- Sep 25, 2001
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Surprised lumpsum is only 22% less.
I guess high interest rates (5+%) on govt t-bills?
The state lottery is always "invisibly 'hoping'" an old person takes the annuity and doesn't make it past the first year.
It's still only a payout of 250k instead of the full 390k for a lump sum. Point is, whatever costs the least to the state is the most "desirable" result. (It's not a living entity, but it's operation has preferences because humans still operate the entity)The guy in the article is 60. He will probably be around for a decade or probably two.
He did say that he would travel and save the rest. So, a good chunk could be invested.The smart thing to do is to take the lump sum (~$250K after taxes) and invest it. Most that play the lottery won't though.
10 years at a conservative 8% would amount to $540K. 10% = $648K. 12% = $776K. Plenty of ETFs can do that.