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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