What would you do if you won the lottery?

[Mormon Red Death]

I'm not a tax accountant either, although I pretend to be one at times (hey, I passed the CPA exam so I'm semi-qualified). Indy is correct in that the numbers are high enough that current tax rates would have a minimal impact. Once you pass $373,650 you are paying 35% (2010 figures) in taxes. You would save some money in the annuity because you get a lower tax rate each year up to $373K but it probably wouldn't skew your decision to take the lump sum.

The real question though is future taxes. Do you think they go up or down? If they go down, then an annuity payment might be more favorable, but of course there is no way of knowing what the future holds.

You also need to discount the cash flows for the time value of money. The lump sum is better.

[pellegrino]

I can't believe "I'm going to DisneyLand" wasn't an option.

[Indy Coug]

I can't believe "I'm going to DisneyLand" wasn't an option.

You're a big dreamer.

[pellegrino]

You're a big dreamer.

And how!

[HuskyFreeNorthwest]

I knew my feeble attempt number crunching would flush out the master cruncher, and his 8x10 color glossy spreadsheets. However, I'd like to see federal tax implications associated with those numbers. Just in case I win Saturday night.

With circles and arrows and a paragraph on the back explaining what it was.

[HuskyFreeNorthwest]

The first thing I would do is make sure nobody knew I won. Everytime I buy a lottery ticket (which is frequently) I make sure to check the numbers when nobody's around so that in the off chance that I do win, nobody is around to hear me freak out.

You live in Orem. Please explain.

[old_gregg]

You also need to discount the cash flows for the time value of money.

This.

[byu71]

I would give 1/4 to anyone I could find on this board who hasn't played the "old man" card on me. Then I would search for someone I could trust to invest my money for my families future.

[jay santos]

I would give 1/4 to anyone I could find on this board who hasn't played the "old man" card on me. Then I would search for someone I could trust to invest my money for my families future.

Index funds. Cut out the broker fees.

[byu71]

Index funds. Cut out the broker fees.

[BoylenOver]

I would own Mr. Clucks and the Tustin Box Company.

[FN Phat]

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[Moliere]

You also need to discount the cash flows for the time value of money. The lump sum is better.

This.

Indy and I covered the time value of money on page one.

[clackamascoug]

With circles and arrows and a paragraph on the back explaining what it was.

LOL... you got the long lost reference. Did you know her when she was ten feet tall, serving at the restaurant.

[1337coug]

You live in Orem. Please explain.

I start feeling lucky about once a month, drive to idaho, buy a lottery ticket or five and drive home.