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.
I would take it in lump sum and put about 20 percent of it in up grades to my property outside of town.
Upgrades would include a reworking of the large creek. (I would build myself a very efficient water wheel as well as a nice deep pond.)
I'd also construct a moat and bailey system replete with 25ft high walls around my complex. Drill several wells, And construct underground storage for several years supply of food and ammo for me and my relatives. Above ground would have reinforced structures to house me and close family and friends as well as live stock. Also a very large truck garden and tools to keep it all in good repair!
No, I am not kidding.