freddy, while reaping "only" $60 million off a $200 million jackpot seems to be a ripoff (it is - tax wise), you forget three important quotients in determining which choice to make. lump sum vs. annuity.
1)CONTROL . first and most important is that you "control" your money, not someone else. and especially not the government. lump sum puts the control factor directly into your hands to begin with. if you are afraid of being able to handle money wisely especially over a long period time you get together with a "trusted" non-biased financial advisor (mulitple advisors are wise) and he/she/they will structure an annuity for you. but you still maintain CONTROL.
2) TIME. you are not guaranteed another day on this earth. ever watch that movie "waking ned devine"? the guy wins the lottery and drops dead as his winning numbers are announced on tv. given that factor you have ALL your money NOW to do as you wish. not 26 years later. few people factor that in. with a lump sum i can orchaestrate my future financially in a short period of time rather than having to wait over many years to accoplish what i want to do now. i can do what i want, get what i want, distribute what i want - NOW.
3) ESTATE DISTRIBUTION. annuities are "inherited" by your designated heirs. that means that they are liable "tax wise" for the full amount of the annuity. the estate tax laws are the equivalent of government rape. sorry for the strong words but it is both true and un-fair to any heir of an estate that includes a former (now deceased) lottery winner. sometimes the heirs cannot even afford to pay the full amount of the estate tax and end up forfeiting the winnings anyway to the big bad tax police. what should be a blessing turns into a curse. there are various "trust" vehicles available that will take the governments hands off your money and put it into the hands of the people that you intend to with little tax liability. less hassle, easier transaction, objective acheived. the transfer of wealth from one person to another with the least amount of "fingerprints" involved. "trusts" are insurance policies that you take out to "insure" that where you want your money to go to, it reaches it's destination with the least amount of loss (taxes) in the fastest amount of time. uncle "joe" gets his money while uncle sam does not. what a fun game !!
you cannot successfully orchaestrate any of the above with an annuity.
............................visiondude