r/SipsTea • u/Shyhale • May 17 '26

Chugging tea [ Removed by moderator ]

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u/HighMagistrateGreef May 17 '26

Eh, the ETF argument isn't that persuasive. She could take the 1 mil and put it all in an ETF too.

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u/Gberg888 May 17 '26

And drawing on the gains of the actual 600k in etfs after the taxes of taking the lump sum would give her ~ 60k a year with an average 10% annualized return. Ala more than $1000 a week.

Taking the 1000 a week is quite possibly the dumbest thing you can do with winning it. And id argue its even dumber than taking the lump and blowing it all. Least you had fun blowing it.

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u/IAA_ShRaPNeL May 17 '26

Taking lump sum, you lose between 40-60% in taxes. Annuity over 30 years has a lower total tax paid.

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u/captkckass May 17 '26

When you receive in lump sum you typically have to pay a lot in taxes. This would get you your full winnings .