Mega Millions choice...Lump sum or 26 annual payments?

Question

If I win the Mega Millions jackpot, should I take the lump sum payment, or the 26 annual payments.

Lump sum is approx. 60% of total jackpot. Currently you will get $75.2 million(of a $125 Million jackpot), before taxes.

Or you get 26 annual payments of $38,500 per million won. The current jackpot is $125 million, so you would get $4,812,500 before taxes per year for 26 years.

What is the best option? Clearly I am going to win this thing on Tuesday.

Answer 1

If I recall correctly, they say the lump sum option is the best as the present value of money is worth more today than in the future.  But I think it also depends on how well you manage your money.

Answer 2

I have given this alot of thought over the last couple of years i say it depends on how old you are and how well you manage money.I would take the 26 annual payments because think about it the average person makes about 2-3 thousand dollars a month if you take annual pymt that's 4,812,500 a yr you could put that in a privet bank and have it disperse to you over a 12 month period which would be over $350,000 a month that sounds good to me nd it will be this way for the next 26 yr there is no pressure to get a business start or to do anything right away