The $124.46 million lump sum or 30 years of $6.5 million installments?

[Bush_Eats_Beef]

February 19,2006 | LINCOLN, Neb. -- Someone, somewhere held the only winning ticket for the record $365 million Powerball jackpot, but likely wasn't in a rush to come forward, Nebraska lottery officials said Sunday.

The winning numbers drawn Saturday were 15, 17, 43, 44 and 48, with a Powerball number of 29, according to the Multi-State Lottery Association of Des Moines, Iowa, which runs the game for the participating states.

The ticket holder has the option of taking the money in one lump sum or installments over 30 years. The cash option is $177.8 million, or $124.46 million after taxes. On the installment plan, the first payment would be $6,507,986 after taxes.

The previous U.S. lottery jackpot record was $363 million for the Big Game, the forerunner of Mega Millions. That was won by two ticket holders in Illinois and Michigan in 2000. Powerball's previous record jackpot, $340 million, was won by an Oregon family in October.

http://www.salon.com/wire/ap/archive.html?wire=D8FSCAKG7.html

[SmileyBoy]

1. I would snatch that $125 million in a heartbeat.

I could've done a lot of good things with that money...

[SoCalDem]

2. Our lottery makes you choose when you BUY the ticket

Only a fool would take the lump sum.. Who couldn't live very nicely on 6.5 mil guaranteed every year:)..taxes or no taxes :)

[maveric]

3. But if you die its not transferrable. It stops!

Take the lump sum because you never know what may happen. You'd be able to set your family up better with the lump sum, IMHO.

[SoCalDem]

6. In CA, it IS inheritable ..(It's part of your estate)

but then I will never win more than 5$ so I won;t worry too much:)

[AngryAmish]

7. Bad idea

The lottery is set like an annuity. You take the lump sum and invest it normally and you would have a better rate of return than the gov't annuity would give you. Check your present value tables.

[SoCalDem]

8. I have heard so many horror stories about people who win big

take the lump sum, blow it and a few years later they are bankrupt.

By taking the annuity, one would have plenty of "walking around" cash, a nice place to live, a couple of spiffy cars and guaranteed security for their heirs, after a few years of payments, and the rest could surely be invested..

Experts always advise using OPM anyway, and there's not a bank in the world that would turn down a loan to someone with a 30 yr guaranteed 6.5 million income after taxes..

[LeftyMom]

4. I believe I read that it makes more financial sense to take the lump sum

and invest it. I'd do the math and talk to a few people (since there's no great hurry) before deciding.

Either one is more money that I've every dreamed of having or even really wanted. :shrug:

[philosophie_en_rose]

5. I'd take the lump sum.

It would be easier to invest the lump sum, instead of waiting for a payment from the state every year.

[TreasonousBastard]

9. I'm probably not going to live for another 30 years...

so I'd take the money and buy an island somewhere-- populated by beautiful women whose only English is "Yes, sir."

Actually, after long talks with accountants, lawyers, and such I'd set up a foundation with most of the money and live off of a small but reasonable income. My needs are fairly modest and I could happily give most of it away.

FWIW, unless they've changed things recently, if you take the annuity and die, taxes on the full amount of the net present value are due immediately out of your estate. You really screwed your heirs if you take the annual payments and die too soon.

[ikojo]

10. $124 mil in a heartbeat and here's what I'd do with it

Buy a pre war condo or whatever they call it in MANHATTAN
invest in a trust so that the money could grow
give some to organizations fighting for national healthcare, universal free college education leading to a bachelor's degree, a basic income guarantee, public transportation and affordable housing.
buy a scooter in at least three colors: purple, blue, and red
I'd have a kickin' and I do mean KICKIN' home theatre system


then I'd go back to school myself and get an undergraduate degree in Jewish studies and not have to justify it to ANYONE because I'd not have to worry about earning a living.

Oh I dream!!!

[yvr girl]

11. I'd talk to a financial advisor

Most likely opt for the lump sum.

I'm glad we don't have to worry about the taxes in Canada. Lottery winnings aren't taxable here.