If you hit the big lottery name seven things you would do.

[Xithras]

60. The annuity is a pretty terrible idea. There's a reason why none take it.

Even the financially savvy don't take the annuity, because the return rate is terrible. Basically, the cash out rate is the actual value TODAY. The $1.3 billion is the projected value after it sits in an annuity for 30 years. The problem? The return rate on the lotto annuities is HORRIBLE. As in, under 4%.

Even if you invest conservatively in a market fund that matches the S&P, you can easily pull a 6% annual rate of return. With a decent investment manager to babysit your portfolio, pulling a 10% rate of return isn't even remotely challenging, and an aggressive, risk taking manager could far exceed that.

If you took the lump sum, and paid the taxes, and then invested the remaining $400 million or so yourself at a paltry 6% growth rate, that pile of money would be worth around $2.3 billion to you after the same 30 years...AFTER TAXES.

As long as you have the discipline to leave the money alone and let the investment managers handle it, taking the lump sum is nearly always a better plan.

The only exception? If tax rates get cut for the 1%, taking your payment as an annuity means that the portion paid to you AFTER the tax cut will be taxed at the lower rate. An annuity ONLY makes sense if you are betting on a tax cut.