What to do if your client wins the lottery
Paul Lee, wealth manager, Kingswood US
I would recommend the lump-sum payout instead of the scheduled annuity payments over 29 years. There are several reasons, of which the primary would be the added control over the lump-sum now. The other major reason for taking the lump-sum now would be the outlook of taxes in the future. Although you will be hit with 37% taxes, and possibly more if considering state taxes, when taking the lump-sum payout, it may be less than future taxes on annual payments from the annuity. A good financial adviser has many different tools and resources for tax advantaged growth, income, and protection of the funds now.