News
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
view the rest of the comments
The tax-free annuity payment version is by far the better deal. But some people elect to get the lump sum in cash, and you end up getting far less than half of it, esp after taxes.
The annuity isn't tax free. You pay taxes on that income every year just like (and in addition to) any other income you have.
Also, you could most likely beat the rate of return on those investments if you know what you're doing. But on the other hand most lottery winners won't know what they're doing. Additionally the annuity can be a stopgap to keep you from losing everything all at once.
Even if you know what you're doing, you'll probably go bankrupt after winning. Annuity is, as you said, a stopgap against stupidity.
The taxes a far far less, though, and the total sum is far greater.
As for the rest, that’s all speculation. None of that is guaranteed. That annuity is guaranteed.
The taxes are far less on a yearly basis, but over the course of the annuity you'll actually pay a lot more in taxes. Rough calculation, if I won this jackpot it would break down to:
Lump sum: Immediate payment of $478.2M with a tax bill of around $210M for my state and Federal income taxes. Net payout of $267.8M.
Annuity: $1.04B paid over 30 years. At current tax rates that's a bill of $456.5M over that 30 years. Net payout of around $583.5M. If tax rates change during the term of the annuity those could rise or fall a bit.
Not like I'll ever have to worry about the problem,but I think I would take the annuity because I've never had to manage a large amount of money, and it more gently eases you into it while giving some buffer to assure you don't somehow blow through everything quickly.
This has never been true. If u take the annuity they take the lump and invest that and instead of getting the full profits of that investment you get the same flat rate every year.
You can’t guarantee profits from an investment. That’s just a gamble. However, you can guarantee the gigantic amount of taxes they will deduct from it, and you’re only getting half as much from the cash payout anyway.
If you get the lump sum though that's a large amount growing when invested. You can easily take that and grow it into more than you'd get over time from the payments.
That’s not a guaranteed payout. The annuity payments, however, is. Plus, with a lump sum, Pam, you get hammered huge amounts of taxes.
If it takes you longer than 30 years to turn $200m into $1.08b then my friend you have a poor financial advisor. Also by then the $1.08b won't be worth the same, considering inflation.
Possibly, but that’s still all speculation