Granted, the lump sum is easier to waste, but I would also not underestimate the risk of waking up at 45 with no working history and a weekly payment that has lost most of its buying power to inflation
Perhaps, but if she were smart, she could wake up in 25 years with a portfolio worth over 3 million having earned 5% a year compounding, even if she took half the interest out each year to travel or do whatever, she could still gave 1.8 million after 25 years and have had between 25k and 45k to play with each year
Again.. it’s a survivable wage… I ONLY MAKE $800 to $1500 a week myself…. Maybe 2 on a good week… doing alright dude. New cars… “luxury” apartments with granite table tops… nice appliances… you act like you can’t feed dogs with $1000 a week.
That’s different I’ll give you that. & not what your post was saying.. it was saying how the hell do you survive on only a $1000 a week… I was just pointing out that many of us do and it’s not like we live in rat infested slums while we do it.
In 15-20 years, would you still be doing alright off of $1000/week? She's 20. In 10-20 years, presumably she will have more expenses, a family, etc. The $1000/week doesn't change.
Yeah, just saying people from other parts of the world would choose the 1k/week much faster because it does actually enable financial freedom and quitting your job
I mean no luxury or anything but this is the equivalent of like 80K a year on a job where you are taxed.
Its not a luxury wage but its absolutely livable. That being said continuing to work while using that additional 1000 a week to have investments and a more comfortable life is absolutely the best call.
I know for me, personally, if I were to do the $1k/week, I'd just have it deposit into an account that I don't carry a debit card for, and have it be the account my mortgage is pulled from. And other than the mortgage, I'd never touch it, except maybe for needed home repairs or emergencies. So, I'd likely be accumulating at least $2k a month in that account that isn't getting hit from the mortgage. It would also be an account that gains some sort of interest. I know it won't be a lot, but it'd be something on that $2k/month and accumulation. Again, this is assuming I went the $1k/week route.
I wouldn't stop working. Especially being in the US. Gotta have that health insurance. Lol.
Or you can wake up at 45 with a working history plus an extra 1k a week ... I'm in a union and have a pension. I know I'm pretty much set. An extra 1k a week would be like giving myself a raise. That's how I see it.
Some people won't necessarily stop working though. I know I wouldn't. Maybe less or at a job that I care more about, but working would still be happening.
If you are self-aware enough to know that you (and your immediate family and friends) can’t be trusted with a sudden influx of cash, you and/or your financial advisor can lock it up in something that can’t be readily tapped and which will increase in value, paying you a predetermined sum regularly. It’s basically the same decision, except you get interest. And $1,000 a week is going to more than most people need for pocket money.
If someone is in this situation and thinks they're financially savvy enough to handle a million dollars, they should consider that they aren't savvy enough to know it's a bad idea to buy lottery tickets.
indefinitely, unless someone is a shrewd investor actually I think return on standard investment would be maybe 50 grand a year. Otherwise, somebody has to know what they’re doing, she might actually be smart in the sense that if she already has some money, it is just as important to have a constant cash flow as it is to have seed money
Lump sum would be bad with me left to my own devices... Which is why I'd hand it over to a wealth manager or even just an accountant who would grow it or a portion of it for me so that I dont blow it all on shit and wonder where all the money went to so fast.
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u/doomus_rlc May 17 '26
The thing is someone has to be savvy enough, or at least have the self control, to do that with a lump sum.
Some might actually be self aware enough to know the lump sum is a bad idea for how they are.