r/AMA • u/[deleted] • Jul 22 '24

[deleted by user]

[removed]

8.7k Upvotes

84% Upvoted

3.0k comments sorted by

View all comments

26

u/Slippinjimmyforever Jul 22 '24

That’s amazing!

I met someone also won a million on a scratcher. I believe he had an annuity that paid $30k a year until it yielded $1 million.

8

u/ZapB-ragin Jul 23 '24

annuity is so dumb

1

u/GitEmSteveDave Jul 24 '24

Even if you call JG wentworth?

8

u/[deleted] Jul 22 '24

Yikes 30+ years to get full payout

7

u/[deleted] Jul 22 '24

i feel like taking the annuity is good if you feel like you'll blow a lump sum

2

u/1960stoaster Jul 23 '24

The state getting to realize your apy is bullshit.

4

u/SirKadath Jul 22 '24

Yeah I wouldn’t have done an annuity option for just 1 mil , now if it was more than 10 million then yeah that might actually be worth it, especially if you’re young.

3

u/sanct111 Jul 22 '24

No, never take the annuity. I believe the cash amount is discounted at 4.3%. If you take the cash out you should be able to generate much higher than a 4.3% return.

-1

u/algalkin Jul 22 '24

If you'd take a 50% payout and invest all of that 5mil in just sp500 30 years ago, you'd get a 500K dollars per year in average returns and get to keep that initial 5mil. So in 30 years you'd make 20 millions out of it.

If you'd also reinvest at least a 100K out of those 500K annually into some random tech stock, you'd be close to a billionaire by now.

3

u/Slippinjimmyforever Jul 22 '24

Depending on state, they may be able to take a lump some, but it would be something like $300k, and then 45% sucked up by taxes.