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lump sum or annual payments

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would you take lump sum or annual payments after winning a major jackpot?

weshar75's avatar - Lottery-042.jpg

I will take the cash option.-weshar75

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Heck I don't even look at the advertised pot for MM when I decide whether or not to play - it's all about the cash value (oncethat  hits $50MM i start playing 5 a draw until hit).

Uff Da!'s avatar - InCelebration 001.jpg

Annual payments would be the best way to go if someone feared they wouldn't be able to control their own spending.  Or if they thought they needed the ammunition of being able to say, "But I only received xxx this year," when being hit up for money from friends or relatives with their hands out.  But to anyone with self-control and investment smarts it would be a very poor deal in this interest rate climate.

I tried to check the compound discount tables to see what the interest rate assumption was for the annual payment on the Mega Millions.  The lowest chart I could find only went down to 2½ percent, and the figures stated for the choices on one of the recent pots would indicate that the interest rate assumption was below that.  How low?  Two percent?  One and a half percent?  I don't know.  As I said, the charts didn't even go that low.  All I know is that a person wouldn't have to have a lot of investment smarts to do better than that rate of return!  You could even park it in a well chosen money market fund and do better than that!

I'll take cash option, thank you., and invest it a bit more aggressively.

sirbrad's avatar - Lottery-062.jpg

Will depend on the amount. Most likely lump for large jackpots, as I would be getting the interest, not someone else. Plus you usually can get about as much or more interest than the principal annuity will pay, and never touch your principal.

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Except in very rare cases, I would take the cash. The only times I would take the annuity is if I won Hoosier Lotto (the cash option is a total rip-off) and on the new Win For Life game (again, the cash option is a rip-off).

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Except in very rare cases, I would take the cash. The only times I would take the annuity is if I won Hoosier Lotto (the cash option is a total rip-off) and on the new Win For Life game (again, the cash option is a rip-off).

everything about the hoosier lottery is a rip off!Unhappy

justxploring's avatar - villiarna

I don't know why anyone would EVER take annual payments if she won a large jackpot. I might take $10,000 a year if I won I small prize like $200,000. I don't like idea of a 50% cash option penalty, but the interest rate you get on the 30 year payout is so low that it won't keep up with inflation. Even if the rates never go back to double digits, they're already climbing. Although sales have slowed down quite a bit, real estate is still increasing in this area at a rate of 20 to 30% a year. So just do some research,  buy several homes in a fast growing community, rent them and sell in a few years when they sell out the last phase. There are so many good options for investing your money wisely instead of letting the state make that choice you.  As Uff Da said, if people know they can't control their spending, I suppose that is one reason for not taking the cash, since many winners are broke after 5 or 10 years, which I find hard to believe. Even if I "only" won a few million, after buying a house and a new car, just the interest alone on the rest would be enough for me to live on happily.

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The key word is "major" - and there is no doubt.  Get the money, have the money.  With a hundred million in cash, a lazy person can afford to make ninety million mistakes, and still be richer then any one on my neighborhood!  Do you realize you could easily buy 500 band new houses for one hundred million dollars?  With $1500 to $2000 a month rent, you could afford a lot of lollipops.  How can you screw that up!

If I have so little confidence in myself, that I feel I would blow a hundred million dollars, I should have taken the high dive a long time ago.  I would be a disgrace to my parents - and myself!!

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Will depend on the amount. Most likely lump for large jackpots, as I would be getting the interest, not someone else. Plus you usually can get about as much or more interest than the principal annuity will pay, and never touch your principal.

No problem, she wasn't that good looking any way!

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Will depend on the amount. Most likely lump for large jackpots, as I would be getting the interest, not someone else. Plus you usually can get about as much or more interest than the principal annuity will pay, and never touch your principal.

No problem, she wasn't that good looking any way!

chewie is right.mine was dog ugly too....

remember never touch your principal,lol

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Not touching the principle is also good advise!

masslottery's avatar - dragon eye.jpg

Me lump sum here you get doulbe tax on your winning say you dont take the lump sum u get 7mil every year you get tax 23% the first time then at years end you get tax another 15% mass is rip off

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Me lump sum here you get doulbe tax on your winning say you dont take the lump sum u get 7mil every year you get tax 23% the first time then at years end you get tax another 15% mass is rip off

Keep voting those liberals into office; and make sure you keep them there forever!  If you need guidance, watch the New Jersey elections.  One mind dead elderly person after another keeping corruption thriving.  Now we have their children following suit, pleasing mommie and daddy by proving what great sheep they raised.  Long live the unions, it doesn't get you quality, but does get you higher prices, and some one to talk with in the protest and strike lines.  Look at what they did to the American auto industry!

sirbrad's avatar - Lottery-062.jpg

Will depend on the amount. Most likely lump for large jackpots, as I would be getting the interest, not someone else. Plus you usually can get about as much or more interest than the principal annuity will pay, and never touch your principal.

No problem, she wasn't that good looking any way!

Ah a few typos, rarely ever happens but it was a long day/night. Don't even get me started on your spelling however, I don't have that kind of time to point out the errors, and I doubt my post count could go that high. LOL

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