Is taking a lump sum from a lottery or other prize always preferable to taking the payment plan?

QuestionsCategory: QuestionsIs taking a lump sum from a lottery or other prize always preferable to taking the payment plan?
Brightn-n-Fresh Staff asked 8 years ago

Every time a big money contest or lottery is advertised, their big "jackpot" prize is always really a payment plan – something like $50,000 a year for the next twenty years. Is it ever preferable to wait the full twenty years for the full prize, or to take the reduced lump sum? Are the tax implications for doing so?

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