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How do you take it

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How would you take your winnings/ In a one time cash out option or yearly installments. Depending on how much, but probably yearly. I dont know how it is in our stae, but in Florida taking a one time lump sum = 63.7% of taxes taken out?! Federal tax and lotto tax...you get enough $$ out of me through the year, your not screwing me out my millions Boxing

fja's avatar - gnome1

Lump sum for me! even after taxes I'll see more money than I have had....

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TAKE LUMP SUM!  Interest rates for CD's are higher than they have been in a long time.  You could get 7% interest or higher for a CD with $100M .....

emilyg's avatar - cat anm.gif

installments

time*treat's avatar - radar

Lump sum. Inflation is worse that taxes.

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thats with a $100 million (or did you mean $1 mil). It's just crazy..for example a woman in New Port Richey (actually and honestly was the mother of my Fiances mothers Fed Ex delivery man) had the single winning ticket for a $35 mil. jackpot. Her lump sum: $13 mil.(very nice amount..but still, you go from winning a $35 mil jackpot to taking home $13 mil)

Blackie's avatar - A9EEAD01 0495-48CD-A336-536504FFBD9E2.jpeg

Hard to tell. Say you can take 1/2 mil now or 4,000 a month for 30 years /  After the 30 years you would have about 998,000  but would you live that long if you are in your 50's now? 1/2 mil now would give you quite a few dollars now but would you spend it quick. The initial period would probably be spent paying off creditors and buying the things you might have wanted but after a while it would probably slow down and you would still have a good bit to play with. Of course there would be friends you never knew you had and cousin to help you spend. Lump sum for me.

mylollipop's avatar - Trek STLOGO6.png

Lump, Lump...I could win and kick the bucket the next day.  Young and old alike die, that is certain.  LUMP helps me enjoy before the final HUMP in the earth---that is if I don't choose cremation.  LOL!

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thats with a $100 million (or did you mean $1 mil). It's just crazy..for example a woman in New Port Richey (actually and honestly was the mother of my Fiances mothers Fed Ex delivery man) had the single winning ticket for a $35 mil. jackpot. Her lump sum: $13 mil.(very nice amount..but still, you go from winning a $35 mil jackpot to taking home $13 mil)

Tell me I won $35M, then take away $22M.  That would be devistating.  Obviously you would need a trip around the world on a private jet to get over such a loss! 

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There should be no question of how to take it .

Take your cut Mr. Tax Man, but give me the rest all at once and I will do my own investing and buy my own "annuities".

KRB03, you will likely see a reply very soon from CASH ONLY, one of our long time posters, and if I may be so bold , perhaps the biggest proponent in the world for NOT taking annuities. 

Good luck and welcome aboard.....

DD

weshar75's avatar - Lottery-042.jpg

I will take the Powerball jackpot in a lump sum or the cash option on monday. 

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I've said this before so I'll say it again:

CASH !

IN A FLASH!

hypersoniq's avatar - binary

Given a jackpot where the after tax prize is less than $20,000,000 I would not hesitate to take the cash because it can all be fdic insired in a CDARS account. Given my inexperience at managing anything greater than about 38,000 a year, however... these big jackpots make me wonder about the annuity. I would most certainly seek the advise of a financial planner before deciding.

I don't know about the high finance, but I see it like this...

using PB estimates for this coming saturday

scenario A (Lump Sum)

advertised cash value $145,700,000 / actual after tax value $94,705,000

insured = $20,000,000 / uninsured = $74,705,000

scenario B (Annuity)

advertised annuity value $300,000,000 / actual after tax yearly installment $6,500,000

totally insured for 3 years (and of course you would be spending over that time so it could stretch)

by the time you will have more than can be insured, you will have a head for high finance and be able to protect it accordingly, you can always sell remaining payments for a lump sum at any time

on 300 million, I would be open to either provided the cash could be protected.

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Remember, from a tax perspective, the state, city, county, and the Feds can always change the tax liability upwards.  As the need increases, the temptation to do so increases. There isn't a state out there that will ever have enough money, and will always be looking for additional revenue.  Once you choose annuity, it will always be annuity - unless you choose to sell it at a loss and pay even more taxes. 

The Govenor of New Jersey has made three speechs about the state being financially bankrupt, and has even put up a web site for people to tell him how to get more money from its residents.   Every one who things a tax increase will not happen, start shovelling I95 with a kids shovel.  Any one who thinks the no tax on lottery in NJ will last for another 26 years, should sleep very litely.  You voted for a liberal tax raiser; you are now about to get your best dreams forfilled!

Blackie's avatar - A9EEAD01 0495-48CD-A336-536504FFBD9E2.jpeg

Hard to tell. Say you can take 1/2 mil now or 4,000 a month for 30 years /  After the 30 years you would have about 998,000  but would you live that long if you are in your 50's now? 1/2 mil now would give you quite a few dollars now but would you spend it quick. The initial period would probably be spent paying off creditors and buying the things you might have wanted but after a while it would probably slow down and you would still have a good bit to play with. Of course there would be friends you never knew you had and cousin to help you spend. Lump sum for me.

I should have said about 1600.00 a month for 30 yrs. I think.

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