A self-made billionaire's advice for lotto winners: Cash or annuity?

A self-made billionaire's advice for lotto winners: Cash or annuity? annuity for lottery winners While the lump sum provides a full prize up front, the annuity offers one immediate payment, followed by 29 annual payouts that increase 5% each annuity payments lottery If you opt for yearly payouts, the lottery will take the bulk of the money you just won and invest it in a very conservative annuity, which will earn about %

annuity payments lottery A cash lump sum means accepting the entire payment all at once, while annuity means accepting a series of payments over time It's more common for winners to

annuity payout calculator lottery Say you win a $10 million prize If you take the lump sum option, the entire sum is subject to income tax that year However, if you choose the annuity option, To arrive at the answer, we need to know the present value of 20 annuity payments of $45,000 based on 3% interest By plugging the interest rate