Now, let's look at two different lottery winners: Family #1: Single father with 2 kids, one 16 and the other 18. The oldest is headed to college in the fall. He buys a lottery ticket and win's $1.2M (or $1,200,000). Family #2: Married couple with three kids. Each parent makes a decent salary. The children are 5, 8 and 12 years old. They also won the lottery at an amount of $1.3M(or $1,300,000). The way the lottery works is that about 30% is taken off top for taxes, payback for administrative costs to the lottery office, etc. Within the U.S., each winner of large amounts such as the two above typically have one of two options: Option #1: Take an annuity amount (paid out each year over a certain number of years). Let's say 20 years, in this case. Option #2: Take the cash option - large payout at one time. However, with this option, you only get about 50 to 60% of that left over total after taxes and administrative costs. Questions: First, make sure you work out the math so you can see what the final payout actually is for each option (yearly and total amount for option #1 and the total one-time payout for option #2). What background details and information are you thinking about that could/would help you with making a final decision on this? Essentially, what information is missing from the family description? Think about all the different reasons why they would choose one option over the other. . With that information in mind, which option do you think each family should take? Why? If it were you and your family, which would you take? Why? Anything else you want to add... feel free to share. And... definitely search online and look at YouTube. If you find some good videos or articles to support your response, feel free to share. **Do not feel obligated to share personal information. That is not a requirement**