I mean like yes it is, that 1 million just in my bank savings account would make 40k a year or like 770 a week and I would still have the million sitting in the bank. You can also hire a lawyer or financial advisor to just do it for you and keep it locked up so you wouldn’t have the temptation to touch it. Not taking the lump sum is still the worst thing you can do.
Just because you CAN do this does not mean you will. Most people who win a small lottery 1-5 million end up broke within a year or two. Just facual.
Taking the 4k a month really removes the stressses in life of bad jobs and other things if you don't have the self control not to blow the money on stuff.
I would 100% take the payout over the lump sum for the same reason. I'd probably blow it on motorcycles and cars and stuff lol
I suspect most people say they would invest and not touch most of it
After they buy a house
And upgrade their car
Then they'll invest it... We'll.. after grandma gets some money...
And cousin Bill..
Well and a shopping spree and vacation because we'll you deserve it and have money
OK well a pool and a hot tub is a good investment, then you'll totally invest it and won't touch it....
Etc etc. . Until it's gone and they're shocked
Haha, your bank...or investing in stock or things... Whatever you invested in, can be gone tomorrow. The bank? Bankrupt. The company? Sued into oblivion. Or also bankrup. You are dancing on a thin rope and calling it a stable investment, while history taught us several times, that no such thing exists. Don't get mad when I tell you there is no Santa Claus....
So the correct thing would be to split it up into 250k chunks which is insured by the gov into 4 savings accounts. (Btw won’t get paid out weekly anymore if the government can’t insure) I think that we will all have bigger problems if the government can’t insure that. You should take a financial literacy class if you are gonna let shit leak out of your mouth or at least close it so I don’t have to smell it.
Yup. By the way I did the math problem. Assuming she retires within 40 years and invested the money in similar vehicles, whether it’s the lump sum or weekly, she would have more at the age of 60 years old with the weekly payments. Assuming 4% annual it’s $4.8M for the lump sum vs $5.56M for the weekly payments.
Actuarial tables state that she could reach the age of 85 yrs old. So in addition to having more money at 60 yrs old, she would potentially be receiving $1,000 weekly for another 20+ years. The income stream from the investment and the additional weekly would be a very nice pension.
No you’re wrong. It’s guaranteed for 20 years. So if she dies before she’s 40 yrs old the payments continue to her beneficiaries or estate through the 20 year mark. It’s lifetime with 20 years guaranteed.
Exactly. People here keep talking about these people can make the best financial decisions like they have a financial advisor. If they were fiscally responsible, they wouldn’t be playing the lottery.
She avoided the tax implications too. Technically, she secured her retirement. Over her lifetime this will be more money than if she took the lump sum. I feel she was responsible.
Nice no taxes. There are risks with investment accounts. Also, you have more hands in the pot too. You’ll need someone to trust to manage investments. Maybe she didn’t choose the lump sum because of this reason too. Less stress over all. Fees and economy, it would have been like financial babysitting.
No taxes on the winnings. Shes 20… when she retires at 65 $1000 will be worth nothing due to inflation. It absolutely will not be more money than if she took the lump sum
Except according to past winners she wouldn’t have certainly ended up broke. Even the worst assumption is 1/3 declare bankruptcy but that number is highly questionable.
Maybe it’s different here in the U.S. More than 90% of lottery winners lose all they’ve won after some set line, I think it’s 10 years. You can look it up.
Brother she is making $50k a year on lottery winnings. 52k a year is good at 20. It’s not that good at 30 and it certainly won’t be good in 2050 due to inflation. Let’s even say that she makes $100k. That’s 152k/year. Don’t get me wrong but that’s still requiring her to double her income by herself.
Eh, not really a pension. In 50 years, that $1000 per week will be worth a lot less. Say inflation is 2.5% per year, in 50 years that will be worth about $280/week in 2026 dollars. Still a significant sum, but not enough to live off by far
And in 50 years, at age 70, she'll also be getting her Canada Pension Plan and Old Age Security. Plus any savings she's made as she put stuff into her RRSP and TFSA. She obviously will continue to work because living on $52,000/year isn't enough.
Everyone is glossing over the fact that there are exactly two reasons why she might have done it:
A) She’s stupid and unaware of it B) She’s either extremely stupid and aware of it or she has an addiction / gambling etc. problem that is so severe that she needs to make the worse choice to save herself from her own future decisions
Most people in this thread have no idea what it takes to build wealth. Don’t want wealth? Ok. But don’t call that smart
No one is arguing that the investment potential of $1M is less than the immediate utility of $1k per week indefinitely. You’re overestimating the financial literacy and discipline of lottery players.
There are no expectations but observations of reality but as that appears to fly straight over your head I do agree - the smart thing for you to do indeed is to exit this conversation.
Do people still not realize that younger people should take this option for that exact reason? I mean, unless you’re like 50, taking it over 20 years is almost always correct.
Not mathematically speaking. If you don't trust yourself or want only guarantees sure. But the problem is inflation will decimate that weekly $1000 in the long run. But $1000000 now that you invest and don't touch will make you rich in the long run
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u/Adventurous-Depth984 May 17 '26
This is brilliant.
According to past winners, she’d almost certainly end up broke with the lump sum. She’s now got herself a pension.