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Lotterule (lemmy.world)
submitted 2 weeks ago by nifty@lemmy.world to c/196
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[-] nimble 181 points 2 weeks ago

Lotterys are usually paid out in annuities where you would get that amount over a period of 10-30 years. However, they also give a lump sum amount which is usually ~half the stated amount and after taxes you could expect to receive 1/3 the stated amount.

Still, it's generally best to take the lump sum unless you have very bad self control and would blow through the money.

[-] nimpnin@sopuli.xyz 37 points 2 weeks ago

it’s generally best to take the lump sum

Why? I would assume it's the other way round.

[-] nimble 19 points 2 weeks ago

It's just down to generally investing the lump sum you can outperform the annuity option. If you search "lottery lump sum vs annuity" you'll get a lot of results. Here's one

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this post was submitted on 30 Dec 2024
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