Current Events > If you won that huge powerball, any of you would not take the lump sum?

(+) Yeah! (+)

any of you?

Lump sum all the way.

With investing its more money in practice. Also simpler for taxes.

Unsuprised_Pika posted...

Lump sum all the way.

With investing its more money in practice. Also simpler for taxes.

I agree with this stance. You could potentially make more money by investing in lower risk investments and dividend stocks than what the annuity payout would be if you took the 30 year option.

Unsuprised_Pika posted...

Lump sum all the way.

With investing its more money in practice. Also simpler for taxes.

this

I would have to consider it and see what they payments are per year.

lump sum easily

what happens if you take the payouts and the government falls apart the next time Trump is elected?

I would donate like 80% of it

I got nothing to do with that much money

Lump sum all the way

Lump sum, no doubt

Unsuprised_Pika posted...

Lump sum all the way.

With investing its more money in practice. Also simpler for taxes.

You also don't know what tomorrow brings. Even if you're promised the accural, things may get fuckey over time.

Always take the lump sum.

Lump sum

How can you guarantee you'll be alive in the far future

Easily lump sum.

Its the blatantly obvious choice if you are even remotely sensible in your saving, investments, and spending. The only way the installments makes more sense is if youve got a bad habit of burning your money and just honestly cant trust yourself.

[laughs in australian where you don't get taxed for lottery winnings]

How much money are we talking?

Lump sum

- There are no guarantees that you'll be alive even before the day is over.
- Get those taxes out of the way, you'll still be wealthy than when you started.
- There are no assurances that the government will honor your lotto wins if a new regime takes over.

I have always advocated for taking the lump sum

That said, I think there's an argument to be made from a personal burnout perspective. Part of me wonders if having that kind of money at your disposal and buying whatever you want for a year and getting everything you want, will make you get depressed quickly since you have access to everything immediately. I think some people who win the lottery end up with legit depression due to not being fulfilled and feeling like there's no meaning to anything after suddenly having access to whatever they want.

Having access to a lower amount of money per month could help curb that situation. True, you could pay someone to take your lump sum and distribute it out to you monthly if that would be an issue, but idk if people would actually do it.

One thing about taking the monthly though, is that if you die, I don't think you can have a will that assigns that monthly payment to anyone else. So really you'd be giving up money for your family if you don't see it through to the end.

So ultimately I think lump sum is best

money now > money later

with that amount of money, it makes no difference as even 1 installment of the annuity is live-changing money.

but say you won 1 million. Would you rather the lump sum, taxed at whatever it is, 50%?, or 30 increasing payments of a non-weighted average of ~33k per year? The latter may be more preferable because your effective annual income tax could remain low. and you won't get "millionaire's insanity".

Practice & evidence shows you should take the annuity. There's a lot of writing and research about this, how people who take the lump sum are far more likely to fall apart. People don't have the experience or infrastructure to handle all that money at once and are likely to make enormous mistakes.

Yes, you could make more investing the lump sum despite the reduction and taxes, but there's far more certainty and security with the annuity. You can waste all your money one year and you'll still get a bigger check the next year.

Honestly, can normies like us even think of a reason to have more cash on hand than the size of the annuity payment? Or at least one that wouldn't equate to wasting an enormous amount of money?

If you take the annuity you can live wherever you want, doing whatever you want, never worrying about your budget again, while also not needing to stress about the stock market so bad, or the fact that banks are only FDIC insured for six figures.

The annuity payments are part of your assets and estate so your family or legal inheritor will still get all the money. The odds of the payouts becoming impossible are about as likely and as consequential as if all your lump sum disappeared in the stock market or your bank shut down.

Unsuprised_Pika posted...

Lump sum all the way.

With investing its more money in practice. Also simpler for taxes.

This. Its generally understood that its better to take out the lump sum.

Theres no guarantee that I wont die tomorrow. Ill take the lump sum, then buy a huge house and bring strippers home.

Lump sum all the way