If I win $1.5+B Powerball on Wed....

Always take the cash payout. Unless you think you will blow through all that cash, but the cash payout is the better deal. The annuity payout is such a bad rate of return.

 
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ColoradoHusk said:
Always take the cash payout. Unless you think you will blow through all that cash, but the cash payout is the better deal. The annuity payout is such a bad rate of return.
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Yep, plus if you die right away guess who gets to keep your money. But I'll gladly partake!

 
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RedSavage said:
ColoradoHusk said:
Always take the cash payout. Unless you think you will blow through all that cash, but the cash payout is the better deal. The annuity payout is such a bad rate of return.
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Yep, plus if you die right away guess who gets to keep your money.
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I think the annuity payments can be passed on to heirs, now, but the cash payout is way better.

The annuity payment is basically an annuity with 3.7% annual interest.

 
ColoradoHusk said:
RedSavage said:
ColoradoHusk said:
Always take the cash payout. Unless you think you will blow through all that cash, but the cash payout is the better deal. The annuity payout is such a bad rate of return.
Click to expand...
Yep, plus if you die right away guess who gets to keep your money.
Click to expand...
I think the annuity payments can be passed on to heirs, now, but the cash payout is way better.

The annuity payment is basically an annuity with 3.7% annual interest.
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Huh, didn't know the annuity could be passed on to heirs. That's not bad for a guaranteed rate but like you said, you'd be much better off taking the lump sum and investing it. You could live very comfortably off the interest alone, most years.

 
The University of Nebraska would be getting a phone call from me the day after I won the 1.33 billion. I would ask them how much money would I have to donate to the University to have a suit for the rest of my life, access to practices, sidelines and anything else for that matter.

 
Cash payout would be $930 Million. Roughly 40% federal taxes would take out $372M. Let's assume another 5% state income tax (varies depending on state), so that's another $47M. So, that is a total of $511M of take home cash.

Even if you took $11M and blew it on the stupidest stuff you can think of, you would be left with $500M. Let's say you took $200M of that an invested in fixed income securities, paying 4-8%. That is $8-16M of INCOME just on that $200M. That $200M would also be pretty safe and not lose much value, if any. You could take the other $300M and invest it in other stuff that you will never touch and can leave alone and then figure out what you want to do with it later in life.

 
ColoradoHusk said:
Cash payout would be $930 Million. Roughly 40% federal taxes would take out $372M. Let's assume another 5% state income tax (varies depending on state), so that's another $47M. So, that is a total of $511M of take home cash.

Even if you took $11M and blew it on the stupidest stuff you can think of, you would be left with $500M. Let's say you took $200M of that an invested in fixed income securities, paying 4-8%. That is $8-16M of INCOME just on that $200M. That $200M would also be pretty safe and not lose much value, if any. You could take the other $300M and invest it in other stuff that you will never touch and can leave alone and then figure out what you want to do with it later in life.
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Sounds like the rationale of every lottery winner that ended up bankrupt
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I'd take the annuity in a heartbeat. Leaves my family set for life no matter what, would still have more money than I'd ever know what to do with but in the form of essentially a yearly salary, and I honestly just couldn't care about the difference between two close amounts in the hundreds of millions.

 
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Landlord of Memorial Stadium said:
ColoradoHusk said:
Cash payout would be $930 Million. Roughly 40% federal taxes would take out $372M. Let's assume another 5% state income tax (varies depending on state), so that's another $47M. So, that is a total of $511M of take home cash.

Even if you took $11M and blew it on the stupidest stuff you can think of, you would be left with $500M. Let's say you took $200M of that an invested in fixed income securities, paying 4-8%. That is $8-16M of INCOME just on that $200M. That $200M would also be pretty safe and not lose much value, if any. You could take the other $300M and invest it in other stuff that you will never touch and can leave alone and then figure out what you want to do with it later in life.
Click to expand...


Sounds like the rationale of every lottery winner that ended up bankrupt
default_tongue.png


I'd take the annuity in a heartbeat. Leaves my family set for life no matter what, would still have more money than I'd ever know what to do with but in the form of essentially a yearly salary, and I honestly just couldn't care about the difference between two close amounts in the hundreds of millions.
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I also could live very well with the annuity payments. I have a finance background, so I would actually like having the ability to try to make the money work for me.

If I took a few million $ and blew it on the stupidest stuff ever to get it out of my system, I am sure I would have a hard time spending $5-10M per year. It sure would be fun trying though.

 
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