Mega Millions: Lump Sum or Annual Payout?

[cool_hand]

Lump sum all the way. Even a palsy 5% return on 200M is 10M. Compound that interest over 20 years and it will get up there.

Though, I'd might consider the annual just to have an excuse to deny all the deadbeats, hanger-ons, second cousins, ex-friends and every other douchebag that comes out of the woodwork looking for free cars and cash.

Wouldn't the annual give all the deadbeats an excuse to come out of the woodwork every year?

Just trying to get over the intitial craziness and surreality. If they want to try to find to find me in 2012, good luck hunting me down somewhere between Monte Carlo and Fiji.

[mcm]

where can I get 5% on my money with no risk?

[Brian]

Anyone who wins should spend the next year at their local track picking up the paper tickets that degenerates and I throw on the gound. The IRS lets you deduct gambling winnings from gambling losses as long as you have the tickets. Can easily take a pretty chunk out of your tax bill for the win.

[longpolelax]

Throwing the outlandish interest rates on the lump sum makes a ton of sense because I'm sure everyone will take the lump sum and just leave it in the bank.

[Sim]

I'm all set having $200M in 'checking' and spending a couple years in the hopper for tax fraud.

[cool_hand]

When you're a multi-multi-multi millionaire and not relying on investment advice from Jim Cramer of some ham and egger at the Edward Jones down the street, you'll be okay.

[jtk4]

Lump sum and hire someone who can handle the money for me and a lawyer to handle all deadbeat requests.

[rearadmiral]

Rear Ad you don't think the gov't is making just as much money over that 20+ years with your money in their possession?

Being the gov't, they'd probably fuck it up.

But assuming they do somehow make $ with it, that's fine. I'm just opposed to willingly leaving winnings on the table, regardless of how I can re-invest it, recoup it, etc. in order to get that missing money back.

[AY]

I just don't trust the government to continue paying me for 20 years(or 26 or whatever).

Give me the lump sum and let me spend like a mofo before our economy crashes for good and the money is worthless.

[BS1]

Just give me the lump sum, thanks.

I mean wtf are we really gonna do with all that money

[Boston]

do not understand the annual payout theory

lump sum, thanks

[MCA]

The right answer is to ask former poster T what to do.

[uconnrecruitingviolator]

factor in inflation and your annuity payment's real value will drop 2-3% every year. invest in fixed income investments and you'll average about 4%/year. a balanced portfolio will get you about 6%/year (both conservative averages). put it in a growth focus and see it grow at 8+% per year and it'll be compounding in all instances.

bottom line is take the lump sum every time, anyone who doesn't might as well take a free pile of money and drop kick it off the tobin.

[mcm]

do not understand the annual payout theory

all I know is you get 60% of the prize amount if you take lump sum

I'd take annuity but I'm no financial whiz (I'd be OK with $15 mil a year or whatever it ends up being)

[AY]

Isn't the annuity non-transferable? In other words, if you die your spouse can't collect?

Another reason why I'd want the lump sum.