$1 million versus $1k weekly pay till life

[logfiles]

Receiving $1 million at once gives one an opportunity to make good investments for the future. Say split part of the money and use it to buy BTC and other promising stocks for the long term. I am pretty certain after about 10 years, the value will have more than doubled. This is not easy to achieve with $1,000 per week unless if you are living in a cave or something like that. Expenses will always be there and even after 20 years, most people will not be close to $1 Million. Just look at the salary earners and tell me how many of them can have that much in their accounts after 20 years.

[Obulis]

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. 

Just wondering if it's fear of financial mismanagement that led to such decision. Under such situation (win) many people always end up in few times with empty pocket, seeing them you won't believe they ever had such amount of money in their bank statement.

[Kelward]

Before accepting whether to collect $1,000,000 at once or to be getting $1000 every week for life you need to consider some factors which the answers will determine the option to go for because our aspirations in life are different. If you're ok with meeting up with your basic needs and desires a simple life where you just want to be comfortable without bothering to meet up anybody's standards then accepting the $1000 weekly payment for life would be the best option. However if you're the type that is business oriented who wants to be enterprising and expand as an entrepreneur and an investor then you will take the $1,000,000 and walk away

If I'm given such an option with the life experiences that I have gathered and my business ideas that requires funding I will take the $1,000,000 and hopefully expand it within a few years. One of the reasons why in the real sense I will take the big amount and leave is that nothing is certain to remain the same after every decades and for life. I will reason that for some reasons beyond the control of those that will be paying the $1000 for life they became bankrupt and shutdown then I've lost my big chance of building my wealth with the one time big cash.

[Fragrance1122]

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.  

Just wondering if it's fear of financial mismanagement that led to such decision. Under such situation (win) many people always end up in few times with empty pocket, seeing them you won't believe they ever had such amount of money in their bank statement.

The decision he made looks absolutely fine because it was his money and his decision and he made it all from his heart. This means he want to live in comfort for the rest of his life and he doesn't want anyone to bother him. The mindset is the key factor to make a decision in such situation. However the situation might change and there is no assurance that he ought to be alive for the next five or 10 years.

 If i was there instead of him i would have taken the whole bunch of 1 million and would have invested in some trending business which i know about.

[bakasabo]

Those who are saying that taking $1k weekly was wrong decision, look on the situation from such angle.

1) If the winner would have taken $1 million, he would immediately have to pay income tax. Taxes are different from country to country, but on average they are 25-30%. So that is not 20 years already. In some countries, starting point when you have to pay tax from gambling winnings is several thousands. (he has avoided paying taxes)

2) Person has chosen stability in his life. No matter what happens, he will always have a thousand dollars.

3) If a person isnt ready for big money, he could have wasted them quickly. There are numerous examples of that. Maybe he has saved himself from turning in a person who will first waste 1 million, but then rest of what he has.

Some already say that 1 million they would have invested or started business. Without experience, that 1 million might turn into 0 within times. But taking 1000 weekly, the person will be living his usual life, but a little bit better.

[Roseline492]

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?

Owning $1 million is forever financial life transformation if you are investing wisely without exhausting it in luxury but however with how $1k would serve, it shouldn't be left for $1 million because even if you decided that you will not invest but only spending you will not still go broke because every week you have $1k you are expecting but in the one of $1 million immediately is gone that's were poverty began so actually if you think about it in this manner you wouldn't even consider the $1 million. Even if you are so much in need of money but is also important to manage because of the future because is better to have a steady cash flow than being paid ones, so actually the lottery winner is wise for going weekly $1k.

[Powerjumboo]

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?

Here, taking 1 million dollars can bring benefits and disadvantages to a person, for example, if a person has 1 million dollars, that person will feel very rich and will want to spend his money in any way, as a result, his money will be in a very risky situation. On the other hand, if 1 million dollars can be invested in Bitcoin at once, then it can be very profitable. However, if I am given 1 million dollars at once, I will accept that. I will not accept 1 thousand dollars a week because I can spend $1000 a week at any time.

[Smartprofit]

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?

In my opinion, choosing to receive a monthly payment of $1,000 for life is fraught with enormous risks. 🙋

For example, the organization paying you this amount could simply go bankrupt within a few decades... Even a government could disappear within a few decades, not to mention a commercial organization!

From a mathematical perspective, this is also a very bad deal. Having received $1,000,000, you can invest this capital wisely. The concept of compound interest will work in your favor. As for choosing a monthly payment of $1,000, in 20 years this amount will depreciate due to inflation. Moreover, in 20 years, even the US dollar may cease to exist (Bitcoin, of course, will exist!). After all, our world is changing rapidly.

On the other hand, a young person may simply not be psychologically prepared to receive such a large sum ($1,000,000).  I don't rule out the possibility that he'll start spending money. In fact, if you're truly attracted to girls, alcohol, and entertainment, then spending a million US dollars in a year is entirely possible!

[Die_empty]

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.

The risk involved in starting and running a successful business might be a good reason for choosing the weekly option. Statistics show that many new businesses fail in the infant age.



Besides starting a business, other investments would guarantee constant profits. Investing in Bitcoin, gold, or government bonds could be a good stractegy to make good profits from the lump sum payments.

Some people don't like taking business risks; they will prefer weekly payments. I might find this model helpful if there is a clause to transfer their payments to my dependents if I am gone.

[Cheema02]

Receiving $1 million at once gives one an opportunity to make good investments for the future. Say split part of the money and use it to buy BTC and other promising stocks for the long term. I am pretty certain after about 10 years, the value will have more than doubled. This is not easy to achieve with $1,000 per week unless if you are living in a cave or something like that. Expenses will always be there and even after 20 years, most people will not be close to $1 Million. Just look at the salary earners and tell me how many of them can have that much in their accounts after 20 years.

If we get one million immediately then we feel financial stability and we have a lot of opportunities of investing and set a strong business. And if a person get Lamp sum annually or monthly then he have golden chance to invest in Bitcoins or in other assets to grow the investment with time. If we get one thousand weekly its also seems comfortable to meet our basic needs but for emergency situations to save is much more difficult because its a very low amount. This is the main reason many salary holders struggled to make heavy assets even after putting efforts for decades so for government employees lump sum is the best way to beat financial instability. At the end the learning point is that financial security and growth comes with positive decision and patience in difficult time so with long term consistency we get financial success.

[Jegileman]

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?

Every of the two options he does with has its own risk, he just have to sit down and think about it and do what works best for him. I would also assume that the $1000 weekly will be a bad idea because inflation will definitely hit and what he gets to spend the $1000 with now could not be spend with it again even in the next two years.

Going for $1million dollar will also have him affected when inflation hits but when put into good use as a whole now, it can be generating him profit that can be used to fight against the inflation later. $1 million is not a money you can get easily, so giving it out this cheap will also have not to maybe consider it. Both has their advantage and disadvantages, it’s just left on how you decide to put it into good use.

[Findingnemo]

1 million dollars basket today will not be the same as one million basket in the next 20 years. If you bought a real estate for 1 million and kept it for 20 years, then the price will go up for sure, that is your answer to this question.

It is no brainer to pick which one it is on the very next second.

[Cryptomultiplier]

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?

Every of the two options he does with has its own risk, he just have to sit down and think about it and do what works best for him. I would also assume that the $1000 weekly will be a bad idea because inflation will definitely hit and what he gets to spend the $1000 with now could not be spend with it again even in the next two years.

Going for $1million dollar will also have him affected when inflation hits but when put into good use as a whole now, it can be generating him profit that can be used to fight against the inflation later. $1 million is not a money you can get easily, so giving it out this cheap will also have not to maybe consider it. Both has their advantage and disadvantages, it’s just left on how you decide to put it into good use.

Am glad it depends on the receivers mindset at the time, because if there is already a laid down plan on investment that requires that much capital to invest in, then there's no need for the $1k every week.
In the case where such a one has a good paying job or source of income and has no on ground plan to execute with such huge capital of $1million, then it's a wise decision to keep receiving the $1k every week for sustainable growth, for safety reasons, for peace of mind.

Like you said, both choices comes with its own pros and cons.

[Stable090]

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?

I don’t know why the person make that decision of receiving $1k every week, but if am in that position, am just going to collect 1 million at once and invest the money in any kind of business which I want, but if some people are given opportunity like this, they just going to misuse it, some will collect the money and just waste it on things that are not so necessary in life. But if you have a good business idea, just collect everything at once and just invest in the business, and you not even going to be investing everything, am sure just little amount will be invested, you still going to be having some money left.

[juttsab@]

Receiving $1 million at once gives one an opportunity to make good investments for the future. Say split part of the money and use it to buy BTC and other promising stocks for the long term. I am pretty certain after about 10 years, the value will have more than doubled. This is not easy to achieve with $1,000 per week unless if you are living in a cave or something like that. Expenses will always be there and even after 20 years, most people will not be close to $1 Million. Just look at the salary earners and tell me how many of them can have that much in their accounts after 20 years.

If we get one million immediately then we feel financial stability and we have a lot of opportunities of investing and set a strong business. And if a person get Lamp sum annually or monthly then he have golden chance to invest in Bitcoins or in other assets to grow the investment with time. If we get one thousand weekly its also seems comfortable to meet our basic needs but for emergency situations to save is much more difficult because its a very low amount. This is the main reason many salary holders struggled to make heavy assets even after putting efforts for decades so for government employees lump sum is the best way to beat financial instability. At the end the learning point is that financial security and growth comes with positive decision and patience in difficult time so with long term consistency we get financial success.

In my point of view choosing a weekly payout is a bad idea because of the increasing inflation by every passing day and money is losing its value with time and,  if we take weekly payout if we can buy something good right now it might be a possibility the next week the prices will be high and that money will not help us to buy that required amount of products where is if someone take $1 million right now they can invest it immediately and will make a long term wealth from that money. if I was given a chance I would choose the lump sum amount without giving it a second thought. If someone need capital for some business or idea then choosing the lump sum amount will be a good idea they can easily launch a project and build their wealth.

[rdluffy]

I thought that was a really good question

In my country (Brazil), we have high returns on investments, and right now, at this very moment, we’re getting 1% interest per month
If I chose to receive 1 million and invested that money, the current return would be 10,000 per month, which comes out to 2,500 per week
That would be the best choice
Even when interest rates go down, it’s still worth it

That would be my choice: to receive it all at once 

[passwordnow]

She's confident that she'll live long and will out range the $1M after it has reached 20 years or so. I'll take the $1M without hesitation. She can even earn more minus the taxes if that amount is being used for some of the traditional assets or deposit products of the banks through the interest. As far as reading everyone's suggestion, I guess that we all agree in that thought that she made an opposite decision although that's her and she sees something in it and that's why she chose the $1k/weekly for life.

[Bd officer]

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?

Personally I think his decision is not good. Because due to inflation there will be a difference between $1000 today and $1000 in the future. So it would have been a wise decision to take 1 million at once and invest or do business. I don't know why that person decided to take $1000 weekly?
Most of the people here supported taking $1 million. If I were that lucky person I would take $1 million at once and invest in Bitcoin and start a business of my choice.

[slapper]

$1M at 20. Take it and don't look back. I can't really see the other side of this one and I've tried.

People see the weekly payment because as if it is a salary, it sounds like security. Since we were children we have been taught that steady income = responsible. But constant income which you cannot increase, cannot speed up, cannot redirect. That sounds like a pretty much dependency on a pretty nice label. You're 20. Your entire economic life is ahead of you. At that age, capital doesn't lie dormant. It's more effective than weekly drips because compounding requires mass and time. So you have both at this moment.

To many this can become a "discipline question". Like oh if you can't trust yourself with a million just take the weekly. When did we become so focused on our negative tendencies rather than strengthening ourselves to deal with the real choices in our finances?

Liquidity is more than about returns on investment. Opportunities don't show up on a schedule. A business opportunity, a house on the market, an opportunity to move for a better opportunity. These things need capital available NOW not next Tuesday's installment.

The only valid argument for weekly is that someone has an actual spending issue that they can't correct. And even then I'd say a combination of therapy + a financial advisor is better than voluntary financial helplessness for the next 50 years.

I don't know. Perhaps I'm being too aggressive, but there's clearly one side of the equation. Therefore choosing the other feels like choosing comfort over agency. That trade-off costs you decades of potential at 20.

[bakasabo]

1 million dollars basket today will not be the same as one million basket in the next 20 years. If you bought a real estate for 1 million and kept it for 20 years, then the price will go up for sure, that is your answer to this question.

It is no brainer to pick which one it is on the very next second.

If you buy a real estate for 1 million you need another million to do maintenance of that estate during 20 years. Otherwise it will turn into abandoned building and its value will greatly drop. You cant just leave building, do nothing and wait until its value grows. Take your bill, multiply it by 240 and it will be the cost if you do nothing with estate. Suppose you are going to live there, then make a budget for repairs and overall estate look update. Dont forget taxes that you will pay after receiving your winning. So its from the start not a million already.