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💰️ Young Lottery Winner Gives Up Lump Sum for Annuity

Imagine your 20-year-old self.

Congratulations! You just won the lottery. You can collect a tax-free $1 million right now. Straight into your bank account. Or you can get $1,000 now – and every week for the rest of your life.

How many 20-year-olds would forego the lump sum? It can’t be many, as 93% of all jackpot winners take the lump sum, according to a 2010s study of Powerball winners.

Yet a 20-year-old Canadian did just that after winning the lottery in the summer of 2025. The decision recently set off all sorts of debates online. Among the considerations:

• Death. It will take more than 19 years to top $1 million received in $1,000 weekly increments. If you die before then, you’re out of luck.

• Inflation. Imagine how much purchasing power you’ll lose on your $1,000 if you get the same amount many decades from now. What can a 20-year-old be expected to pay for with $1,000 in, say, 50 years? At just 2% annual inflation, that $1,000 will retain about $630 in purchasing power.

• Opportunity cost. If you invest the full $1 million now, and get an 8% annual return for 20 years, you’ll have about $4.7 million. Even if you were to invest less than the full lump sum, or earn less than 8% per year, will the steady weekly amount ever make up for investing a huge sum at the outset?

• Psychological impact. A large percentage of lottery winners don’t manage the money well. Or worse, have a difficult time adjusting to their new life emotionally.

There are endless variations of what makes sense mathematically and psychologically, depending on which variables you play with.

But here’s Clark’s take on what to do if you get a lump sum, inheritance or windfall.

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The condo market is currently facing a slump not seen since the Great Recession. Clark dives into why condo values are "ratcheting" down and what you need to know before you consider buying. While there is a potential opportunity for buyers, Clark warns that you aren't just buying a unit — you’re "marrying" the entire building. Also, Clark explores a growing trend: Americans moving overseas to find a more affordable lifestyle. With the cost of living in the U.S. outpacing Social Security benefits for many, countries like Portugal, Mexico, and parts of Central Europe have become "escape hatches" for retirees. However, moving abroad isn't as simple as picking a spot on a map. Clark shares his essential "test drive" rule for anyone considering an international move and breaks down the vital questions you need to ask about taxation, safety, and healthcare before you commit.

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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