Was this a smart thing for her to do?

[Richmma80]

Would you have done the same thing or take the milly?

 

[LEWIS540]

Assuming all things being equal (tax etc), that's a terrible decision, obviously.

 

[Get To Da Choppa]

Would you have done the same thing or take the milly?

She's a modern day Bobby Bonilla

And that's a bad deal

She would get about $52k a year. Assume she lives to 80, she'll get around $3M, which is 3X the lump sum. If you are somewhat shrewd you can definitely go from $1M to $3M in way less time.

Using a calculator assuming a modest interest of 3% after 60 years she would have close to $6M. Also $1k 30 years from now will be worth way less than $1k today

 

[AFanNotAFighter]

You also would be dumb to assume that the payer would remain solvent that long and actually pay out the promised amount.

 

[ChickenBrother]

Smart girl. Looks like she's Canadian so depending which province, after tax lump sum would have netted around $500K or less. $1k/week would net around $45k/year, basically a married couple social security check starting at age 20. That's not baller but it's a great security blanket on top of whatever else she earns throughout her lifetime. And of course she can invest those checks as they come in.

She also possibly wanted to remove the temptation of blowing the lump sum on stupid shit over the near term (as most lottery winners do).

If taxes weren't a factor, lump sum is mathematically preferred but even that's not a no-brainer depending on investment risk tolerance and spending habits.

 

[Spounman]

Take the million because I'd invest it but younger me would have blown a lot if not all of it.

 

[Fedorgasm]

Story is likely fake, but she would be smart to do that deal.

She knows she's a young dumb cunt and she'd end up blowing that million on stupid shit within a couple years.

Better to have that safety net to catch her when she gets old enough that dudes don't wanna bang her anymore.

 

[syct23]

Pretty simple,

Wood either decision..

Smart lady

 

[Brom Bones]

She's young. If she lives to 80, she nets 3.12 million. Most people take the million because they are bad with money and blow it all. If she has fiscal discipline, it will better in the long run, even with inflation and the devaluing of the dollar.

She just has to make sure she doesn't do the dumb typical shit women do, like Starbucks or designer handbags or shoes or...

 

[Kung Fu Kowboy]

Need to see her IG to make a better decision

 

[milliniar]

Smart girl. Looks like she's Canadian so depending which province, after tax lump sum would have netted around $500K or less. $1k/week would net around $45k/year, basically a married couple social security check starting at age 20. That's not baller but it's a great security blanket on top of whatever else she earns throughout her lifetime. And of course she can invest those checks as they come in.

She also possibly wanted to remove the temptation of blowing the lump sum on stupid shit over the near term (as most lottery winners do).

If taxes weren't a factor, lump sum is mathematically preferred but even that's not a no-brainer depending on investment risk tolerance and spending habits.

In Canada you don't pay tax on lotto winnings only on interest. So lump sum is the full million.

 

[ricc505]

1 million conservatively invested will yield 8%. So she could easily make more, She's not a risk taker but if she's smart she'll be comfortable for life

 

[ChickenBrother]

In Canada you don't pay tax on lotto winnings only on interest. So lump sum is the full million.

That changes the math then. Better to take the lump sum and invest in a basket of securities (assuming she has the discipline to not touch it in the near term). If this were U.S. dollars, lump sum would be a no brainer but we're talking Canadian dollars, so there's FX risk if she wants a piece of USD capital markets. USD/CAD exchange rate has ranged from 1.20 to 1.47 over the past 10 years so fluctuations could easily wipe out conservative interest rate accretion.

CAD$1K/month is the way to go only if she's very risk averse.

 

[fungi]

Only a few wouldn't squander $1 mil right away. It takes iron self-discipline not to blow it out on "hookers and cocaine". Plus there are friends and relatives who'd want to mooch off of the winner.

So, hers was a wise decision, imho.

 

[TheTickG]

Would you have done the same thing or take the milly?

1k a week, definitely. Trusting a 20 year old with 1 million is a bad idea.

 

[GSP_37]

I could have multiplied the fuck out of that lump sum.

Anyone want to buy Beanie Babies or NFT's?