You Hit the $700 Million Powerball. You Taking Lump Sum or Annuity?

[King Frost]

http://www.powerball.com/powerball/winners/2017/MA_Jackpot_2017.shtml

receive a lump sum payment of $480,500,936. After taxes, her check will amount to $336,350,655

I'd learn Spanish then fly to DR every Friday evening to bang 19 yr old chicas for $25 short time then return to my private island in the Bahamas with my Dominican passport on Monday morning

 

[Green N' White]

Lump sum. Buying rental properties and apartments.

That money isn't guaranteed if you take the annuity and die before maturation. Your family can't collect on your behalf posthumously in most states either.

 

[Malta]

Why would you try to flip $400 mil if you got $15-17 mill coming in every year for 29 years?

Anything over $25 million and you're losing money by taking the annuity.

 

[Colonel Sanders]

Annuity with 700 M$ breh, buying properties breh, giving your parents a large portion of that money brehThat's the reason why most of you will stay broke forever, poor decision skillset

 

[Black Panther]

http://www.powerball.com/powerball/winners/2017/MA_Jackpot_2017.shtml



I'd learn Spanish then fly to DR every Friday evening to bang 19 yr old chicas for $25 short time then return to my private island in the Bahamas with my Dominican passport on Monday morning

Become a millionaire and immediately catch an STD, brehs

 

[Black Panther]

Anything over $25 million and you're losing money by taking the annuity.

How so, if the payments are guaranteed to rise with inflation?

...the annuity payments actually increase over time due to inflation.

 

[King Frost]

I'll buy a cure

 

[R.E.N. Spells Ren]

Lump sum. $480M.

Take $180M for myself. Split the remaining $300M amongst my closest family and a few friends...about 50 folks total.

 

[50CentStan]

What I'm doing with the money ? I'm building huge mosques in every redneck city and neighborhood. And putting the fruit of islam as security with army guns

 

[Malta]

How so, if the payments are guaranteed to rise with inflation?

Which is still subject to high tax rates.

The money you can generate from interest on a large lump sum is equal to or higher than the money from the annuity itself, and if you're putting 80% of that yearly interest back into the principal you're making more and more every year. Also, a lot of municipal bonds are tax exempt.

If you're bad with money take the annuity, if you realize that financing or leasing everything with that kind of money is the way to go, then take the lump.

 

[1 other person]

Real estate is how people go broke.


All you need to do with $400 million in cash is put it in various municipal bonds, with a modest 5% return you're looking at $20 million a year from interest on a very safe commodity.

All real estate isnt equal. An apartment complex can net you a 20% return on your investment easy.

 

[R.E.N. Spells Ren]

How so, if the payments are guaranteed to rise with inflation?

The way the lottery works, if the lump sum is. $480M, that's cuz that's how much money they actually have on hand to pay the jackpot. They advertise it as $700M because that's what they're guaranteeing they'll be able to pay you over 30 years (or whatever the life of the annuity is). So if that's what they're willing to guarantee they'll be able to pay, in all likelihood you could beat that by taking the lump sum and investing it yourself (not even yourself, but using a private equity firm) pretty easily. They advertise the $700M cuz it sells more tickets.

 

[R.E.N. Spells Ren]

That money isn't guaranteed if you take the annuity and die before maturation. Your family can't collect on your behalf posthumously in most states either.

Not true, it goes to your estate.

 

[Spiritual Stratocaster]

Annual..

Not even my dumbass would blow through 10mil in a year...

But if I did..just hold it down until that next check

 

[Emoryal]

By 'flip' I mean investments and real estate.

Why?