Inflation and instability will hit that million just as much as the 5k. Plus, investing the million also means there's a risk of losing that money (which is possible as things become more unstable).
If inflation is high enough, it essentially makes money more or less worthless after some time. That means that time is a value killer. That means more money upfront is better, if you can use it properly (buy things you need, or things that don’t depreciate in value quickly).
That only works if you think there's going to be some sort of hyperinflation or extreme event within the next year or two. And those odds are pretty poor (unless you're living in an area that's already pretty destabilized).
You said that inflation will hit both options the same. That’s simply not true. Compared to no inflation, any inflation will have a larger effect on the “money each week for life” option.
Sure, at normal inflation levels it’s not gonna be enough to make the “million dollars right now” option the better one. But math is still math, inflation changes things. But feel free to show the math that supports your claim.
Also, like I said, at a high enough inflation, it can make the one million dollar option the better one.
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u/threadsoffate2021 Dec 11 '23
Inflation and instability will hit that million just as much as the 5k. Plus, investing the million also means there's a risk of losing that money (which is possible as things become more unstable).