Lump Sum

Nobody won Saturday's $325 million Powerball jackpot Saturday night, setting up a $425 million-plus jackpot for Wednesday night's drawing that has even casual lottery players ready to take the plunge. "I only play when it gets big," Linthicum's Charlie Morlock said Sunday afternoon, hot off plunking down $20 for Powerball tickets at his local Royal Farms store. This was, he noted, the first time he'd played the lottery this year. Lottery officials said Wednesday's drawing could soar beyond $425 million, depending on how many people cough up the $2 necessary to play.

Legg Mason Inc.'s new CEO, Joseph A. Sullivan, announced Tuesday a shake-up of his executive team and the exit of some top officials, including one who had been in the running for chief executive. Sullivan, a Legg insider who was named CEO and president in February, had been serving as interim chief executive after Mark R. Fetting stepped down in October. The Baltimore-based money manager in recent years has suffered from poor performance among some of its mutual funds as well as an outflow of investor dollars.

Of all the investment decisions you may have to make, deciding whether to take a lump sum or annuity payout from your pension plan could be the most difficult. The reason is that, unlike other decisions, there are few rules of thumb to guide you. That means that deciding between a one-time payment and a steady annuity payout must be based largely on your situation, experts say. "Obviously, it's a highly personal issue," says David B. Root Jr., a financial planner with D. B. Root & Co. in Pittsburgh.

Nobody won Saturday's $325 million Powerball jackpot Saturday night, setting up a $425 million-plus jackpot for Wednesday night's drawing that has even casual lottery players ready to take the plunge. "I only play when it gets big," Linthicum's Charlie Morlock said Sunday afternoon, hot off plunking down $20 for Powerball tickets at his local Royal Farms store. This was, he noted, the first time he'd played the lottery this year. Lottery officials said Wednesday's drawing could soar beyond $425 million, depending on how many people cough up the $2 necessary to play.

Q. Your article about variable annuities with a lifetime income guarantee was interesting. Could you explain in more detail the differences between this benefit and annuitization? A. I wrote about a relatively new lifetime income benefit rider offered by several insurance companies that issue variable annuities. With this optional benefit, which comes at an extra cost, the annuity purchaser can choose to receive a minimum lifetime income regardless of how the annuity investments perform and without having to "annuitize," or give up access to principal.

A loophole in state campaign finance laws allowed contributors to Maryland candidates and political groups to pump $4.3 million into the 2010 election cycle while remaining anonymous — denying citizens a thorough look at the money that flows into politics. The State Board of Elections discourages candidates from using the "lump sum" label on campaign finance reports, and Maryland Attorney General Douglas F. Gansler has taken issue with the practice. But it remains legal and has been used by Democrats and Republicans alike, enabling some local candidates to finance their races without disclosing large numbers of donors.

Baltimore County firefighters and paramedics have reached a tentative agreement with county officials on a new pension package, officials said yesterday. Under the agreement between union leaders and the administration of County Executive C. A. Dutch Ruppersberger, 1,000 paid firefighters and paramedics would have the option of receiving large lump-sum payments in exchange for reduced annual pensions if they stay on the job at least 32 years. The incentive - called a deferred retirement option program, or DROP - is designed to keep experienced firefighters on the job longer to save the county costs associated with turnover as well as ensure greater public safety.

Baltimore County police officers and firefighters who defer retirement for a few years and agree to slightly lower monthly pension benefits will receive hundreds of thousands of dollars in lump sum payments, the County Council decided last night. A bill passed unanimously by the council, which could cost the county $5 million a year and could result in individual payouts as large as $500,000, follows up on an agreement that C.A. Dutch Ruppersberger, then county executive, struck with the public safety unions in 2001.

Anne Arundel County's budget chief suggests the county give Baltimore roughly $9.3 million from misdirected tax receipts in a lump sum, rather than drag it out over years. And County Executive Janet S. Owens said she is inclined to agree. Yet until The Sun reported the tax processing glitch Saturday, Owens had hoped to keep the issue from the public, at least temporarily. Even though it was buried in budget documents, she sent the County Council members a "confidential" memo May 1 asking them to stay quiet.

Today's uncertain business world has made entrepreneurs of us all. People who are played out in corporate life are becoming self-employed. Others, still on the company payroll, are moonlighting to build a safety net.Whether you're starting a business in your garage or thinking of free-lancing on the side, your first client will probably be someone you know. You may be flattered when a neighbor or business contact asks you whether you can take on a project. Then comes the awkward question: "What would you charge?"

After less than a minute of discussion, the Baltimore City Council on Monday overwhelmingly confirmed Anthony W. Batts, the former police chief in Long Beach and Oakland, Calif., as Baltimore's newest police commissioner. No one on the 14-member council voted against Batt's confirmation and only Councilman James Kraft abstained. He did not explain his position publicly. Councilman William H. Cole IV, who held a committee meeting last week in which community members spoke both for and against the new commissioner, made the motion to approve Batts' nomination.

Much of the wealth of millions of baby boomers is tied up in their houses — a sure sign we're going to see a growing demand for reverse mortgages. These mortgages allow older homeowners to drain the equity in their house without having to sell it or make monthly payments. For now, though, these complex loans make up only a tiny percentage of housing loans — and that's a good thing. It gives regulators, the industry and consumer advocates time to bolster borrower protections and education before widespread problems occur.

In the running for the Nicest Boss in Maryland award is this guy, who just bought 200 Mega Million tickets and promised to share the winnings -- in a big, big way, with his workers. Dennis Kane of Kane Construction said he was the only winner, he'd pay the mortgages off of everyone in his company. And that was before he knew the jackpot was up to $640 million. Maybe now he workers will also get cars. Cost of tickets: $200. Value in corporate good will of making a pledge like this: Priceless.

Someone in New England is — knowingly or not — $336.4 million richer. A person who purchased a ticket in Rhode Island for the multistate Powerball lottery won the jackpot Saturday but has not yet come forward to claim it, the Associated Press reported. The winning numbers were 1-10-37-52-57, with Powerball number 11. Powerball is played in most of the country, including Maryland. The lottery said more than 60,000 Powerball tickets purchased in Maryland were winners on Saturday, but none were "Match 5" million-dollar prizes.

The Consumer Credit Counseling Service of Maryland and Delaware has some left over grant money and is using it to provide reverse-mortgage counseling for free until Aug. 31. Such counseling usually costs $125. If you've been thinking of getting a reverse mortgage, you can call 1-866-731-8486 to make an appointment for counseling in person or over the phone. This deal is available to U.S. citizens in all states except for South Carolina and Massachusetts. A reverse mortgage allows homeowners age 62 and up to tap the equity of their home.

Del. Guy Guzzone has $100,274 in campaign cash put aside, likely enough to pay for another run for the General Assembly, but he said his annual home pizza party should boost that total by at least $35,000 as he ponders a run for higher office. "I have not made a decision what I'm going to run for, but county executive is high on the list of possibilities," he said Monday. Thursday evening, his tune didn't change as he spoke to about 200 people, many of them donors who filled his driveway, garage and front lawn eating free pizza.

They're 401(k) fanatics. You can find them in almost any place that has an employer-sponsored retirement savings system known as a 401(k) plan (named after a section in the federal tax code). They boast about how much they've saved. They monitor by the minute what their accounts earn. They debate about investment options. And they dream aloud about a wealthy retirement. Rarely, however, do the 401(k) fanatics talk about this dirty little secret - most workers never get to see the full benefit of 401(k)

Much of the wealth of millions of baby boomers is tied up in their houses — a sure sign we're going to see a growing demand for reverse mortgages. These mortgages allow older homeowners to drain the equity in their house without having to sell it or make monthly payments. For now, though, these complex loans make up only a tiny percentage of housing loans — and that's a good thing. It gives regulators, the industry and consumer advocates time to bolster borrower protections and education before widespread problems occur.

Maryland law allows small political contributions to be bundled together and reported as "lump sums" in disclosure reports, and to hear defenders of the practice talk about it, the tactic is merely the campaign finance loophole for the little guy. The fat cats have their limited liability corporations, personal loans and political slates that allow them to funnel tens or hundreds of thousands of dollars into candidates' campaign accounts with no...

A loophole in state campaign finance laws allowed contributors to Maryland candidates and political groups to pump $4.3 million into the 2010 election cycle while remaining anonymous — denying citizens a thorough look at the money that flows into politics. The State Board of Elections discourages candidates from using the "lump sum" label on campaign finance reports, and Maryland Attorney General Douglas F. Gansler has taken issue with the practice. But it remains legal and has been used by Democrats and Republicans alike, enabling some local candidates to finance their races without disclosing large numbers of donors.