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Pepsi Billions... cash or annuity?

Topic closed. 23 replies. Last post 12 years ago by DoctorEw220.

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What would YOU do?

Take the cash (250 million) [ 25 ]  [80.65%]
take the annuity (1 billion over 40 years) [ 6 ]  [19.35%]
Total Valid Votes [ 31 ]  
Discarded Votes [ 4 ]  
hypersoniq's avatar - 8ball
Pennsylvania
United States
Member #1340
April 6, 2003
2450 Posts
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Posted: July 18, 2004, 4:08 pm - IP Logged

Pepsi billions sweeps comes up in september again...

if you did get there and had the right 1 in a million number to win the billion, how would you take it?

here is the payout schedule for annuity...

year 1 thru 20 = $5,000,000  (running total $100,000,000 after 20 years)

year 21 thru 39 = $10,000,000 (running total $290,000,000 after 39 years)

year 40 = 1 payment of $710 million

the lump sum payment is 250,000,000... it would take 35 years to equal the lump sum but you would have the money NOW (and miss out on the last payment of 710 million).

What would you do?

I would take the cash.... otherwise I would be 79 for the last payment...

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

    Avatar
    Wisconsin
    United States
    Member #1610
    June 3, 2003
    668 Posts
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    Posted: July 18, 2004, 5:08 pm - IP Logged

    I would take cash option...40 years is just too long for me considering everything.

    ... the lottery never fails to surprise!
      Avatar
      Greenwich, CT
      United States
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      May 24, 2004
      1822 Posts
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      Posted: July 18, 2004, 5:10 pm - IP Logged

      Let's say you could invest all your payments at 10%/yr for 40 years...disregarding taxes, spending nothing.

      Annuity: $3,519,271,551

      Cash: $11,314,813,892

      Hmmm, do I want 3 or 11 billion?  I'll take the cash payment! 

        DoctorEw220's avatar - alien helmet.jpg
        Yinzer Country, PA
        United States
        Member #4067
        March 18, 2004
        2741 Posts
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        Posted: July 18, 2004, 6:55 pm - IP Logged

        i would opt for the annuity because you and your estate, and probably your estate's estate would be set for life.

        I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.

          hypersoniq's avatar - 8ball
          Pennsylvania
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          April 6, 2003
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          Posted: July 18, 2004, 7:14 pm - IP Logged

          if it was a more even distribution, the annuity might be tempting, but you have to wait 40 years to get the bulk of it... I would rather give each of my 3 kids a trust fund for 20 million @ age 21 and enjoy seeing them use it now... keep in mind, after federal taxes... that works out to $162,500,000 and the state and local taxes will take another chunk In my locale that would leave $156,000,000 free and clear. I would rather get the bulk of the taxes paid in one shot.

          after hooking up the kids, that leaves $96,000,000. If I would invest 50 million until retirement age, I'm sure the mrs. and I could scrape by on 46 million... ;-)

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

            Avatar
            Southeast USA
            United States
            Member #3660
            February 9, 2004
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            Posted: July 18, 2004, 9:04 pm - IP Logged

            frankly,i don't think i would even want anything like a billion dollars. in my opinion, it seems to foster too much greed...i'll stick with the american lottos, thank you...lol

              DoctorEw220's avatar - alien helmet.jpg
              Yinzer Country, PA
              United States
              Member #4067
              March 18, 2004
              2741 Posts
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              Posted: July 18, 2004, 10:04 pm - IP Logged
              Quote: Originally posted by ThinkBig on July 18, 2004


              frankly,i don't think i would even want anything like a billion dollars. in my opinion, it seems to foster too much greed...i'll stick with the american lottos, thank you...lol


              and $250 million won't?

              I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.

                Mana's avatar - mana
                Virginia Beach
                United States
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                January 16, 2004
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                Posted: July 19, 2004, 1:03 am - IP Logged

                Hey ... Mana wouldn't *mind* a billion dollars at all ^^;

                ... of course, i'd like to know where the money is coming from for this "play for billion" ... what kinda stability will that annuity be under.? It's not state/government backed, it's a corporation who has a hold of this money. Though I expect Pepsi Co. to be around for a little while, it's not as firm as U.S. backed treasuries and municipal bonds.

                .... once again, a good reason to probably take the lump sum ... $250m would be plenty for a young, insane, scary goth to ... further lose sanity with. ^^;

                (Note: if it were a lottery lump sum, that'd possibly be equvilant to around $500m advertised jackpot) 

                ... insert witty quote here ...

                ... My behavior and apperance betrays my age ... but I'm good enough ...
                besides, people in person would still be afraid to talk to meh, even if I had millions ^^;

                  MetroPlex's avatar - 619631
                  Richmond, VA
                  United States
                  Member #5360
                  July 1, 2004
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                  Posted: July 19, 2004, 12:30 pm - IP Logged

                  I'd take the cash...in 40 years of investing, you would have more than 1 billion dollars, if you are smart.



                  MP

                  Putting The Damage On.

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                    Morrison, IL
                    United States
                    Member #4657
                    May 13, 2004
                    1884 Posts
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                    Posted: July 19, 2004, 1:34 pm - IP Logged

                      Yeah, in the case of Pepsi billions, it would probably be wiser to take the $250 million and run, simply because the investments aren't backed by the government.

                      rundown99's avatar - cigar

                      United States
                      Member #567
                      August 14, 2002
                      482 Posts
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                      Posted: July 19, 2004, 5:25 pm - IP Logged
                      Quote: Originally posted by hypersoniq on July 18, 2004



                      Pepsi billions sweeps comes up in september again...

                      if you did get there and had the right 1 in a million number to win the billion, how would you take it?

                      here is the payout schedule for annuity...

                      year 1 thru 20 = $5,000,000  (running total $100,000,000 after 20 years)

                      year 21 thru 39 = $10,000,000 (running total $290,000,000 after 39 years)

                      year 40 = 1 payment of $710 million

                      the lump sum payment is 250,000,000... it would take 35 years to equal the lump sum but you would have the money NOW (and miss out on the last payment of 710 million).

                      What would you do?

                      I would take the cash.... otherwise I would be 79 for the last payment...





                                Of course, I would take the cash ...... and get the hell out of town !!!!

                       

                                But just more note.....

                       

                                If you won the Pepsi game, you wouldn't be anonymous.

                      Smart lottery winners form trust to claim their winnings.  They send an attorney to the lottery headquarters to claim the prize in trust, so that ONLY the name of the trust is revealed.  And they tell NO ONE, especially relatives.

                      If you ever win a lottery and you are single, the only person you should ever marry is someone who was truly in love with you BEFORE you won the jackpot!

                        MetroPlex's avatar - 619631
                        Richmond, VA
                        United States
                        Member #5360
                        July 1, 2004
                        93 Posts
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                        Posted: July 19, 2004, 5:35 pm - IP Logged

                        ^^^



                        You are not that anonymous now. I mean with the internet anyone can become a target. All you have to do is type in a name in google and alot of stuff might come up and people can use that info to do whatever they want...If you became a multi-millionaire you can protect yourself more...than just some Joe-Blow in anytown america.

                        MP

                        Putting The Damage On.

                          hypersoniq's avatar - 8ball
                          Pennsylvania
                          United States
                          Member #1340
                          April 6, 2003
                          2450 Posts
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                          Posted: July 19, 2004, 7:59 pm - IP Logged
                          Quote: Originally posted by goldeneye26 on July 19, 2004



                                    But just more note.....

                           

                                    If you won the Pepsi game, you wouldn't be anonymous.




                          for that much dough, I wouldn't care ;-)

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

                            DoctorEw220's avatar - alien helmet.jpg
                            Yinzer Country, PA
                            United States
                            Member #4067
                            March 18, 2004
                            2741 Posts
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                            Posted: July 20, 2004, 12:03 am - IP Logged
                            Quote: Originally posted by Mana on July 19, 2004



                            Hey ... Mana wouldn't *mind* a billion dollars at all ^^;

                            ... of course, i'd like to know where the money is coming from for this "play for billion" ... what kinda stability will that annuity be under.? It's not state/government backed, it's a corporation who has a hold of this money. Though I expect Pepsi Co. to be around for a little while, it's not as firm as U.S. backed treasuries and municipal bonds.

                            .... once again, a good reason to probably take the lump sum ... $250m would be plenty for a young, insane, scary goth to ... further lose sanity with. ^^;

                            (Note: if it were a lottery lump sum, that'd possibly be equvilant to around $500m advertised jackpot) 




                            I'm with Mana.  You're really getting screwed with the cash option, even though her figures are incorrect.  If the cash were invested into an annuity, it would still be lessthan $1 billion after the 40 years. Plus, when the annuity expires, I'll be in my 60s.  Just thinking about me in my 60s with a ton of money and a ton of little so-and-so's running around asking me to buy them toys, and me constantly telling them no.  Anyway, Dr. Ew is in favor of the annuity.

                            I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.

                              DoctorEw220's avatar - alien helmet.jpg
                              Yinzer Country, PA
                              United States
                              Member #4067
                              March 18, 2004
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                              Posted: July 20, 2004, 12:04 am - IP Logged

                              Also, i think the annuity is insured.  i don't think pepsi would want to risk a lawsuit of those proportions.

                              I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.