10 practical tips for a lottery winner
5. Take the lump sum
You can either claim the money all at once as a lump sum or as an annuity over 26 years. If you're comfortable getting your money in smaller increments with a standard rate of return, then take the annuity. But both Downey and Galli recommend the lump sum payment in order to avoid potential changes in future tax rates that could effect the amount you receive over time. Downey also cites the benefits of having control of the money yourself right away, and the potential to get better overall return on investing the money than taking the annuity would afford.