Lump Sum vs Annuity
I guess everyone knows by now that the Powerball jackpot has reached an all-time high of 1.3 billion dollars. There have been quite a few debates over whether the winner (if there ever is one) should take the money in one big lump sum or if they should choose the annuity, which will be dispersed over a 29-year period.
Some say that the annuity would be the better option because the winner would get to keep more of their winnings, and the money can be passed on to a beneficiary when the winner of the money dies.
But some say that the lump sum would be better, especially for people who are a little older and don't want to wait nearly 30 years for all of the payments due to the fact that they may not be around that long.
So..what do you think would be better? Would you take all the money and run? Or would you be satisfied with yearly payments for 29 years?
Image Credit »