Originally Posted by sco5123
Hmm...no lump sum? That's not interesting.
I like the idea of getting paid over 25 years because then that is guaranteed income but it's certainly not as exciting.
In fact, I found myself getting envious until you said it's not a lump sum. Then I thought well it could have been anything paying them over 25 years. And 25 years is way too long to be getting paid. That's not fair.
The elusive jackpot has lost some of it's allure. haha
It is my understanding you can usually take a lump sum but it is based on the net present value of the jackpot (and probably calculated with an unfavorably/unrealistically high discount rate.) This would knock the value down by more than half, almost half again for the taxes, so you would be left with less than $3 million on your $12mm jackpot.
I would take the money upfront anyway.