For example, if you won a $12 million jackpot in the multistate Mega Millions lottery game, you could take $461,538 a year for 26 years and get the entire $12 million, or accept a lump sum of $7,042,000, equal to 58 percent of $12 million.

How much will you yield after 26 years if you take the lump sum and invest it at a rate you could realistically earn. Do some quick research and use an investment you would be comfortable investing in (CD, mutual funds, bonds, stocks) and apply it to the amount paid out in the lump sum for 26 years. Then calculate the total you will yield (using the same rate) with the annuity payments. Which is the better choice.