[AceMineral]

The million dollar winner on America’s Got Talent gets $25,000 a year for 40 years.

[DCBryan1]

The million dollar winner on America’s Got Talent gets $25,000 a year for 40 years.

Nice, but lump sum would be better.

If you had (after tax) 1,000,000.00 and put it in tax free munis, AAA rated, insured 3.5% coupon at par, non call, 40 year maturity, you would get $35,000.00 a year tax free.

THat is ALOT more than $25,000.00 the "annuity" gives you.

After 40 years of tax free coupon payments, you make $1,400,000.00. If you spent NOTHING, and just compounded the coupon payments and then the 1mm bond matured, you would have $2.4mm tax free.

Anyone who choses to take the annuity is an idiot. If they don't get to make that choice, I would cross my fingers that the insurance company is still around and/or honors its agreement in the next 40 years.

[DCBryan1]

Oh, and I forgot to mention, READ THE ANNUITY CONTACT carefully. Many annuities will NOT pay a survivor/beneficiary or transfer it. Your descendants or spouse would get NOTHING. Some do.....again, if you pay for it AND the company stays afloat.

If I won any lottery, I would take the lump sum and invest it myself and not rely on a promise from a .gov or company's future promise. Just look at IL and CA issuing "IOUs" to lottery annuitants.