re: The eternal Powerball question: lump sum vs installment plan?

Lump sum.

I'd overdose long before the installments ever finished paying anyway. And I'm not married and I'll be damned if any of the bastards I make or their hooker or gold digging mothers I put them in get set up to get paid the majority of MY money for the next couple of decades.

Ask my FIL and have his accountant take care of it. Whatever is smartest financially.

Take the 29 annual payments.

For 2 reasons.

1.) Lump some of $675; $413.1 mill taxed = $247 million to you. Yes that's a lot of money... but it's a 1 time payment.

Annuity = $675 divided by 29 = $23.27 mill per year taxed = almost $14 million per YEAR in bring home.
Over 29 years you're bringing home $405 million vs $247 million.

2.) If you take the lump sum, you will figure out a way to blow through $247 million at some point. IT happens to most winners. There is no more money unless you invest it wisely. One payment and that's it.

By taking annuity, you're getting $14 million a year, EVERY YEAR, on your anniversary winning date, this year and for 28 more years.

That gives you 29 chances at being a millionaire and how to manage that amount of money. You can blow it the first year. Hell, you can blow it the first 10 years and still figure out how to get it right.

I'm using the current example. The jackpot is 675 million, 415 million cash, after taxes I assumed 215 million. I am assuming I can atleast make 3% interest on that which would be about 6.5 million. I am also not an idiot with money and I might beable to spend 6.5 million the first few years without an issue but after that I might have trouble spending that much every year and I'm assuming I will be giving a lot to charity and family and friends.

Everyone miraculously becomes a fricking financial analyst wizard when Powerball goes wayyyy overboard.

God Bless the USA, baby!

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Take the 29 annual payments.

For 2 reasons.

1.) Lump some of $675; $413.1 mill taxed = $247 million to you. Yes that's a lot of money... but it's a 1 time payment.

Annuity = $675 divided by 29 = $23.27 mill per year taxed = almost $14 million per YEAR in bring home.
Over 29 years you're bringing home $405 million vs $247 million.

2.) If you take the lump sum, you will figure out a way to blow through $247 million at some point. IT happens to most winners. There is no more money unless you invest it wisely. One payment and that's it.

By taking annuity, you're getting $14 million a year, EVERY YEAR, on your anniversary winning date, this year and for 28 more years.

That gives you 29 chances at being a millionaire and how to manage that amount of money. You can blow it the first year. Hell, you can blow it the first 10 years and still figure out how to get it right.

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This is so stupid because it relies on one assumption: That we will blow through our winnings. If you take the lump sum, the huge amount of interest payments you'd get annually more than makes up for the hit you take it taxes.

Always lumpsum

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2.) If you take the lump sum, you will figure out a way to blow through $247 million at some point. IT happens to most winners. There is no more money unless you invest it wisely. One payment and that's it.

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You are speaking to some smart, conservative guys here though. Most of which are doing well off without that large amount of cash. I'd imagine that some here, being business savvy, would find a way to invest it for small, but stable returns. For instance, I would build a small regional conglomerate. Businesses including real estate and popular chain restaurants in college towns throughout the SEC's footprint. The rest of the money I would put away in low yielding safe investments and let that compound.

Take the lump, but tell family and friends I took installments so they don't know I have the whole amount on me.

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Arkansas fan justifying rednecks blowing all their lotto winnins...fitting

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Hey gotta look at the bright side.