasting legacy. All thats left to do is win....

                whodeani's avatar - lightening

                United States
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                October 9, 2003
                212 Posts
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                Posted: July 1, 2004, 12:25 am - IP Logged

                Have to take the cash. You will be able to invest that money at a higher rate yourself and you will have more money in the long run. What's more, if you take the annuity, $280 million 30 years from now is not going to be worth what $280 million is today. So are you really getting $280 million??? You won't getting the biggest bang for the buck with the annuity. You want what the present value of that money is because it will be worth more to you now than it will be 30 years from now. If you have a plan and are responsible with that money and don't allow it to be stolen from your car or home every other week (where have we heard this before), the cash is the better option in my opinion.

                  Fwup's avatar - babylaugh 086.gif

                  United States
                  Member #3654
                  February 9, 2004
                  70 Posts
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                  Posted: July 1, 2004, 1:29 am - IP Logged
                  I would take the annuity. It's probably possible to invest the lump sum to get a better rate of return than the annuity, but it isn't probable. Unless you want to risk losing your money you'd have to invest in very conservative investments, which is basically what would happen if you took the annuity, so why bother? Let the lottery people invest it for you.



                  If you took the lump sum you wouldn't actually have access to the lump sum, because the majority of it would be tied up in investments. Same as with the annuity, so why not take the annuity?



                  If you took the lump sum you'd be a fool to try to invest it yourself, so you'd have to hire someone to manage it for you. People who are good at managing money cost a lot of money. People who are cheaper aren't as good, and will lose the money for you. So why not take the annuity, and let the lottery people manage your money for you, for free?



                  Quote: What's more, if you take the annuity, $280 million 30 years from now is not going to be worth what $280 million is today. So are you really getting $280 million???








                  If you take the cash, $140 million won't be worth $280 million 30 years from now either, so what's the difference?



                  And finally, the big reason. Most people who take the lump sum go broke in a few years. The temptation to go wild is too great. Although taking the annuity isn't a guarantee, it's probably safer than having a few hundred million dropped in your lap.
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                    Poway CA (San Diego County)
                    United States
                    Member #3489
                    January 25, 2004
                    14120 Posts
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                    Posted: July 1, 2004, 10:31 am - IP Logged

                    I have for years shown people why the lump sum is best, but it is about 2 pages long and does a number of possible situations.  Everyone that I have shown it to agrees after seeing it that the lump sum is best.

                    There was a news article (I believe here on this site) that said that the experts agree that lump sum is best.

                    It isn't worth an argument, but I think the lump sum is best.  If you can't get better than 5% on your lump sum investment, then you should take the annual payments.  But most of us can get a good return especially if we have a few million to invest!!  Plus, you invest in municipal bonds which are tax free.

                    The people that get annual payments also go broke, by the way.  Remember...that is ONE check each year.  Most of us are not used to getting only ONE paycheck per YEAR!!  Many of them go broke before the next "paycheck" arrives!

                    I hope we all have this problem!!  When I "hit", I will tell you how I invested the money (and if I go broke!!).

                      Fwup's avatar - babylaugh 086.gif

                      United States
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                      February 9, 2004
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                      Posted: July 1, 2004, 12:18 pm - IP Logged
                      Quote: Originally posted by CalifDude on July 01, 2004

                      I have for years shown people why the lump sum is best, but it is about 2 pages long and does a number of possible situations. Everyone that I have shown it to agrees after seeing it that the lump sum is best.




                      I'd like to see it, if possible.

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                        New Member

                        United States
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                        July 1, 2004
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                        Posted: July 1, 2004, 1:15 pm - IP Logged

                        always take the cas i say..........its highly impossible to spend 164 million in 1 lifetime.  and who knows what could happen in the future w/state gov'ts....

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                          New Member

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                          July 1, 2004
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                          Posted: July 1, 2004, 1:16 pm - IP Logged

                          cash that is...not cas....lol

                            rabbitfoot's avatar - 8ball

                            United States
                            Member #620
                            August 25, 2002
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                            Posted: July 1, 2004, 1:19 pm - IP Logged

                            Being married, I would encourage my wife to take her half in an annuity and I would go for the lump sum.  But, out of my half ($45,500,000 after taxes), I could still buy an annuity on my own if I wanted to.  There's a lot of possibilities! 

                            I play to dream and dream of winning a major jackpot!

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                              Poway CA (San Diego County)
                              United States
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                              January 25, 2004
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                              Posted: July 1, 2004, 6:54 pm - IP Logged
                              Quote: Originally posted by rabbitfoot on July 01, 2004



                              Being married, I would encourage my wife to take her half in an annuity and I would go for the lump sum.  But, out of my half ($45,500,000 after taxes), I could still buy an annuity on my own if I wanted to.  There's a lot of possibilities! 




                              In California we can't do that.  You have to choose when you buy your ticket if you want cash or annual payments.  It can not be changed after you win and you can't get both.