I would have to take the lump some. Get myself and my family out of debt and save the rest. I'm 23 so the money made from investments over the next 20 years will be much more than what the annuity would pay out.

Also, like he said, the annuity cannot be transfered.

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Posted by LSUDrinka

Chicago

Member since Jul 2005

5549 posts

Posted on 1/7/09 at 12:07 pm to bvmagic33

Definitely cash, esp in this buyer's market

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 1/7/09 at 3:11 pm to threeputt

There are ways to get around the non-transferrability issue. If the jackpot is owned by a trust rather than an individual the payments will continue to any successor beneficiary of beneficiaries in accordance with the terms of the trust. An even better approach is to use a partnership or LLC to own the ticket, but you have to form the partnership before the drawing is held for it to work properly. And it costs money to register the partnership or LLC with the Secretary of State. When people pool their money to buy a bunch of tickets regularly, they should definitely consider doing this.

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Posted by Catman88

Baton Rouge, LA

Member since Dec 2004

49125 posts

Posted on 1/7/09 at 3:39 pm to bvmagic33

The lump sum is always the way to go and generally is because the first thing people do when winning (or should do) is get a tax lawyer and an accountant. Having the lump sum will get you more per year than the annuity will pay out assuming you put it in a saving account. When you invest BIG dollars at a bank you can get alot better interest rate than anyone else.. They will give you close to 8% depending on how you invest.

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