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Huh? You could still have all those benefits if you took the lump sum. Just put it in index funds and extract as needed. Stocks deemed too risky? Put it in bond
by savanaly 9y ago
Huh? You could still have all those benefits if you took the lump sum. Just put it in index funds and extract as needed. Stocks deemed too risky? Put it in bonds. It will still be better than the pathetic interest rate offered by the lottery's annuity.
- mcbits 9y agoIf you win the Powerball tomorrow and take the annuity, you'll take home about $2 million after taxes. You can put $1 million in index funds and try to scrape by on the other $1 million for a year, by which time you'll be more knowledgeable and better equipped to deal with next year's slightly larger payout. I'm assuming the abstract "you" are a typical lottery winner and not an experienced and well-connected investment banker.