Dear Powerball Winner: Ignore the Upshot and Take the Lump Sum
The Upshot’s advice to the Powerball winner is to forgo the lump sum and take the annuity. The lump sum payout is $930 million before taxes, while the certain annuity pays you (or to your estate if you die) $22.6 million every year for the next 30 years. That is equivalent to holding an ultra-safe asset with an annualized investment return of 2.843%. Th…
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