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

[Ezekiel 25:17]

Canada doesn't tax lottery winnings.

She should have took it all and took a couple hundred and opened up a high yield savings account. Depending on the interest rate, she could buy a modest house and just let the money in there grow or even partially live off that.
Take a 100 and play in the market and then splurge a bit.
$1milly ain't that much if you're planning to do anything years down the line. I borderline wouldn't even quite my job. I'd parlay it into my own biz.

Or she could blow it all on dumb shyt and be broke 2 years later

 

[Shadow King]

Can y'all find an example of the government snatching a lottery annuity payment?

Also inflation is adjusted for in payments, at least in the US

 

[RennisDeynolds]

Present value of money is worth more than the future value

Please keep the econ 101 bullshyt to yourself

 

[bnew]

I would rather have the million because I have no clue how long I will live. 1k a week for life is amazing though.

for a young woman who'd 20 years old it keeps a lot of scammers and people who would harass her for money away if she's only getting, $1K a week.

 

[Elim Garak]

for a young woman who'd 20 years old it keeps a lot of scammers and people who would harass her for money away if she's only getting, $1K a week.

That's all good but I still want the M. It very well may workout for her though.

 

[5n0man]

She made the right move, everyone talking about how she could've invested the million but majority of people wouldn't be able to resist blowing all that money on a bunch of bullshyt and be broke in a few years.

 

[BucciMane]

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.

From a strictly financial and math perspective, anyone saying NOT to take the lump some is just flat out wrong and has zero idea what they are talking about. Their entire argument hinges on, "Oh, this person might blow their money quickly". It may have truth, but if we assume the person will be somewhat financially responsible, the lump sum is clearly the correct answer by every objective measure.

People need to understand what compound interest is. Also, I would worry down the road that a law would be passed or something along those lines where you might not receive your remaining amount. This is the easiest answer imaginable.

 

[Arianne Martell]

if she dies nobody can inherit the weekly payments...dumb move on top of what others have already said.

 

[ORDER_66]

if she dies nobody can inherit the weekly payments...dumb move on top of what others have already said.

That's also part of the fine print they dont be telling folks...

 

[ℒℴѵℯJay ELECTUA]

1 million plus the state tax!

 

[beenz]

the lump sum is more valuable because of the simple time value of money. that future money is worth way less than present day money.

 

[Sire366]

This is why I don’t do financial advisement anymore, people are dumb. The first sentence of my reply literally addresses the fundamental issue with you proposed scenario. It even applies to this weak ass reply you typed out. Hold this neg, I’m not arguing with an idiot.

All I will say to your first statement, the relationships are not fractured. My friends have pride and don’t look for handouts. So there, I don’t understand, and nothing of what you said was financial, you only hint at stability and ability to say no, as a negative

 

[MJ Truth]

Money today is ALWAYS worth more than in the future.

 

[MJ Truth]

the lump sum is more valuable because of the simple time value of money. that future money is worth way less than present day money.

Yeah. But on the other hand, if you know you’re going to fukk up a lump sum, taking the payments is the better move. Money management itself is extremely simple; generally speaking, we all recognize money in vs money out. It’s the behavioral part that has people messed up, so maybe she recognizes it about herself.

 

[Saysumthinfunnymike]

Why wouldn't he take the million and invest or put some in a high interest account etc. ? Make more money on top of your money