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lottery lump sum vs annuity

This is the ever old question about what to do. Should you take the lottery lump sum or go with the annuity option that pays out more money over the lifetime of the case? Well nobody can tell you for sure but we think the best advice is to take the annuity for now accept the payments that you receive over the next few years see where life takes you and then contact a lottery and annuity transfer company like us and we can help you to facilitate the transfer of these payments from the annuity status to the lump sum.

So what about a south carolina powerball winner who hits it big with a 300 million dollar payday what do they do? Well if they know the law they may be covered for the first $400k annually but as soon as you cross over that $399,999.99 numbewr things change. From there you will have deductions of $115k plus a few hundred dollars in federeal taxes which is an effective tax rate of 28.9%. The net result from this is just over 284,000 dollars in your pocket. Everything over this is then taxed at a rate of 39.5 percent.

 Cash up front is good but not always the best option at the time and thus why we adivse clients who need money down the road to enter a lottery lump sum transfer service with our help. If you take the annuity paying 400 million dollars over 30 years you are getting about 7.1 million the first year and 300,00 dollars more in year two. It ends up paying out 22.2 million by the 30th year and in the end it comes out to 400 million dollar jackpot unless the tax rates change.