Prizes that aren't necessarily as announced

[Kevin Prather]

Seriously, I get you hate me. Doesn't mean I don't have rights to opinions, does it?

Sure you do. And I have the right to point out irony when I see it.

And no, I don't hate you. I don't hate people.

[PYLdude]

And no, I don't hate you. I don't hate people.

Alright, I feel a little better...although I'm afraid to ask what you do hate.

/yeah, I sure veered this off topic, eh?
//I return you to your regular scheduled...prize thing

[Jeremy Nelson]

What show offered a $75,000 treasury bond?

I think Wheel might have done it in the bonus game at one point.

The annuity was a mainstay bonus prize from the late 80s to the mid-90s. I remember them offering an annuity valued at $100K at one point.

[chrisholland03]

Seriously, guys, if Mr. Holland Lacking an Opus isn't modded...why?

You could cut the irony with a knife.

Oh sure, when in doubt take potshots at me, it always works.

Getting really old.

I see how this works now...Party A gets dumped on by Party B, so Party A dumps on Party C.  Soon the whole place turns into a alphabet soup of dumping.

Reminds me of elementary school playground, except we're all adults.  Which really does make the goings on funny in a sad way.  Like hobo clowns at a 3 year old's birthday party.

May I suggest as a friend peer that we all take a break from the potshots?  The people who are moderated are moderated and with good reason, and those who don't contribute aren't here.  The world is much bigger than our own little bubbles, and I'd like to think we all add something to this place whether it is recognized, appreciated or neither.  With this being the interwebs, people really don't know who they are interacting with and what their greater contributions are.  I propose we enjoy each other, the genre and site despite our disagreements?

------

Having googled Treasury Bonds and Annuities, I'm not seeing a lot of differences between the two.  I'm not a financial advisor, though.  Anyone care to explain the difference for us?  From a contestant's perspective does one offer a significant advantage over another?  Obviously from the show's perspective, they get to offer a nominally bigger prize.  How would prize taxes work on these?

[clemon79]

Having googled Treasury Bonds and Annuities, I'm not seeing a lot of differences between the two. I'm not a financial advisor, though.  Anyone care to explain the difference for us?

The most glaringly obvious one (and honestly I'm not sure how you could have missed it) is that an annuity pays out its principal over the course of the maturation period, while a bond might pay nominal interest over the course of it, but doesn't pay out the full principal until maturity. (I think you can cash it out early, but then of course you don't get the full principal.)

From a contestant's perspective does one offer a significant advantage over another?

Like any income, it would depends on the contestant's plans for the cash. Assuming the production spent the same amount up-front on both prizes, the bond is likely going to pay out more money over the course of the maturation period than the annuity is; it's just gonna pay the mass majority of it at the end. (So for example, and this is an example based on absolutely no current market information and merely a pulled-out-of-my-ass illustration: the production spends $20K and for that $20K they can either get a $40K annuity or a $50K bond.) So if the contestant plans to run out and buy hookers and blow with it right away, they're probably gonna want the annuity. If they are saving for retirement and THEN plan to buy hookers and blow, they'll probably want the bond.

How would prize taxes work on these?

Guessing, but I would imagine it's taxed at the amount that the production spent on it (which of course is a fraction of its actual value at maturity) and then the gub'ment gets to double-dip when you eventually cash it out (or as the amounts roll in in the case of the annuity). Basically, the exact same as if you were taxed on your income and then spent it on a bond or an annuity, except in that case you would probably get the deduction for the initial outlay, whereas in this case the production likely does since they were the ones who bought it for you.

[Denials]

re: Bonds vs. Annuities

A bond is a debt obligation of someone (for a treasury bond, the United States Government) that has a stated par value and a stated coupon interest rate.  Bondholders lend money to a borrower and in return receive periodic (usually twice a year) interest payments based on the par value and coupon interest rates.  At the maturity date of the bond, the bondholder also receives the par value of the bond (assuming the entity hasn't defaulted).  There are other types of bonds (zero coupon, etc.) but my description covers most bonds.

An annuity is where someone typically makes an upfront payment to receive periodic (often annual...hence the name) payments of a fixed amount for a set number of years.  There is no ending principal payment like with a bond.

I hope that is helpful.

[Mr. Armadillo]

If they are saving for retirement and THEN plan to buy hookers and blow, they'll probably want the bond.

Great...now I have a mental image of my grandmother that I'll never be able to unsee.  Thanks a lot.

[JakeT]

Some of you guys take the Interwebs much too seriously.  And your opinions as well.

Humor is funny like that.

Here, here, home skillet!!!

And just how is my buddy from GSC4 anyway?  Haven't yakked with you in 10 years at least!

JakeT

[chrisholland03]

Some of you guys take the Interwebs much too seriously.  And your opinions as well.

Humor is funny like that.

Here, here, home skillet!!!

And just how is my buddy from GSC4 anyway?  Haven't yakked with you in 10 years at least!

JakeT

Yo!  I've wondered where you went to.  I'm pretty much the same, but different.  Just shot you an email.

[JakeT]

Some of you guys take the Interwebs much too seriously.  And your opinions as well.

Humor is funny like that.

Here, here, home skillet!!!

And just how is my buddy from GSC4 anyway?  Haven't yakked with you in 10 years at least!

JakeT

Yo!  I've wondered where you went to.  I'm pretty much the same, but different.  Just shot you an email.

And yet I've been here all along.  What I find ironic is that I'm pretty much different, but the same...hmmmmm...that's a real nut scratcher!

(I'll hit ya back in email later!)

JakeT

[PYLdude]

Seriously, guys, if Mr. Holland Lacking an Opus isn't modded...why?

You could cut the irony with a knife.

Oh sure, when in doubt take potshots at me, it always works.

Getting really old.

I see how this works now...Party A gets dumped on by Party B, so Party A dumps on Party C.  Soon the whole place turns into a alphabet soup of dumping.

You have it backwards. Party A is me, Party B is you, Party C is Kevin- so since Kevin is talking about me, it's C dumping on A.

chris, seriously, you don't need to be the forum comedian. You come off, at least in my HO, as trying too hard. And that's not really good, considering that most, if not all, of what you contribute is those attempts.

I really shouldn't be as hard on you, I admit, but I just feel weird reading what you say. It's a "what's he gonna do this time" and not necessarily in a good get people talking vibe. I would say dial it back a bit, talk more topically, and things would be cooler. Not saying listen to me, but it might help to at least consider.

[chrisholland03]

Remind me again when I've dumped on you?  Or anyone else?  I truly am interested so I can apologize.

Also - not trying to be the forum comedian.  Just being the same me that has been around the game show parts of the internet since 1992.      

I do appreciate your constructive feedback.