Lump Sum or Installments?

This post is more than 3 years old.

Something fun to distract one on a rainy Wednesday: if I won the lottery, would I take the lump sump payment, or the installments over X years? The answer, of course, is "it depends". How old are you when you win, what's the annuity percentage on the installment plan, how much debt do you have, is there a "Best Buy" on the way home from the lottery claim center, etc. Oh, and I guess I'd have to play the lottery in the first place for this to matter much anyway. What would you do?

2 thoughts on “Lump Sum or Installments?

  1. I'd bet on deflation (-ary pressures), so I'd go for annuity. Well, maybe I'd bet on the current tax laws being favorable, and go for lump. Damn, it is hard, isn't it?

  2. um... this is all a foreign language to me as i don't speak econ. it's a much more emotional question--would i be smart enough to invest a lump sum or would i turn into David Lee Roth and spend it all on fast living...

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