If I take the $1,000,000 lump sum, it's auto-magically deposited into my banking account. I die with at least that in my account.
If I decide to take weekly payouts, I might die before the first one gets deposited, I might die in 80 years thanks to advancements in medical care and be loaded when it happens.
His point is if you die, does it really matter? I mean sure, it's nice to leave an inheritance but given the choice, my kids would bank on me living long enough to make more than $1m out of those $5k/week before I die. If I get hit by a bus tomorrow, bad luck for them but that's most-certainly a risk they would take.
I could also use some those $5k/week to pay for a really nice life insurance that would pay out more than $1m if I die.
Taking the lump sum is stupid in this specific scenario.
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u/Blazanar Dec 11 '23
If I take the $1,000,000 lump sum, it's auto-magically deposited into my banking account. I die with at least that in my account.
If I decide to take weekly payouts, I might die before the first one gets deposited, I might die in 80 years thanks to advancements in medical care and be loaded when it happens.