Should Powerball lottery winners take lump sum prize or annuity

Lottery winners, or the far more common lottery daydreamers, are familiar with the decisions between receiving a lump sum or some form of periodic annuity

The gulf between the cash and annuity options has become larger because inflation has prompted a rise in interest rates, which in turn results

annuity 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,

annuity vs lump sum lottery With the annuity payments, the winner would see roughly $23 million annually after deducting federal taxes Depending on their state laws, they