Owl2Doc said

LabRat said

$2,171,801.17 is before taxes are withheld.

So what happened to that $828,198.83?

That's the penalty for taking the lump sum verses payments over a number of years.  (I'm not sure if its 10 or 20 years if you want the full $3mil)

LabRat said

Owl2Doc said

LabRat said

$2,171,801.17 is before taxes are withheld.

So what happened to that $828,198.83?

That's the penalty for taking the lump sum verses payments over a number of years.  (I'm not sure if its 10 or 20 years if you want the full $3mil)

I work for a company that does structured settlements and annuities in Boca, right next to FAU. Usually if they take the payments its over the course of 20 years

LabRat said

Owl2Doc said

So what happened to that $828,198.83?

That's the penalty for taking the lump sum verses payments over a number of years.  (I'm not sure if its 10 or 20 years if you want the full $3mil)

Ah, I thought the higher tax on the winnings was the penalty for taking the lump sum. Interesting.

Jab979 said

I work for a company that does structured settlements and annuities in Boca, right next to FAU. Usually if they take the payments its over the course of 20 years

Those annuities are like a structured yearly payout of the lotto for retirement, right? Where you'd get $100k/year for 30 years if you put $3M dollars in upfront? Let's say if you took a lump sum ~$20M after penalties and taxes you could still set aside $3M in an annuity so even if you blow through the rest of the dough on things like a new baseball stadium and basketball arena for your hometown team, you're still set for retirement… right?

Basically yeah. It's a set amount that is given to you each year with the annuity. So you could put some of your lotto winnings into an annuity. We do a lot of stuff with lotto winners when they take the payment option over the lump sum. However they could still call us and tell us they want to put their money into an annuity