Can the annuity payments be passed down upon death of the winner or do they just stop at that point?
Does not account for possible interest to be gained over 19 years with the lump sum payment, greatly exceeding the return of the annuity over that timespan.
If you had average returns on that 493 billion you would anticipate having 2 billion at the “break even” point
So more money than any human needs vs. more money than any human needs? What a tough choice.
Of course the 19 year break even is assuming you don’t invest your lump sum payout at all and spend every cent
Just wanted to illustrate a hypothetical break even point
Perfect timing that it’s just happened to be won at Christmas. Definitely not rigged
How could someone secure this in the best way to feed future generations of their family? Could you set up some kind of trust where each child, grand child, great grandchild, etc. all the way down the line gets 10m when they turn a certain age or something, and it just sits there and keeps growing and growing for multiple generations and giving out 10m as new children in the family tree come of age? I hear a lot about generational wealth but I’ve always been curious what kind of mechanisms allow it to truly be generational.
We can tax this, but can’t figure out how to tax billionaires.
Congrats to the government for winning 308 million
Wait. How is this meant to work? So you win 1.8B, but you only get half of that? Why even say the jackpot is that high? Is there any way a winner could ever get the advertised jackpot figure? Where does the rest of the money go?
Always found it funny and ironic that Murica who always complains about ‘the taxes” – taxes the hell outta lottery wins.
If I win the Euro jackpot here in Norway for 100 million dollars (or Euros, but close enough) I get it all. No tax, no nothing. Every cent. There is no tax on any lottery wins
Just a reminder that the “(large percentage) of lottery winners go bankrupt after 5 years” stat was pretty much invented out of whole cloth by Reader’s Digest.
Here’s a fun way to look at it. We all know the old saying that the Lumpsum payout is the way to go for max’ing the money into a higher return.
Two things we don’t consider
1.a) Can *you*, the winner, handle/manger that much money. It’s a one time payment, there are no do-overs. If you get the money and we go into a depression simlar to 2007, the S&P 500 took 5 years to get back to pre-’08 numbers.
1.b) If you can’t be trusted to invest wisely, how much will you get duped into paying for lawyers and fiduciaries to invest wisely. We never know what the market will do, only what it has done.
The annuitization of the funds makes sense if you don’t fully trust yourself AND there’s inkling that the market is prepared to tank…. again, we don’t know that.
Yes, yes i get it, 70% stocks and 30% bonds and live off the bonds.
Lastly, I don’t know how I’d find ways to spend $16m the first annuitized payment. Then you get a larger one year after year for 30 years. Personally, I’d highly consider that. Can’t mess up what you don’t have. Learn to live well within your means, and learning to invest with the chance to lose but knowing you have safeguard.
That’s a scam. In Germany and some other countries, you will get 100% of the advertised jackpot. Taxes are paid on tickets, not on the winnings. The maximum jackpot is “only” 120 million Euros, but you will really get 120 million Euros and you can keep all of that.
And that annuity is no real money. That money includes all future interests. Imagine how much money is lost from inflation in 30 years.
![[OC] $1.8B Powerball Arkansas winner - Lump Sum Payout vs 30 Year Annuity](https://www.europesays.com/wp-content/uploads/2025/12/x7p5zffnfi9g1.png)
15 comments
Can the annuity payments be passed down upon death of the winner or do they just stop at that point?
Does not account for possible interest to be gained over 19 years with the lump sum payment, greatly exceeding the return of the annuity over that timespan.
If you had average returns on that 493 billion you would anticipate having 2 billion at the “break even” point
So more money than any human needs vs. more money than any human needs? What a tough choice.
Of course the 19 year break even is assuming you don’t invest your lump sum payout at all and spend every cent
Just wanted to illustrate a hypothetical break even point
Perfect timing that it’s just happened to be won at Christmas. Definitely not rigged
How could someone secure this in the best way to feed future generations of their family? Could you set up some kind of trust where each child, grand child, great grandchild, etc. all the way down the line gets 10m when they turn a certain age or something, and it just sits there and keeps growing and growing for multiple generations and giving out 10m as new children in the family tree come of age? I hear a lot about generational wealth but I’ve always been curious what kind of mechanisms allow it to truly be generational.
We can tax this, but can’t figure out how to tax billionaires.
Congrats to the government for winning 308 million
Wait. How is this meant to work? So you win 1.8B, but you only get half of that? Why even say the jackpot is that high? Is there any way a winner could ever get the advertised jackpot figure? Where does the rest of the money go?
Always found it funny and ironic that Murica who always complains about ‘the taxes” – taxes the hell outta lottery wins.
If I win the Euro jackpot here in Norway for 100 million dollars (or Euros, but close enough) I get it all. No tax, no nothing. Every cent. There is no tax on any lottery wins
Just a reminder that the “(large percentage) of lottery winners go bankrupt after 5 years” stat was pretty much invented out of whole cloth by Reader’s Digest.
Cool video explaining how to calculate which is better
https://youtu.be/lS7y1SjU64o?si=5qHCDF5-w0_AvnEf
Here’s a fun way to look at it. We all know the old saying that the Lumpsum payout is the way to go for max’ing the money into a higher return.
Two things we don’t consider
1.a) Can *you*, the winner, handle/manger that much money. It’s a one time payment, there are no do-overs. If you get the money and we go into a depression simlar to 2007, the S&P 500 took 5 years to get back to pre-’08 numbers.
1.b) If you can’t be trusted to invest wisely, how much will you get duped into paying for lawyers and fiduciaries to invest wisely. We never know what the market will do, only what it has done.
The annuitization of the funds makes sense if you don’t fully trust yourself AND there’s inkling that the market is prepared to tank…. again, we don’t know that.
Yes, yes i get it, 70% stocks and 30% bonds and live off the bonds.
Lastly, I don’t know how I’d find ways to spend $16m the first annuitized payment. Then you get a larger one year after year for 30 years. Personally, I’d highly consider that. Can’t mess up what you don’t have. Learn to live well within your means, and learning to invest with the chance to lose but knowing you have safeguard.
That’s a scam. In Germany and some other countries, you will get 100% of the advertised jackpot. Taxes are paid on tickets, not on the winnings. The maximum jackpot is “only” 120 million Euros, but you will really get 120 million Euros and you can keep all of that.
And that annuity is no real money. That money includes all future interests. Imagine how much money is lost from inflation in 30 years.
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