Lump sum or annual payments lottery post v gashi

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Now for my illustration I will use the information for California. The annual payments are over 26 years and the first payment is $175,000 before taxes. After taxes you would receive $129,679. Now, that is a lot of money to most of us, but for those of us that live in California, that would not even come close to paying off our house. Houses in my neighborhood are selling for $450,000 and up for small (1200 sq. ft.) 2 bath, 3-bedroom house on a small lot. I bought my house for $26,500 in 1974 and it is now worth nearly $500,000. If I were to win the lottery, I would want to get out of debt. A check electricity physics problems from the Lotto for $129,679 would not pay off all my bills. So, I have to keep working. I also dont want to keep working if I hit the big one!! So, so far I dont like the annual payments at all! The next year 5 gases, the check would be $189,000 before taxes, and it keeps going up one-tenth of a percent every year after that. After 26 years, you have received the $7 million and the checks STOP!

How about lump sum (my favorite!)? You would receive one check for $2,169,793.50. If I owed $500,000 on my house and $20,000 on credit cards and $35,000 on my nice car, I could pay all of that off (and quit work!!!) and have $1,634,773.50 left to invest. If I invest that in municipal bonds, all the interest I earn is tax FREE!! This is what all the wealthy people do. You have already paid tax on it, why pay tax again? I dont know what the going rate for muni bonds are, but you will find that the percentage is less than other investments, but when you consider the tax FREE aspectthey often are very competitive. If I can get 4%, that is over $65,000 per year for me (just taking the interest), TAX FREE. Even us Californians can live on $65,000 per year gas 2 chainz tax free with all of our major bills paid off. And, the beautiful thing about this is that the money never ever runs out!! Not at that rate, anyway.

Ledhhed22 and phantomrainbow, maybe in your state(s) you can decide after you win, but in California we have to mark it on the play slip and it can not be changed (it has gsa 2016 catalog been tried in court and lost). Ledhed22 you said you are set for life…maybe but the checks STOP in 26 years. If you read books written by people that hit the lottery, you will see some of the problems they have had and why so many of them are broke! For one thing, most of us are not used to budgetting ONE paycheck per year. That is how it is done and very few people can budget for 12 months out of ONE paycheck. You may be the exception gas 99 cents a litre and I don’t want to agrue about this, just discuss it!!

You do NOT get more money in the long run with either method unless you can’t find some investment for the lump sum that will return enough (after you have gotten completely out of debt!!) to live on. Ledhed22, you must have a lot of bills for you to say that the lump sum would have to be $25 million. My example only used $3.3 million and it would be more than enough for me.

Now phantomrainbow is in a different boat!! He/she could live one whole year after someone stole the money and just wait for the next check to come. Well, I couldn’t do that! Again, in California we can not split it between lump sum and annunity. I think they are going to try to do a major overhaul of the California Lottery, so maybe they will change that.

You’re assuming that a person who won the lottery has two choices, 1. Take the lump sum and invest it, or 2. Take the annuity and spend every penny of it every year. I can think of at least two gas you up more options, 3. Take the lump sum and blow most of it on crackpot investments, or 4. Take the annuity, and each year spend some, invest some o goshi judo, and save some. You’d be suprised at how many people choose the third option. I think it’s a little over 80%. On the other hand, if you choose the 4th option, you’d be able to live comfortably off of your savings and investments when the checks stopped coming.

If I can get 4%, that is over $65,000 per year for me (just taking the interest), TAX FREE. Even us Californians can live on $65,000 per year tax free with all of our major bills paid off. Or you can live off $129,679 a year without your major bills paid off, at least for a few years. During those few years pay off your bills, then live off of $129,679 with your bills paid for the next 20 years or so.

For one thing, most of us are not used to budgetting ONE paycheck per year. That is how it is done and very few people can budget for 12 months out of ONE paycheck. People who would have a problem budgeting one paycheck per year would probably have a problem budgeting one paycheck per life. That’s what would happen if you took the lump sum electricity song lyrics.

Also, different people have different situations. My main concern wouldn’t be trying to wring every penny from my winnings. My main concern would be living comfortably the rest of my life. If I won the Powerball today, I would be 70 years old when the payments stopped. To be honest, I don’t expect to live that long. But if I did, I would probably be living a pretty simple life. I think I could manage pretty well if I was careful with my annuity payments.

Fwup, I agree that there are other ways than just the 2 I gave. Yes, some people would be able to do those electricity and magnetism worksheets things you list, but when I worked in the financial industry, I found that people needed help! I would not suggest that someone that took the lump sum would have only 1 paycheck per life!!! That would be the wise person that would seek professional advice and invest the money and live off the interest.

You suggested that the electricity production person could take the annual payments and quit their job and live off the yearly payments. Yes, that would probably work for the first 20 years! You assume in most of your examples that the person is very wise in handling money and can invest some of the money as they go along. Again, that is not what I saw when I worked in the industry. But there are exceptions, and some people can handle large amounts of money and even handle one pay check per year, but it has been my experience that the percentage of people that can do that is very low.

I think gas stations in texas that you are one of those people that can live within your means even if you came into money. And I don’t think you have family to leave it to, so the annual payments would work for you. I have become better over the years (I’m 60 now) handling money, but it took many years to learn my lessons!! It is just my personal choice that I would want to pay off all my bills and quit my job, not quit my job and keep paying my bills! It is just a matter of choice and mine is different than yours.