Mega Millions: Lump Sum or Annual Payout?

Typical El Presidente Random Thoughts type stuff

Postby rearadmiral » Tue Jan 04, 2011 6:05 pm

lugnutz wrote:Unless you think you think you can't find a way to earn a greater rate of return then the government you better be taking the lump sum.


What?
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Postby lugnutz » Tue Jan 04, 2011 6:06 pm

Man I would like to give it a try though. Make the is Lugnutz dead thread lege.............................wait for it........................ndary!
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Postby lugnutz » Tue Jan 04, 2011 6:07 pm

rearadmiral wrote:
lugnutz wrote:Unless you think you think you can't find a way to earn a greater rate of return then the government you better be taking the lump sum.


What?



I'm going to ignore you know because I am certain you can figure it out on your own.
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Postby Section 40 » Tue Jan 04, 2011 6:07 pm

330 million / 20 years = 16.5 mil a year before taxes.
Round it off @ 40% for the govt and you take home 9.9 million every year for 20 years.

The lump sum of 220 million pre tax -40% off still leaves you with a 132 million dollar check. Unless you were investing with Bernie Madoff you should be able to live (and die) comfortably on both numbers....

I'm not greedy, I'm willing to split it....
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Postby Brian » Tue Jan 04, 2011 6:26 pm

Lump Sum. You have to figure that the marginal tax rate for the top percent is going to be raised at least once in the coming years. Might as well have the lump sum taxed now and any interest you earn taxed at the capital gains rate rather than getting the annuity taxed at a higher income rate for most of the 26 years you get an annual check.
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Postby Brian » Tue Jan 04, 2011 6:27 pm

To make jackpot look larger, they increased the annuity length from 20 to 26 years a few years ago.
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Postby lugnutz » Tue Jan 04, 2011 6:34 pm

Besides 20 years from now the annuity payment for the year will probably get you a half tank of gas.
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Postby rearadmiral » Tue Jan 04, 2011 6:40 pm

lugnutz wrote:
rearadmiral wrote:
lugnutz wrote:Unless you think you think you can't find a way to earn a greater rate of return then the government you better be taking the lump sum.


What?



I'm going to ignore you know because I am certain you can figure it out on your own.


I think I know what you mean.

I just hate the thought of leaving $ on the table to the gov't. Which, all tax talk aside, is what you're doing.
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Postby tballa55 » Tue Jan 04, 2011 6:52 pm

Rear Ad you don't think the gov't is making just as much money over that 20+ years with your money in their possession?
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Postby Maury Ballstein » Tue Jan 04, 2011 6:57 pm

Annual payout.
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Postby lugnutz » Tue Jan 04, 2011 7:04 pm

The total sum of the annuity doesn't exist at the start.
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Postby Mk » Tue Jan 04, 2011 7:11 pm

Giggles wrote:Ummm the world ending 12/21/12 says "hello."

Lump sum please.


Mix in 5/21/11

http://www.sfgate.com/cgi-bin/article.c ... d=rss.news
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Postby cool_hand » Tue Jan 04, 2011 7:19 pm

Lump sum all the way. Even a palsy 5% return on 200M is 10M. Compound that interest over 20 years and it will get up there.

Though, I'd might consider the annual just to have an excuse to deny all the deadbeats, hanger-ons, second cousins, ex-friends and every other douchebag that comes out of the woodwork looking for free cars and cash.
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Postby lugnutz » Tue Jan 04, 2011 7:33 pm

Wouldn't make any difference to me I'd be dead in a few months. Probably best I let my wife decide. haha
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Postby rearadmiral » Tue Jan 04, 2011 8:27 pm

cool_hand wrote:Lump sum all the way. Even a palsy 5% return on 200M is 10M. Compound that interest over 20 years and it will get up there.

Though, I'd might consider the annual just to have an excuse to deny all the deadbeats, hanger-ons, second cousins, ex-friends and every other douchebag that comes out of the woodwork looking for free cars and cash.


Wouldn't the annual give all the deadbeats an excuse to come out of the woodwork every year?
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