If you won 150M would you take a lump sum of 88M?

People do that because they are afraid if they don't they won't get it all....

 

i could die tomorrow and if i didn't take the lump sum, that money goes right back to the government, i would assume... i don't know that for sure, but the assumption is enough for me...

i have such a huge hard on for the government by way of the lottery... Back in Al Capone's day, they "ran numbers" and it was illegal and people were shot and killed over it and arrested and yadda yadda yadda... Now that the government has control of it and can tax the living, breathing, Jesus Christ piss out of it, it's all of a sudden legal... That really grabs me by the short and curlies...[/rant]

 

Lump sum please.

Powerball annuity option is a 29 year payout(30 payments). Apply 29 years worth of compound interest to the lump sum amount and compare.

 

LOL, great point...!

 

I would take it all. U never know what can happen..

 

If you figure you get $88M in one lump sum, deposit half into an interest bearing acct of let's say 4%. Your return for that 4% of $44M would be $1.76M. Now, don't forget you still have the other $44M to play with. Or you could deposit $60M and earn $2.4M. Multiply that by 20 (for the 20 years of payout), and that is an additional $48M for a total of $108M. Not to mention if you withdraw that amount of money every year to spend it. Keeping that money in there, your gains and initial deposit would be over the $120M mark.

then there is taxes, etc.

With that amount of money, you really have to try hard to lose it.

 

The lump sum is the amount of money that the lottery organization actually has.

If you take that sum, then, well, that's what you get.

If you take the installments (over 20-30 years, typically), then they take that lump sum amount and place it in extremely safe investments (bonds). Then they take the lump sum, add in the interest that it will accumulate over the time period, and sell that off as what the jackpot is "worth."

But, since the lottery's investments are designed for safety, not growth, the interest rates are much lower than what you could do on your own. If you take the lump sum and invest it yourself, you're going to end up with more money in the long run than if you let the lottery invest it for you.

 

I would take a lump sum on any lottery winnings.

 

{Insert Plane Joke Here}

 

to do some pretty interesting things and take even more action in things Im already involved in."

YEA GENTRY, LIKE SELLING COMMERICAL REAL ESTATE, BUSINESS"S, AND YOUR FORTE, AIRPLANES....................

YOUR FRIEND, BRUCE

 

First rule of finance is always take a lump sum distribution its called time value of money, 1 million dollars is worth less next year than it is today. Plus right now taxes are extremely low compared to past history and aren't likely to be any lower in the future, so pay 35% now and have $57mm after tax. Buy $10mm in insured muni bonds paying around 4.5% and have $450,000 tax free income and still have $47mm to buy what ever you want. Like someone said earlier you really have to work to spend that kinda money.

 

Its a hard job but somebodys gotta do it,

and why the hell was he buying lottery tickets if he had recently declared bankruptcy?

 

How would you like to buy my plane Bruce?
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Call me a conservative idiot, but I'd probably take the time pay out. I'd also claim the prize through a trust, so if something happened to me, my kids would continue to get the money. I can't imagine trying to deal with a lump sum $56MM payout after taxes. That's the kind of money that ruin you in other ways. On the other hand, $3.5MM a year for the next 30 years, I can handle.

 

JIM...YOU ALSO FORGOT A % FOR YOUR FERRARI MAINTENANCE BILLS....

 

Yea, while this option does not pencil out as well, if you're a f-up(which most of these people are) you could blow your brains out spending it and then do it all over again, year after year. Not unless you started borrowing against future winnings........

 

no tail number, I'm not buying.

(love that animated gif!)

 

I would take the lump sum for all the reasons already listed...besides, if you are not happy with 88 million and need more, you got other problems.

 

Carbon - Capone didn't pay taxes. That was his major screw up. De govt likes it's money. BTW, never cheat on reporting your income but, be creative with your deductions, someone once told me.

Anyway, first I would need to play lotto. If I did win, I would take the payout.

 

I'd say if you are married, take the lump sum, hat way you screw her out of a few mil during divorce proceedings and you can spend it all fast anyway. If you are like me, and just ain't gonna die anytime soon, and never get sick, payout, it will be like an allowance

 

If you take the annual installments you cannot pass it down to your "heir". Lump sum you can.

I'm not waiting 4 years for my McLaren and F50. I'll take the lump sum