I surveyed my friends to see which option they'd take.
Grad Student living on a stipend: I think I would get paid out in the allotments because I'm boring. I just think I would like to receive a S--- ton of money every year. It'd be like winning the lottery for the rest of my life!
Co-worker with a semi-crippling shoe addiction: I REALLY wanna take it all in the lump sum. I just really, really, really do. I can't help it.
Boyfran with a left brain the size of Texas: Lump sum FOR SURE. You never know how much taxes or inflation will affect the annuity in the future, so you go for one payout. Then you invest the lump sum wisely so it ends up being even more than the $5 million you originally won.
Me: There is no way on earth I'd be able to take the annuity. In fact, make sure I have a good financial planner who advises me against getting my lump sum in gold coins or I WILL live out my childhood DuckTales fantasy.
Co-worker: F-that, we're going swimming!
Boyfran: Fine, we'll dive into our money and THEN invest it.
That's what you call a win-win. Here's a fantastic and hilarious article on how you would actually recreate the Scrooge McDuck Gold Dive in real life.