Most financial advisors I found online seem to suggest the annuity option is far better than taking the lump sum option, if the payout is $10 million and above. Just google ‘lottery winnings annuity vs lump sum’ and you will see their reasoning. The are other factors to consider, I’m sure.
I know enough that, objectively speaking, that taking the annuity would be the better option for several reasons, including the fact it’s to lower the taxes on a 4 million dollar annual payout and the fact that receiving an annual cheque prevents one from blowing the whole thing and losing it all.
However, that is all dependent upon a state’s willingness and ability to send you an annuity. Unfortunately, we live in interesting times and many states are now hard-pressed to pay their bills and some states are beginning to contemplate the possibility of unilaterally ripping up all sorts of agreements to stay financially viable.
Id rather have my annuity be part of the resetting process of state finances.
So, I’d rather take the payout and find somebody qualified to set up my own annuity, rather than take a chance on the state.
One of the rational's given is that you can only mess up `1/26th of it a year, or whatever their annuitization time frame is.
If I won? Set up a Trust to deposit the winnings in, and behind it, I'd assemble a team of pro's and take the lump sum and go the venture capital / private placement route. Their are a lot of great ideas out their that need Capital. Just one could be a positive tipping point for our nation if it is a paradigm changer. To be part of it ( a big part i.e. the funding ) ? Priceless....