Thread: A Question For The Americans On Here

I've just been reading an article on Yahoo UK about this multimillion Dollar lottery.
One of the winners elected to take a LOWER amount spread over 26 years.
Whats the advantage in doing so?
Seems strange to me, or am i reading this wrongly?
Winner Of Record US Lottery Prize Claims Cash - Yahoo! News UK

Reg

I was in America for the draw of that lottery and the days leading up to the draw saw traffic jams and mobs of people trying to buy tickets.

3 winners so I believe and I reckon a lower payment amount over 25 years is the way to go as long as interest is paid on the withheld monies.

You get millions a year, dont have to worry about taxes, or nearly as many "old friends and acquaintances"

This being the key.

Opting for a lower cash prize rather than a higher pre-tax amount of \$218.6m (£137.7m) paid out over 26 years, the winner will pocket \$110.5m (£69.6m) after taxes and fees.

So she has that free and clear in a bank account. no more taxes ever on it. Whoa!!!!

Forget about the old friends blah blah blah, everybody she has ever known will be wanting to get to know their old friend again.

If she had the brains to do this, hopefully she wont go the way of so many big lottery winners.

they do say that lotteries are a tax on the stupid, which is why many lottery winners are useless at handing the cash

Originally Posted by SEA Traveler

I know who may friends are and they would be along for the ride with me! __________________

Made in the shade SEA, but lets invest in tickets together with a group we can trust. There is one big problem involving a ticket a pool and a McDonalds, yup thats right, brewing up in Maryland USA.

Rumored Maryland Mega Millions winner faces controversy | WJLA.com

Originally Posted by DrAndy

they do say that lotteries are a tax on the stupid, which is why many lottery winners are useless at handing the cash

Always notice that the winners are almost universally from places like Bum Fuck, Kentucky?

don;t knock Bum Fuck, Kentucky if you havn't been there

Originally Posted by S Landreth

Originally Posted by DrAndy

they do say that lotteries are a tax on the stupid, which is why many lottery winners are useless at handing the cash

I know a guy who won the Florida lottery twice (in reality he purchased both winning tickets from illegals) and with one of the winning tickets he put all of his kids names on it to be paid out over the years because he had a feeling if they got the money in a lump sum they would piss it all away.

How did he know the illegals have the winning tickets and how much did he pay for them?

We Brits dont pay income tax on the winnings. Only on the interest those winnings make. Which is why i thought it a strange decision. And i dont think we get the option to take a yearly lump sum
However, thinking about it, and seeing some threads, it seems to be be a case of the winners realising they would piss it all away.

Thanks to all that replied

Reg

There's a lottery going at the moment that will pay 500 million.
What would you do with it?
I'd form my own army.

Originally Posted by Koojo

Originally Posted by S Landreth

Originally Posted by DrAndy

they do say that lotteries are a tax on the stupid, which is why many lottery winners are useless at handing the cash

I know a guy who won the Florida lottery twice (in reality he purchased both winning tickets from illegals) and with one of the winning tickets he put all of his kids names on it to be paid out over the years because he had a feeling if they got the money in a lump sum they would piss it all away.

How did he know the illegals have the winning tickets and how much did he pay for them?

He didn't,..they came to him.

As I understand, the first one came to him, because they (the person who purchased the ticket) knew he might be able to help them. The second one because word travels. I don't know how much he paid for either winning ticket.

Originally Posted by SEA Traveler

... I know who may friends are and they would be along for the ride with me!

thanks mate

Originally Posted by Koojo

There's a lottery going at the moment that will pay 500 million. What would you do with it? I'd form my own army.

The A.A.R.C. I suppose.
(Anti Ant Robertson Coalition.)

Originally Posted by registrar

I've just been reading an article on Yahoo UK about this multimillion Dollar lottery.
One of the winners elected to take a LOWER amount spread over 26 years.
Whats the advantage in doing so?
Seems strange to me, or am i reading this wrongly?
Winner Of Record US Lottery Prize Claims Cash - Yahoo! News UK

Reg

You misread the article.

Opting for a lower cash prize rather than a higher pre-tax amount of \$218.6m (£137.7m) paid out over 26 years, the winner will pocket \$110.5m (£69.6m) after taxes and fees.

The winner took the lower cash amount rather than 26 yealy payments that would have totaled the $218 million prize.


Most US lotteries offer the cash option which is the amount the lottery organization would have paid for an annuity that pays over the 26 years.
TH

Lottery Annuity Vs. Lump Sum | eHow.com

Annuity

• An annuity is a series of annual payments for a specified number of years. The annual payment amount times the number of payments is the face value of the annuity. In a lottery, the face value is the advertised jackpot.
  
  

Lump Sum

• In a lottery, the dollar amount of the lump sum option is the cash value (present value) of the annuity based on a specified interest rate. That is, the lump sum is the amount of money that you could deposit into an account at the specified interest rate and at the end of the annuity term, you would have an amount equal to the face value of the annuity.
  
  

Originally Posted by registrar

I've just been reading an article on Yahoo UK about this multimillion Dollar lottery.
One of the winners elected to take a LOWER amount spread over 26 years.
Whats the advantage in doing so?
Seems strange to me, or am i reading this wrongly?
Winner Of Record US Lottery Prize Claims Cash - Yahoo! News UK

Reg

Economics education in America is pitiful and millions have no clue how to manage their own funds, and they damn sure know nothing about the time value of money. Taking annual payments is easier because it manages the money for them.

As it turns out the sum in this case is so high it shouldn't matter but plenty of lottery winners still find a way to go broke. See the comment above about economics education to know why.

Originally Posted by crocman

Originally Posted by Koojo

There's a lottery going at the moment that will pay 500 million. What would you do with it? I'd form my own army.

The A.A.R.C. I suppose.
(Anti Ant Robertson Coalition.)

I don't have a specific beef with that dickhead. I've never had an online disagreement or spat with him or met him in person.
I just reckon he's a fuckwit for making such a big girly flounce, and mince of to SZ only to get banned and then rather than come back here he skulks around in the background commenting via repo.
I just thinks it's a really creepy thing to do and I know from watching his posting style that he is almost obsessive about getting the last word in so I like to taunt him with the fact that he CAN'T now, no matter what.
This has the added benefit of getting the sycophantic fanboy willie all riled up on Ants behalf, how dare I disrespect his hero.
I think they may be playing a joke on me however, something like ant posting using one of his fanboys nicks and thereby surreptitiously getting the last word in.
Then he and the fanboys, by pm, snigger like little girls behind cupped hands, but surely that would be just too creepy and not a little sad.

never mind Koojo

it is all in your mind

Ant doesn't exist, so you have never received any repos from him

Originally Posted by DrAndy

never mind Koojo

it is all in your mind

Ant doesn't exist, so you have never received any repos from him

Oh he exists, I know it's just too creepy and sad to believe, but he does.

Originally Posted by Koojo

Originally Posted by crocman

Originally Posted by Koojo

There's a lottery going at the moment that will pay 500 million. What would you do with it? I'd form my own army.

The A.A.R.C. I suppose.
(Anti Ant Robertson Coalition.)

I don't have a specific beef with that dickhead. I've never had an online disagreement or spat with him or met him in person.
I just reckon he's a fuckwit for making such a big girly flounce, and mince of to SZ only to get banned and then rather than come back here he skulks around in the background commenting via repo.
I just thinks it's a really creepy thing to do and I know from watching his posting style that he is almost obsessive about getting the last word in so I like to taunt him with the fact that he CAN'T now, no matter what.
This has the added benefit of getting the sycophantic fanboy willie all riled up on Ants behalf, how dare I disrespect his hero.
I think they may be playing a joke on me however, something like ant posting using one of his fanboys nicks and thereby surreptitiously getting the last word in.
Then he and the fanboys, by pm, snigger like little girls behind cupped hands, but surely that would be just too creepy and not a little sad.

SORRY for laughing so hard but that is the funniest and latest reply I have ever received.You are an absolute legend.Green on the way

My understanding of the US lottery was that if you opt for yearly payments, it all ends if you die. This would make the single payment option more attractive to me if I could not pass the yearly payments on to one, or more, or my relatives.

Does anyone have the fine print portion of the lottery handy that shows what happens if you kick the bucket?

I would opt for all the cash upfront. I don't trust the govt to Owe Me money. Get all the taxes paid right off the bat and never have to worry about it. When you die your relatives get it free and clear (except for estate taxes). In some states, if you die while taking the annuity, you heirs have to put up an equal amount of money in a trust before they can inherit your annuity. Just one more way the govt can rip you off.

RickThai