The other day, I was at Starbucks and someone had their lottery tickets which they had just purchased, and they said they very much hope that they would win because they were worried they might lose their job, and they haven’t saved enough yet for their retirement. In other words, their lottery ticket would be the winning ticket out of future poverty.

We got to talking about whether they should take the lump sum, or get a lifetime payout if they won the lottery. Indeed, this is rather hilarious, because the chances of that winning are about the same chances of getting struck twice by lightening, but they had already spent their two dollars to buy a couple of tickets, so we were just talking hypothetical.

It would appear to me with all the states on the verge of bankruptcy, and unable to pay the pension funds, that it would make sense to take a lump sum if you win the lottery rather than a lifetime payout. After all if the state goes broke, they won’t be able to pay those promises, just like they won’t be able to pay the pensioners. Also, if you happen to become deceased while you are collecting your lottery money on your lifetime payout, that money will not go to your heirs.

Therefore, it makes sense to take a lump sum payout, and find a really nice financial planner who’s been in business for over 30 years, and talk to their clients to make sure they are right for you, and invest the money in very safe financial investment vehicles. The real problem is that most of the people who win the lottery are either dead or broke within 3 to 5 years. And that’s just sad when you think about it.

So, if you win the lottery I would suggest that you take a lump sum payout, and not a lifetime lottery payout. Indeed, I hope you will please consider this, and if you have any comments or suggestions, then please shoot me an e-mail. Think on it.