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Lump Sum Or Annuity? :)

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You find a dollar on the ground. With that dollar you decide to gamble on the Lottery. You pick the numbers 6, 22, 32, 40, 50, 53. You watch that night's Lottery Draw. Ball 6 pops up. You smile a bit skeptically. 22 pops up. Your smile begins to get a bit wider. 32 pops up. You are now smiling even bigger. You are now a winner of at least $5 no matter what. 40 pops up. You are now ecstatic. You won $50 at least! Woo hoo. 50 pops up! Yes! You just won $10,000! Field goal!

You begin dancing like a happy maniac. But your heart is doing a happy anticipation beat. Please be 53! You pray to the Lottery Gods and the actual God that the final number is 53. 53 pops up! Holy crap in a good way! You are a winner of 6 million dollars before taxes. You thank both the Lottery Gods and the actual God.

You kiss your winning ticket and sign your name on the back in pen. You drive yourself 1 hour to The State Lottery Headquarters. They check your ID and run you through their background check. You are 25, have never been married, and have no offspring, owe no loans/debts,don't owe back taxes, etc

 
Congratulations! The money is all for you after fees and taxes! The Lottery Representatives ask you this very important and life changing question. Do you want us to pay you 4 million right now as a one time lump sum or do you want to be paid every year $300,000 before taxes? What do you Lottery Post Members do? :)

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I would take the annuity option. This is after I have the winnings placed in a Trust so it can collect the payment over a 20 year period. The annual payment would allow me to invest the cash in blue chip stocks. By the time when I receive the last instalment the $4 Million Jackpot would be worth around $60 Million(divdends reinvested). The Jackpot is a once in a lifetime opportunity. Why blow it on things that will be a liability, like having multiple houses and cars?

grwurston's avatar - Lottery-012.jpg
In response to Karen Nathan

If you look at the Quick Links and click on USA MEGA, and then click on Jackpot Analysis, it will give the breakdown of how much you will get each year if you take the annuity on any Jackpot win for MM and PB.

Maybe that can help you decide. What you do would also depend on your age at the time, knowing that it is going to take 30 years to get everything.

I like your scenario. People find discarded scratch offs and win, so why couldn't it happen?

Good Luck anyway!!! Yes Nod

music*'s avatar - DiscoBallGlowing

darthfury78,  Enjoy having a check arriving in your mailbox on the Anniversary of your win. 

 If you are not interested in real estate than stay out. Settle inside your home. 

 Antique cars may be your choice. 

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In response to grwurston

Good point on the age. In my Scenario, the Person is only 25 and doesn't have any children and is unmarried, so most likely wouldn't be thinking of leaving money for heirs or anything like that, so that 25 year old is more likely to choose the Lump Sum and blow it friviously on cars, fancy food, fancy Jewelry, more gambling, travel, drinking, drugs, wild parties, fancy clothes, Limo Rides, etc.

 

 

A 55 year old would most likely take the Annuity in order to make sure his Family is well taken care of for LIFE. A 55 year old knows he is middle aged so he really isn't in the prime of Life anymore and is most likely to make sure his family can still live off his Lottery Win after his death and besides most 55 year olds wouldn't find exciting what a young 25 year old finds exciting.

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On an interesting side note, tonight's Lottery Purchase are 862 box Pick 3, , 6,22, 30, 32,40,50 for Lotto, EZ Match. :)

bigdaddy's avatar - aviator2 1.jpg

lump sum putting half in stock symbol O and 2 other blue chip stocks that are lower than they should be with solid management..put a 1/4 of it in various cannabis stocks and live off the dividend...

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In response to Karen Nathan

"You thank both the Lottery Gods and the actual God."

"Thou shalt have no other gods before me."'

Just saying.

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In response to Stack47

It was just a lighthearted joke.... :)

music*'s avatar - DiscoBallGlowing

For the love of money is the root of all evil.  The love of money is another god. 

 We have a jealous God. Too land in the hands of our living God is frightening.

grwurston's avatar - Lottery-012.jpg
In response to music*

If we didn't love money, or at least want more of it, why would we be on a lottery site trying to figure out how to win some of it?

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In response to Karen Nathan

It depends on you age & health, if you're  over 59 take the the Lump Sum!

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Sometimes it's not the love of money per se....it is wanting not to have to live paycheck to paycheck and not worried about getting laid off   and how to pay bills after the layoff happens .....or if an immediate  family  member is seriously ill being able to.spend time & care for them before their sunset.

music*'s avatar - DiscoBallGlowing
In response to Midnite0807

I Agree! with both grwurston and Midnite0807   After a major win one can do wonderful things.  Family and friends will appreciate your kindness. 

 People in general will see lottery winnings as free money. Let it be and do what you think is correct.

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In response to music*

But she said it was just "a lighthearted joke". Do you think fire and brimstone is headed her way?

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