Fed Cuts Rate 50 bp - Grab the Lottery Annuity Options

In an emergency action, the Federal Reserve and other key Central Banks around the world lowered their interest rates by 1/2 of one percent early this U.S. morning.

The US rate was lowered from 2% to 1.50%.

This is an important action for stimulating the global economy, but should also have an immediate effect on Lottery Players who are offered a choice between accepting the Cash or Annuity Jackpot options.

As noted in Powerball and Mega Millions Jackpot Analysis articles:

The Cash Jackpot offer should be increased as interest rates decline.

If they aren't, Winners should opt for the Annuity Option.

At present, the yields offered by all of the LPP covered annuity lotteries (Mega Millions, Powerball, Hot Lotto, and California Super Lotto Plus) exceed an annually compounded 4.10% yield.

With stock prices declining daily, and with interest rates being lowered, we do not believe that individual investors can beat Lottery Yields, nor find a safer haven in an environment where banks and investment houses are going bankrupt.

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