I am confused by choice of lump sum or annuity. "A lump-sum winning will typically get reduced by 45% or more for the time value of money (acceleration by 2o+ years)" ok, so say jackpot is $100m, lump sum is 60% of it, so it's $60m, correct? Fine so far. "and then the net amount is further reduced by approximately 35% or more for taxes; leaving a net amount of 35% or less of the gross winnings." ok, so the taxes are taken off the $60m not the jp amount of $100m, right? Leaving $40m. Thus, you take home %40 of jackpot prize. If you put in the bank $40m, you get back in 26 years from interest rate and investments the same amount you lost as you took the lump sum. "Installment collections will only generally only be subjected to the federal tax hit (depending on state rules) and the taxes are paid over the collection period." huh? So if I choose 26 installments then do I get the entire jackpot of $100m or not? Do I still pay %35 tax on the entire $100m only once, or the yearly installments? Thus, I will get $65m in 26 years if taking annuity instead of $40m lump sum.