Lottery winner rejects 1 million lump sums for 1k weekly payment, right move?

[ORDER_66]

There’s a chance the government could make a rule that justifies them stopping the payments in the interest of the community, during hard times so yes. Take the lump sum. Remove their control of it.

The whole 1K. a week for life isnt for LIFE... there's a fine print people gotta read it cuts off after a certain point.

 

[ExodusNirvana]

I could literally turn that M into multiple Ms via investing.

Also consider TVM

The Lump Sum is infinitely the better move

 

[Richard Glidewell]

How old are they?! To make it even they would need this for a minimum 20 years give or take to balance out. Youth take it......old lump sum

 

[EBK String]

absolutely the right move.

No it isn't, present value of 1 million is more than 1 million over time because of inflation and you lose the ability for compound interest to increase it if you invest.

 

[Koichos]

Horrible decision that will likely turn into regret as time goes on.

 

[Goat poster]

Once again

We can listen to Coli investors

Or

We can look at the numbers and see that MOST lotto winners go broke.

So many folks go broke and say they wish they took the weekly/monthly annuity payments.

No matter how much the math be mathing in your brains, most of you ain't gonna be as smart or mature with the money as you thjnk you will.

 

[MajesticLion]

 

[Scaaar]

All these investment being posted.

It's crazy seeing how everyone is going to 2x or 3x the money when they're not even doing that now

 

[Scaaar]

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https://www.nytimes.com/2016/01/13/upshot/dear-powerball-winner-take-our-advice-and-take-the-annuity.html

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[null]

simple premise.

50%+ of posts don't understand it.

=> people commenting without reading it

 

[MMS]

Considering the horror stories of people wining huge lump sums just to end up back with nothing, she likely made the rights decision for her. Even in the US, a thousand a week is essentially free rent or mortgage and food payment every month for as long as it is being paid, leaving the rest to you to handle. That keeps the wolves off of you and also makes it so you don’t go out and splurge on some foolishness. Financial gurus talking about growing the money are assuming the funds will never go bust or take losses and everything will pan out perfectly, because that’s how it’s been previously. That’s not guaranteed. You’re trading the risk for surety in this woman’s case. I hate to sound like a hater but a lot of people talk like investment wizards online and claim they will just double and triple money because they got lucky a few times investing in a stock or a fund for a few thousand. It doesn’t work like that in real life consistently enough to put hundreds of thousands into something when you could take peace of mind and a consistent check. If it did, everybody would be rolling in money from investments, rather than complaining about costs of things like food or taxes, etc. Just take out a loan and triple your money. It’s easy right? Except it’s not.

this

what people dont comprehend about investment people is they need other peoples money to make money

when you have the money the tables are turned

thats why in each situation where you have more money the net desire of the other party is to get some of yours regardless if you have more after the fact

thats not to say investments are bad but the logic behind investing is different when you already have the money.

i don't dislike the "gurus" but they always fail to mention this idea. If any of you have read "Great Expectations" this is the logic inherently (where the protagonist is "new money" but his interests are always "old money")

"old money" isn't really money iykyk

 

[OneManGang]

We been talking about inflation for years and you dummies saying this the right move. She’s losing money!

 

[Ed MOTHERFUCKING G]

By the time she's 60 she would have earned over $2million worth of weekly pays.

She can live comfortably and work whenever she wants with no pressure.

Old age will also be comfortable. Retirement will also be made easy. Smart

Do you lack basic understanding of inflation and the time value of money? $2mm will be worth nothing in 60 years compared to $1mm now.

Anyone not taking the lump sum money is absolutely foolish.

 

[Robbie3000]

That’s 52,000 a year. You can easily out earn that in a low-moderate risk portfolio.

 

[Turtle]

Sum*