I have flip-flopped on this topic a few times. Originally, I was all for the Cash Option. Heck, I could invest it and possibly make more or the same - and I'm in charge.
Then I thought about it. Personally, my spouse and I could use some discipline when it comes to money. Mostly our debt is from old medical bills, an occasional vacation, and that stupid hdtv that HAD to be bought when our tv died. So then I thought an annuity would be good for helping us budget. And yes, we would get a financial person and tax person too.
But now...our NC governor took the lottery money for schools and used it for the state instead. If she can do that legally, what's to say she "borrows" the money that's supposed to go to my annuity every year to help pay other things off. Yes, it's illegal, but really - how many people are going to fight for the rights of a winning lottery player? There will be no uproar over it. Maybe just lawyers banging on the door to get their share of it from the lawsuit.
So now I'm back to Cash Option - with a diverse portfolio. After all, if Madoff can fool a lot of smart people, who's to say I wouldn't fall for it too?