If you ever win lottery which is better lump sum or annuity?

[Anonymous]

If you ever take annuity what would happen if you die will your family get the money?

[Anonymous]

Depends on your knowledge

Most people are best with an annuity but personally I have wealthy associates with businesses and other things I'm well read upon that I could invest in

[docster]

I'd take the annuity. That way if a financial advisor steals it, loses it, or anything else, you have more coming every year.

[Asker]

Lmao a financial advisor can steal it?

[docster]

Yes. If you do a search for "Billy Joel's money woes" it will tell you how $90 million was allegedly stolen from him.
Getting the lottery winnings over 30 years is safer, plus it gives a person time to learn to invest with a smaller amount than a huge lump sum. If you make a mistake, no worries, more will arrive in a few months.

[TheorionMage]

Ideally, you want the annuity and to have its annual payments deposited into an ostensibly non-taxable charitable trust fund with you as its Administrator. You should be able to draw a salary based upon its lottery winnings earned interest which IS taxable at a more-nominal rate. You can also name an heir to that role of administrator in case of accident or death. By only drawing on the interest the principal funds CONTINUE to accrue in addition to unspent interest on the trust's investments.

Should you fall prey to a rash of 'stupid' 'mad money' impulse purchases, you can't readily piss it all away like a week in Las Vegas $$$ (EVERYBODY'S your buddy, as long as YOU'RE buying)

[matchrestore]

That really depends on how much you trust your self restraint. Historically if you invested the lump sum in index funds, like the S&P 500, you would end up ahead of the amount you would get from the annuity. You would have to leave the money alone though- no lavish spending. If you can't trust yourself to leave the bulk of the winnings invested and not spend it, I'd recommend taking the annuity payments.

[joeldalton]

lump sum, always.

[In_Trance]

I'll take lump sum