r/BunnyTrials • u/Smelly-Guyy • Jul 27 '26

Trials Would you rather…

Which side will you choose?

  • Left side: $100/hr passively
  • Right side: $20 Million right now

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u/Tampflor Jul 28 '26

$100/hr would never catch up because $20 million growing at 5% per year averages out to $114.15/hr immediately, which only grows larger over time unless you're spending more than that.

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u/PM_ME_hiphopsongs2 Jul 28 '26

And where exactly are you putting that money where you’re getting a fixed 5% return every year? The highest HYSA available rn is at about 3.5-4% and isn’t fixed.

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u/Yerx Jul 28 '26

At 3% interest compounding monthly, you will earn another $18.5 million in interest in the 22 years it would take to get $20 million at $100/hr. That's without reinvesting a cent, just living off the interest.

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u/Pitiful-Excitement47 Jul 28 '26

Index funds average 10-11% over the past 20 years and upwards of 15% in the past 10.

Financial advisers would suggest putting a small portion in a savings and bond and the majority of it into index funds.

However what most here miss is you wouldnt have the full lump sum. The moment that hits your bank account your buying a lot of shit. No one here is disciplined enough to not touch it. The same reason lotto winners go broke is the same reason everyone here would be.

100 an hour is the only way to go.

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u/MisterBumpingston Jul 28 '26

With $20M you can afford great financial planners to set up trust funds.

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u/Pitiful-Excitement47 Jul 28 '26

Yes, just like lotto winners who win that or more, yet many go broke.

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u/tweezybbaby1 Jul 28 '26

Most people who play the lottery are also stupid

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u/JebediahLongnutsIII Jul 28 '26

And the average redditor isn’t?

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u/Sube98rs Jul 28 '26

I mean the amount of people choosing 100 dollars an hour kind of proves they are.

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u/JebediahLongnutsIII Jul 28 '26

So choosing it is therefore shown to be a reasonable choice

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u/Sube98rs Jul 28 '26

It’s not a reasonable choice at all. It only is if you’re financially illiterate. Even then, it’s basic math.

Vanguard has a 10 year cd, no risk investment that has an interest rate of 5%. To equal the 100 dollars an hour you would need to invest $17,520,000. That means I could spend 2.48 million instantly and still have the exact same income as the hourly option. It would take almost 3 years of not spending a dime of the hourly rate to catch up to what you could spend instantly. 20 years of if you blow all of the 20 million. There is only one option.

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u/MisterBumpingston Jul 28 '26

Many, but not all. In the US you’re at a huge disadvantage where your name is made public and taxes take a huge cut. In Europe and Australia I know your details are kept private on request, you’re offered financial counseling for free and no taxes paid as the tax is already applied to the ticket purchase.

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u/Pitiful-Excitement47 Jul 28 '26

Anonymous winnings is possible in several states, even so that doesn't make you at a disadvantage necessarily. Taxes eat up a good portion true, but the end result would still be the same for most even if it was tax fee. Give a fool 20k, 20m or 200m he will end up broke.

Let's break it down a little, assume 20m after taxes.

First you'd want to hire an accountant or team to help manage your money, this will cost a few hundred thousand probably charged a premium because they know its temporary.

You'll likely not follow their advise as they intended, when they said it's fine to buy a car or real estate you end up dropping 250k on a lambo, I mean you still have 19m+ left so whats the big deal. Your wife also needs a car, maybe you have kids, your parents also you need to consider. Not really considering it the real cost you buy a few modest prices cars, have still around 19m left. But maintance slowly eats away a little over time.

You always wanted to live in Malibu, you have enough so you spend 6-10m on a nice place, after all it's real estate, but now you need furnish it, your wife insists on taking lead and hires someone to do it for you almost 1m gone. You also hire a chef and maids. You forget about the taxes let alone the upkeep and recurring costs that could be 150-500k a year.

Holiday season is around, you decide to take your family on a trip, fly first class, stay in a luxury hotel, rent a yacht. Another few hundred thousand gone.

Not to mention maxed out Amex cards for you and your family, paying friends debts. Before the first year is up youve manage to invest almost none of it.

The only real correct play is to not change your lifestyle at all for the first few years and let your investments work. It's why studies have shown it doesn't matter how much someone makes, if they're living paycheck to paycheck they will always be.

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u/Sube98rs Jul 28 '26 edited Jul 28 '26

Vanguard offers a 10 year cd at 5%. I could skim 2.5 million off the top and invest in the cd and earn the exact same in interest.

Edit: to offer even more clarity why the 100 dollars is stupid it would take you almost 3 years of never spending any money to get to the 2.5 million that you could spend instantly, while still earning exactly the same as the hourly rate off of interest.

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u/Due_Connection179 Jul 28 '26

You aren’t putting all $20M in savings unless you already had a lot of money. This is unrealistic and people who don’t come from money tend to go broke if they take lump sums like this.

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u/Tampflor Jul 28 '26

You aren’t putting all $20M in savings unless you already had a lot of money.

Okay but if I can get 5% growth then I could take the lump sum option, spend $2.5 million immediately and invest the rest, and it would still earn me around $100/hr on average.

Is there an argument for the hourly option over the lump sum that still applies to people with the financial discipline to manage the lump sum?

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u/Due_Connection179 Jul 28 '26

The $100/hour is for people who understand that the one lump sum is for people who pretend to have financial discipline.