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briansol · 08-21-2007, 09:02 PM

If you won the lottery, would you take the lump sum, or the annuity over 21-30 years (or whatever it happens to be in your area)

The CASH LUMP SUM payout option is equal to approximately one-half of the estimated annuitized jackpot.

But, you have all the money up front to make interest and or investments on it.
the annuity is guarnteed.... if you take it all, you might not make a dime on it.

What would you do?

getnick · 08-22-2007, 08:24 PM

I think it depends on your lifestyle. if you wanted to keep working, I would say take the annuity. you could have a supplemental income for a long period of time and work while you collect. It would be a form of double income and would help you save and pay off debt.

If you want to just take time off and live with the money, you could take the lump sum, invest in a conservative rate of return cd or money market and live off the interest. The lottery wants people to take the annuity because they can invest and make profits on that while they are making the payouts. it's a win/win for them. they gain interest on the lotto winners money.

I personally would take the lump sum and invest. I would use the assets to finance real estate in this down market we are in right now. I would probably go more into land/property than actual housing developments. If you still had money available, you could invest in a private party annuity and gain the same amount or more than if you kept it in the lottery management system.

View Poll Results: Lottery winnings?
Lump Sum	1	50.00%
Annuity	1	50.00%
Voters: 2. You may not vote on this poll

08-21-2007, 09:02 PM	#1 (permalink)
briansol Administrator Join Date: Aug 2006 Location: Central CT Age: 28 Posts: 502 Rep Power: 10	Winning the Lottery - Take Lump sum, or Annuity If you won the lottery, would you take the lump sum, or the annuity over 21-30 years (or whatever it happens to be in your area) The CASH LUMP SUM payout option is equal to approximately one-half of the estimated annuitized jackpot. But, you have all the money up front to make interest and or investments on it. the annuity is guarnteed.... if you take it all, you might not make a dime on it. What would you do?

08-22-2007, 08:24 PM	#2 (permalink)
getnick Super Moderator Join Date: Aug 2006 Location: West Coast Posts: 531 Rep Power: 4	I think it depends on your lifestyle. if you wanted to keep working, I would say take the annuity. you could have a supplemental income for a long period of time and work while you collect. It would be a form of double income and would help you save and pay off debt. If you want to just take time off and live with the money, you could take the lump sum, invest in a conservative rate of return cd or money market and live off the interest. The lottery wants people to take the annuity because they can invest and make profits on that while they are making the payouts. it's a win/win for them. they gain interest on the lotto winners money. I personally would take the lump sum and invest. I would use the assets to finance real estate in this down market we are in right now. I would probably go more into land/property than actual housing developments. If you still had money available, you could invest in a private party annuity and gain the same amount or more than if you kept it in the lottery management system.

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