Christmas Eve Jackpot: A Powerball player in Arkansas won a whopping $1.817bn

[Iroh]

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

I'm sure we can all agree that the amount won is extremely large and not everyone can responsibly handle such an amount if it's paid in full. I've come across several news article about how jackpot winners as well as people that once had a shit load of money spend lavishly and end up flat broke.
If I was the one that had that winnings, I might collect the upfront lump sum and quietly disappear as literally anything can happen that could disrupt or stop the disbursement in the near future. The sooner people forget and move on about the jackpot winning, the safer it would be for the individual that won.

[STT]

Not to be too morbid but what if you die the next day, does the regular payment still occur or cease like a pension might.  The obvious logic is to take the lump sum and determine your own investment returns personally.
  Any investment professional would advise you to do this but you also better make sure the person advising you has insurance coverage of their professional advice.

Anyone who has no clue should take the regular amount I guess as they can afford to lose the first payments and still not be poor later.  Its been a regular feature that people who win lotteries also go bankrupt later, its happened often.

[batang_bitcoin]

I have noticed the taxes and it's huge. Well even with that high tax, I'll take the money in lumpsum, I'll enjoy that for the rest of my life and inflation will suck up for 29 years and even so, that's still huge money that I'll be taking annually. But I've got plans of what I should with it and I can move freely with investments with that $800M on me. I think putting that in conservative dividend paying assets or stocks would pay me more than that annual payment option, if ever that will be the choice. But regardless of the methods, he's a real winner and has changed his life forever with his generations of kins.

[Alphakilo]

If I were as lucky as the jackpot winner, instead of taking that lump sum or being credited for a while before the whole money is elapsed, I could decide to allow the the other remaining funds to invest a good business with great dividends and revenue for me,  instead of to using the funds for frivolities that may amount to nothing at the end.

[bhadz]

If I were as lucky as the jackpot winner, instead of taking that lump sum or being credited for a while before the whole money is elapsed, I could decide to allow the the other remaining funds to invest a good business with great dividends and revenue for me,  instead of to using the funds for frivolities that may amount to nothing at the end.

That will be up to your decision for doing that. The distribution of your money is on the lottery platform and you decide on how you're going to spend that money. I'm sure that many of us would think of reinvesting it into investment vehicles like Bitcoin and other usual ones. Those who could make us passive income so that it will be adding to the money that we already own. This is the kind of problem that we all want to have and that's about how we're going to spend this huge amount of money and of course, don't forget about giving back to the community and charities.

[freedomgo]

I have noticed the taxes and it's huge. Well even with that high tax,

That’s the US for you. The jackpot prize is huge, but the taxes are huge too. That’s normal for a developed country, and at least you can see where the taxes are going. Still, if you look at the net winnings, it’s massive in my opinion. Even $100 million is already life changing.

If I were in that situation, I wouldn’t complain about the taxes anymore. That was already part of the deal before winning anyway. Personally, I’d avoid taking the lump sum. Spreading it out feels safer, and getting paid every year is like having a built-in savings plan.

You could already enjoy life without working, as long as you don’t live too lavishly. Congrats to the winners, in case no one has said it yet.

[Sticky Bomb]

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

I would have to meet with my lawyers to ensure there is proper insurance on the funds being payed up even if the company folds up. I would also direct my attorneys to review their T&C to ensure this payment pattern is completely cited in their agreements and not a makeup after seeing I won very huge.

All things being verified, I would go for the 29 years pay, I'm not leaving my $1B for them because I'm in a hurry to take a lump sum home and it is kinda better to be paid annually, It adds more security to your funds and ensure you stay rich for a long time.

[jossiel]

I would have to meet with my lawyers to ensure there is proper insurance on the funds being payed up even if the company folds up. I would also direct my attorneys to review their T&C to ensure this payment pattern is completely cited in their agreements and not a makeup after seeing I won very huge.

All things being verified, I would go for the 29 years pay, I'm not leaving my $1B for them because I'm in a hurry to take a lump sum home and it is kinda better to be paid annually, It adds more security to your funds and ensure you stay rich for a long time.

Good decision and that's why taking the lump sum is the best option. But you'll never know if they're still existing by that time you chose the annual pay.

Even if they make contracts that will guarantee you for that long, you'll never know what's going to come in the future.

But if the attorney's you've hired verifies that it's a good option, that will set you for 29 years and even longer when you wise up on how to spend the annual pay you'll receive.

[AVE5]

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

$834.9 millions annual is such a huge amount of earning for 29 years. I'm definitely sure going to accept it than not having the full payment. I'm also sure that that I can start a meaningful life with the first year payment.
Maybe I'll just have to come in conclusion that I'm in a $834.9 million yearly and I'm sure it's such a good sum.

[alegotardo]

An unidentified individual has won the second-largest lottery prize ever claimed (the first was $2.04bn jackpot won in 2022). The winner bought lottery tickets for $2 each, and the odds of winning the jackpot are 1 in 292.2 million.

The winner has the option of taking a lump-sum cash payment of $834.9m or getting the full amount that was won in an annuity paid over 29 years.

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

https://www.bbc.com/news/articles/cwyw4x39jdwo

I definitely prefer to receive it on entire amount at once. /and why?
Because a smart person will know that receive it upfront is better for make the money work for me... if I receive it all, I can make investments that will generate passive interest to me, I can buy real estate, invest in stocks, buy a good portion in cryptocurrencies, etc... "money makes money".

But of course, this is not for everyone peoples.... If all this money falls into the hands of someone who lacks financial literacy, then it is best to receive it gradually, so that the person only spends as needed and thus won't become poor so quickly.

In each scenario, there are good and bad reasons... each is better for each type of person. Which type are you? I am the smart one, who prefers to receive everything at once and multiply it exponentially.

[maydna]

I will take the lump sum, pay the taxes, and enjoy my winning with my family. But I will ask casino to hide my real identity from public and they will go with me to pay the taxes and explain the situation. I don't want to risk mine by receiving the win money by annuity paid over 29 years. If I don't live too long for life, can my family continue receiving the money? I don't mind paying the taxes from the winning. That is a form of good citizenship especially I won the second-largest lottery prize. After all, I still have much money that I can enjoy with my family. But there is no explanation about what the winner does.

[Orpichukwu]

$834.9 millions annual is such a huge amount of earning for 29 years. I'm definitely sure going to accept it than not having the full payment. I'm also sure that that I can start a meaningful life with the first year payment.
Maybe I'll just have to come in conclusion that I'm in a $834.9 million yearly and I'm sure it's such a good sum.

$834.9M is not the annual payment to be received; it's either you receive the $834.9M once and for all, or you have to consider the $1.817bn, which will be spread out for a period of 29 years, and how much is to be paid to you per year has not yet been decided. Maybe they will divide the entire amount by 29 or pay a larger sum at first before it continues the remaining years.

[Samlucky O]

An unidentified individual has won the second-largest lottery prize ever claimed (the first was $2.04bn jackpot won in 2022). The winner bought lottery tickets for $2 each, and the odds of winning the jackpot are 1 in 292.2 million.

The winner has the option of taking a lump-sum cash payment of $834.9m or getting the full amount that was won in an annuity paid over 29 years.

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

Obviously majority of people would love to take the annuity paid for 29 years than the lump sum. This annuity will help a person to manage his fund properly in each year multiply by 29 years. People are fucking lucky though, if it was me I will definitely chose to receive the payment annually, atleast it will give me chance to plan well with it. Sometimes if such winning amount is given as lump sum, it might be spent easily but the annuity pay will help the winner to have plans ahead of each year payment.

[viljy]

There can't even be any dilemma here. Of course, you should receive the entire amount of money at once. If you are offered a payment extended over time, it means: 1. They knowingly consider you an idiot who is unable to manage money (this is insulting); 2. They simply hope not to pay the entire amount (as in the tale about the talking donkey - "in 20 years, either the donkey will die or the padishah"). Nobody knows what will happen during these 29 years. The money you receive immediately can be invested exactly as you see fit. These are the considerations that should guide the lucky winner of the jackpot.

[Fiatless]

First, I believe it's a publicity stunt.

Secondly, how will a jackpot winning be taxed that high from 24% to 37% by government according to the article attached.

Thirdly, I don't really understand the part of getting lump sum that doesn't equal the amount mentioned that the gambler won. The difference is huge, almost a $1 billion.

What's missing there?

Why do you think it's a public stunt? The news was published by the BBC, and Powerball is well-known in the US.

Perhaps we should conduct research on tax laws in the US. Every country has different tax laws, maybe our country doesn't tax us like the US.

The difference between the payment options might be in the terms of service of Powerball. Doing more research might be helpful. The couple could make money from interest if the gambler chooses payments in bits. Which might be the reason why the amount is higher with that option.

[batang_bitcoin]

I have noticed the taxes and it's huge. Well even with that high tax,

That’s the US for you. The jackpot prize is huge, but the taxes are huge too. That’s normal for a developed country, and at least you can see where the taxes are going. Still, if you look at the net winnings, it’s massive in my opinion. Even $100 million is already life changing.

If I were in that situation, I wouldn’t complain about the taxes anymore. That was already part of the deal before winning anyway. Personally, I’d avoid taking the lump sum. Spreading it out feels safer, and getting paid every year is like having a built-in savings plan.

You could already enjoy life without working, as long as you don’t live too lavishly. Congrats to the winners, in case no one has said it yet.

Yes, even I, I wouldn't complain about the taxes but just looking at it. We can imagine how much is going to the government for huge wins that are coming from the lottery and the casinos. I think the reasons are valid about not taking the lump sum just to assure that you don't have to work forever and you'll just receive it as if it's your pension. But you'll not know what might happen by tomorrow and that's why it's the choice that I can think of and I'll decide what to do with that once it's already on me. It can afford to do a cruise and vacation a year or even continually doing that while using the lumpsum for passive money that shall come to my account.

[ZeroVinsonN]

An unidentified individual has won the second-largest lottery prize ever claimed (the first was $2.04bn jackpot won in 2022). The winner bought lottery tickets for $2 each, and the odds of winning the jackpot are 1 in 292.2 million.

The winner has the option of taking a lump-sum cash payment of $834.9m or getting the full amount that was won in an annuity paid over 29 years.

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

https://www.bbc.com/news/articles/cwyw4x39jdwo

There is tax to consider and although the lump sum offer is good it's still less than 50% of the total winning, the only fear here it that will the company still be around over the next 29 years? Because if they end up filling for bankruptcy then how exactly is he going to get paid, I believe that for something like this some kind of a legal contract will have to be signed by both parties and well if the contract properly covers some or all of these factors then the annual payments is the best option, you get your complete pay and it's spread over close to 3 decades, it's like saving it in a bank.

[TypoTonic]

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

A lot of people seem to have misunderstood, or maybe didn't read the article. The lump-sum payment of $834.9M is actually before taxes. Once the federal and state taxes are applied, the figure would be much lower. But even then, it's still a huge amount of money, and choosing the cash upfront is still the better option (for me at least).

The winnings are subject to federal taxes of between 24% and 37%, and, in most cases, state taxes.

[Ishicryptic]

Taking either options of receiving the lump sum at once or receiving it in instalment will depend on the financial management and plans of the jackpot winner. If he or she knows how to invest then it's better to take the lump sum and move on if not let them settle for instalment and be comfortable for life. We have heard a lot of stories about people that hit the jackpot in lottery and after a few years they will lavish everything and become poor, for such people it will be better for them to be collecting their win in instalment and not worry about being poor again. 29 years is a very long time so the winner has to know what will happen if the lottery company goes bankrupt before then.

[Free Market Capitalist]

Would you take the lump sum or choose to receive your payments in small amounts for 29 years?

Well, I don't know what I would do, to be honest. The amounts are so huge that they can drive you crazy. Even with the annual payment, it would be $29 million per year minus taxes (as TypoTonic points out), let's say 30%, which is still $20 million. If the amounts were more modest, I would opt for the lump sum, but the fact is that with just one year's well-managed annual payment, you and your descendants could live off the income.