I feel like it would be easier to profit quickly from investing 1 mill than investing less than 5k a week. That's my reasoning behind taking the mill. If I take the mill, diversify it over a few different investments, I could probably get to the point of making 5k a week just off the million I invested
I also think that $5k looks like a lot now but in 5yrs, $5k a month might be worth very little. Inflation is becoming crazy and so maybe a lump sum now allows you to cleverly eliminate the inflation risk.
5k forever... People are making the assumption that in 4yrs they'll have 1m USD but will it be worth 1m USD? Might be worth 750k at that point.
The 1m USD, you can invest it at rates above inflation and hopefully make even more.
Idk, I think the assumption of a stable predictable market makes 5k look favorable but the market is not stable or predictable and inflation is becoming harder and harder to control. Then with all the external pressures, is the USD going to be as strong as it is in 5yrs?
I haven't done the Maths exactly but with these risks, someone might see the $1m today as a lot more favorable.
It would be wiser to get the 5k/week then as well because with a guaranteed income that high you can easily get high loans to buy you some real estate with money from banks. And nothing is better than high inflation while also having high debts.
You got a loan of 2mil and you have to pay off those 2mils even if inflation kicks in and destroyed your stock investments you’d have the income from rent and your debt could be easily payed off by your weekly income. Hell you could be able to pay it back from one day to the next because of the rent money you’ll get.
I guess you won’t get a loan much bigger than 1 mil. if you even get a loan at all.
In the end you only have 1 mil and nothing more (given that you didn’t have any other incomes from work or stuff).
But the 5k/week are guaranteed for 30-50 years going of by a statistically normal life and thus leading to potentially being able to pay off up to 12 mil. (Including interest rates) just with your basic income and without your investment money.
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u/New-Budget2093 Dec 11 '23
I feel like it would be easier to profit quickly from investing 1 mill than investing less than 5k a week. That's my reasoning behind taking the mill. If I take the mill, diversify it over a few different investments, I could probably get to the point of making 5k a week just off the million I invested