what’s the difference between the annuity and cash value option in the lottery? Which is better and why?
In: 12
The annuity pays over 30 years, and the total gave value of the payments is about twice the lump sum option. Assuming you know how to manage your money, the annuity is a pretty low return on your investment- which it should be, because it is basically risk free returns.
I think the key thing is, with the lump sum you take the tax hit up front, which isn’t a bad idea based on how current tax rates compare to rates over the last 50 years.
If you take the annuity, you may be able to set things up to about state income taxes, but I assume the various states don’t make that easy
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