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If you won the lottery, which would you take and why??
I would take the payments id prefer to be paid yearly and not worry about years of living rather than let the money burn a hole in my wallet... One major purchase a year. Such as a house one yr a car a boat a beach house to rent out during summer months maybe some nasdaq stock and def. Savings trust funds for future mini mes while they are in collage
Lump sum. Wanna buy my own Island of Irish Chihuahuas! Guarded by leprechauns riding sea dragons, of course. I'd hire Nessie away from Scotland as my moat monster, and import a castle brick-by-brick straight from the Emerald Isle, restore it to full glory. The Old Sod lands have plenty of ruins lying around unused and deteriorating.
Seriously, I definitely would do some preparatory legal consulting and financial planning before collecting, anonymously, if possible, although I don't believe Texas is one of the states allowing hidden identities. Yeah, I can see the news media headlines if my "Fancy" shenanigans get outed: "****** WINS LOTTO! WILL SHE BLOW MONEY?"
Wonder if there's a morality clause that would keep a professional girl from her winnings?
I'll take the lump sum, pay off all my debt, then invest where I can get a return of 5 to 10 percent interest and live off that for the rest of my days with no worries.
I dont think they care fancy its supposed to be the oppurtunity to change your whole life lol... I think you actually pay more in taxes if you take the lump sum as well thats another factor to think about
Ive spent 40.00 on powerball for tonight... Who knows?? I did 20 on manual entries and 20 on quick picks.. I need a numbers person to look thru and see past numbers and tepl me which are most revealed and ill go all out lol
If you take the lump sum you let the multi-state lottery set the discount rate applied to the future cash flows. That's like giving complete control to a monopoly.
If you take the annual payments and shop that same trade with major banks you bring competition into play and get a better rate, which translates into a bigger pile of cash. Think JG Wentworth late night ads only with the structured finance arm of a highly rated bank.
Granted, if you're the SOB who just won that extra may not mean much, but the smart play is shop that trade in the market.
Lump some life is short fuck payments
Depends? If you are not good with managing $ take payments so you will have cash flowing in every year. Too many people end up broke after taking the lump sum.
Personally I would probably take the lump sum and conservatively invest it to live the the income it would generate.
Brilliant!Quote:
Originally Posted by HarryBalzac
Never thought of that angle.
Sounds confusing Balzac-however, if the lottery winnings are real time and it’s October 24th, best bet would take the lump sum and invest in real estate...or diamonds.
Lump sum. You never know when you're gonna go. And then you can what if they state goes bust and renegs on the money. And I recall reading that of you die, it's done. It doesn't pass on to your family.
Incorrect my sister won 55 mil 10 yrs ago and passed away 7 yrs ago and my brother in law receives annual payments still
Mathematically you are better off taking the annual payments mainly for two reasons. 1. The lump sum payments are discounted severely, 9% at current LIBOR rates. 2. You defer taxes on all of the future payments, if you take the lump sum, all of taxes are taken out at the current rate.
Not to be a party pooper, like the old adage says, lotteries are a tax on people bad at math.
The lottery is the only voluntary tax on gullible people in the world!!
Interesting. I wonder, did it count as part of her estate? Did he have to pay the death tax or does he have to continue paying? I'm curious about that now.
I would take annual payments setup in a trust account. After a couple of years worth of payments, living off of the interest generated would not be a problem for me. Setting it up as a trust will insure my family would get the entire amount if I happened to die.
Take the lump sum. The last check you need to write should go to the undertaker and it should bounce.
I would def agree payments are the sensible way to go here although i would buy some microsoft and apple stocks some rental properties to invest in the set up a trust for my immidiate family. Then upon my grounding as i call it all assets would be even divided among them with a will enforcing they couldnt sale any assets like properties or stocks for 10 yrs upon recieving. Minors wouldnt be able to touch and neither could there adults till they were 18 and continueing payments would be dispersed equally every payment ..
My plot is reserved and my gerber policy ive had all my life will cover that.. although i prefer to be ashes when i go in it if i dont like worms in life i dont want them eating me in death either,,ewww..lol
At my age I'm taking the lump sum.
Lump Sum. Deferred payments have risks involved (die before you receive all payments, tax law changes, unexpected changes in daily living activities). If you do go with lump sum and win a large lottery set up your WILL immediately you dont want the government deciding on where that money goes after you are gone! Also good avenues of investment - life insurance (kids life insurance policies are cheap when they are young), indexed universal life insurance, high earning interest savings account (ally bank, capital one), roth ira. Try to stay away from stocks if you can, highly volatile.