re: Powerball-cash vs annuity

quote:

---

It takes a 3.7% return to have the same amount in either case after 30 years

---

With a 9 figure worth, you should kick the crap out of yourself if you cannot find a money manager that can average more than 3.7% over a 30 year timeframe. With that volume of money, you can be "risky". You may have some bad years, but I'd expect to pull an average of 8%-9% without even putting myself out there too much.

Plus the money is yours, it's in your possession and you have already paid the taxes, etc. It's nice to have the piece of mind that your dealings with that are done.

I will have to say that at these numbers though, it's mind boggling how much even the annuity is. I think they are estimating 1.2 Billion. Unless I'm just hitting my zeros wrong, that's 3.33 million dollars a month for 30 years (before taxes) . That guarantee is hard to pass up. It also stops you from going on a binge and screwing yourself.