Mega Millions @ $330M... take the annual payout or the cash option?

[muzzled dogg]

(not asking if it's worth playing or if it's a voluntary tax on stupidity)




if you won the advertised jackpot of $331 million...

would you take

Annual payout of $12,730,769 for 26 years

OR

$194,242,000 cash option???



and for shits and giggles, what would you do with your prize money???

 

[Bman]

Take the cash option. One the value of that money is going down over the 26 years. In 26 years that 12 million will be worth about $5. Two who the hell knows what the taxes will be.

Take 10-15% put it into precious metals. Buy yourself your dream house(s). Invest, run for office, give to charities.

 

[sluggo]

Lump sum. Then buy the city of Detroit and turn it into Andrew Ryan's "Rapture."

 

[BFranklin]

Take the cash, buy a house over a bunker, stock it with the best food and supplies. Buy guns, ammo, gold, silver and get a nice stack of other currencies. Have a nice nest for 100% peace of mind. Buy some other houses around the world, a small plane, and do everything else I've wanted to do.

 

[angelatc]

Definitely lump sum, because most lottery annual payouts don't pass to your heirs if you die.

I'd pay my house off, get a gardener and a pool boy, and travel.

 

[Seraphim]

194M cash? Yeah, I'll take that.

 

[tmosley]

Cash option. I would then buy every ounce of physical silver available in the United States, and ship it into my new underground layer in an old missile silo.

Pop some popcorn, and watch as the fireworks start going off as the dealers try to restock in a rush, and thus try to take delivery from COMEX and the LBMA.

If they don't, then I would do it myself, assuming I had any dollars left.

 

[Fox McCloud]

Hard to say, as one option nets you nearly all of it, while the other is significantly reduced (though still a lot).

I'd probably end up going with the cash option, at the end of the day, then found Vault-Tec =p

All jokes aside, I'd probably just live like I currently do--I might upgrade my computer more frequently or update a few other things quicker, but, overall, my lifestyle would still be fairly conservative.

 

[libertybrewcity]

That 194 million might only be about 60 or 70 million after taxes, but it is worth it. you don't know where the lottery will be in 20 years, or if it will exist at all.

 

[Kludge]

Check out the idea of Future Value.

FV = P(present)V*(1+i(interest))^t(time)

Let's assume you put it in a very diversified conservative portfolio of bonds/metals/stocks/funds and see an averaged 7% RoI/year. For the deal to be worth it (excluding issues Angela brought up), in 26 years, your investment should be valued over $331m - so let's plug the numbers in and find out.

FV=194,242,000*(1+.07)^26
FV=1,128,031,846.84

1.128b>331m so yeah, I'd def. take the lump sum.

That 194 million might only be about 60 or 70 million after taxes, but it is worth it. you don't know where the lottery will be in 20 years, or if it will exist at all.

Oh, that's a good point. I'm not sure of tax rates on the diff. options. I'd guess if you don't take the lump sum you'd pay tax? Lemme look into this and fix my formula.

Edit: I've read taking the periodic payments results in lower taxes, but also that payments gradually increase with time, and there are huge variations in states & cities on taxes, so Idunno what to do -- lump sum would probably still see a dramatically higher return, I'd guess.

 

[KCIndy]

I would take the $194 million cash option, and use it in every legal way possible to get Ron Paul elected in 2012.

 

[TonySutton]

I would take the Lump Sum, locate and buy a very large tract of land in MT that is within 30 minutes of an interstate highway and at least 30 minutes away from the nearest town of 50k or greater (only 3 in MT) Also would prefer the county be as sparsely populated as possible.

Then I would build earthship style homes and bring in any friends and relatives who wished to join me. We would utilize alternative energy as feasible, get some free ranging buffalo, horses, chickens and goats. Also would build some earthship style green houses for aquaponics. Any remaining money would be invested in a highly diversified manner.

Then have a big cookout.

 

[Krugerrand]

Definitely lump sum, because most lottery annual payouts don't pass to your heirs if you die.

I'd pay my house off, get a gardener and a pool boy, and travel.

mega millions and power ball pass to heirs.

 

[specsaregood]

1. Take the lump sum.
2. Buy a country.
3. Start a "free country" project.....except where I am king.

 

[brandon]

Check out the idea of Future Value.

FV = P(present)V*(1+i(interest))^t(time)

Let's assume you put it in a very diversified conservative portfolio of bonds/metals/stocks/funds and see an averaged 7% RoI/year. For the deal to be worth it (excluding issues Angela brought up), in 26 years, your investment should be valued over $331m - so let's plug the numbers in and find out.

FV=194,242,000*(1+.07)^26
FV=1,128,031,846.84

1.128b>331m so yeah, I'd def. take the lump sum.

This. Definitely take the lump sum.

Taxes shouldn't be much different either way (assuming they stay constant for the duration) because the top income tax bracket is only about $370,000. If you spread it out over 26 years more of it will fall in the brackets below $370,000, but it is such a small percentage of the overall payout that it is almost insignificant.

 

[Lord Xar]

(not asking if it's worth playing or if it's a voluntary tax on stupidity)




if you won the advertised jackpot of $331 million...

would you take

Annual payout of $12,730,769 for 26 years

OR

$194,242,000 cash option???



and for shits and giggles, what would you do with your prize money???

Oh, how I have daydreamed of such a scenario.....

1. I would take the lump sum.

2. I would do a couple things.
a. Put away a hefty amount for my child and niece.
b. Set up an annuity for my close family
c. Create a liberty foundation with an annual budget of 500k - 1million. Put money away and use the interest/dividends to enable this.
d. Invest in precious metals and land
e. Set up a parcel of land with water (lake/stream) very far from others, and a nice home. Stocked up for the long haul - for a shit hits fan scenario.

..... and I still have over a 100+ million left.. hmmmm

 

[pahs1994]

..... and I still have over a 100+ million left.. hmmmm

you can throw a pretty epic party with that lol

 

[devil21]

I just paid my $5 ignorance tax. I couldnt resist the possibility of winning that kind of money. I'd definitely take the lump sum, dump as much as I can into land and metals and watch my millions turn into billions along with inflation. Maybe then Ill have enough money to buy off some Congressman to follow the Constitution.

 

[JasonC]

I got the mega ball and one number... won 2 bucks when I discount the dollar I paid for the ticket.

 

[puppetmaster]

hell take the cash....you never know if your going to be hit by a Mack truck tomorrow! (Disclaimer: other brands of trucks available)