You hit the lotto for 80 million which option would you choose *Lump or annual* what immediately would you do with the funds in order. And go?


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Most Helpful Girl

  • I think you get more if you take the lump sum.

    I'd probably buy myself a new vehicle and move out on my own - nothing super impressive though. I'd still live like I was dirt poor haha

    I like to collect money and I really don't like to spend it. I just spent money on Christmas presents for people and I'm sitting here lamenting how we are required to spend money on the holidays lol I'd just watch it in my bank account. And probably polish off my retirement fund and invest some but keep most just to have a giant number to look at on my bank statements.

    Oh. And not tell anyone I have it.

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Most Helpful Guy

  • lump sum for 3 simple financial reason.
    1) you have to presume taxes are going to increase so you may as well take the lump with all taxes applied once than what should be assumed is a rising tax rate on the monthly payments

    2) if you invest you want to be able to invest, and thus see a return, on as much money as possible so you can get back the most

    3) if you die while receiving the installment payments all the money unpaid to you goes right back to the government. if you take the lump you can will the money to family or friends if and when you die

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What Girls Said 1

  • Give me the lump I don't think I'm here for the long run. Besides we pay no tax on lottery winnings in Canada.

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What Guys Said 6

  • Lump! The first thing i would do is buy a property (house possibly) and secure my life somehow with an investmant or securance. Maybe i would not invest my money in any other things except myself. Day of today you lose more money then you win investing. Hard financial times buddy..

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  • Lump sum. A sizeable amount ill calculate as to how much will be needed for future. When I calculate that the rest I'll use to travel the world.

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  • Lump, then get in contact with a good financial advisor, my grandfather on my dads side is an economist so it shouldn't be hard to do

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  • Lump sum since I never know how long I'll be around waiting for the annual payments, so I could buy a new house to move right into then I would get a new car for once in my life, after that I would help out my kids, relatives and friends

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    • What about the numerous anonymous "friends and fam that show up" lol

    • I guess I would keep my new residence anonymous

  • Depends on the implied discount rate.

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    • In what circumstances would you take one over the other option wise

    • If the implied discount rate was lower or higher than what I deemed reasonable, which is probably something like the risk free yield curve plus 40% of the typical equity risk premium. :D

  • Lump sum.

    One bird in the hand is worth more than two in the bush.

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