I think i like the Security of an Annual Payment. less likely to BLOW IT ALL on something Rocket River
You could get loans to make an effective lump sum but you are likely to get screwed on the interest. Also who knows what security the state offers on if they go bankrupt.
lump sum... why let the govt. hold onto the cash and collect interest on my money (or even invest it in positive NPV projects and get a high return on MY MONEY) I could take the lump sum and invest it myself and get a solid return.
plus you could take the lump sum and invest it in such a way as to mimic the annualized payments you'd get from the "annual installment option" and you'd own the principal in your own name as well. best of both worlds.
This is a terrifyingly good point. Anyone know if a government could unilaterally reneg on this? Is there anything in the fine print?
If the annual payment were only for 5-10 years, I would consider it. But no way would I choose the standard 20 year payout.
Time value of money. If you only get half today and invest it it will be worth more then receiving annual payments.
Don't you have to say "cash value option" when purchasing the lottery ticket to get the lump sum payment? Can you make that decision once you win?
Lump sum and then for two years I would go on a Charlie Sheen like bender all over the world. Then come home, sign up for Millionaire Matchmaker and buy a Prius.
you get less money with the lump sum. if you can live long enough to collect the annual installments then thats the way to go because you get the complete jackpot.
