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Take the lump sum or the annual payments?



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Hitting the winning numbers in a lottery can be a life-changing experience.

On Tuesday night, one lucky ticket sold in New Jersey that matched all six numbers in the $202 million Mega Millions drawing.

The jackpot will reset to $40 million for Friday night’s drawing with a cash option of $28.1 million.

One of the immediate questions, whenever someone wins a giant jackpot, is whether that lucky person should take their winnings in annual payments or accept a lump sum.

Is one better than the other financially? Let’s break it down.

ANNUITY: The installments are paid out as one immediate payment followed by 29 annual payments, according to the Mega Millions website.

Pros: The biggest allure of the annuity for any winning or windfall is having a guaranteed income stream for the next 30 years, which largely ensures you never run out of money. For conservative types or those who can’t suppress their spending urges, this may offer some peace of mind.



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Brett Gonzalez
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Content Writer At Healthcare Industry Reports

Brett loves to read and write about business and thus, has some of the best contents regarding business penciled down for a number of reputed portals. Brett has successfully completed 2 Years with the Healthcare Industry Reports portal. He plans to have a part-time course chosen for all the juniors to be educated in the field of writing. Brett shifted to writing almost immediately after the completion of a degree in Business Administration. He plans to share his skills through writing. Brett’s career choice seems to have been excellent as we are being blessed with some of the most informative articles on a constant basis.

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