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Which is Better: The Lump Sum or Annuity Powerball Pay Out?

Man debates whether to take lump sum or annuity from Powerball jackpot win

One of the key features of the US Powerball jackpot is a choice on how to collect winnings. They may choose to a one-off lump sum, or they opt for an annuity. The former is self-explanatory; you simply take the prize money as a single payment. The annuity divides the jackpot prize into 30 annual pay outs, calculating an adjusted total value of the top prize. There are benefits and advantages to each type.

 

The Lump Sum Pay Out

The upsides:

Most jackpot winners choose the lump sum, yet there are downsides:

 

The Powerball Jackpot Annuity

The upsides of spreading the winnings include:

There are, of course, several downsides:

There is no correct answer on whether to choose a Powerball lump sum or annuity. It depends on the individual, their personality, and what they intend to do with the money.