What is more convienient for lottery winners: annual payments or cash prize?

The Annual Payments are for 26 years and total 150 million.


The Cash Prize is 92.5 million.

What is more convienient for lottery winners: annual payments or cash prize?
The implied rate of return is usually pretty low on the annual payments. Additionally your taxes will be very high every year. With the lump sum you take a big tax hit the first year, but then you can manage it after that.
Reply:"convenient" is the one time cash payment. But the 26 years worth is defintely a better 'deal' becuase you get over 50% more money.
Reply:cash
Reply:Take the lump sum. You'll pay a chunk of change in taxes at first, but then you'll have all the money to do with what you want.
Reply:Most will take the full cash prize. What happens if you die 15 yrs down road, does your family inherit the money?? Also, if you were to take that money and invest it (which is essentially what they do), you would receive more in the long run.





Take the money now!!
Reply:Take the money and run.
Reply:doesnt matter, i'm gonna win mega millions tonight so you dont have to worry about it. : )
Reply:from a convenience standpoint it's a no brainer - one payment is more convenient than 26 years worth. From an economic standpoint, it's not so cut and dried. Things that need to be considered are:


1) what are the anticipated interest rates over that time period


2) what might happen with tax rates - they could go up, down, gov't could decide they want a big piece of lottery winnings in the future becuase you didn't earn it


3) how old are you?


4) how likely are you to invest this money vs just blowing a lot of it on many cars and big houses?

buck teeth