Roughly what percentage of stated jackpot do you win with if collected by single payment?

 

Comments

  • science_geekmckinley

    July 14, 2010 at 7:17 pm

    it all depends on the needs of the winner.

    for me yearly, annuity, would work.

  • Annuity. You would be able to spread the money out through the years and may be able to sell off your winnings to a company for a better price than what you would receive under a single payment options. Depending on your tax situation, you will receive your amount less about 1/4 of the amount. I do not know what state you are in, though, so that is just a rough estimate of the tax brackets.

  • they take out reg taxes and interest. depending on the amount if won, figure you’ll get a little more than a 3rd. some people actually prefer the 26 payment allotment because they figure it will be more money. not so. they tallied up all 26 years and you still end up with about a little more than a 3rd.

  • Most CFPs suggest single payment. Better to pay the taxes upfront and make a better return on the lump sum than you would receive with an annuity. Of course if you are going to buy 15 new cars and houses for all of your family the annuity might be a better option.

    You would take home 40 – 40% of stated jackpot with a single payment depending on the state taxes.

    If you win go to a bank and ask for their private banking division. They are ethical and used to dealing with high net worth individuals.

  • I believe it is less than 50% when all is said and done. It depends on what you will be doing with the money. Do you hope to invest it and get a bigger return than you would earn taking the annuity? Or just spend it all and blow it.

    Money also has a time value, but only you could decide if you think the lump sum will be serving your purpose better than the payments.

  • AnimalsAreNotThings

    July 14, 2010 at 10:38 pm

    One single payment. You pay higher tax rate, but what if you die next year?

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