In Lansing, Michigan, an unnamed lottery winner recently won a $42 million dollar Mega Millions jackpot. Lottery officials in the state are surprised to say that this lottery winner is doing something that is virtually unheard of in the history of Michigan's involvement in the Mega Millions jackpot lottery: The winner intends on accepting the option that pays the jackpot out in yearly installments rather than requesting a smaller, single time cash payment.
The Mega Millions jackpot lottery is not solely a Michigan based lottery, but rather collects ticket sales from twelve different states - California, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Texas, Virginia and Washington. This allows the jackpot to climb much higher in a much shorter period of time, which is how the unnamed winner of the recent October 3 Mega Millions jackpot was able to score a cool $42,000,000. Although selecting the option that grants annual payments in place of a single lump sum payment is not completely unheard of among the twelve states included in this specialized lottery, it is very rare for anyone to opt for twenty six annual payments over a quick lump sum payment of the jackpot.
According to a spokeswoman who works for the state lottery in Michigan, Andi Brancato, she cannot remember a single Mega Millions lottery jackpot winner in Michigan ever opting for the annual cash payments option, even though Michigan has been involved in the Mega Millions drawing for six years so far. The winner of this jackpot has not been officially named yet, however the name of the winner is intended to be announced on Friday during a news conference in Michigan.
Lottery winners typically choose the option that pays out one single lump sum payment, because most lottery jackpot winners intend on investing their winnings. The winner of the October 3 Mega Millions jackpot, however, has indicated a preference for taking the annuity payments instead. This decision is being attributed to a drop in confidence in the market because of the current financial crisis and uncertainty regarding how the market will grow or further falter in future months. Since closing at its all time high just about a year ago, for example, the Dow has dropped by nearly 40 percent since the housing crisis began, and shows absolutely no sign of letting up anytime in the near future as certainty continues to drop in popular markets throughout the company.
By choosing the annuity payments, the lottery winner is likely expecting that their money will be protected, because more of their investment will not be lost while the market rights itself over the span of the next few months or years.
Photo Credits: 1
Originally posted 2008-10-14 05:25:40. Republished by Blog Post Promoter
Related Posts -
The Many Flavors of Loans Money can be lent to those in need, at a reasonable rate, from a pool of money that comes from investors and savers. When the lending institution provides money for consumers to borrow, either secured or unsecured, the practice is known as providing a consumer loan. These loans do not...... -
Financial Freedom Equals Cashflow Leveraged Wealth I would like to thank LazyMan for tagging me with in his 6 word memoir: Money - freedom to do almost anything By being tagged I need to write my own 6 word memoir.... Financial Freedom Equals Cashflow Leveraged Wealth I think the statement says it all, but to expound...... -
Are You Managing Your Debt Correctly? Although debt is a dirty word to many, the fact of the matter is that the vast majority of us are in debt in some way or another. No matter how hard we try, there are times when you simply need something and cannot afford to pay for it straight...... -
Getting Out of Debt Quickly pt 4 This is part 4 of a 4 part series on getting out of debt quickly. Make sure that you read all four parts in order to get the most out of this sequence of hints on getting yourself or your family out of the debt trap. If lenders happen to...... -
Introduction to Mortgages pt 3 of 5 This is part three in a five part series on what you need to know about mortgages before you buy a home. The housing market is an interesting beast, because it comes and goes, rises and falls, allows some people to flourish and brings others to ruins. If you want......
Related Websites -
Surprises at Indian Wells The singles' winners at the BNP Paribas Open at Indian Wells, California, came as a surprise to almost everyone. Ivan Ljubicic, a player who almost always makes a strong showing approaching the finals but inevitably loses out, defeated Andy Roddick in straight sets. And Jelena Jankovic also defeated Caroline Wozniacki...... -
Tiger Woods Targets Masters for Return Tiger Woods has announced that he is feeling very confident that he is going to be competing in the Masters tournament in April 2009, even though he has not yet been given a date by his doctors regarding when he can begin playing again following a knee injury and subsequent...... -
2009 Purse for the US Open Tops the Records at $21.6 Million The US Open purse for the 2009 competition is going to top $21.6 million, which is going to mark the third year in a row that the prize money for this tournament has increased by a sum of $1 million dollars. In addition to this base $21.6 million dollar purse,...... -
Michigan Snowboarding Coaches Excited Over New Rules A new change in the rules has snowboarding coaches excited for the 2009 racing season. In previous years, the men's and women's competitions would be counted equally in qualification into the Michigan state championship. Now, each gender will be considered separately when qualifying. This will allow schools whom may have...... -
Meeks Bay Marina, Lake Tahoe Meeks Bay Marina is located on the west side of Lake Tahoe Phone: (530) 525-5588 Fuel Dock: No fuel is available at this location. However, there are numerous other marinas that do have fuel docks if you need this service. Pumpout: Yes, a pumpout service is provided. Services Available:......
- With Months And Instructions Sundials Garden Decor Yard, Garden & Outdoor Living
- Single Wheel Seeders, Sprayers & Spreaders Garden Tools & Equipment Gardening & Plants Yard, Garden & Outdoor Living Nursery
- Single Router Bits Routers, Bits, & Accessories Power Tools Tools Home Improvement
- Single Sided Hedge Trimmers Outdoor Power Equipment Yard, Garden & Outdoor Living Nursery
- Cash Registers Banks, Registers & Vending Collectibles
Categories:
Financial Security, Investing, Lottery, Money, Personal Finance, Wealth
Tags:
4 comments ↓
This is interesting, but do we know for sure that that’s why the winner is choosing the annuity? Maybe they don’t trust themselves with that kind of money? Maybe they see it as a way to avoid all the hassles (family asking for money, “friends” asking for loans, etc) that come with having millions of dollars in the bank.
Either way, it’s interesting how things are changing.
The annuity may be the way to go for someone who does not trust anyone to give them good advice. I personally will take it all now. What a time to start investing!
Smart idea. Taking lottery winnings in payments allows the newly megarich a chance to learn how to handle large amounts of money for the first time. Considering that about one in three winners absolutely blows it within five years, it’s only in one’s own best interest to take it one year at a time and have the security of the guaranteed, life time income. It also backs off the notorious “friends” who feel they deserve a chunk of the winnings. The saddest stories are of those who give generously to loved ones, only to watch them spread it around and get nothing but ingratitude as thanks. “There oughta be a law.” It’s outrageous that they don’t get more help with financial counseling.
I agree with Kass, definitely a smart idea. I would probably opt fot that option too!!
Leave a Comment