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Seriously states are increasing their 'catch' of profits by taking more each year little by little . What may be a 6% one year will be 9-12% by year 12 of the annuity. The feds get upfront and be done. Not so true for states.
Take YOUR money and run. Get your necessities and be done with 'investing' or giving YOUR money to corps in the stocks. They'll tax your profits...so why even go there.
Because you are making money in that case? Why wouldn’t you want to go there?
Seriously states are increasing their 'catch' of profits by taking more each year little by little . What may be a 6% one year will be 9-12% by year 12 of the annuity. The feds get upfront and be done. Not so true for states.
Take YOUR money and run. Get your necessities and be done with 'investing' or giving YOUR money to corps in the stocks. They'll tax your profits...so why even go there.
I would create a trust that would pick up the prize (in my state that's allowed), and then have the trust pay out a percentage to me every year. This would I couldn't overspend it. Let's say my take-home after taxes is $100M. Pay me 2% every year while having it earn 4%, and I'd never run out of money but would live quite nicely on 2M a year...
Perhaps for protection. A lot of lottery winners end up broke only a few years later. With the annuity they guarantee they will always have money coming in.
Why is there any assumption that someone... of a mindset to play the lottery, let's phrase it... would be likely to make sensible financial choices upon winning?
I don’t play the lottery, but if I did and were to win several million dollars,I would take the lump sum in a heartbeat. When you’re in your 60’s that just what you do!
The government takes the time value of an annuity into account when it calculates the lump sum.
Then you pay taxes on the lump sum which is somewhere between 36 and 40%.
The govt isn’t going to value it the same way I am. Certainly not when comparing annuities with all available investment options
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