TAKE LOTTO MONEY AND RUN; FINANCIAL EXPERTS BACK LUMP SUM LOTTO PAYOUTS.Byline: Gregory J. Wilcox Daily News Staff Writer Here we go again, trying to reconcile reality while dreams of a Super Lotto jackpot cloud our vision. As we all rush out to buy our winning tickets for Wednesday's projected $28 million jackpot, one reality check intrudes on our dream of fast cars, long vacations Long Vacation is a Japanese television drama from Fuji Television, first shown in Japan from 15 April to 24 June 1996. Takuya Kimura played the male lead. The show enjoyed high ratings and would be the first in a series of big hits starring Kimura. and expansive mansions: Should we pencil in ``lump sum'' or ``annual payments'' on our lotto ticket? That is, should we take the approximately $14 million lump sum Lump sum A large one-time payment of money. that comes with winning a $28 million jackpot, or should we take the 26 annual payments of $1.07 million each? Simple math tells us 26 payments of $1.07 million is twice as much money as a $14 million lump sum. But winning the lotto isn't about simple math. In fact, a survey Monday of financial planners Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. in the area say the decision is fairly simple: Take the money upfront and then watch it really grow. A lottery winner could double his money in six years by investing in a relatively safe combination of investments such as mutual funds, select equities and tax-deferred annuities tax-deferred annuity See tax-sheltered annuity (TSA). , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Morrie Reiff, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Planned Asset Management in Encino. LeRoi Hill, district manager of Independent Capital Management in Calabasas, agreed that a smart investor could make more money starting with the lump sum than investing the smaller payments. Cathy Doyle Johnston, spokeswoman for the California Lottery Commission, said approximately 44 percent of ticket buyers are now choosing the cash upfront option. WITH INTEREST Someone winning a $28 million Lotto would make more money by taking a lump sum than the smaller, annual payments. (x) PAYOUT INTEREST YEAR 2023 TOTAL $14 million lump sum $89.6 million $103.6 million $1.07 million annually $70.2 million $98.2 million (x) NOTE: The comparison presumes all Lotto payouts are invested in an account that earns 8 percent. It doesn't take into account federal taxes or inflation. SOURCE: Eric Fulton of Encino-based Fulton & Meyer, an accounting, taxes and financial consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . CAPTION(S): Box BOX: WITH INTEREST (see text) |
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