Which Payment Option Should You Choose for the Lottery? Explained
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Lump sum is before taxes, so the math is wrong. Also, the annual money as well.
Any advantage tax-wise?
You are already paying the highest marginal tax rate regardless of the choice with those amounts
Lump sum. Can easily utilize the money to buy assets that’d make more money than the annuities. The assets can build equity, and if planned correctly, can help out the community way more and longer
Depends on the age
Who’s responsible for giving out the payments and how sure are you they will be around in 30 years/ won’t make a law saying you get less than promised if things go south?
Love this topic. I don’t think it’s realistic anyone could grow the ENTIRE lump sum by 5%. Let the gov’t grow it for you stress free and take the annuity. Plus I assume I could pass down annuities to the next generation.
I was assuming if you die in that 30 years, the balance goes poof!
In either case, it should be easy for anyone to grow the lump sum at over 5%…but the people that play the lottery aren’t known for their math skills or patience
i assume this is true even factoring in taxes (the final amounts being lower but still more if you took the lump sum and didn’t look at it for 30 years)
Give me the annuity, all day, everyday. I want that steady cash flow. 🤑
U can with the lump sum
Lump sum just in case someone suddenly changes their mind and don’t want to pay me for whatever reason.
Inasmuch as I’ve 10-15 years to live, and can’t spend that kind of money but do know a 501(c)(3) which would benefit, I’d take yearly dispensations, hands down, so long as I know the lottery is solvent.
I would take the payments and also get the 5% return on the money every year, plus the 5% increase in the anuity
Not talking taxes is crazy
This came at a great time as I was just planning on winning the lottery.
Thanks for continuing updates and for keeping us financially Educated! Regardless of how bad it gets on the economy, I’d rather trade the crypto market as it’s more profitable than holding. I made a Hundred thousand dollars from trading last year even though I barely trade myself.
I have lost a lot trading all by myself without a guide. It’s been an uneasy ride for me. Who is your mentor please.
Ms Telisha Wolfson was my hope during the ‘bear summer’ last year. I did so many mistakes but also learned so much from it, and of course from Telisha Wolfson
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional .
She is my family’s personal broker and also a personal broker in many families I’m United State, she’s a licensed broker and a FINRA AGENT in United states
I Started with 5,000$ and Withdrew profits
89,000$
What if you die does your annuity get passed on like inheritance? Tomorrow isn’t promised either way. LUMP SUM
I would Take a Lump Some , To Reinvest.
Taxes. Federal, state and even city. Yeah, if I win, never coming back to NYC
Yes.
Self-awareness is key.
If you’re disciplined, all at once.
If not, 30-year plan.
I would take annual payments. Likely would make you less of a target and you arent able to just blow it all at once.
The first axioms of Finance: Cash is King.
Hope that helps