what would you choose? $1 million or $1000/ week for life

[tobelightlight]

A 20-year-old lottery winner named Brenda surprised many by turning down a one-time payout of 1 million dollars. Instead, she chose the option of receiving one thousand dollars every single week for the rest of her life. Her decision sparked debate online, with some praising her long-term thinking while others argued she passed up the chance to invest a much larger lump sum.

 

[sbfuncle]

This kind depend on age de woh.
For her age 20, if she spend $1k per week she will finish the $1m in 1k wk which is 19.2 years. By then she is only 39.

So i will choose per week 1k

But for old fart like me is take 1m.
But then again, the payout will tie to current age so they will offer me 2k per week. But I will still take 1m and run.

 

[Sustanon]

She better hope and pray the company don't collapse. What kind of return is she getting from the money being in their custody? Don't think she is financially literate anyway...

 

[tobelightlight]

She better hope and pray the company don't collapse. What kind of return is she getting from the money being in their custody? Don't think she is financially literate anyway...

The thing is she dun give a shit to the $1 million. she wins, she wins. no ROI to talk about. if the company disappear in 2 years, she has won 100k plus for 1k a week. and no one will come to her for money if she didn't have the $1 million.

 

[jurongkechil]

Confirm take 1 mil first. Due to the fact that inflation made money shrink over the year..

 

[GOD IS MY DOG]

she made the right decision lah................at her age

 

[k1976]

View attachment 233700

A 20-year-old lottery winner named Brenda surprised many by turning down a one-time payout of 1 million dollars. Instead, she chose the option of receiving one thousand dollars every single week for the rest of her life. Her decision sparked debate online, with some praising her long-term thinking while others argued she passed up the chance to invest a much larger lump sum.

U will need to under “net present value” financial concept

 

[jw5]

Definitely take the million.

 

[cowbellc]

20 years old 1k per week. 4k per month
48k per year. 20 years will be 960k.
Canada lottery is tax free, maybe she doesnt need 1 mil

 

[Hightech88]

This kind depend on age de woh.
For her age 20, if she spend $1k per week she will finish the $1m in 1k wk which is 19.2 years. By then she is only 39.

So i will choose per week 1k

But for old fart like me is take 1m.
But then again, the payout will tie to current age so they will offer me 2k per week. But I will still take 1m and run.

Correct. At her young age, $1M will be finished in less than 1 year through shopping spree and even conned by her bf etc. LOL.

For people with enough investment experience would know that you could invest the $1M in top blue chip stocks and easily get back > 4% in yearly dividends (paid half-yearly) with stock growth appreciation of more than 10 % p.a. The Avg dividend yield for top 3 blue chips (Singtel, DBS, OCBC) for past 5 years is : 4.5–5.5% with growth of 9–11% per annum.

Just with this simple safe investment method, I can compound the returns and easily double the investment in 10 years time. And during this period, can still use the dividends to fark and creampie many xmms and enjoy the harvest later LOL.

 

[syed putra]

For people with enough investment experience would know that you could invest the $1M in top blue chip stocks and easily get back > 4% in yearly dividends (paid half-yearly) with stock growth appreciation of more than 10 % p.a. The Avg dividend yield for top 3 blue chips (Singtel, DBS, OCBC) for past 5 years is : 4.5–5.5% with growth of 9–11% per annum.

Too complicated Investing in overpriced stocks and expecting 4-5% dividends based on listed price.

 

[eatshitndie]

$1000 becums $699 as she ages at 69. cash loses value over time. better to cash out now and invest the cash in property, a few stocks, some bonds, or a 4-4-2 combo. keep the principal, play with the interests earned.

 

[k1976]

20 years old 1k per week. 4k per month
48k per year. 20 years will be 960k.
Canada lottery is tax free, maybe she doesnt need 1 mil

Must factor in “inflation”

 

[tobelightlight]

Must factor in “inflation”

Who cares about inflation in her situation. That is free money to her and if she dun have it,she dun care.