$1 million versus $1k weekly pay till life

[Obulis]

I saw an update of a twenty years old  lottery winner who rejects $1 million to get $1000 weekly payment for life. $1000 weekly will amount to $52000 yearly which means it will take this winner over 20 years to get paid $1,000,000 if paid $1000 on a weekly basis.

How do you see such economic decisions?
What would be your decision if faced with such situation?
For someone having plans that are not executed because of lack of capital wouldn't it be a drawback to choose 1k for life instead of 1million?

[Ambatman]

Personally I would think taking the $1000 is a foolish decision
Even if it may seem like a lifetime can b up-to 100 years
But that's never guarantee
And worse inflation would play a big role
A dollar now is not the same dollar tomorrow.
The $1 million dollar in 20 years time may be less than an $100K today.

[Stepstowealth]

How do you see such economic decisions?

There are people that would have reasons for choosing this option because their opinion of it is not bad as they will consider taking the $1000 every week still appropriate for them based on their plans.

What would be your decision if faced with such situation?

I prefer to have my money once so I can make all the plans I want, I am only sure of today, not sure of tomorrow.

[Felicity_Tide]

This news broke out sometime around December last year. Even CZ shared his own opinion via Twitter - https://x.com/i/status/1999092425365864762

Well, as for my own decision, i think it aligns with what the first user said. It was a terrible move by the lady. Not sure of how the rules work, but thinking about the worst possible scenario, like in a case of death, who knows whether the next of kin would automatically have access to the remaining money?.

And in a society where money doesn't retain its value over time, you wouldn't want to let certain investment opportunities slip through your hands, especially when you have the opportunity to get in early with such an amount.

[batang_bitcoin]

I saw an update of a twenty years old  lottery winner who rejects $1 million to get $1000 weekly payment for life. $1000 weekly will amount to $52000 yearly which means it will take this winner over 20 years to get paid $1,000,000 if paid $1000 on a weekly basis.

How do you see such economic decisions?

That's what is comfortable to her. It really differs on how we see our situation and what decision suits our lifestyle. $1k weekly for life isn't bad assuming that she'll live for more than 21 years.

What would be your decision if faced with such situation?

I'll take the money right away, that $1M and I'll just do whatever I can with it. Life is too short, we have no idea what's coming tomorrow.

For someone having plans that are not executed because of lack of capital wouldn't it be a drawback to choose 1k for life instead of 1million?

She's going to have a budget weekly but that might not be enough for the upcoming years due to inflation and that person might not be an investor or business person.

[Maslate]

The question is, would you still be alive after 20 years? Life can always be uncertain, although we always advocate for long term and preparing for the future, but in situation like this, its always best to claim your $1 million dollars immediately so you can start maximizing the best opportunities in life, than to get it in installment, in 20 years everything is still unfold.

There may be no guarantees that you can change your life successfully, but with proper guidance on managing your winning amount and strict discipline not to return it into gambling, you will secure a financially stable life without going through financial struggles in the next years to come. 

[rezakurnia66]

Honestly, I will take $1 million fully than get payment $1k weekly until life or reach the amount of $1 million, firstly the winner of lottery have own reason why pick $1k weekly due his personal data already publishing when becoming the winner and having $1 million in wallet too risk with your environment. However as living cost having $1k weekly most enough but build up new business and investment get difficult because the lady winner not interested yet taking $1 million or fully reward lottery winning.
We can't avoid from inflation but bit mistake from the lady lottery winner when taking $1k weekly without think few years later the amount of his winner has significant inflation amount, everyone exactly has own decision when taking reward fully or get weekly payment needed until few years later all amount lottery winning accept fully.

[Free Market Capitalist]

For the average Joe, it’s best to go with the weekly payout, because he usually doesn’t know much about finances and tends to be impulsive, which could leave him worse off in no time—just like what happens to lottery winners and the like. I prefer the million because I could manage it and make it work for me from day one. But for someone who isn’t going to invest, the weekly payments aren’t bad either, as long as you’re not too old—because as OP says, after year 20, you’d have received more than the million, so it’s actually more money.

[Darker45]

If faced with such situation, I'd take the lump sum. I can do a lot with it. The other option might prove to be right in the end, but my goal is to try use the money to buy an asset that appreciates over time or start another source of revenue, possibly bigger than $1,000 per week.

The other option isn't necessarily bad, especially because it would be sustained for the entire lifetime, but with how inflation eats up slowly but surely the purchasing power of money, a decade or two from now $1,000 would be of much lower value. By the time the winner gets 60 years old, $1,000 might not even buy him/her his/her medicines.

[Samlucky O]

I saw an update of a twenty years old  lottery winner who rejects $1 million to get $1000 weekly payment for life. $1000 weekly will amount to $52000 yearly which means it will take this winner over 20 years to get paid $1,000,000 if paid $1000 on a weekly basis.

How do you see such economic decisions?
What would be your decision if faced with such situation?
For someone having plans that are not executed because of lack of capital wouldn't it be a drawback to choose 1k for life instead of 1million?

for me i think the person that chose $1000 weekly made the right decision because if i was in his shoes i will do same too. the truth is that some amount may appear too big when mentioned, but may finish within a short period of time if not utilized properly. i have heard of many stories where people are paid a huge amount of money that they misused and later regret why they didn't used it properly. but however if it was paid gradually, it would have been utilized properly. sometime we need more time to think of what to do with money, and the money might come when the right idea is not there and it will result to mismanagement of fund. but if the money comes weekly and its been accumulated, it is possible to make mistake and makes amend. aside that payment for life and is a whole lot of thing that even without investment, you will still be paid till death. you will save and invest and still get paid for life. its crystal clear that the $1000 weekly is more important.

[Mahiyammahi]

I think it would be wiser to take a million dollars at a time than to take a thousand dollars every week. Because here your life cycle is not guaranteed that you will live for 20 years or not, and then there is inflation again. So your ultimate value of that 1000 dollars is going to reach 200 dollars. But think about what the profit would be if you took a million right now and if you only kept it in the bank, even if it was just a penny.

Brother, whatever decision you make, I hope you use your brain and make the right decision.

[jcojci]

People free to choose which will be more benefits for them. I can't say many to that person because he should have consideration why he choose differently so we can't say that is a bad decision if they choose $1000 weekly payment for life than choosing $1 million.

I will take that $1 million and use it by doing something to make money as I can do many things with that $1 million and preparing my future by having more sources to make money but every people will have their decision.

[Fortify]

I saw an update of a twenty years old  lottery winner who rejects $1 million to get $1000 weekly payment for life. $1000 weekly will amount to $52000 yearly which means it will take this winner over 20 years to get paid $1,000,000 if paid $1000 on a weekly basis.

How do you see such economic decisions?
What would be your decision if faced with such situation?
For someone having plans that are not executed because of lack of capital wouldn't it be a drawback to choose 1k for life instead of 1million?

Anyone who takes $1,000 a week for the rest of their lives is making an incredibly poor choice in many ways, especially at this moment in time. You have to be extremely bad with money or impulse control for it to make sense, but even then inflation is going to gradually eat away at the value of that $1k in future years - so you'll be able to buy much less for that money in 20 or 30 years time. There are fairly low risk avenues right now, where you could take the $1 million and put it into safe government bonds, which would allow you to keep absolute control of the money so you could change your strategy in future while still generating the $1k a month. Even if you were to live 20 years and start making over the $1 million total on offer now, $1k per week will be heavily depreciated - it might look like getting $250 per week right now, or worse.

[JoyMarsha]

The decision of this person has shown how average their mentality really is. Someone who is presented with a lump sum of $1million would happily grab it over $1k weekly because the business ideas and investments that they will go into will bring them more than or close to the $1k to be given weekly.

Well, the person has made their choice, I pray they live more than 20 years, adding to their years, not below the number of years.

[Renampun]

What would be your decision if faced with such situation?

It might sound like $1,000 is a safe bet because he can get it every week without having to work for years to come, but if it were me, I would still choose $1 million at one time.. I feel that with that much money at one time, I can realize my plans to set up a business, invest, and buy property for myself, and there is no guarantee that in the next few years I will be able to live.. so taking it all at once can allow me to realize the plans that I have thought about before and can prevent me from the possibility that the company changes its mind and instead turns around and ignores its responsibilities in the future.

[SquallLeonhart]

There should be a reason too on why he reject a direct 1 million dollars payment like maybe the tax for it is also huge? So it can be a wise move and maybe he don't have a thing like that you said there OP that he will need an immediate huge capital to do something. But I think he still can do it if he has it, in a way that he can just take bigger amount of loans. He surely can pay them though, using the 1k dollars he can get per week and I'm sure, lenders can easily agree on this term, given that they also earn some interest on this.

In my country, 1k dollars is already a huge amount of money and much more if it is given to me per week. This is enough and no need for me to avail loans even if I have a plans on buying other expensive items. For someone who is overthinking and thinking they can not live for a long time anymore, they can also choose to get the 1 million dollars immediately even if it will have a bigger cut for taxes or some other fees.

[stompix]

There should be a reason too on why he reject a direct 1 million dollars payment like maybe the tax for it is also huge?

There is no tax on national lottery winnings in Canada.

It might sound like $1,000 is a safe bet because he can get it every week without having to work for years to come, but if it were me, I would still choose $1 million at one time.. I feel that with that much money at one time, I can realize my plans to set up a business, invest, and buy property for myself, and there is no guarantee that in the next few years I will be able to live..

For god's sake, it's $1000 or $1million , it's not like she won the Powerball
This is what $1mil gets you in Montreal:
https://www.realtor.ca/real-estate/29745737/1210-rue-jeanne-mance-5402-montreal-ville-marie-central
A 2-bedroom one bathroom 80 sqm apartment!
People need to understand that those $1000 a week is not even the average wage in Canada, the winning barely covers you necesities , nor does $1 million entitle you to live like a king for more than a month.

[BABY SHOES]

The 20-year-old may still have no plans with the $1M, there are other reasons he doesn't want to take it... it could be that the large amount of money is afraid of running out or doesn't want to be entrusted to anyone including his parents, that could be the reason.

While taking $1000 that week is his comfort zone for the next 20 years his life is guaranteed, it could be that he doesn't want to take a bigger risk so his choice is with $1000.

If it was on my side... then I would take $1M with that capital I can build several businesses and investments that have good returns.

[Bitcoin_Budha]

Everyone has his own mind and can think what is better. Region is also important because in a few places $1000 is going to be bigger than $1 million, and in a few places where having this big amount is much better, it's surely not an easy decision, but here I will surely go with $1000 weekly.
Few will not agree with this, but I am feeling this is going to be the best option right now because this can bring stability and positivity, which is important. Having $1 million is not going to be helpful due to many domestic issues, so just because of this, it is preferable to stay with this weekly pay and enjoy it till you can.

Even nothing is guaranteed in life; just because of this, many will go with $1 million, but still I feel not comfortable with this.