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toddr13 · 46-50, M
It would depend upon the cash value of the annuity, and the interest rate used to calculate the end of term cash, and any increases in annuity payments over the period. However, it can be argued that even with the hit from taxes, the lump sum when invested properly in financial instruments or businesses can provide for a higher outcome than the annual payments, especially as one knows the tax rate today. It also depends upon the state of residency, since some have state and/or city income taxes that would further erode the jackpot. I'd be inclined to personally take the lump sum, preferably in the name of a family investment trust, then allocate a diversified investment portfolio to generate interest for income and reinvestment into other business development.