If you won the lottery...

[RossMAN]

Payments

 

[Evadman]

payments

 

[Whoozyerdaddy]

Lump sum... Blow a bit of it up front and invest the rest.

Who knows... the way things are going, $2 million/year might be minimum wage in 20 years.

 

[Orsorum]

I'd take the lump sum, without a doubt. Invest half, buy up property around the Northwest with the remainder.

 

[compuwiz1]

Originally posted by: RossMAN
Payments

I'm surprised at you, especially you saying that. Of course, you are the same loon that gives his phone number to anyone on the internet.

 

[RaistlinZ]

Can someone do the math on how much money you'd have after 20 years from investing 23 million (lump sum) at 8% interest vs. investing each payment each year (46 million total) at 8% interest?

 

[TheVrolok]

Lump and invest without a doubt.

 

[theprodigalrebel]

Originally posted by: RaistlinZ
Can someone do the math on how much money you'd have after 20 years from investing 23 million (lump sum) at 8% interest vs. investing each payment each year (46 million total) at 8% interest?

If my Excel skills are 1337; if you invested each annual payment at 8% CI, you'd have:
$126,603,269.23 By 2033

If you took $23 million (lump) and put it in the bank @ 8% CI, you'd have $157,514,929
by 2033.

(Compound Interest formula: Amount = Principal * (1 + r/100)^n, right?)

If I fail at teh math, I r be a very sad bear.

 

[LtPage1]

Originally posted by: Finns14
I think you get a lump sump and then just make the money work for you through sound investing.

You'd have to be a complete financial moron to not make up much more than the difference by taking the lump sum and investing.

 

[RaistlinZ]

Originally posted by: theprodigalrebel

Originally posted by: RaistlinZ
Can someone do the math on how much money you'd have after 20 years from investing 23 million (lump sum) at 8% interest vs. investing each payment each year (46 million total) at 8% interest?

If my Excel skills are 1337; if you invested each annual payment at 8% CI, you'd have:
$126,603,269.23 By 2033

If you took $23 million (lump) and put it in the bank @ 8% CI, you'd have $157,514,929
by 2033.

(Compound Interest formula: Amount = Principal * (1 + r/100)^n, right?)

If I fail at teh math, I r be a very sad bear.

Hm, so you'd be giving up about $30 million for the benefit of not being able to blow it all and go backrupt in the first year or two. It's probably still a wiser idea to take the lump sum and buy a whole bunch of land and real estate which you could later sell back to commercial developers for many more millions.

 

[lokiju]

I'd take the lump sum just because I'd fear something would happen in those 26 years that'd cause me to not receive the remainder of my funds.

What if we have World War 3? Is the Government going to keep paying everyone their winnings when every cent is being dirveted to a war?

Or a depression.

Or Civil War?

A lot can happen in 26 years is all I'm saying, I'd rather take the lesser amount that I know 100% where it is and have access to it.

 

[ranmaniac]

Given the rate of inflation, a million dollars won't be worth as much in 2033 as it is now, so I'd take the lump sum, invest 90% of it, and use 10% for stuff. I would try to stay grounded by continuing to work, or volunteer my time for a charitable non-profit, like the Salvation Army etc.

 

[Bateluer]

Most likely the lump sum, but I'd have to know the total amount of winnings and applicable laws in the state I won in before I made a final decision.

 

[SpunkyJones]

Only math that matters to me is I'll be 43 this year. I'll take the lump sum thank you.

 

[M0R0NI]

Originally posted by: SpunkyJones
Only math that matters to me is I'll be 43 this year. I'll take the lump sum thank you.

Me, I am just going to turn 40 but yea I'll take the lump sum!

 

[dullard]

Small lottery: payments are better (you get more money in the long run).
Large lottery: lump sum is better (if you can invest it wisely you get more money in the long run).

I did the math on another lottery thread to show why taxes kill the lump sum option for small lotteries. Think 25% tax bracket vs. 35% tax bracket (same with state income tax if you have that in your state). Think getting it all vs. losing about half for the lump sum. If you can keep yourself in the 25% (or possibly 28%) tax bracket while taking the annual payments, you are better off. If not, take the lump sum.

Oh and remember that most people that take the lump sum blow lots of it. Many of those people end up bankrupt because they can't stop spending once they've tasted the rich life. Yet they never have any real income again. This is one more reason to consider the annual payments even if it mathmatically may be a bit worse in the long run.

 

[Svnla]

With the dollar in the tank lately, I will pick up all the money in lump sum and invest (especially in international markets).

 

[TwiceOver]

I'd probably take the payments. Though it is hard to pass up a huge chunk of money

 

[FoBoT]

lump so i could invest it myself and start my own business

 

[K1052]

Lump sum and spread it across a diverse set of investments (rental property, municipal bonds, stocks, and metals).

 

[bonkers325]

lump sum, put 50% into stable investments (bonds, property, international funds, etc.), 10% into college funds for various young family members, 25% to invest aggressively with, and the final 10% as liquid cash to spend as i please.

 

[PingSpike]

"Its my money and I want it NOW!"

JG Wentworth says: Large lump sum!


At this amount of money...who cares? I don't even really have any kind of plan on how to blow 20 million bucks.

 

[imported_Dingster1]

+1 to lump sum and invest

 

[PHiuR]

Lump it baby. Invest 40-60% of it, pay off family's debts and spend the rest / have as liquid cash.

 

[Beev]

Lump sum for sure. By the time you got all your payments inflation would have made the final value less than the lump sum.