Lottery Winner's Dilemma: Lump Sum or Annuity?

A lump sum allows you to collect all of your money at one time On the other hand, an annuity is a series of steady payments that are made at

Of course, once you get the annuity checks, you'll have to pay income tax on them But if you take the lump-sum cash prize, you'll pay tax

should you max bet on a slot machine Yes, lump sum payments are generally always better THINK about it… they are guaranteeing you a minimum payment They're going to invest the

should i play the lottery Nearly all jackpot winners take the lump sum option, indicating they believe they can invest their winnings and come out ahead of the annuity