So...you win the lottery....take the lump sum or take the annuity?

[2aguy]

I have heard smart business people on both sides of this debate.....what do you think?

 

[progressive hunter]

I have heard smart business people on both sides of this debate.....what do you think?

I would take a lump sum and give it away as fast as possible after taking out enough to live comfortably,,

heck I might even get my car painted,,

 

[Auld Phart]

Lump

At 73, I doubt I would see much of the annuity,

 

[JGalt]

Whichever one gave me the biggest stack of $1 dollar bills.

I'd build a swimming pool and fill it with them.

 

[playtime]

lump sum after all taxes taken out then it's mine mine mine free & clear.

 

[bodecea]

Probably lump sum, but would certainly talk to my CPA and finance/'investment people first.

 

[1srelluc]

Lump

At 73, I doubt I would see much of the annuity,

Yep, lump for mostly the same reason.

 

[rightwinger]

For a win less than one million, take the annuity

Anything bigger, Lump sum

 

[HereWeGoAgain]

Lump sum for sure.
I dont trust whats going on in America and around the world these days to risk the long term pay out.

 

[Baron Von Murderpaws]

Lump sum.

If you take the payouts, then the state ends up getting more of it than they would with a lump sum handout.
You have to pay more taxes on payouts than you would on a lump sum.

Plus, you'd have it all, instead of wondering if the state goes broke, does the money stop? Or if they end the lottery, does the money stop?
Or if you end up not paying your taxes, does the government take it all away?

Then theirs your yearly taxes. You'd have to claim payouts every single year until they stop.
With a lump sum, you just pay for the year you won the money.

Too many hassles with the payouts. Not so much with the lump sum.

Plus, with a lump sum, you can get a lawyer to pay what is owed as taxes and fees, and nothing else that the state would try and screw you out of.

 

[rightwinger]

The only advantage of payouts is you would have your first $400,000 taxed at a lower rate every year instead of just once with a lump sum

 

[petro]

There was a show about how the lottery ruined some peoples lives. They took the annuity and out spent the payments, then sold off the remaining payments to investors, eventually becoming bankrupt.

Oops.

 

[TheGreatSatan]

I have heard smart business people on both sides of this debate.....what do you think?

Lump sum

If something happens, you might miss out on the rest of your payments.

 

[Hang on Sloopy]

first thing a person should do is get their life insurance license and learn how annuities and other financial instruments works. This is a 40 hr course....then you buy your own s-p fund. You will receive around a 6% commission.....for every million it would be 60k back to you......babe ruth never lost a dime in the depression...he had all his money in annuities...insurance companies are near bottomless piles of cash

 

[Independent thinker]

I have heard smart business people on both sides of this debate.....what do you think?

Depends on a variety of factors, mostly the amount won. If it is tens of millions of dollars or more I think the best thing to do would be to take the annuity. Too many people have won and gone broke shortly afterward. If the first payment is over 500K I think that is the best option. On smaller amounts I would take it all up front. Honestly, what are you going to do with a 50 million dollar lump sum payment? Not worth it if five years later you have nothing left.

 

[2aguy]

Depends on a variety of factors, mostly the amount won. If it is tens of millions of dollars or more I think the best thing to do would be to take the annuity. Too many people have won and gone broke shortly afterward. If the first payment is over 500K I think that is the best option. On smaller amounts I would take it all up front. Honestly, what are you going to do with a 50 million dollar lump sum payment? Not worth it if five years later you have nothing left.

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