re: Powerball-cash vs annuity

Lump Sum for following reasons:

1) I think I can invest it better than the lottery company can

2) Lottery winnings are ordinary income. If you take the annuity, you pay ordinary rates on the entire amount. If you take the cash, you can invest it in things that will have earnings taxed at qualified rates, or even tax-free munis if you choose

3) You can plan better for the money if you control all of it

If you can't manage money, the annuity might be better because it guarantees you will get payments for 30 years.

In the year I win the money and take the cash, I would divide the money into the money I would keep for me and my family, and the money that would go to charity. Set up a private foundation and go ahead and put it all in now (in my case, I'd probably invest 50 percent of the money for my family and put 50 percent into the foundation). That also cuts down on your tax bill.