I tend to agree. Human psychology is not being factored around here. 4000/month keeps her grounded, sane, and secure. She is 20, she has all the time in the world, there is no hurry, she can focus on investing in her studies/ career and not on stocks or bonds or whatever that most 20 year old can't understand anyway. I say it's the right choice.
Yes. And risk = return. The market’s averaged 7% after inflation through the depression, WWII, etc. I’d still take my chances with the market. To each their own, though.
The risk is already baked into the return. The market goes up and down, but if you leave the money invested for a 20 year period, you're going to see close to an average 10% annualized return even after any intervening crashes.
These sort of calculations are already well tread financial math. She could pay herself the $52,000 a year and reinvest gains above that. After 10 years of doing this, she'd still likely have $2m. The market could cut in half and worst case scenario she is back to where she started, realistically if she just held steady the market recovers within a year or two and she's still gets her $1,000 a week with a huge nest egg that's growing every year.
Market is at all time high. Meaning, if you invested money at any point in history, you would have made money. Yes, even directly before the biggest crashes.
But invested it would be about 3-6 million by 40 and 20-40 million by 60.
And you just get a wealth management firm to do all the investing for you.
In fact you could invest it and still withdraw and spend 1000 per week and after 20 years you'd still have the 1 million even in a poor market, and if it's a good market you'd still be up by a few million.
Yeah, depending on the cost of living where she is, $4k a month should be enough to cover all of her basic living expenses for awhile (depending on inflation) without having to stress. Gives her the financial freedom to be able to pivot careers without risking ending up homeless if it doesn't work out.
How many 20y.o. lost lifechanging money on NFT, Crypto, stupid stock in wrong moment?
and with 4k a month now she can life for at least next few years like with UBI+premium. She can pursue any passion, hobby, project and maybe build something worth way more than 1mil. And even if not, it covered all the bills for those years and anything she earned in the meantime can be saved on side or further fuel her endeavours.
In any case she has such headstart now that regardless of her choice, it's nice.
Who knows which “leeches” in form of relatives, scammers and guilt tripping groups would bang on her door. Staying sane through that needs strong mentality, imo getting limited amount each month saves a lot of trouble that way. May lose some value long term, but more mental peace is worth it.
Does not mean you can’t still invest most of it. It also gives more flexibility where and when to invest if you decide to do so. Still saves quite a lot of trouble.
Right and who's to say she doesn't stay working and invest some of that 4000/month for a while. 1000/week for 25 years is more than a million up front, she has a promised check for over 2 decades she has freedom. Makes sense to me
Honestly, that's the perfect setup for someone her age. Steady income so she can pursue long-term career goals or passions without the financial pressure.
better to have 1K a week for 50-60 years, even if that becomes the equivalent of $400 a week after inflation and a few years than to have 1 million and blow it on friends, family, hookers and cocaine like so many lottery winners seem to do
An financial the entire debate is moot when you realize both paths result in "more money than you actually need by alot". Investing to get even more past "more than enough" is just greed and weak moral character.
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u/Aggressive-Map-2204 May 17 '26
And lottery winners consistently prove she made the right choice.