Poll Would You Take $1M Upfront or $1K A Week For Life

Which would you take?

  • $1M Upfront

  • $1K A Week For Life

Results are only viewable after voting.
Elzo69Renaissance said:
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From a Yahoo Article about this story

Pros​

Taxes are, perhaps, the most important factor to consider if you’re ever faced with a choice between a sizable windfall or annuity. Income from gambling is fully taxable, according to the Internal Revenue Service (IRS) (2). Many American winners also face state and local taxes on lottery winnings.

For example, the person who won the $1.5 billion Powerball jackpot on Dec. 17 would take away just $516.7 million after federal taxes and perhaps even less depending on their home state (3).

Fortunately for Aubin-Vega, she’s Canadian and faces no taxes on lottery winnings (4). In other words, she could have claimed $1 million without any taxes or penalties. However, she would then be faced with a difficult decision about investing that lump sum.

By taking the $1,000 weekly payments, Aubin-Vega has effectively locked in a 5.2% annual yield on her jackpot. Since the payments are provided by the Canadian province of Quebec, this annual yield is nearly as safe as the yield on a government treasury bond. Canada’s 10-year bond currently offers a 3.4% yield, which makes Aubin-Vega’s move seem more financially savvy (5).
Simply put, by taking the weekly payouts, she has secured an asset that is safer than the stock market and more lucrative than the bond market.

Aubin-Vega’s age is another factor that makes the weekly payouts more attractive. By collecting $1,000 a week, she will reach the $1 million milestone at age 39 and eventually hit $3.1 million in total payout by age 80. If she invests the weekly payouts instead of spending them, she could hit both milestones years earlier.

inally, taking a modest weekly payment instead of an eye-catching million-dollar jackpot could make Aubin-Vega less vulnerable to bad actors. As one Redditor put it: “The advantage of not taking the lump sum is that the vultures don’t start circling for a payout. It’s the only way you can win a million and tell people.”

However, there are some downsides to turning down a million dollars.
 
Chris P. Bacon said:
From a Yahoo Article about this story

Pros​

Taxes are, perhaps, the most important factor to consider if you’re ever faced with a choice between a sizable windfall or annuity. Income from gambling is fully taxable, according to the Internal Revenue Service (IRS) (2). Many American winners also face state and local taxes on lottery winnings.

For example, the person who won the $1.5 billion Powerball jackpot on Dec. 17 would take away just $516.7 million after federal taxes and perhaps even less depending on their home state (3).

Fortunately for Aubin-Vega, she’s Canadian and faces no taxes on lottery winnings (4). In other words, she could have claimed $1 million without any taxes or penalties. However, she would then be faced with a difficult decision about investing that lump sum.

By taking the $1,000 weekly payments, Aubin-Vega has effectively locked in a 5.2% annual yield on her jackpot. Since the payments are provided by the Canadian province of Quebec, this annual yield is nearly as safe as the yield on a government treasury bond. Canada’s 10-year bond currently offers a 3.4% yield, which makes Aubin-Vega’s move seem more financially savvy (5).
Simply put, by taking the weekly payouts, she has secured an asset that is safer than the stock market and more lucrative than the bond market.

Aubin-Vega’s age is another factor that makes the weekly payouts more attractive. By collecting $1,000 a week, she will reach the $1 million milestone at age 39 and eventually hit $3.1 million in total payout by age 80. If she invests the weekly payouts instead of spending them, she could hit both milestones years earlier.

inally, taking a modest weekly payment instead of an eye-catching million-dollar jackpot could make Aubin-Vega less vulnerable to bad actors. As one Redditor put it: “The advantage of not taking the lump sum is that the vultures don’t start circling for a payout. It’s the only way you can win a million and tell people.”

However, there are some downsides to turning down a million dollars.
Click to expand...

Cons​

One of the downsides of picking a weekly payment instead of an upfront jackpot is the lack of flexibility. An annuity is permanent, but $1 million in cash can be freely invested in a wide range of asset classes, some of which could deliver better growth opportunities over 30-years.

For instance, investing $1 million in a low-cost index fund and assuming a 7% annual growth rate could have turned Aubin-Vega into a multimillionaire in roughly 10 years. At that point, a 4% annual withdrawal would deliver more cash flows.

Inflation is another downside risk for her. The purchasing power of her weekly payments is gradually eroded over time. Assuming annual inflation of 2%, a weekly $1,000 payment could be worth less than half today’s value by the time Aubin-Vega is 56 years old.

Finally, Aubin-Vega’s decision also eliminates her bragging rights. Being a millionaire in your late-30s simply isn’t as impressive as being a 20-year-old millionaire. For some lucky lottery winners, that’s enough of a reason to take the money upfront.
 
Hate to get moribid here , but african Americans have the empirical health profile of a so called 3rd world/global south nation

"For life" generally ain't gonna be all that long. ...take that 5 or 600k after taxes i suppose smh
 
Greg.nice said:
Hate to get moribid here , but african Americans have the empirical health profile of a so called 3rd world/global south .

"For life" generally ain't gonna be all that long. ...take that 5 or 600k after taxes i suppose smh
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The avg life expectancy in the US is what like 73 years old?
 
Fat thumbed and accidentally clicked the weekly one and didn't check before clicking submit

I'd take the mill and invest now
 
Eyerone said:
A million dollars in a vacuum. Sure.


But I’m guessing this is $1 million secret money. Not telling your wife or family or changing your lifestyle in any way that would make anyone hip to what’s happening.

I get it. This is $1 million perfect scenario shit.
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Huh???

ParallelRhymes ruins every thread bruh
 
loud-ninja said:
If there rules are similar to America, then going with a payment plan is risky. The biggest risk with that is the organization could go out of business at any time. Your payments will stop. Im pretty sure that is in the contract as well.
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I posted about it at the top of the page
 
Anyone considering 1k a month has no idea how inflation, interest or investments work. This really should not be a difficult decision.
 
Duwop said:
This is why I said I'm good at 60.

I can't continue walking the planet with niggas this slow freely roaming around.
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You are slow
$1k takes 60 years to reach a million what are the chances of you even living to be 60? You could die tomorrow from a car accident or a terrorist attack. Or why not cancer. Lifes a bitch
 
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