Lottery Payout Options — Annuity or Lump Sum?

Are lump-sum payments the best option for lottery winners? If a lottery winner chooses to collect their winnings in a lump sum, it gives them

Why? Lottery wins are subject to income tax in the year you receive the money If you take the lump sum option, the entire $10 million is

lump sum calculator lottery Even if you account for the amount of money you lose in taxes, investing the lump sum will vastly outpace the annuity long before the annuity is

lump sum lottery lump - sum inheritances , one - time insurance payments , or compensation for injury 3 Non - cash benefits , such as the employer - paid or union