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Receive the lottery in a lump sum or yearly payments?

Of course if you won like millions lol. I think I would take the yearly ones, unless they take out more taxes for that!

 
cynprz

Asked by cynprz at 11:31 AM on Jul. 8, 2010 in

Level 35 (76,208 Credits)
This question is closed.
Answers (10)
  • Lump sums, take out less taxes overall than yearly annuities. With a lump sum you pay a one time income tax for the year in which you won. You pay income tax on the annual payouts EVERY YEAR that you receive the funds in which you file your taxes.

    I'd take the lump sum and pay my new investment accountant to put me on a "budget!" :o)
    LoriKeet

    Answer by LoriKeet at 11:42 AM on Jul. 8, 2010

  • I agree with you! That way you would have a steady stream of cash continually coming in.
    SuperrMommyy

    Answer by SuperrMommyy at 11:32 AM on Jul. 8, 2010

  • I would take whatever takes away less taxes, yearly payments can set you up for life too.
    older

    Answer by older at 11:33 AM on Jul. 8, 2010

  • Lump
    musicmom08

    Answer by musicmom08 at 11:34 AM on Jul. 8, 2010

  • Yearly usually takes LESS taxes so I would do that. Then I would invest half of it the first year and use the rest to pay off bills and then sit back and live off the interest.
    Jademom07

    Answer by Jademom07 at 11:36 AM on Jul. 8, 2010

  • Right now...it would depend on the amount we won and the amount and duration of the annual pay-outs. If it was a few million or less, we'd definitely take the lump sum, so we could do more with it (i.e., purchase a house and a car outright, etc.). If it was several million, we'd have to think about it more, and figure out what we would be able to do with the annual payments, if that would be enough to replace our income or if we'd still have to work, how old we and our kids would be when the payments stopped, that kind of thing. Though we'd probably still be more likely to take the lump sum and just invest it ourselves. We'd get less money over-all (they charge a penalty for taking it all at once), but we'd have access to all of it if needed (or just wanted, lol), and with investments we could still have a steady income off of interest.
    DragonRiderMD

    Answer by DragonRiderMD at 11:37 AM on Jul. 8, 2010

  • I think I would take a lump sum. That way I could buy a house in cash, help my family, then invest the rest.
    mompam

    Answer by mompam at 11:42 AM on Jul. 8, 2010

  • Good question! I think it would depend on my family's needs at the time, and how much the yearly would be. I would also want to help out my parents with the money.
    kennethsmom910

    Answer by kennethsmom910 at 11:43 AM on Jul. 8, 2010

  • Also it depend on how old you are, if you are 70-years old you would want to lump sum.

    And for me it depends on how much? over 30-million lump sum, under 30-k payments.

    I just hope someday I will have to pick.
    gammie

    Answer by gammie at 11:44 AM on Jul. 8, 2010

  • I won it's my money now give it to me....Lump Sum!
    geminisummerz

    Answer by geminisummerz at 11:52 AM on Jul. 8, 2010

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