Would it be best to take a lump sum payment or take it over a long term for a lotto player that is in his 30s?
2007-01-09 14:19:25 · 10 answers · asked by lightning_thunderwolf 1 in Business & Finance ➔ Investing
Cash, and then make your own investments and earn interest.
2007-01-09 14:26:38 · answer #1 · answered by Tick E 2 · 0⤊ 0⤋
It depends. Cash with the investing gives you the best rate of return. On the flip side, 80% of those that win those millions, either through court cases or the lotto, are broke. Mike Tyson went from up $300 million to negative $30 million in just a few years. He is the rule with new money from awards, rather than the exception.
If you can't handle money, your best bet is to take the payments. At least you will be 60 something by the time you went broke if it was a large enough payout.
If it's a million or under, you might want to take the cash and use it to buy a house, unless the money is really small like under $20,000.
2007-01-09 18:22:24 · answer #2 · answered by gregory_dittman 7 · 1⤊ 0⤋
You don't tell the cashier anything, because they do not control the payout
The lottery corporation will examine a winning ticket, and when they are sure it is Real, and You are the proper owner, they will outline the options you have. It should be straight forward but I would think, if you had a winning ticket, you would think for a while what is best for you, or talk to a tax guy to find out how that affects you.
I wish I had this Problem
2007-01-09 14:29:18 · answer #3 · answered by bob shark 7 · 0⤊ 0⤋
All the investors out there will be screaming.." lump sum!! lump sum!! we can make a Gazillion off that!! But even though I would love to play....WHY BOTHER? Sit on the deck with a margarita (or a Margie) and wait for the checks....put yer feet up , now!
Maybe you should get a nice hammock for visitors?
Take the annuity.
2007-01-09 14:30:21 · answer #4 · answered by jebediabartlett 6 · 0⤊ 0⤋
Cash. Historical returns from the stock market would indicate that you'll get a lot better returns in the long run (20 years per se on the annuity).
Question is, will history continue to repeat itself?
2007-01-09 14:58:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I asked a lawyer this once, and he said "Cash." He said there's something about the inheritance laws for payouts, that your heirs would have to pay all the taxes up front, before they got the payouts. But maybe that's just American law.
2007-01-09 18:45:37 · answer #6 · answered by Katherine W 7 · 0⤊ 0⤋
if you take a lump sum you lose more money than you would on a yearly payoff and the cashier could care less (unless she/he is a hottie/hunk and you want to take her/him out or something :) )
2007-01-09 14:35:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Finance solutions fast
2015-02-26 12:12:55 · answer #8 · answered by Austine 1 · 0⤊ 0⤋
I think cash, let a financial advisor make more money for you
2007-01-09 14:27:54 · answer #9 · answered by hope95431 2 · 0⤊ 0⤋
Cash so that you can invest it the way you like.
2007-01-09 14:33:14 · answer #10 · answered by tiger 4 · 0⤊ 0⤋