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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Re: An annuity from lottery winnings Date: 8/13/1999 1:52 PM
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If you sell your winnings at a discounted rate, figuring you will make enough investing to make up the difference and come out ahead, you are betting against a person or company who thinks the price being paid compensated them for the lost investment opportunity. Since that person or company probably has more investment experience than you do, the odd are great that you do better taking the stream of annuity payments you signed up for in the first place. Invest each year's payment as it arrives; after you have had several payments you will have gained some investing experience and perhaps can make better choices.
Lottery winnings are taxed as ordinary income.
Congratulations on your big win!
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