One thing I just remembered about this "decision". If you take an annuity payout, if something happens to the winner (if an individual), the payments stop. They are not transferred to their heirs.
But with the lump sum payment that has been invested, the heirs will still benefit by any earnings accumulated on those earnings.
Not too long after the Ohio Lottery began (in 1974), my parents and I had this discussion. My dad bought 2 tickets a week so it wasn't like it was a real possibility he would win and I've never bought one in all these years. But the discussion lead to other discussions about inheritance. Basically all 3 of us determined that taking the lump sum (even though it was lower because of taxes being taken out), the potential earnings if invested would be more beneficial than the monthly payments.
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