Mega millions: Lump sum or annual payment. Which is best for you?

KANSAS CITY, Mo. - People are dreaming of becoming super rich this weekend. The Mega Millions estimated jackpot is now at $540 million for Friday's drawing. The cash option is $389 million dollars. Instead of one big check, winners can accept an annual payment spread out over 26 years.

Which is better for you, a lump sum or annual payment?  

Money guru Suze Orman was asked that question Thursday morning on the Today Show . Orman's short answer, "It depends on who you are and how old you are."     

Orman said she advices lottery winners in general to spread out the payments over a number of years instead of one big paycheck.  

"Believe it or not, I would tell them to take it out yearly. Why? It is too much money for somebody to handle all at once. They have a good chance of losing it," Orman said. 

Kansas and Missouri both take part in the Mega Millions lottery. 

Click here to watch Suze Orman's appearance on the Today Show.  

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