Lotto Payout Lump or Annuity

[street]

I see the lump would be ~1 billion and annuity be ~29 million a year for 29 years. I don't know the legals on options for the annuity.

How would you take the winnings?

I'm not sure it would make me happier, but I sure could do a lot for other if I had money like that.

 

[finnski1]

I'd do the lump sum without a doubt. Although it is actually only about $600 million after taxes.

 

[Aerides]

I would also lump sum. My reasons:

The annuity is managed by your State, vs. you/your investment choices
Managing for inheritances and ensuring things are passed down correctly
Can't buy a Mega-Yacht on a paltry annual payout of only 29 million!

(and these little fantasies are one reason why I occasionally drop my $2 for a ticket. Can't really have the daydream if you didn't play!)

 

[pacergal]

At this stage in life, I would probably opt for the lump. If the annuity is transferrable to kids or trust, that might temp me to go that way.
Either option would be unbelievable.
Appears only one winner at this time, purchased in California.

I can't even imagine that amount of wealth, DH believes it would be a burden. With criminal justice background, his first thought is safety and how to prevent kidnappings! A somewhat reasonable concern.

 

[Winemaker]

The annuity payment gets a 5% bump each year, also.

 

[jollystomper]

If I were younger, I would do the annuity. However, as I am over 60, with a shorter "runway" and already have a pension, I would probably do the lump sum to get the tax situation out of the way before the fun began .

 

[street]

I think I would take it all too.

I have a good friend that is about 40 years old and talks about winning a big lotto. He told me a few days that he has a friend that won a million 7 years ago. The guy that won that lotto lives right here in the area, less than 30 miles from me.

My friend said that most people don't know of his winning. This same guy has fallen into a huge fortune after that lotto win too. He is filthy rich and lives under the radar and you would never know he had money. He never has been married and lives on family ranch land.

 

[OldShooter]

... (and these little fantasies are one reason why I occasionally drop my $2 for a ticket. Can't really have the daydream if you didn't play!)

Oh, I am happy to daydream without paying. My daydream is how to contact the Gates Foundation and get help giving almost all of the money away in the most tax-efficient way possible.

 

[pb4uski]

I bought 5 tickets. 6 numbers per ticket times 5 tickets is 30 numbers. I had 1 of the 6 winning numbers on 1 ticket, so 1 out of 30. Ugh!

 

[RobbieB]

Yup, just another looser. I think I hit 3 on a lotto once, got $5.

 

[street]

I have played maybe 2 or 4 times in my life. I just never got into it, but I know many people who play weekly. Nothing wrong with that you never know, one day it could be their day.

I did have a cousin who lived in MN who won twice with a 100k ticket both times.

 

[38Chevy454]

I think most on the forum here would go for lump sum. But most here are also financially astute and able to invest for best results. Can't say that for Joe Public. Just look at how many squander an inheritance, or smaller lottery winnings. A short lived windfall and then back to where they started. Although at nearly $1B cash value, and approx $600M or more in after tax money, it would take a lot of squandering.

 

[Dash man]

I’d take the lump sum. A small amount would be given to ensure family members are financially secure while maintaining their current standards of living. The rest would go into a foundation to support charities to help kids and other projects.

 

[latexman]

I had a little time to kill. Here is my interpretation of the PowerBall annuity for $2.04B. It's an "annuity certain", so it is inheritable.

YEAR	PAYOUT
0	$30,704,927.56
1	$32,240,173.94
2	$33,852,182.64
3	$35,544,791.77
4	$37,322,031.36
5	$39,188,132.93
6	$41,147,539.57
7	$43,204,916.55
8	$45,365,162.38
9	$47,633,420.50
10	$50,015,091.52
11	$52,515,846.10
12	$55,141,638.41
13	$57,898,720.33
14	$60,793,656.34
15	$63,833,339.16
16	$67,025,006.12
17	$70,376,256.42
18	$73,895,069.24
19	$77,589,822.71
20	$81,469,313.84
21	$85,542,779.53
22	$89,819,918.51
23	$94,310,914.44
24	$99,026,460.16
25	$103,977,783.17
26	$109,176,672.32
27	$114,635,505.94
28	$120,367,281.24
29	$126,385,645.30
TOTAL	$2,040,000,000.00

 

[street]

^ What a yearly income! I know I could make many people happy and life easier for many if I won that much.

 

[GravitySucks]

I bought 5 tickets. 6 numbers per ticket times 5 tickets is 30 numbers. I had 1 of the 6 winning numbers on 1 ticket, so 1 out of 30. Ugh!

I won!
($4 on a $2 ticket.)

 

[latexman]

I'd be happy with year 0 $30M and then give the rest to family and friends!

I got the PB number and did PowerPlay, so I won $8. Of course I paid for 10 sets of Quick Picks for $30.

 

[RobbieB]

I'll take the annuity. Much safer and transferrable.

Man, I could be really dangerous with a lump sum -

 

[Ronstar]

Lump sum. Annuity from the state of Illinois would be risky.

 

[RobbieB]

True.

But, all those millions...

Gotta get a bigger house with a boat dock in the backyard. And a bigger boat and hire a captain so I don't have to worry about anything navigation wise.

Maybe on the east coast so's we can hang in Bermuda, Bahama, come on pretty mama...

Ah, the life!

 

[Souschef]

The first thing you do after changing your phone number, is hire a lawyer. That way, if anyone, especially friends or family ask for money, you tell them to talk to your lawyer. That relieves you of the drama.

 

[street]

Life would change in a big way. A lawyer would be the first thing I would do. My DIL is an attorney and would ask her if she would like to go on the pay roll. Lol

If so, that would pay her more in one year than she could make in a lifetime. I wouldn't want anything to do with managing that type of money or that event in my life.

There would be more people on the payroll as well.

Dreaming!!!

 

[Love This Community]

Why are you guys making decisions for me? But, thank you for all the suggestions….[emoji12]

 

[RobbieB]

Damn.

I already screwed it up thinking about the Beach House, the new Big Boat and the Captain before the Lawyer.

OK, I better stick with the annuity, can't blow it all fast that way easy -

 

[MC Rider]

Lump sum so I could distribute it as I want.
The things you own, end up owning you.
Which is really a pain when trying to pack and move. Like now.

So, I would not go for a mondo size house, or boat, or plane, or widget.