Lump sum? Annuity? Here's how much $700m+ is in tangible terms.

"Grindintosecond" (Grindintosecond) 01/07/2016 at 22:43 • Filed to: None

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You have two options. A single big lump sum of cash that you can use to !!!error: Indecipherable SUB-paragraph formatting!!! , or a 30-year annuity payment structure.Taxes will still get you but yous a ritch mutha so what does it matter anyway? Here’s what the breakdown is.

lump sum: This will be something like $346 million after taxes, or 44% of that advertised jackpot sum. Everyone says they’ll take that and then buy this and that and invest it to make more than they won, but honestly, statistics say you’ll more than likely be broke within 5-8 years, and in some cases dead. That’s right, you’ll regail your coworkers at the quick mart about how you had an amazing Lamborghini and movie sword collection before the communist government took your stuff. so why not protect yourself with an:

annuity: Thirty years of protection where you can blow it all on cocaine and hookers every hour for 16-hours a day and still make more than you spent on it all and continue that lifestyle for thirty years straight-if you live that long. For $700m in Maryland, youll get $460m+ with the first year paying out nearly $7m and the last year paying $21m, so you can keep increasing the quality of your hookers and blow each and every year. but honestly, let’s loook at it in real terms we can understand. Averaged out over those thirty years, you can buy 360 candy bars every hour for 24 hours for life, or buy a new Corvette every four days and have 2,700 corvettes to your name after 30 years, or if you want, you could buy one nice 5 bedroom house every month and in thirty years have 360 of them.

You’r call, but personally, I think I’d only last five years doing all that blow off a hookers bottom across the seats of my awesome yellow Lamborghini before I die.

LOREM IPSUM > Grindintosecond 01/07/2016 at 22:48

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bobkustofawitshz > LOREM IPSUM 01/07/2016 at 22:52

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877-CASH-NOWWWWWW

Justin > Grindintosecond 01/07/2016 at 22:55

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Taking the 30 years of payments is a lot of faith that the government will be ground and still able to make those payments that long from now.

No I’ll take the money now. I can spend it better than they can even if it is on hookers and blow.

gergey - Wishes vette was Datsun > Grindintosecond 01/07/2016 at 23:00

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So if you take the lump sum, you’ll be probably broke after 5-8 years, and possibly dead.

vs

If you take the annuity you’d die doing blow off a hooker in a Lamborghini in 5 years.

Gosh. What a predicament.

EDIT:

Averaged out over those thirty years, you can buy 360 candy bars every hour for 24 hours for life, or buy a new Corvette every four days and have 2,700 corvettes to your name after 30 years, or if you want, you could buy one nice 5 bedroom house every month and in thirty years have 360 of them.

How many NA Miatas is this? Or is that scale too small, should I be measuring in terms of V6 Mustangs?

shop-teacher > Justin 01/07/2016 at 23:08

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That’s my line of reasoning too. Give me my money and send over the hookers and the Lambos. I’ll take a pass on the blow.

Grindintosecond > gergey - Wishes vette was Datsun 01/07/2016 at 23:13

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I would say twice that of Corvettes, fully optioned miatas that is woyld be half so, 36k each? Yeah about 5400 miatas.

f86sabre > Justin 01/07/2016 at 23:30

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I have similar thoughts to, but if the government tanks odds are the banks will too. So either spread it around in offshore banks or buy gold.

6Cylinder > Grindintosecond 01/07/2016 at 23:31

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Bugatti demolition derby.

Fuck yeah.

Supreme Chancellor and Glorious Leader SaveTheIntegras > Grindintosecond 01/07/2016 at 23:41

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Lump sum

Go bat shit crazy in those few years with traveling, buy some stocks for when I’m 40 or so, then start all over again

CodyVella > Grindintosecond 01/07/2016 at 23:44

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Be a Canadian, cross the border, buy a ticket, win the lottery, come back to Canada, pay a company $10,000 to recover the lost taxes for you, wake up $699,990,000 richer.

????

PROFIT!

Eric @ opposite-lock.com > Grindintosecond 01/07/2016 at 23:46

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I’d lump sum it, spread it out in bank accounts around the world, and live off interest.

Seriously. 1% = 3.46M per year, forever. I always figured that ~3-4M would be enough to simply retire - if you never dipped into your capital and just lived off the interest/investment income, you’d be able to live a decent life with zero stress and probably sock a little of your interest away each year. Back when it was 5% or more, you probably could have got by on 1-2M... This amount is absolutely insane; I’d have to work hard to find stuff to burn money on.

ktfright | Kinja Neighborhood Black Guy > Grindintosecond 01/07/2016 at 23:50

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I heard if you take the annuity and die, your loved one do not see a cent of your earnings.

lone_liberal > Grindintosecond 01/07/2016 at 23:54

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I’m 50 years old and have no interest in leaving my stepdaughter that much money when I could be spending it watching a race in Monaco.

StoneCold > shop-teacher 01/08/2016 at 00:28

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#IllinoisBudgetProblems

Clown Shoe Pilot > Grindintosecond 01/08/2016 at 00:29

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“You’r”?

I thought I’d seen it all.

Brian McKay > Clown Shoe Pilot 01/08/2016 at 00:50

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— and “regail your coworkers”

and buying “candy bars every hour for 24 hours for life”

and “your loved one do not see a cent of your earnings” after death

For Sweden > Grindintosecond 01/08/2016 at 01:31

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But losing the lump sum of $346 million in five years is spending $69.2 million a year. I want to ride that train.

Biggus Dickus (RevsBro) > Grindintosecond 01/08/2016 at 01:35

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Well, I’m in a state that doesn’t (easily) let you stay anonymous so I’ll go over some pros and cons of both.

Annuity: Biggest benefit here is the deferral of the taxes. I can’t remember but I believe if you pick the annuity you get the option to deffer paying taxes until actual payments are received. That tax benefit alone is worth a lot of money. However, the biggest question is will whatever entity is responsibility for making the payments still be solvent thirty years down the road. With my knowledge of the financial industry, I highly doubt the government is the entity making the annuity payments.

Lump Sum: There is no way to defer paying the taxes. However, with the money you could probably find investments with higher returns than the Yield to maturity on the annuity payments.

Personally, if the tax deferral is possible I’d take the annuity. If not, take the lump sum. However, the other issue is remaining anonymous. I’d do one of two things to try and maintain my anonymity:

1) I’d create a flow through entity like an S-corp or partnership that can legally claim the lottery winnings and transfer them to me without taking a tax hit.

2) I’d sell the ticket to an investment bank for a lump sum payment or block of securities and let them take a small cut off the top. Knowing the way fixed income Managing directors and Investment banks are this is easy money for them and would make them be pretty willing to make the deal.

Frank Grimes > Grindintosecond 01/08/2016 at 02:26

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How much is that in tacos? Also I want a sword collection or rather an armor collection like batman because kim bassinger.

Stapleface > Grindintosecond 01/08/2016 at 08:22

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I know that people say the lump sum is better, but I’d definitely take the annuity. And for the exact reasons you already stated. Having never had that kind of money, I could easily see blowing through a lot of it. But if I only get a certain amount every year, that's enough for me to learn to "budget" a little bit better.

Jayhawk Jake > Grindintosecond 01/08/2016 at 08:44

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Lump sum, smart money managers. Done. With $346 million you don’t need a lot of interest to make a healthy living.

TheRealBicycleBuck > Grindintosecond 01/08/2016 at 09:58

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Grindintosecond > Eric @ opposite-lock.com 01/08/2016 at 11:46

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Watche the movie ‘Brewsters Millions’....the really old black and white version was good too.

Grindintosecond > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/08/2016 at 11:49

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buy stocks....assumming you know what youre doing. That’s kinda the point. Everyone who took the lump sum thought it was fine and theyd make investments and then it turns out their investments fell and they lost everything and spent the rest on purses and the best mixd drinks and porsheez.

Grindintosecond > Frank Grimes 01/08/2016 at 11:52

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lump sum: 346m=44 million taco dinner plates, so assuming you went for the best tacos possible, thats 88 million tacos with sides.

annuity: 450+ = 57 million diners, so 114 million tacos with sides over 30 years or 10,428 tacos a DAY for thirty years.

Grindintosecond > Jayhawk Jake 01/08/2016 at 11:53

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until you tell your money managers to buy a house here and a boat there and they say yes sir cause they want to get paid. what will they do, say no? “No? Don’t you know who I am? buy that for me or your fired.” See, that crap happens to nice people. Look at Jared, nice guy, got money, became an asshole and dicked little girls. Money makes people insane.

Grindintosecond > Clown Shoe Pilot 01/08/2016 at 11:54

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i don’t proof read nearly enough.

Grindintosecond > 6Cylinder 01/08/2016 at 11:54

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I wonder what the collective value of EVVERY Bugatti Veyron in existance is.

gin-san - shitpost specialist > TheRealBicycleBuck 01/08/2016 at 12:48

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This guy is the best.

TheRealBicycleBuck > gin-san - shitpost specialist 01/08/2016 at 13:21

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At least he’s honest!

PyramidHat > LOREM IPSUM 01/09/2016 at 07:55

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Its my money and I want it now!