California lottery lump sum vs payments
So lets say you hit the 777 slots nuts no deposit lottery for 6 million dollars.
Your money management skills will affect your decision.
Turn your future payments into cash you can use right now.The first option is called a lump-sum award.Reputation: 4748, another bonus with taking the annual payments is that it might help ward off leeches.Federal taxes reduce lottery winnings immediately.Those who choose the annuity option for tax reasons are often betting that tax rates in the future will be lower than the current rates.Chances are your will owe additional Federal taxes, but the state only automatically takes out 25, you can request more.The advantage of the annuity is the exact opposite uncertainty.All the more reason why you get the planner and tax person quickly., 09:23 PM Greenciti 173 posts, read 436,618 times Reputation: 148": Originally Posted by Willy702 Where do people "hear" such things?Now if they died the estate would get valued based on present value of the payments and that would trigger estate tax should there be one in place.In order for the lottery to do this, it has to be allowed in the state where the ticket was purchased.Spreading out the payments over a couple of decades means you will owe taxes only on the amount paid to you each year.The lumpsum cash option amount given after Mega Millions results is also available but anecdotal evidence shows that most people fritter away the money in four to five years due to excitement.In fact, some lottery companies allow for a transfer of the funds only when the annuity owner dies.Ask about any fees and how long the company has been in business.
Typically, two types of companies purchase long-term lottery payouts: factoring companies and insurance companies.
Lets examine the math.
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