U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-03-2011, 03:20 PM
 
2,110 posts, read 3,968,729 times
Reputation: 969

Advertisements

The California Lottery and Mega Millions both offer a cash payout option for winners. Is it better to take the payout or sell your winning ticket to someone like JG Wentworth?
Reply With Quote Quick reply to this message

 
Old 05-03-2011, 03:22 PM
 
14,217 posts, read 14,357,155 times
Reputation: 13456
Quote:
Originally Posted by wrcousert View Post
The California Lottery and Mega Millions both offer a cash payout option for winners. Is it better to take the payout or sell your winning ticket to someone like JG Wentworth?
Suggest you send me your winning ticket and I will research the options
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 03:25 PM
 
2,110 posts, read 3,968,729 times
Reputation: 969
Quote:
Originally Posted by Jaggy001 View Post
Suggest you send me your winning ticket and I will research the options

Absolutely. I just ask for a "small" handling fee. You can send that to me via Western Union.
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 03:29 PM
 
Location: Back in COLORADO!!!
837 posts, read 1,987,324 times
Reputation: 1373
Quote:
Originally Posted by wrcousert View Post
The California Lottery and Mega Millions both offer a cash payout option for winners. Is it better to take the payout or sell your winning ticket to someone like JG Wentworth?
How I wish I was confronted with this dilemma........
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 03:38 PM
 
2,110 posts, read 3,968,729 times
Reputation: 969
Quote:
Originally Posted by GreenScoutII View Post
How I wish I was confronted with this dilemma........
Me too!

Someone brought this up at work the other day. Odds are I won't win, but someone here might.
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 03:58 PM
 
Location: Holmdel, NJ
21,638 posts, read 27,544,554 times
Reputation: 13670
anyone know the way the lump sum is calculated? that would probably help with the answer.
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 05:07 PM
 
2,110 posts, read 3,968,729 times
Reputation: 969
I'm thinking it might be better to take the states offer. Lotto winnings aren't subject to California state income tax. The JG Wentworth payment probably is.
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 06:33 PM
 
Location: Holmdel, NJ
21,638 posts, read 27,544,554 times
Reputation: 13670
Quote:
Originally Posted by wrcousert View Post
I'm thinking it might be better to take the states offer. Lotto winnings aren't subject to California state income tax. The JG Wentworth payment probably is.
it really is a matter of math. you should figure out what goes into the calculation for the state and talk to an accountant. the tax issue could be huge.
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 06:55 PM
 
8,939 posts, read 10,829,821 times
Reputation: 5690
I think if it's 100 Million, you agree to lump sum of half - 50 Million and then the 50 Million is taxed at say 20 % so 12.5 Million in taxes, nets you 38.5 Million.

( Hope I have my math right ! )
Reply With Quote Quick reply to this message
 
Old 05-03-2011, 09:35 PM
 
13,501 posts, read 22,175,871 times
Reputation: 17942
Quote:
Originally Posted by CaptainNJ View Post
anyone know the way the lump sum is calculated? that would probably help with the answer.
The last time I calculated it, the prize was discounted 7.0%. Net present value with a 7% discount.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top