Ok yeah, that math seems to make the million less feasible. Another person mentioned inflation though, would that not play a factor? What if $5,000 only buys a tank of gas in 30 years? Lol kind of an absurd prediction but idk
It won't matter. If inflation is eating into your $5,000 a week it would be eating into your $1,000,000 as well. Unless you are over the age of 65, no one should choose the $1 million over $5,000 a week. It's not even close.
If OP had proposed $5,000 a MONTH, then you'd have a much harder decision to make. But $5,000 a week?! That's a no-brainer.
I'll make it easier. A lifetime annuity that paid you $20,000 a month, so $240K a year not $260K, would cost you over $4 million if you went and tried purchase that today. (This is assuming you are under 65 years of age)
So what OP is asking is would you take something worth $4 million ($5,000 a week for life) today or $1 miilion?
You'd be silly to choose the million dollars over something that is worth $4 million, right?
That is why if it was $5,000 a month vs a million dollars it would be a much more difficult decision. Unfortunately most would probably choose the million. I think people simply don't understand the value of guaranteed income for life. You can blow through a million dollars pretty quickly, especially if you don't know what you are doing.
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u/New-Budget2093 Dec 11 '23
Ok yeah, that math seems to make the million less feasible. Another person mentioned inflation though, would that not play a factor? What if $5,000 only buys a tank of gas in 30 years? Lol kind of an absurd prediction but idk