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LogDog75

(1,100 posts)

33. Lump sum vs annuity depends on a number of factors

Thu Dec 25, 2025, 02:51 PM

Dec 25

You age when you win the lottery is a prime factor. If you're in your 20s - 40s, the annuity might be best. For those over 50, the lump sum might be best since you could invest the money and receive dividends to live on.

The second prime factor is how disciplined are you with money? If you're someone who is a spender versus a saver/investor then the annuity would be the option to choose. If you know how to invest your money then the lump sum is more attractive.

The next factor is can you say NO to those asking you for money? Once people find out you've won lottery you'll find relatives you never knew you had, friends/acquaintances and people you don't know hitting you up for money to solve their problems, charities asking for donations,. Along with these people are the ones who will try to guilt trip you into giving them money. You'll have to develop a thick skin and learn to say NO.

The last main factor is can you ask for help with managing that amount of money? There's no shame in not knowing how or where to invest your money or where to donate it. The worst thing to do is knowing you don't have the knowledge or time for investing and not asking for help. That's how many lottery winners go broke.

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Would you take a lump sum or annuity lottery winnings and what would you do with the money [View all] LogDog75 Dec 22 OP

The money you gift relatives is subject to a multigraincracker Dec 22 #1

The lifetime limit for tax-free gifts is $13.99 million per individual Abnredleg Dec 22 #8

To be safe, sit down with a good tax lawyer before doing anything. multigraincracker Dec 22 #9

the lottery is a corporation rampartd Dec 22 #2

The Powerball is a multi-state government enterprise Niagara Dec 22 #14

Lump sumalso... 2naSalit Dec 22 #3

I'm 78, so definitely the lump sum option... anciano Dec 22 #4

I would take the lump sum and give some doc03 Dec 22 #5

Lump sum. Raven123 Dec 22 #6

I'm 82, so it's a no-brainer Jilly_in_VA Dec 22 #7

at the ripe old age of 77 I would take the lump sum yellowdogintexas Dec 22 #10

Lump sum GreatGazoo Dec 22 #11

Lump sum Marthe48 Dec 22 #12

I think that I would take the annuity Niagara Dec 22 #13

Anyone remember this? Intractable Dec 22 #15

Lump sum. Iggo Dec 22 #16

At 72; lump sum.... electric_blue68 Dec 23 #17

I'm nearly 64. Morbius Dec 23 #18

I've already taken my lumps. True Dough Dec 23 #19

You're in luck, True Niagara Dec 23 #20

Imagine True Dough Dec 23 #21

I guess better than in peonies Niagara Dec 23 #22

Lump sum Give Peace A Chance Dec 24 #23

Lump sum. Borogove Dec 25 #24

howdi AllaN01Bear Dec 25 #25

How Much To Buy A Congressman? Deep State Witch Dec 25 #26

lump sum & leave the country RainCaster Dec 25 #27

Wine, women, and song,,,, and spend the rest foolishly. Norrrm Dec 25 #28

Lump sum. I have no idea if I'm going to live 30 more years sakabatou Dec 25 #29

Payments ._. Dec 25 #30

Lump sum vs annuity depends on a number of factors LogDog75 Dec 25 #33

i didn't know the had an annuity for $4 ret5hd Dec 25 #31

I'm 70. viva la Dec 25 #32

That is something I would never have to deal with. OldBaldy1701E Dec 26 #34