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Sweepstakes : In what form should I take my winnings?

As a sweepstakes ( or lotto ) winner I have 5 choices to choose from. Which should I accept?

$999,999 now

$100,000 per yr forever

$180,000 per yr for the next 10 yrs starting now

$400,000 payable every 2 yrs for 20 yrs

$70,000 per yr forever

Solution Preview

This isn't one of those "black and white" problems where there is only one right answer. It will depend on your age and your health.

Of course this would depend on how old you are. If you are 90 years old, you should probably accept the $999,999 now, because odds are that you will not live much longer. Not a very happy thought, but it's the reality of old age.

Lets assume that you are in your 30s or 40s and the odds that you will die soon are very slim. And we'll assume you've got a very good chance of living ...

Solution Summary

Factors dictating the form in which lotto winnings should be taken are discussed. The solution is detailed and well presented.