Powerball Jackpot - Disgraceful

[Planogirl]

Those still commenting that the winnings do not go to your heirs if you die, note this from the Powerball website that a prior poster referenced:

What happens if I win an annuity and die before all the installments have been paid?
Your designated beneficiaries will receive the remaining payments.

I think if this is the case that I'd opt for the annuity too.

 

[McDISer]

My state gave me $124 from the lottery to take off my property taxes. The lottery was set up to help property owners with their property taxes.

So, if I don't buy any lottery tickets all year-I still get $124 from my state government. But if I spend that amount each year, I am probably breaking even. I'm surprised they don't tax that money on my income taxes.

 

[MommyPoppins]

I knew that but never understood why people would go for the lump sum instead of the annuity. I mean, $800,000 a year income would be more than sufficient for our family!!

Taxes, yes, necessary evil. I wouldn't complain either when I was raking in that much!

I'd take the lump sum because there is no guarantee that in 10 years that money is going to be there anymore for you. Is there?

 

[Tigger_Magic]

Are you from WA? Yes, it's quite odd, what do you expect from Tacoma.

Nope... the Land of ILlogic.

 

[Tigger_Magic]

I'd take the lump sum because there is no guarantee that in 10 years that money is going to be there anymore for you. Is there?

Most lotteries purchase an annuity to pay out any winnings.

 

[brerrabbit]

If you take the annuity, the government does not "invest the money for you". If you take the annuity you are guareenteed $14 million a year for the next 26 years. I calculated the discount factor used in their calculation and it is about 6.29%. So thats not terrible. They are using a reasonably fair interest rate. I guess it just comes down to preference but in the end I would prefer to receive the annuities as opposed to the lump sum. Keep myself from spending it all at once.