Powerball winner. Installments or Upfront

[Rock Hydra]

Originally posted by: RightIsWrong
You should always take it in the lump sum. Lottery annuities are NOT "willable". Once you die, with my luck the day after I choose the installments, they are off the hook and don't owe another penny. Tis better to seemingly take less now, than to be hit by a bus a month later and "only" have the first payment.

If you died, it doesn't matter if you had it all or not. You're fvcking dead.

 

[Glavinsolo]

Poll added

 

[racolvin]

Installments, definitely. They are done in annual payments over 30 years IIRC, so with the $365M, that'd be around $12M/year before taxes.... I think I could live off that Installments guarantees I can't blow it all and end up driving a cab in Vegas in 5 years. It provides a convenient "excuse" to tell people you can't give them money you don't have. The money is invested in treasury bonds if I remember correctly, so it isn't a matter of the "company" going bankrupt or anything like that, so your money is as guaranteed as anything else around. The payments are "willable" so if I croak I can leave it to my wife or however I want to handle it in my estate.

 

[Genx87]

Upfront and invest in rental properties. Build a portfolio of about 30-50 million in residential + commercial residential properties.

 

[dxkj]

Originally posted by: Glavinsolo
CNN:
The ticket holder has the option of taking the money in one lump sum or installments over 30 years. The cash option is $177.3 million, or $124.1 million after taxes. On the installment plan, the first payment would be $6,507,986 after taxes.

Would you take the 124.1million and invest it. Or take the 6.5million yearly and know that you have a fixed income for the rest of your life.

A little Future Value, Present Value, Annuity fun for whoever actually does the work.

Edit:
Poll Added

124 million... take 24 million of it and splurge on your friends, family, self, buy a few houses, etc, etc

take 100 million and invest it , a decent return of 10% and you would be getting 10 million a year before taxes

 

[AmigaMan]

Originally posted by: racolvin
Installments, definitely. They are done in annual payments over 30 years IIRC, so with the $365M, that'd be around $12M/year before taxes.... I think I could live off that Installments guarantees I can't blow it all and end up driving a cab in Vegas in 5 years. It provides a convenient "excuse" to tell people you can't give them money you don't have. The money is invested in treasury bonds if I remember correctly, so it isn't a matter of the "company" going bankrupt or anything like that, so your money is as guaranteed as anything else around. The payments are "willable" so if I croak I can leave it to my wife or however I want to handle it in my estate.

QFT!

 

[Glavinsolo]

OK OK. Here it is since no one did it.

Future Value Factor

Amount now $ 124,000,000
Annual Interest Rate: 6% (Conservative, in many cases you can easily do better)
Number of times interest is compounded: 30
Number of Years: 30

Future Value (6%) = 748,809,013.24
Future Value (8%) = 1,362,514,601.44
Future Value (10%) = 2,478,212,093.22
--------------------------------------------------------------------------------------------------
Future Value of an Ordinary Annuity

Payment Amount $ 6,500,000
Interest Rate: 6%
Number of Payments: 30

Future Value of Annuity (6%) = 513,878,210.40
Future Value of Annuity (8%) = 736,340,872.24
Future Value of Annuity (10%) = 1,069,211,147.48

 

[DaShen]

Originally posted by: Glavinsolo
OK OK. Here it is since no one did it.

Future Value Factor

Amount now $ 124,000,000
Annual Interest Rate: 6% (Conservative, in many cases you can easily do better)
Number of times interest is compounded: 30
Number of Years: 30

Future Value (6%) = 748,809,013.24
Future Value (8%) = 1,362,514,601.44
Future Value (10%) = 2,478,212,093.22
--------------------------------------------------------------------------------------------------
Future Value of an Ordinary Annuity

Payment Amount $ 6,500,000
Interest Rate: 6%
Number of Payments: 30

Future Value of Annuity (6%) = 513,878,210.40
Future Value of Annuity (8%) = 736,340,872.24
Future Value of Annuity (10%) = 1,069,211,147.48

That is only if you let it compound in investments without touching the interest.
I would say it is obvious that you get more money from the Cash option, but you can just as easily blow that same amount with the cash option.

 

[Kelemvor]

I'd take the lump sum because we always get a pool together at work. If it was high enough though that I'd get at least a couple mil each year for 30 years then I'd consider that.

 

[mrrman]

show me the ccaaasssshhhh

 

[JDrake]

I voted for yearly..

 

[jumpr]

I'd take it upfront and donate 3/4 of it to the American Cancer Society and my college. Then I'd stick the rest in a fixed account and live off the interest.

 

[ViperSSD]

Originally posted by: Bigsm00th

Originally posted by: swtethan
it would be worth less in 40 years

uh no. 2,000 was a hell of a lot more money 30 years ago than it is now, but 2,000 is still nothing to laugh at. your logic sucks.

Wow, you are an idiot, what you are talking about is inflation eg. 30 years ago $2000 could buy a new car, now a new car may cost $30000, but I guess someone like you would keep your money in a matress whereby someone with any sense would invest it and earn more that the current rate of inflation

 

[Muadib]

Give it all to me, so I can put it all on black. It would so be worth it, just to see the look on the pit bosses face.

 

[flexy]

installments
how i turn it, installments or lump, its a HELL lot of money. Installments cant get "lost" as other pointed out. At the end you will get more from the isntallments.

So...even if i "only" get 6.5M/year w/ the installments it is still enough for everything i could ever dream off - and, yes, the installments would guarantee i dont do stupid sh!t, also, the thought of getting this every year is great too.

The IRONY...is how many people are talking about "investments"...this is SO MUCH money that i for sure wont bother ONE BIT about "investments" or bother about "real estate" or anything else. WHATS the point ??? You have money out the ***..so why should i start "investing" this or play around with real estate ?

The only thing, of course, put the money on some account w/ interest......but even THEN this is almost pointless since you will get 6.5M every year...so i wouldnt even need to care whether i get any interest. (Maybe people wouild just start to worry about APRs and investments out of boredom ? For sure not needed with a guaranteed 6.5M/year

 

[Chaotic42]

Up front.

A financial planner friend said that unless you're an idiot with money, it's better to take the money up front.

 

[BigDaddy1]

Powerball Commission invests the jackpot conservatively, to ensure the integrity of the money. You can gamble on riskier investments with potential corresponding higher rates of return. IF you lose the money, oh well. The Powerball has to ensure they can fulfill their obligation; otherwise, they are going to have a HARD time attracting players. If they don't even honor the annuity recipients, how do you know they have the money to pay me my winnings? So, annuities are safe, IF you are willing to take minimum ROI; Any investment counselor will advise you to take the lump sum. ...

 

[xaeniac]

You take it now. It might not be there tomorrow.