Mega millions: Lump sum or annual payment. Which is best for you?
4:09 PM, Mar 29, 2012
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.