Powerball dreaming. Annuity or Lump Sum

[disneychrista]

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.

Even then are you just going keep 3/4 of a billion dollars under your mattress? Even in a high yield savings account it’ll still gain interest that you’ll pay tax on.

 

[Mysterian]

Lump Sum also sounds extra dumplings in your Dim Sum. So that alone should be reason enough.

 

[MillauFr]

I would take the lump sum. If the state went bankrupt you may have trouble collecting the annuity.

 

[Praying Colonel]

I'm giving 1% of my Powerball jackpot winnings to each person who comments in this thread, so I assume you want me to take the lump sum.

 

[EACarlson]

After doing a little research on it, I would be taking the annuity. It pays out 22.7 million in the first year and each year it bumps up by about 800k. The annuity is also treated as an asset to your estate so it would continue to be paid out after death. Even if you make some really stupid choices, you still have another really large check coming next year. Not that I think I could spend the first installment in the next 5 years.

 

[BlueStarryHat]

I'd take the lump sum. I'd take care of my family. Everyone I love would be a millionaire. Then I'd start a cancer charity in memory of my Mom.

 

[_19disnA]

I would take the lump sum. Who knows how the lottery handles the money so that 20+ yrs from now you find they went bankrupt or something unexpected happened to the money they claimed would be there. I assume the lottery invests the money they take in, but what happens if some of those investments go sideways or are poorly managed? I trust myself to handle the money more reliably then some lottery agency I know nothing about.

 

[BorderTenny]

It's my money, and I want it now!

 

[FlightlessDuck]

Lump sum, create a charitable foundation.

 

[karen4546]

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.

For those looking to buy tickets the drawing is Saturday (As well as Monday and Wednesday).

 

[karen4546]

I'm giving 1% of my Powerball jackpot winnings to each person who comments in this thread, so I assume you want me to take the lump sum.

I will give you 1% if I win also Two chances is better than one. Hey that is still over a million dollars

 

[PollyannaMom]

If it were just me, I'd take the annuity. The full amount kind of scares me, and I like the idea of an annual "paycheck".

But DH is a lump sum guy, and it's more important to him than to me, so I'd go with his way.

 

[Cannot_Wait_4Disney]

 

[MillauFr]

I'd take the lump sum. I'd take care of my family. Everyone I love would be a millionaire. Then I'd start a cancer charity in memory of my Mom.

A million is worth that much anymore. I think you better make that number $10m.

 

[MillauFr]

Unfortunately Freddie got too much of everything and caused his unfortunate and far too early demise....

 

[MillauFr]

My only concern would be that my wife would still be too cheap to upgrade to club level rooms.

 

[Kennywood]

With that type of money, we might actually be able to afford a trip to Disney World!

 

[DLgal]

Definitely lump sum.

After you choose the "cash" option ($745.9M) and then pay taxes (37%), you're looking at cash in hand of around $470M.

That's a manageable amount to invest.

 

[fly girl]

I don't want all of you to be jealous, but ... we won $4 last night with our Powerball winnings. Yes, no worries as we have contacted a lawyer and are ready for people to come out of the woodwork.


And lump sum for us!

 

[georgina]

All random speculation because I don't buy lottery tickets and not really interested in winning. I would go with the annuity. I suspect it will be invested like many other annuities, in insurance contracts. I would prefer the idea of annual income, it is still a huge amount and charitable trusts could be funded. Like Warren Buffet, I don't think giving my kids millions would be a benefit to them.