I have different scenarios played out for different lotto amount wins lol.
Like right now the
Florida Lottery is 11 million jackpot.
Power Ball is 52 Million jackpot
Mega Millions is 30 Million Jackpot
I always will choose the early payouts over lump sum prize. I think of it like even if i blow all my money in a year i still have guaranteed money the next year. Or however their payments are.. not sure if monthly, weekly, quarterly, yearly etc. With a lump sum if you blow it all on bad decisions you have nothing coming next year or ever again.
So example
Florida lottery is either a 20 year payout or a reduced lump sum which is roughly equal to 48% of the jackpot amount after fees, taxes, and penalties.
So before tax you're looking at 550,000 per year for the next 20 years.. So even after tax youre looking in the ball park of 300,000 a year. Which is roughly 10 times what i make in a year lol. So roughly equates to over 6 million after taxes over the 20 years. (I went ultra conservative on the tax at 40% tax rate per year)
The lump sum is roughly 5.2 millionish if the 48% rule is still the same.