If I won the lottery, should I choose the annuity or the cash payment?

Question

I see most people choose the cash payment. Is that smarter?

Answer 1

I'd choose the annuity, the money keeps on coming.

Answer 2

What usually happens is you'll get more in an annuity, the only thing is that it will come over time instead of getting it all at once.  If you are patient enough, then take the annuity.

Answer 3

if you have the sense and discipline to invest intellegently, then take the cash

Answer 4

There is no right answer here.  You'd need to sit down with some highly experienced CPAs and talk about what was best for you.

I think it matters just how big the jackpot is.  Then you need to run projections as to what you could do with the lump sum versus what you are being offered as an annuity.

But realistically, a handful of Americans out of 300,000,000 or so have to make this decision.  It's really not likely you will ever be faced with this dilemma.  But if you do, you'll be able to afford to hire the best team of investment professionals to help you decide.

Answer 5

Take the annuity