Powerball dreaming. Annuity or Lump Sum

[EACarlson]

Seeing that no one won last night and the next drawing Friday is going to be for 1,500,000,000 got me thinking. How many would take the Lump Sum and how many would take Annuity? And why? I'll post my response around lunchtime.

 

[princesscinderella]

I’m still fairly young so I think I’d take the annuity because it will still be a crazy amount I would get every year.

 

[prairie_girl]

If I’m Canada, I’d take the lump sum. We don’t pay tax on winnings so it would be fun to spread that around as much as possible.

 

[jalapeno_pretzel]

I'm planning to take the lump sum.

 

[SC Minnie]

At my age I would take the lump sum.

 

[Avery&Todd]

Lump sum - my DH looked into the payments for the annuity and you get small payments for like the first 10 years, like $9m/year and it's not until like year 10 that it really jumps up..

so we're taking the Lump sum!

 

[lynxstch]

Another one choosing the lump sum. At my age, it is the only choice that makes sense.

 

[Kathryn Merteuil]

Lump sum sounds like more fun to me!

 

[luvnwdwgal]

We’re in our 60’s so lump sum but honestly that kind of money kind of scares me. To be honest we don’t even buy tickets.

 

[BrianL]

I was just reading an article about why the annuity might be the better option, but it really depends. Personally, since I would be investing a lot of it and managing it smartly, I think the lump sum would be just fine.

I bought a ticket for last night too, but I didn't win. I don't buy them all that often, but ocassionally when the jackpot is pretty big I will.

 

[Moliphino]

Lump sum. I'd rather handle investing it myself than bother with the annuity.

 

[firefly_ris]

Lump sum and invest.

 

[starry_solo]

Lump sum

 

[TAX GUY]

I'm on the fence and will make the decision when (not if) I win it

If we did the annuity, it would done into a lottery trust we'd set up. That way, should anything happen to me (assuming I claim the prize), then my wife and/or son and anyone else listed in the trust could continue to receive the annual payments until the 29th year. I'm 50 now, so should I still be around, last payment would be paid to me at almost 80 years old. My son is only 20, so he could potentially be set up until he's age.

However, with the lump sum, it gives us more opportunity to earn some of that back, in the form of capital gain (investments), which gains rates are more favorable than ordinary income rates. Even with taking the lump sum, there's PLENTY to tie up (and maybe lose) in the market and still have plenty to live a lavish lifestyle.

 

[disneychrista]

Either way it is too much money to even think about spending.

 

[MillauFr]

Lump sum and invest.

I think you mean lump sum and spend. Why bother worrying if it grows or not? Biggest concern is spending it down to zero which would be difficult.

 

[disneydreamer781]

We're in our 60s so yeah, most definitely, lump sum. I would take it that way even if I wasn't though. Hey, none of us are immortal.

 

[MillauFr]

Either way it is too much money to even think about spending.

Umm no. A few purchases of Genie+ should take care of most of it.

 

[kanerf]

I’m still fairly young so I think I’d take the annuity because it will still be a crazy amount I would get every year.

Keep in mind that is income so you would get taxed on the annuity each year. Better to take the tax hit once at current rates.

 

[Mysterian]

Give me the lump sum. I have plans. I will put a dent in it.

After taxes, you can still make money on the interest, right?