What would you do?
 

You just won the lottery - several million dollars! What would you do?

1. Take the money in a lump sum
or
2. Choose to receive your winnings in monthly payments for the rest of your life?

I THINK I would choose to receive monthly payments for the rest of my life.

If I took the lump sum, I'd be tempted to just blow through the whole amount, If it was a LARGE enough payment, I'd be set for the rest of my life.

Hmmmmmmmmm........................I'd sure like the opportunity to have to make that decision. :w00t::w00t:

LUMP SUM, life is short!

lump sum and then put it somewhere in a savings/investment account where I can't touch most it but I'd do things like pay off any debts, and move to start with LOL

Lump sum, hands down. Then divide it up into savings, investments, paying off debts, charitable donations, education accts, necessities and fun money!

Lump sum. If I had debts, pay those off first then invest it in investments of my choice. Work closely with a financial advisor to work out how to make that money work best for me.

In other words, be smart and don't change my lifestyle just because I came into money.

Lump sum for sure...Put some in each of my boys college accounts then our retirement account...finish paying off our house (we have 3 years left on the mortgage), buy a camper/mobile home and truck or jeep to take along with it.

I'd hire a financial manager and ask for their opinion. lol

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.

Hahaha you're right, Dalis!!

I'd like to think I'd do that. SO many people blow through the money and can't even pay their taxes on it. Have you ever watched those Millionaire Shows?

Good plan! Like I said, I'd love to be given that opportunity. Hahaha

You could probably do it, but a lot of people can't. There are some "overnight Millionaire Shows" on and a lot of them make a mess out of their lives.

Oh, wouldn't that be awesome?????

Definitely! I would definitely get an expert's advice, too.

Good to know! I was just wondering what everybody would do and I also wondered if the monthly earnings could be passed on. I'd LOVE to have the chance to find out by winning big!!

I'd take the lump sum... you never know how long you've got left in this life.

I'd payoff hubby's truck and we'd be out of debt and then we could sit aside some for retirement and play with the rest.

That sounds so nice, Kayla! :)

Lumpsum because life is short!

lump sum... I would want to make sure I got it, haha. Also - I would hirer a lawyer to accept it on my behalf so no one - including my family *except for my husband, son and mom - because I tell them everything... would know about it.

One thing Ohio did right... winners can be anonymous. But a lawyer is a good idea as well.

Y'all are making me change my mind. I said I "might" take payments, but I've changed my mind - life IS too short!!

Yes, I'm with you - people know - they want a piece of the pie.

Same. I am notoriously bad with money. :D

Oh definitely! I know how fast I can spend money. I've never had that amount, but I see horror stories all the time about how fast ppl burn thru huge amounts of money!

Lawyer, trust, have funds deposited to trust depending on your laws to deal with less taxes.

Great advice WHEN I win the mother lode. LOL

Lump sum. I have property in mind that I'd like to buy, and it would be great to be able to buy it outright and set aside an account that could pay the real estate taxes for several decades.

I would do the lump sum so that I could set up the charitable foundations that I have planned as part of my "I won the lottery" dream. Truthfully, if I won the lottery, I would use most of the money to create some good in the world. I have very simple needs and don't see those changing much because of money. I think excess of anything is just a waste, and I don't like to waste money, so I would put it to the best possible good I could.

My aunt left my cousin over a million dollars in life insurance when she passed and a monthly annuity that covered all her bills. My cousin went through the million in months and then sold the annuity for a lump sum that she also went through. In under 12 months she was living in her car because of stupid, greedy, decisions and excess. She liked two houses, so she brought them both. How insane is that? I know it is mean to say, but if you are that stupid with money, you deserve to live in your car.

Great thinking! Sounds wonderful!

I see that a lot of people burn through massive amounts of money the same way! You have to have somebody helping you manage it and a lot of people don't.

Your plan sounds wonderful!

I would do the lump sum but will place mostly in a bank saving book.
I know exactly what I'll need but nothing excessive, just normal needs for my family.
We often talk about this with my mom and dream about what we will do but finally it's quite basic. Lol!
But not great luck it's going to happen so we are fine!:D

I love your last line, but hey, we can dream and plan, can't we??? Somebody wins and it might be us someday!!:w00t:

You make me laugh too!:D
I agree for dreaming and plan in case we will be concerned!:D
One day, someone told me the only chance to win is to play because for sure all winners had played.:D
This still make me laugh! Hmmm maybe I'll play today, you are right after all we could be the next winners, who knows?:D

Definitely lump sum and then invest. I've often wondered what the movie stars and sports stars do. I do know, though, that some (many?) of them just squander it away.

I would take the lump sum. I once worked on an account where we needed case studies from high net worth clients. One of the customers had won approx $50millon dollars in Macau and he worked with an advisor to pay off all his debts and the debts of his children. Then the FA worked out the best way for him to get a monthly income and save most of it, so it would just gain interest. Fascinating stuff

We joke about this sometimes and my hubby & I would take the lump sum and hopefully have enough money to buy a vacation house in Smoky Mountains (Tennessee). We need a big house (at least 6 bedrooms) for my children & grandchildren. Just a dream but oh if it would come true.

That's exactly how I feel - if you don't play - how could you ever win?????

Yes, they do! I've read horror stories about them trusting the wrong people then getting in trouble and can't even pay their taxes.

Wouldn't it be wonderful to have the rest of your life planned out finaniall?????

Ohhhhhhh, that sounds so nice!! I LOVE The Smoky Mountains - what a wonderful dream!!!

Definitely lump sum. I also saw a question that asked what is the first thing you'd buy if you won the lottery. My answer was that I'd purchase the services of a financial advisor. My house being paid off would obviously be a high priority, but I'd want to meet with an expert to be sure I'm doing the right things to make the money work for me (and later my children/grandchildren).

Absolutely agree!!

That's right - we must never give up. Hahaha - let us all know if you win. (Whisper it and we'll stay mum) LOL

It would be tempting to squander it - at least a portion of it. Maybe I'd portion out a lump sum to squander. LOL

Ohhhhhh, this is my favorite answer so far, I think. I could still get my "payments".

This sounds absolutely wonderful!!

I'm pretty sure I'd do the lump sum because I wouldn't trust those payments to keep coming for the whole time! Although I think I'd have to lie to my hubby and tell him we were getting payments or he'd spend it all in a week. Ha ha ha!