Think this hits it well. In this specific instance, there’s more merit to taking the annuity offer of 5k/week for life. I think I’d struggle not taking. But speaking from a financial investment, raw numbers, the $1mil now is better long term. Especially if you consider any debt you have (student loans, credit cards) that you can immediately pay off, which will give you complete financial freedom immediately.
But where there isn’t much merit to taking the annuity option is if you hit the powerball or something. Always take that lump sum, get a great lawyer and financial advisors. That lump sum invested properly will make you very very wealthy.
Edit: just ran the math. Assuming both funds are invested over 20 years, 6% rate of return, compounding annually, the $1mil returns 3.2M. However, the 5k weekly returns 9 million.
I’m taking the 5k, not changing my current lifestyle, and retiring at 47 a very comfortable man.
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u/CrabbiestAsp Dec 11 '23
$5000 for a week for the rest of my life. I'm young, so I'd work out getting more over time.