This depends on the interest rate you think you can earn on the money. The break even point is about 4.2% annually. If you can earn 4.2% annually and you inves

This depends on the interest rate you think you can earn on the money. The break even point is about 4.2% annually. If you can earn 4.2% annually and you invest the entirety of the earnings as you get them, you'll end up with about $2.6 B with either option. If you earn less than 4.2%, you will end up with more from the 40 year annuity. If you earn more than 4.2%, you will end up with more from the lump sum. Remember that interest rates are historically very low right now and are likely to vary significantly over 40 years. 0%: $1B with annuity, $500m lump sum 5%: $3.2B with annuity, $3.5B with lump sum 10%: $12.2B with annuity, $22.6 B with lump sum