Would you choose a Powerball lump sum or 30 years of annuity payments?

[Jedimaster6]

If you pick the annuity you end up with significantly more than the lumpsum payment, and over decades you get paid millions every year but you aren’t worth hundreds of millions instantly, with the one time lumpsum, you get a one time payment, and that could make you and instant hundred millionaire depending on the amount offered in the lottery, which would you choose?

[Anonymous]

Lump sum. You get less upfront that is true. But the earning potential over the years trumps that.

It's why every American should be outraged with social security. You pay into a system for years and when you retire you get a fraction of what you could have if you had been allowed to invest that money over the same amount of time. Now i'm not saying that needs to change. A lot of Americans it's just as well they don't handle that money. I just hate seeing the waste of that potential.

[OneViewpoint]

Lump sum if I believe I can invest that money at a higher rate than the discount rate used in the lottery’s net present value calculation and the tax differential of a 1 time payout vs smaller payments over time. It’s just an NPV / FV analysis.

[EmmaMary]

I think I would take a chance in living for another thirty years.

Of course I will never find myself in such a situation, as we here in the UK do not have such lotteries that can pay out billions of pounds.

I think the biggest ever win so far on the lottery here has been somewhere in the region of £210 million.

[Agape93]

Lump sum. By the time 30 years is up, I'll be long dead and wasted a fuck ton of time and money

[Alex-Snow]

I'm only 21 so the annuity would make the best financial sense for me. It is always fun to dream about it.

[exitseven]

i pick the lump sum. The government might be bankrupt soon.

[Staximus]

I’ll be lucky if I live 30 more years, I’ll take the lump sum

[Iron_Man]

I would have to analyze it exactly 100% with a lawyer Just to be sure

[moddy_the_mod]

Lump sum and invest it.