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Started By
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re: Annuity or Lump? Updated for 1.6 Billion
Posted on 10/19/18 at 8:39 am to slackster
Posted on 10/19/18 at 8:39 am to slackster
quote:The reason most people should take the annuity is that it's a hedge against doing stupid shite with a a large portion of the money immediately.
Everyone that said they'd take the lump sum the other day didn't have the wherewithal to actually generate better returns than the annuity did.
1
Posted on 10/19/18 at 8:39 am to highcotton2
quote:you have to claim it in the state it was bought.
If you lived in Louisiana and won would it not be better to pack your shite up and move to say Tennessee before you claimed the check? Tennessee has no income tax.
Posted on 10/19/18 at 8:40 am to GetmorewithLes
What happens to Mega Millions payments if the winner dies before collecting?
If a winner dies before receiving all annual payments, Mega Millions will continue to pay the annual payments, as scheduled, to the winner's designated beneficiary or to the winner's estate.
Winners who choose the annuity method will receive an immediate payment followed by 29 annual Mega Millions payments. Check with your state lottery for more specific information.
If a winner dies before receiving all annual payments, Mega Millions will continue to pay the annual payments, as scheduled, to the winner's designated beneficiary or to the winner's estate.
Winners who choose the annuity method will receive an immediate payment followed by 29 annual Mega Millions payments. Check with your state lottery for more specific information.
Posted on 10/19/18 at 8:42 am to ell_13
quote:
The reason most people should take the annuity is that it's a hedge against doing stupid shite with a a large portion of the money immediately.
And the fact that it's an annualized return of roughly 4.5% when compared to the lump sum option.
Posted on 10/19/18 at 8:42 am to LSU6262
Annuity. I dont trust myself with that much money that soon.
I still have 30 years in front of me.
I still have 30 years in front of me.
Posted on 10/19/18 at 8:43 am to LSU6262
Lump sum easily
Posted on 10/19/18 at 8:43 am to LSU6262
Lump always.
Posted on 10/19/18 at 8:45 am to LSU6262
I'm taking the lump sum because I actually do trust myself not to blow through $300 million.
Posted on 10/19/18 at 8:47 am to LSU6262
I wasn't ever planning on living past 65, so I'd take a lump sum
Posted on 10/19/18 at 8:47 am to someLSUdoosh
quote:
Am i missing something? How did your math get down to 27,430,000
27MM is the Louisiana tax. Feds take 24%
Posted on 10/19/18 at 8:47 am to slackster
quote:The return is the return. For most people, it wouldn't matter what return they get with this amount. 330 mill after taxes is tough to frick up. But the annuity at least gives people an opportunity to learn money management over time.
And the fact that it's an annualized return of roughly 4.5% when compared to the lump sum option
Also, I can understand ANYONE over 50 taking the lump sum. A 30 year annuity is almost useless to that person. Young, stupid people who aren't smart enough to trust a wealth management team should get the annuity.
Posted on 10/19/18 at 8:47 am to highcotton2
quote:
If you lived in Louisiana and won would it not be better to pack your shite up and move to say Tennessee before you claimed the check? Tennessee has no income tax.
Not sure how it all works tax wise, but the ticket itself in Louisiana is run through the Louisiana lottery.
Posted on 10/19/18 at 8:47 am to NYNolaguy1
quote:
Annuity. I dont trust myself with that much money that soon.
I'm confident in saying the vast majority of people taking the lump sum would underperformed the annuity.
In LA, your first year net payment would be about $10.5M. It would go up by 5% per year for 29 more payments.
This post was edited on 10/19/18 at 8:53 am
Posted on 10/19/18 at 8:47 am to LSU6262
quote:They take that much at the payout. The other 13% (or so) is paid in April.
Feds take 24%
Posted on 10/19/18 at 8:47 am to dawgfan24348
quote:
Lump also frick the government for taking 600 million of it
Government doesn't take 600 million.
970 Million represents the future value if you take the annuity.
If you take the lump you get the present value of 970 million in 26 years which they say is 548 Million.
Taxes come off of the 548.
This post was edited on 10/19/18 at 8:51 am
Posted on 10/19/18 at 8:49 am to ell_13
quote:
The return is the return. For most people, it wouldn't matter what return they get with this amount. 330 mill after taxes is tough to frick up. But the annuity at least gives people an opportunity to learn money management over time.
Fwiw, the numbers in the OP were copied incorrectly. It's $390MM after max Fed and State taxes.
ETA - I'm wrong too. It's $390MM after the standard lottery withholdings. You'd be looking at more federal and state taxes in LA. Somewhere around $325MM net.
This post was edited on 10/19/18 at 8:52 am
Posted on 10/19/18 at 8:49 am to ChewyDante
Lump sum.
$300 million makes for a helluva beach weekend in Grand Isle.
$300 million makes for a helluva beach weekend in Grand Isle.
Posted on 10/19/18 at 8:51 am to stewie
quote:
$300 million makes for a helluva beach weekend in Grand Isle.
Dude, for $300 million you might as well spring for a room at the Lighthouse in Gulf Shores. You can afford that shite!
This post was edited on 10/19/18 at 8:52 am
Posted on 10/19/18 at 8:56 am to LSU6262
Lump. You have to figure inflation into your value of future money formula.
Posted on 10/19/18 at 8:57 am to slackster
quote:m
And the fact that it's an annualized return of roughly 4.5% when compared to the lump sum option.
Which is just slightly higher than inflation over then last 20 years.
The point of getting a lump sum is not only do you have control over it, but you are relying on someone not sticking their hand in the pot and using it up. Plus if you die after 1 year, your family is SOL.
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