Every few months our country goes through “Power Ball Fever” where the uninformed, the uneducated, the dreamers, and my father stand in line to be the one who wins the jackpot. I gasp in amazement every time I see those long lines. It is a fact that you have a better chance of getting hit by an asteroid or getting killed driving to the convenience store to buy a ticket than actually winning the lottery. So what gives? Are we a land of idiots and people who ignore the simple math of probability? The unfortunate answer is probably yes on both of those points.
Winners Who Choose the Lump Sum Instead of Annuity Payments End up Bankrupt
I live in the state of Florida where lottery fever happens on a daily basis. There is a ping pong ball drawing on TV every night, and I’m sure there a ton of dreamers who tune in with a ticket in hand. There is a dark side to this lottery madness because most lottery winners end up squandering away the money. It’s pathetic. People win, take the lump sum, and then file bankruptcy a few years later. It’s actually predictable when you see the interview as they hold up the over-sized check. You can hear the bankruptcy clock ticking.
Here’s the mistake that most people make: they take the lump sum instead of the lifetime payout! It’s the dumbest move ever. Let me explain.
Annuity Lottery Payments Protect Assets From Beggars (I.E. Family & Friends)
When someone wins the lottery, I can only imagine the line of family and “friends” at the door with their hands out. That’s how the march to bankruptcy begins. When you take the annuity lifetime income stream instead of the lump sum, you are placingannuity handcuffs on these ungrateful beggars. Yes, they will show up every year for the rest of your life when your annuity payment arrives, but at least that will be a contractual filter.
Nonsensical "Masters of the Universe" Always Want to Push the Lottery Lump Sum Distribution Tactic
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
By the looks of it Florida will have a socialist, conman story teller as the next Governor. Residents in the sunshine state will not only deal with bad weather but income taxes, land tax, corporate tax, carbon tax, open boarder system, free college and free healthcare for all. Illegals and legals. Did I mention mandatory solar? Hoa and 50 plus community's will feel a major hit to your Florida wallets. Sell your golf clubs and firearms now.
ReplyDeleteWho's to say the lottery won't go belly up before you get your 30 installments? Or worse case you pass away? Take your money use some common sense
ReplyDeleteIt's called taking a chance. If I can put 2 dollars up with any chance at all for 1.6 billion I'm doing it. I know my 2 is probably gone but what the hell.
ReplyDeleteNot a chance in hell I would trust the government to keep paying the annuity for the next 20 years. One bad election and poof! their promise is null and void.
ReplyDeleteLump sum then invest at YOUR own risk - not that of the gov't. If you die during that 20 or 30 years that's it. Receive the Lump Sum and invest - it "can" be the gift that keeps on giving for generations via inheritance!
ReplyDeleteNo brainer - lump sum!
"...Residents in the sunshine state will not only deal with bad weather but income taxes, land tax, corporate tax, carbon tax,..."
ReplyDeletePlease do some research before spouting off! I live in Florida and can tell you with certainty that the Constitution of Florida specifically prohibits income tax among other form of taxation. It would take a 2/3 vote of Florida residents to amend the Constitution and I can assure you that WILL NOT HAPPEN!
Take it from the lottery and set up multiple annuity funds you and your financial planner manage. Dont let them manage it.
ReplyDeleteTake it and run
ReplyDeleteNever let government hold anything for it will disappear quickly
Manage your own asserts