Assume that you live in Illinois.
This is the state that last summer temporarily stopped paying out money to lottery winners of large prizes (over $25,000), and then in October stopped paying out prizes worth more than $600, until finally in December when the legislature passed a special law that would allow them to pay out lottery winnings before the budget was passed.
Let me emphasize that: Illinois is so financially and politically dysfunctional that they disincentivized people from participating in that government cash machine called “the lottery.”
This state has a huge pension crisis and budget crisis.
Assume that you have won the powerball, and all other things being equal, you would prefer to take the annuity rather than a lump sum.
Does the mere fact that you reside in Illinois and would be dependent on the Illinois government reliably issuing you a check for roughly $50 million dollars annually for the next 26 years dissuade you from taking the annuity?
Why or why not?