Page 1 of 2 1 2 LastLast
Results 1 to 15 of 20

Thread: Lump sum or payments

  1. #1
    Guest
    Join Date
    Apr 2018
    Location
    Greater Houston
    Posts
    1,822

    Lump sum or payments

    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

  2. #2
    Guide Chihuahua on hiatus (retired)
    Join Date
    Jan 2009
    Location
    Seclusion in the deep, dark, spooky woods north of Houston at the Irish Chihuahua Refuge.
    Posts
    8,633
    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?

    Last edited by Fancyinheels; 10-24-2018 at 10:53 PM. Reason: typo

  3. #3
    Verified Hobbyist BCD Wes_Caroll's Avatar
    Join Date
    May 2018
    Location
    DFW
    Posts
    75
    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.

  4. #4
    Guest
    Join Date
    Apr 2018
    Location
    Greater Houston
    Posts
    1,822
    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

  5. #5
    Verified Hobbyist BCD HarryBalzac's Avatar
    Join Date
    Apr 2018
    Posts
    94
    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.

  6. #6
    Verified Companion TexasRiley's Avatar
    Join Date
    Jun 2018
    Location
    Traveling
    Posts
    3,203
    Lump some life is short fuck payments
    I Was finally able to sign back iN
    Prebook/ No Last Second Appointments

    *
    NEXT AVAILABILITY
    **Austin Tx Dec 3rd/4th
    **Killeen Tx Dec 4th/5th
    **Houston Tx Dec 15th 16th
    **San Antonio Tx Dec 17th 18th

    832-856-8682
    .
    https://preferred411.com/P110747

  7. #7
    Account Unregistered
    Join Date
    Aug 2018
    Location
    Houston
    Posts
    725
    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.

  8. #8
    Verified Hobbyist BCD Slitlikr's Avatar
    Join Date
    Sep 2017
    Location
    Whiskey Flats
    Posts
    498
    Quote Originally Posted by HarryBalzac View Post
    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.
    Brilliant!
    Never thought of that angle.
    She's a kind girl, the kind I'd like to.......
    Details on P411
    MFC charter member

  9. #9
    BANNED! STALKER!
    Join Date
    Nov 2019
    Posts
    5
    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.

  10. #10
    Verified Hobbyist BCD
    Join Date
    Apr 2018
    Posts
    663
    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.

  11. #11
    Verified Hobbyist BCD
    Join Date
    Apr 2018
    Posts
    980
    Incorrect my sister won 55 mil 10 yrs ago and passed away 7 yrs ago and my brother in law receives annual payments still
    Last edited by bb1961; 12-15-2019 at 05:49 PM.

  12. #12
    Verified Hobbyist BCD
    Join Date
    Jul 2018
    Posts
    36
    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.

  13. #13
    Verified Hobbyist BCD
    Join Date
    Apr 2018
    Posts
    980
    The lottery is the only voluntary tax on gullible people in the world!!

  14. #14
    Verified Hobbyist BCD
    Join Date
    Apr 2018
    Posts
    663
    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.

  15. #15
    Registered Male (Not Verified)
    Join Date
    Apr 2018
    Posts
    19
    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.

Page 1 of 2 1 2 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •