clark
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lump sum because if you do the other..when you die..it goes back to the government...your family or anyone else won't benefit from it... |
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huh ???
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lump sum. deposit the money and live on the interest..this is actually what the lottery does..they annuitize..they give you the interest on the money...but...if you have enough control you can just about live off of the interest and still have the principal intact. |
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raerae
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It depends if you are selfish or not. In most states if you are taking annual payments they do not continue once you are deceased. But if you take a lump sum you can leave money to your family, friends, and charity. I would take lump sum. |
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homeschoolmom
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Lump sum - and here's why (we'll assume winnings of $1,000,000, for ease of math)
Let's say the annual payments are $50,000 (not much, I know, but bear with me) for 20 years. First, the government will take their nearly 50% before you see a dime, leaving you with roughly $27,000. Now, taking inflation into account, how much do you think $27,000 will be worth in 20 years? Even if you invest the $27,000 each year at 10%, in 20 years, you'll have about $1.5 million
With a lump sum, you get about $550,000 now, but with the right investments, in 20 years (at 10% - about average for the NYSE), you'll have $3.7 MILLION!!! - that's more than twice as much!
Which would YOU rather have? |
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humanresourcesman
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take the annual payments. that will keep u from blowing it your first year. |
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flowerspirit2000
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LUMP SUM.....BECAUSE YOU MAY NOT BE AROUND TO COLLECT...ENJOY |
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Bob J
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I would say it's definitely the lump sum. That is because if you are taking annual payments and you die, your estate could have to pay tax on the whole amount of the winnings, and the annual payments might not be enough to cover this. |
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troyboy
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both are good. It depends on what is important to you. Lump sum will get you a smaller lump sum. Payments will get you a lot more money, but it will take 20 years to get it all.
It's called time value of money.
What is of value to you? |
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uchaboo
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Well, with lump sum, you get all your taxes taken out right then and there and then you can get your money.
If you get the installments, then, you get taxed everytime!
that sucks, but, that is why I prefer, when playing the lottery, to get it all in a lump sum. So they can take money out (those bastards!) and I can keep the money! |
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god knows and sees else Yahoo
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people who have no control should go for annuity
because if they get all and spend it it is gone
with the annuity they force you to take separet amounts per year, then next year you get another check thius way you will not loose all |
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zinc
|
a lump sum would be more fun but annual payments are more sensible so you dont blow it all in one go. |
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the_big_v
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Lump sum baby! That way you get the interest and can invest how YOU want.
And on a second note, whats this about tax? Do you have to pay tax on your lottery winnings? NO WAY! Where are you USA? How much do you have to pay out? I can't believe it! |
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dantrumble1974
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The age old question. Here's the long version of the correct answer.
If you take a lump sum paymet one could argue that the return on your money (let's say $10m) would definatley be more than double over 20 years (which it would even at a 6% return). However, there are certain tax advantages to taking the money over time. If it were up to me... I'd take the winning ticket to my new best friends office (my newly hired tax attorney) and let him/her explain things to me.
Slainte,
-D |
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Gaz C
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When do you plan on dieing? Lump sum is the PV of the future CF less taxes. A bird in hand is better then two in the bush. The winnings of some lotto's are not passable through death. |
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Count to Zero
 |
Lump sum.
Put it in the bank, and let the interest grow and stroke you. |
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gladys
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annual,that way you know what you can spend until next pay date!!! |
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kimberly k
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i would guess annual payments. a lump sum, they take more taxes out. |
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im2nice4my_own_good
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depends on how much money your talking about. |
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howlnwoof
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LUMP SUM. If you don't...they send a guy around in a black suit, with a sniper rifle and a scope...You wanna be dodging that guy for the rest of your life? noooo. didn't think so. |
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bhasquin
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lump sum for sure you can have the compound interest grow at ridiculous rates rather than the smaller amounts per year |
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Gonzo
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I would go for the lump sum, unless you think you would just blow it all on something. You could always put most of it in the bank and then just draw interest on it. |
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Clyde S
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Annual payments all the way.
1. It gives you a steady income stream for the payout period.
2. If you should find yourself needing the money all at once at a later date there isn't a financial institution in this country that wouldn't love to buy that annuity from you.
3. Most lottery jackpots are inheritable assets so even if you don't live as long as the payout period, you can will the remaining amount to your heirs. |
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apeweek
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Lump sum, if you're an investor. If you can't save money, do it the other way. |
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kelly a
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annual payments s u will alwys have money |
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MariLin♥
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lump some they might try to jip me or something and tell me that they forget to send it or claim the money is no longer available. |
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