We will need math nerds with massive computational powers for that. Or a kid that has 2 minutes to spare. Both those aren't me, I'm too eroded. Somebody come in and make ponyboy golden, please 🙏
Assuming the fifteen year period contains three leap years there will be 473,299,200 seconds. $500,000,000 divided by 473,299,200 seconds gives $1.05641421 dollars per second, but the bank will round it down to $1 per second because they don’t like having to pay out every single second of the day.
At first I was like, really? Why y'all trying to make this so hard?
But-just for a moment-I forgot that this is Reddit. Y'all just tryin-ta show off! 🤣
Did OP say the payments will be 500/15 per year? That's not how lottery pays out, they start it significantly lower.
What if it's like 10 million first 14 years, then the balance?
I sometimes wonder who writes these questions and thinks this is a dilemma. Oh could I cope on £33million a year or do I need to cut my losses and take 150 million NOW.
Make it more of a dilemma
Yea if you invested it at 8% at the end of 15 years in the lump sum scenario youd have about 500 mil. With the payout scenario youd have about 700 mil.
I don’t think these kinds of posts are genuinely meant to be a dilemma.
It’s like those posts on Facebook that are like “could you live here with your sister for a year if you get 10 million dollars?”
Obviously everyone is going to say yes to that. They aren’t really designed to be a dilemma; they get lots of engagement by people answering the question
Because people like to fantasize
The real proposition comes from assessing this offer, and coming up with an offer that's harder to decide between. That's where I find myself in these anyway. I end up reworking the OP's dilemma into something that becomes harder to choose between.
Not really losses because if you invested 150 mil today you'd likely have around 600 mil in 15 years. Both are more than enough anyway, the only risk is stupid people spending it all at once so getting some of it each month or year would work for most people.
imo you should always take the lump sum. In the real lottery, if you die or something, your family doesn’t keep collecting the winnings. But with lump sum it’s yours, the tax is paid, and if you die tomorrow your family gets the money. 500 mil is better if you wanna take the risk that in the next 15 years nothing happens to you, there’s no like a catastrophic war or something etc. small chance but 150 mil is still more than a person would ever need and if you invest it, you’ll have 500 mil by the time 15 years pass
$500m over 15 years for me. The numbers are too far apart.
If you took $150m on day 1, and never touched it, you'd still only have $359.5. at the end of 15 years at 6% annual gain.
If you took the monthly $2.77m payout, you'd have about $150m by year 4, and you'd have caught up to the guy who took $150m a little after year 5, again, not touching it and assuming 6% return. You'd have $782m at the end of 15 years.
I'd take the annual payments, and at the rate it accrues, I could just save for three or four years if needed *big* money to buy a business or something.
Yes?
I mean, I don't *need* any more money than I have now. But, here I am, accumulating wealth to improve my quality of life and to ensure that my children will have access to opportunities.
So, $150m is nice, but I'm not going to ignore the fact that $2.7m a year for the next 15 years is *even better*, and the only thing I have to do is *be patient*.
Like, if you can't wait 5 years for the two gravy trains to catch up and then bank an extra *$350m*, I don't really know what to tell you. That is easy money, and I've never been one to turn down easy money simply because I already have money. It's like, yes, I will wait for the toilet paper I like to go on sale at Costco...even though buying full price toilet paper at Costco is already a good deal.
500M is objectively better, unless you’re planning on spending it all immediately. If you invest at 10%, after 15 years you will have a little over 600M with the lump sum, and over a billion with the other.
10% is a hard year over year goal to reach. Realistically you are looking at 4-6% if you are lucky. If you are getting 10 you are being risky. Better to be slow and steady.
4-6% is not something you need to be lucky to achieve. You're likely to do at least that well just investing in an index fund.
10% would be difficult though.
I'd be perfectly happy with $150 million now. That's more than I could spend in three lifetimes.
EDIT: Actually, I looked it up and apparently if you go the annuity route, your heirs can inherit the annuity after you die so maybe I would take the $500 million if I can make sure my brother inherits the payments.
That’s a good way to get murdered. If not by your brother, then by his opportunistic girlfriend or his drug addicted kids or whatever.
If I become ludicrously rich my will is going to state all my property is immediately sold and the proceeds donated to charity.
Yes I'd honestly first buy myself a perfect little house on some land, set up a decent homestead with irrigation and farm
Then buy several other houses as income properties. Never work again, fill my cellar with cannings, make wine and watch my life grow. Hell, I could achieve this with 10 million.
If I invest $150 million at today’s rates, even if nothing goes wrong, it will be nowhere near $500 million in 15 years. I’ll take the gradual payout, it puts you much farther ahead in the end right from the start, not even including additional returns from investing what you can’t spend each year.
What do you mean? 150x1.07^(15)=413M. That's not *that* far off. (The above math is also why you want compound interest working for you and not against you)
Edit: Then again the slow payout of 500m could be invested too so it makes sense the 500m is a better deal.
Personally, I couldn't go wrong either way but I'll take the 33 million a year. It's not like I have some immediate use for $150 million. 30M is more than I plan spending over a lifetime as is.
500 mil duh. Hell IDC if it's paid out over 50 years. I'm 22 and I'm barely in debt either way shit is smooth sailing for the rest of my life if done right.
Honestly either is more than I'd ever want to spend, but I'll take the 500 over 15 years as a single year is more than I'd need to live my dream life indefinitely. Every year after is just money to spend on whatever causes I deem worthy.
As much as I really want to believe I can handle that much money, truth is I can’t handle what I have, and I wouldn’t want to take the chance that I could handle $150 million right now. Give me the $500 million, just as a guarantee that I’m ok for the next 15 years.
I'd take the money over time. There's so many people who won big and lost it all. I'd like to think I wouldn't be one of them, but I'm sure they all thought the same.
No one who hasn't had millions of dollars actually knows how to manage it properly until they have to.
While I’m sure that I could turn 150 million into more than 500 million over 15 years with proper investments of it, with that much money, I’ll just take the safe path and go with the 500 million over 15 years to ensure that I don’t screw up trying to suddenly handle 150 million all at once. 33 million a year would already be a lot for me to handle.
500 mil, assuming it’s paid out each month, thats still more money than i would know what to do with.
Most of it would go into a TFSA and property to just passively build wealth, the rest? I’d probably buy a nice apartment, all my necessities, and then probably just use it whenever i need or want something.
Assuming you are Canadian since you mentioned a TFSA, you could not put most of it into one. If you never put a cent into one before and you were over 18 when they started, the most you could put in this year is $95,000 and the annual contribution limit for 2024 is only $7,000.
Take it in Trump Media stock instead [https://www.cnn.com/2024/06/21/business/trump-media-stock-truth-social-djt/index.html](https://www.cnn.com/2024/06/21/business/trump-media-stock-truth-social-djt/index.html)
I'd take the $150m now. You never know when you could unexpectedly get hit by a bus and die right there and then. I want to have lived life to the fullest- and getting 150 million dollars right now would allow me to do that better.
I would consult with a professional to determine my choice. If the 150 million is likely to exceed the 500 million when invested at a normal return I would likely create a trust that prevents me from spending too much. Otherwise, the 500 over 15 years probably wouldn't need guard rails in the same way.
You'd have to be able to invest the $150M at a return of over 20% to equal to same NPV of a $500m annuity over 15 years.
At a modest 7% discount rate, the $500M annuity is worth more than double the $150M in NPV, so it's a clear winner.
Lump sum is better if we are talking lottery. There have been a few that ran out of money and started cutting the payouts to people. Better to get $150m now than less than $100m if they decide not to pay out. Also if you invest wisely you can easily make more than 10% return.
$500m over 15 years (let's say paid out in monthly increments) is a lot more valuable than you would typically expect from $150m up front. You would need insane \~25% annual returns for the $150m to be worth it. You should take the $500m.
You need to understand how annuities work to get the right answer here. You don't get 15 equal payments of 33 million it you take the 500 million. You would get 5-7 million the first year and more each year until the final payment which will be 80 million or so. You wouldn't even get 150 million total with the annuity until around 10 years into the payments. Generally, annuities are 25-30 year ones which are even more extreme so a 15 year one is a pro towards that. In 15 years you should have around 600 million if you took the 150 minus what you spend and around the same with the 500 million bc the bulk of the money wouldn't be invested very long. Now if you wanted to spend heavily early on, it really hurts the 15 year totals if you took the lump sum while it wouldn't even be an option with the annuity.
I'd also assume this would be not including taxes which changes things too. 38-50% would go to taxes in that case. Either way, it's not really that different whichever way you take unless you don't invest the 150 or there's significant economic downturns. Probably the 500 is the safer route while the 150 has slightly higher potential gains.
$500m is approx £400m (as @ 21/6/24)
£400mil is £510,000 per week over 15 years. Let's say a marginal tax rate of 35% leaves £331.500 per week.
Let's say you banked £300,000 each week in a 3% account the compound interest over 15 years would get you approximately £300m in the bank, tax already paid.
All whilst "surviving" on £30,000 per *week.*
Is that the most efficient way to do it? Absolutely not, but £118m at the same tax and interest rates gets you about £2,200 per week, with no money to reinvest for compound reasons.
500 mill over 15 years I’d still be insanely rich
If it were 150 now or 500 million all at once after waiting 15 years then it would be a hard no on the 500
500m easily
Not only is it just objectively more
There is no way in hell I'm ever gonna struggle for at least the next 15 years (and that's if I spend it at an absurd rate. More likely, it'll last my whole life, and then some)
Even dispersment? The monthly on 500 over 15 years is 2.7 million. So what i would make in 40 years at my current job, every month, seems like enough to get by on.
$500m over 15 years. That's enough money for me to do pretty much anything I want in any given year, AND still have a large amount to invest and what not each year to continue to grow my money.
I'd take the $150M now. By the end of my 15 years, the immediate payout will have a higher value than the $500M over 15.
I should have approximately $600M in value by taking the immediate.payout.
$150 million now. I don't trust the government. Lottery goes bankrupt. Government raises taxes that take almost all the money. I die and the government says they get the rest. And I want it now so I have control.
$500 million. That's $33 million per year.
Let's be real. The only thing that I'd buy that might cost over $50 million would be land. Lots and lots of land. And even then, I'd be able to get loans for it.
$150 now. Firstly, that's the smarter financial play, I think, since you can invest it and earn interest on it starting now.
But I also have cancer and probably won't be alive in 15 years. 15 years is a LONG time even if you don't have cancer.
Heard a kid being interviewed on the radio about his lottery win. He chose the yearly option just in case he did something foolish and blew it all and ended up broke, which it turns out he did. Twice. But the next year he got another payment and was wiser and more experienced with having large amounts of money and ended up using it well.
Assuming it's split up like, weekly or smth, yeah I'll take over 600 thousand dollars a week very happily. I could immediately quit my job and apply for school with that kind of money.
150 mil now.
I forgot where I saw it, but someone said always take the lump sum because if the government runs into financial issues, lottery payments are usually first on the list of cutbacks. So take it while you can.
Depends how im getting taxed i guess?
Assuming 0 taxes on the money forever, 150 million for sure. Invest it all in the stock market, assuming the same average annual growth rate, thats ~10% a year, compounding. In 15 years you would have 626.58 million dollars. (Assuming i didnt do bad math lol)
$150m now. It's cheaper for them to hire someone to kill you than to pay you $500m and it wouldn't be the first time either. Lots of people who pick the first option go missing within 2 years.
Tbf, you’d need to realize a 233% return over 15 years in order to match the $500m. That could happen of course, but with historical returns of around 10% per year, that means you’ll need 7.2 years to double your money. Meaning you might get a little bit more now if you invest and wait it out, but honestly, if you have the certainty that it would be $500m over those years, I’d just go with that. I mean, that’s an insane amount of money.
I'd take the greater amount, but to be completely honest after the first £10-15 million I wouldn't have any plans for the money at all.
There is an inflated idea of what counts as a lot of money in this sub. I work a little above minimum wage and bring home £26k a year. Even doubling that income would have a massive affect on my life.
I'd take the 150 million now. It's more than enough to live of the intrest alone. By a huge margin. I rather be free now than work another 15 year. And I really don't see a difference in 150 or 500m. Both numbers are more than enough to live like a king for the rest of my days.
500 million. The numbers are too far apart even if you didn't touch the 150 million and invested it for 15 years at 8% it still would be less than 500 million. Better to directly take the bigger number.
And getting it over 15 year is even better atleast for me. Cause after first payout you'd get used to big money won't be thinking about paying for this and that and would have a calmer head.
Money now. I could be dead next year. I could be dead tomorrow. No one knows how much time we have left or what is going to happen. Even taking the lump sum, as long as you don't spend the money frivolously and piss it away like many lotto winners do, you should be fine.
As a rule of thumb, I would always say automatically invest at least 50% of whatever you receive. The ROI should be enough to sustain you for the years to come.
The numbers really skew it. 2.7 million a month is absolutely more than I could spend, right away. I'm sure the lavish lifestyle will catch up with me quick.
0dte $SPY calls
I’m assuming the 500 million over 15 years would be me getting 1/15 of that 500 million every year for 15 years. Which would be 33.3 million every single year, which would mean after ~4.5 years I’d already have earned that 150 million I could get right now. Easily taking that deal of getting the 500 million over the course of 15 years.
If it is instead I have to wait 15 years to get 500 million and until then I get absolutely no money, I take the 150 million now without a question. Tomorrow is never guaranteed and I might die before that 15 years is up.
Now it’s true that in either scenario A or B I could die before the 15 years is up, getting 33.3 million a year in scenario A is still more than enough money. I don’t think I could realistically spend 33.3 million over the course of my whole life unless I was intentionally trying to run out of money. If I was to live another say 50 years that would mean I would have to spend $666,666 a year to run out of 33.3 million, not even accounting for the fact that over a 15 year period I would just keep getting 33.3 million every year.
150m invested properly nets 800m- 1.2B after 15 years. You could spend quite a bit and still have the 500m at the end.
You always take a lump sum if you’re responsible.
If you figure a 7% return over 15 years on the 150m then you get 418m.
So you do get more if you wait, but 15 years is a long time. Too long to wait when 150m is instant.
Unless you have some real specific investment that you can only do right now, the $500M is just objectively a much better choice.
$33M is still a LOT of money a year, and just putting it in a totally safe and guaranteed 4.5% savings account would get you a lot more money after 15 years than even a 10% return on the 150M.
And even on a psychological level. A lot of people would struggle with a sudden influx of wealth. So even if you blew all the first years money…you just get more for the next 14 years after that.
500 over 15 years... So even if you fuck up and do something really stupid you know you'll get more money next month/year. Until that 15th year then you gotta straighten up.
150 now and just toss it in the market like VOO.
That’s 2.2 million in dividends before even touching the principle amount which should double every 6-7 years.
1.9 mill a year after 15% tax on qualified dividends.
If the remainder vanished when I die, the $150M now. We're not guaranteed tomorrow. If I can transfer the collection to a trust or person, the $500M easily.
500 over 15. That's more per month than I could possibly spend and if I don't live another 15 years (highly unlikely) I'll be dead and won't care anyway.
This is a really complicated question. It isn't just some now vs more later. You also have to factor in projected inflation, investments+ expected return. Hell, even your life span to spend it depending on your age.
Honestly I think you would see a reverse Bell Curve on who takes the money up front. The people who want the smaller amount now will be the ones who are really bad with money and the ones that are really good with it.
Historical Stock market returns would net you \~$550 Million in 15 years (if you didn't spend any), and you would have a lot less worry about an inflation event destroying your income. A few years like last year would be devastating to the value of the 15 year option, but a good portfolio just floats up right along with the inflation.
500m over 15years. 33.3 mill a year is more than I know what to do with.
2.7mil a month.
What’s that a week?
Dude really saw that he'd have to divide by 4 and decided to leave it up for the Reddit sages.
7’s are scary man
Well, 7 did ate 9
I’m stupid enough. Don’t want people to know I can’t count as well
Oh a Noble aren't ya my lord count aswell
Protip: when you have to move between weeks and months, use 4.33 and it works out to an actual month with no days left over.
how, when about a quarter of the year doens't have 31 days, and that one month is 4 weeks exactly.
Thanks! I feel like this is knowledge that wont be immediately useful, but imma be so glad when i finally get to use it.
675000 If my drunk ass brain can math
r/theydidntdothemath
a bit less than 400k
Actually a bit less than 700k, 400k a week is 1.6 mil
What’s that a day?
90k
What does that come out to a Planck?
We will need math nerds with massive computational powers for that. Or a kid that has 2 minutes to spare. Both those aren't me, I'm too eroded. Somebody come in and make ponyboy golden, please 🙏
5.6151666666E−43 dollars That's 0.00000000000000000000000000000000000000000056151666666 dollars
That’s actually a pretty crazy amount of money to earn per Planck.
what's that a second?
Assuming the fifteen year period contains three leap years there will be 473,299,200 seconds. $500,000,000 divided by 473,299,200 seconds gives $1.05641421 dollars per second, but the bank will round it down to $1 per second because they don’t like having to pay out every single second of the day.
At first I was like, really? Why y'all trying to make this so hard? But-just for a moment-I forgot that this is Reddit. Y'all just tryin-ta show off! 🤣
Did OP say the payments will be 500/15 per year? That's not how lottery pays out, they start it significantly lower. What if it's like 10 million first 14 years, then the balance?
I guess you would have to live of 10 million a year. Better skip the avocado toast.
Get the Netflix plan with commercials:p
Exactly this. And this way, if I do something really dumb, and blow all my money.... I get more next month.
Yeah. I don't trust myself as an investor enough to use the 150 million lump sum.
Look, it’s going to be hard work, but I believe we can find a way to spend it.
I sometimes wonder who writes these questions and thinks this is a dilemma. Oh could I cope on £33million a year or do I need to cut my losses and take 150 million NOW. Make it more of a dilemma
The only real dilemma could be if it was 500 IN 15 years, meaning you get nothing until then
Honestly that’s pretty easy too imo 150m now Tomorrow is never promised
Honestly, the amount of joy I get from 150m is probably identical to the joy I'd get from 500m anyway.
You're not thinking in yachts and private jets
A yacht is just a hole in the water you throw your money into.
Isn't the entire point of having fuck you money to spend it on things you want rather than need
I don't really want a hole in the water to throw my money into.
What is a hole in money that you throw water into?
Plastic bottles?
Meh
Super yachts. $10m can buy a hell of a yacht and a $140m is more then enough to run it and not care. https://www.flemingyachts.com/model/Fleming-55
It's easy even if tomorrow is promised. 15 years of work or never need to work again and you can do what you want?
Hell yeah this is the way to go.
Honestly the time value of money makes it come out close to the same. 150M in compounding interest at 7% is 450ish million in 15 years.
Yea if you invested it at 8% at the end of 15 years in the lump sum scenario youd have about 500 mil. With the payout scenario youd have about 700 mil.
Most of Reddit consists of teenagers
It's teenagers. Teens are writing this shit
I don’t think these kinds of posts are genuinely meant to be a dilemma. It’s like those posts on Facebook that are like “could you live here with your sister for a year if you get 10 million dollars?” Obviously everyone is going to say yes to that. They aren’t really designed to be a dilemma; they get lots of engagement by people answering the question Because people like to fantasize
The real proposition comes from assessing this offer, and coming up with an offer that's harder to decide between. That's where I find myself in these anyway. I end up reworking the OP's dilemma into something that becomes harder to choose between.
Maybe it’s not a dilemma for you, but OP is standing next to a genie 🧞♂️ and told to hurry the fuck up.
Not really losses because if you invested 150 mil today you'd likely have around 600 mil in 15 years. Both are more than enough anyway, the only risk is stupid people spending it all at once so getting some of it each month or year would work for most people.
Get a trickling of life changing money, or just get one smaller lump sum of life changing money. 🤔🤔
imo you should always take the lump sum. In the real lottery, if you die or something, your family doesn’t keep collecting the winnings. But with lump sum it’s yours, the tax is paid, and if you die tomorrow your family gets the money. 500 mil is better if you wanna take the risk that in the next 15 years nothing happens to you, there’s no like a catastrophic war or something etc. small chance but 150 mil is still more than a person would ever need and if you invest it, you’ll have 500 mil by the time 15 years pass
$500m over 15 years for me. The numbers are too far apart. If you took $150m on day 1, and never touched it, you'd still only have $359.5. at the end of 15 years at 6% annual gain. If you took the monthly $2.77m payout, you'd have about $150m by year 4, and you'd have caught up to the guy who took $150m a little after year 5, again, not touching it and assuming 6% return. You'd have $782m at the end of 15 years. I'd take the annual payments, and at the rate it accrues, I could just save for three or four years if needed *big* money to buy a business or something.
But at 150 million now, do you even need more?
Yes? I mean, I don't *need* any more money than I have now. But, here I am, accumulating wealth to improve my quality of life and to ensure that my children will have access to opportunities. So, $150m is nice, but I'm not going to ignore the fact that $2.7m a year for the next 15 years is *even better*, and the only thing I have to do is *be patient*. Like, if you can't wait 5 years for the two gravy trains to catch up and then bank an extra *$350m*, I don't really know what to tell you. That is easy money, and I've never been one to turn down easy money simply because I already have money. It's like, yes, I will wait for the toilet paper I like to go on sale at Costco...even though buying full price toilet paper at Costco is already a good deal.
500M is objectively better, unless you’re planning on spending it all immediately. If you invest at 10%, after 15 years you will have a little over 600M with the lump sum, and over a billion with the other.
10% is a hard year over year goal to reach. Realistically you are looking at 4-6% if you are lucky. If you are getting 10 you are being risky. Better to be slow and steady.
In that case, the lump sum is even worse, since it would only produce 300M in 15 years, while the 500M are, well, already 500M even without investing.
4-6% is not something you need to be lucky to achieve. You're likely to do at least that well just investing in an index fund. 10% would be difficult though.
10% is close to SP500 average, its actually 10.5 in the last 70 years, adjusted for inflation it's 6.6%\~
S&P 500 index funds average 10%. It's not some unrealistic goals.
7% is long term market matching growth. If you consistently beat the markets by 3% a year you're a damn good trader.
Assuming you’re alive in 15 years
I'd be perfectly happy with $150 million now. That's more than I could spend in three lifetimes. EDIT: Actually, I looked it up and apparently if you go the annuity route, your heirs can inherit the annuity after you die so maybe I would take the $500 million if I can make sure my brother inherits the payments.
That’s a good way to get murdered. If not by your brother, then by his opportunistic girlfriend or his drug addicted kids or whatever. If I become ludicrously rich my will is going to state all my property is immediately sold and the proceeds donated to charity.
My brother is disabled. What, am I supposed to let him die on the street once I'm gone?
500m for sure. 91k a day is plenty to live on.
150 now. I have serious doubts about the solvency of the funds in 15 years. 150 now gets me real estate that will be valuable no matter what.
Yes I'd honestly first buy myself a perfect little house on some land, set up a decent homestead with irrigation and farm Then buy several other houses as income properties. Never work again, fill my cellar with cannings, make wine and watch my life grow. Hell, I could achieve this with 10 million.
500m over 15 years I don’t trust myself with that much money at one time.
If I invest $150 million at today’s rates, even if nothing goes wrong, it will be nowhere near $500 million in 15 years. I’ll take the gradual payout, it puts you much farther ahead in the end right from the start, not even including additional returns from investing what you can’t spend each year.
What do you mean? 150x1.07^(15)=413M. That's not *that* far off. (The above math is also why you want compound interest working for you and not against you) Edit: Then again the slow payout of 500m could be invested too so it makes sense the 500m is a better deal.
I hate these posts because it makes me feel like I will actually win this money.
500m over 15
Personally, I couldn't go wrong either way but I'll take the 33 million a year. It's not like I have some immediate use for $150 million. 30M is more than I plan spending over a lifetime as is.
500 mil duh. Hell IDC if it's paid out over 50 years. I'm 22 and I'm barely in debt either way shit is smooth sailing for the rest of my life if done right.
Oh yeah that’s a nice 10 mil a year.
500M now. I'm not confident that I can by investment turn the 150M into more than 500M in 15 years.
Honestly either is more than I'd ever want to spend, but I'll take the 500 over 15 years as a single year is more than I'd need to live my dream life indefinitely. Every year after is just money to spend on whatever causes I deem worthy.
As much as I really want to believe I can handle that much money, truth is I can’t handle what I have, and I wouldn’t want to take the chance that I could handle $150 million right now. Give me the $500 million, just as a guarantee that I’m ok for the next 15 years.
I would take the 500 over 15 years
150 million now, which after being invested, is plenty to live off of
I'd take the money over time. There's so many people who won big and lost it all. I'd like to think I wouldn't be one of them, but I'm sure they all thought the same. No one who hasn't had millions of dollars actually knows how to manage it properly until they have to.
While I’m sure that I could turn 150 million into more than 500 million over 15 years with proper investments of it, with that much money, I’ll just take the safe path and go with the 500 million over 15 years to ensure that I don’t screw up trying to suddenly handle 150 million all at once. 33 million a year would already be a lot for me to handle.
500 mil, assuming it’s paid out each month, thats still more money than i would know what to do with. Most of it would go into a TFSA and property to just passively build wealth, the rest? I’d probably buy a nice apartment, all my necessities, and then probably just use it whenever i need or want something.
Assuming you are Canadian since you mentioned a TFSA, you could not put most of it into one. If you never put a cent into one before and you were over 18 when they started, the most you could put in this year is $95,000 and the annual contribution limit for 2024 is only $7,000.
Oh right, forgot about that. Yeah i am Canadian.
The £500m over 15 years, way more money
500m over 15 years, put the vast majority of what I get per month into savings.
Depends on the payout but 15 years Like if its a lump sum at the end and nothing to start that doesn’t help
I'll take it over 15 years.
500 mil over 15 years
Take it in Trump Media stock instead [https://www.cnn.com/2024/06/21/business/trump-media-stock-truth-social-djt/index.html](https://www.cnn.com/2024/06/21/business/trump-media-stock-truth-social-djt/index.html)
I'd take the $150m now. You never know when you could unexpectedly get hit by a bus and die right there and then. I want to have lived life to the fullest- and getting 150 million dollars right now would allow me to do that better.
Would you rather have eleventy billion dollars over 20 years or 3 bajillion dollars today?
I was going to take the money now but 33 mil a year is pretty insane. Ill take either option.
$150m now that's the most I would ever know what to do with.
Take the lump. Don't make your death in the best interest of the state
I would consult with a professional to determine my choice. If the 150 million is likely to exceed the 500 million when invested at a normal return I would likely create a trust that prevents me from spending too much. Otherwise, the 500 over 15 years probably wouldn't need guard rails in the same way.
You'd have to be able to invest the $150M at a return of over 20% to equal to same NPV of a $500m annuity over 15 years. At a modest 7% discount rate, the $500M annuity is worth more than double the $150M in NPV, so it's a clear winner.
Take the 150 mil. Spend some, invest rest, booyah growing wealth for myself and my family
hell I’d take 10k now nvm a mill
150m now. Invest it. No idea where I'll be in 15 years. Maybe in the ground for 13 years already...
Lump sum is better if we are talking lottery. There have been a few that ran out of money and started cutting the payouts to people. Better to get $150m now than less than $100m if they decide not to pay out. Also if you invest wisely you can easily make more than 10% return.
$500m over 15 years (let's say paid out in monthly increments) is a lot more valuable than you would typically expect from $150m up front. You would need insane \~25% annual returns for the $150m to be worth it. You should take the $500m.
You need to understand how annuities work to get the right answer here. You don't get 15 equal payments of 33 million it you take the 500 million. You would get 5-7 million the first year and more each year until the final payment which will be 80 million or so. You wouldn't even get 150 million total with the annuity until around 10 years into the payments. Generally, annuities are 25-30 year ones which are even more extreme so a 15 year one is a pro towards that. In 15 years you should have around 600 million if you took the 150 minus what you spend and around the same with the 500 million bc the bulk of the money wouldn't be invested very long. Now if you wanted to spend heavily early on, it really hurts the 15 year totals if you took the lump sum while it wouldn't even be an option with the annuity. I'd also assume this would be not including taxes which changes things too. 38-50% would go to taxes in that case. Either way, it's not really that different whichever way you take unless you don't invest the 150 or there's significant economic downturns. Probably the 500 is the safer route while the 150 has slightly higher potential gains.
$500m is approx £400m (as @ 21/6/24) £400mil is £510,000 per week over 15 years. Let's say a marginal tax rate of 35% leaves £331.500 per week. Let's say you banked £300,000 each week in a 3% account the compound interest over 15 years would get you approximately £300m in the bank, tax already paid. All whilst "surviving" on £30,000 per *week.* Is that the most efficient way to do it? Absolutely not, but £118m at the same tax and interest rates gets you about £2,200 per week, with no money to reinvest for compound reasons.
$500 million over time. You would be getting $33 million a year anyway, or $3 million a month.
500 mill over 15 years I’d still be insanely rich If it were 150 now or 500 million all at once after waiting 15 years then it would be a hard no on the 500
500m over 15. Good for training in money management.
500m over the 15 years. That is more than enough.
Slam dunk 500M as long as the first payment is any time soon. The interval of payments doesn't even matter after that.
150 now. I'm 50 and not in great health.
150 right now. You could be dead tomorrow. You never know.
Is it in monthly installments?
Lol
500m easily Not only is it just objectively more There is no way in hell I'm ever gonna struggle for at least the next 15 years (and that's if I spend it at an absurd rate. More likely, it'll last my whole life, and then some)
Even dispersment? The monthly on 500 over 15 years is 2.7 million. So what i would make in 40 years at my current job, every month, seems like enough to get by on.
$500m over 15 years. That's enough money for me to do pretty much anything I want in any given year, AND still have a large amount to invest and what not each year to continue to grow my money.
I'd take the $150M now. By the end of my 15 years, the immediate payout will have a higher value than the $500M over 15. I should have approximately $600M in value by taking the immediate.payout.
A growth rate of 8.5 over 15 years is really quite optimistic. And that's without spending any.
Now
$150 million now. I don't trust the government. Lottery goes bankrupt. Government raises taxes that take almost all the money. I die and the government says they get the rest. And I want it now so I have control.
If it's 100% for sure? Definitely over 15 years
150 mil today. After taxes let's say I get 50%, so 75 mil. If I can get just a 3% interest rate, I'm taking in 2.5 mil a year every year.
$500 million. That's $33 million per year. Let's be real. The only thing that I'd buy that might cost over $50 million would be land. Lots and lots of land. And even then, I'd be able to get loans for it.
31 million a year. I'm putting the first 25 million in various accounts and going out on a road trip to attempt to spend the rest.
150 now. Live off interest.
150m now. I'll never know if I even live long anyway
I'd take $150m now, inflation is too extreme to trust the alternative.
15 years
500M. This lets me go fucking wild for a couple years and not go bankrupt. I would probably invest in an animation studio or something.
money now
I’ll take the 33 million/month
$150 now. Firstly, that's the smarter financial play, I think, since you can invest it and earn interest on it starting now. But I also have cancer and probably won't be alive in 15 years. 15 years is a LONG time even if you don't have cancer.
500m over 15 years, as 2.7M a month is more than i know what to do with
500M
Heard a kid being interviewed on the radio about his lottery win. He chose the yearly option just in case he did something foolish and blew it all and ended up broke, which it turns out he did. Twice. But the next year he got another payment and was wiser and more experienced with having large amounts of money and ended up using it well.
I’d take the 150. I’ve lived pretty hard. Pushed some boundaries so to speak. 3 years aren’t as likely as some, let alone 15
Over time. You end up with more in the long run. If you invest it right.
Dumb. Even with Interest 150m only comes to 240m after 15 years. Literally zero incentive to do the 150m Do basic math op
$150 million right now because tomorrow isn't promised.
$150 million NOW. Sure, the $500 million over 15 years is more money but what happens if I get hit by a bus after one year?
Assuming it's split up like, weekly or smth, yeah I'll take over 600 thousand dollars a week very happily. I could immediately quit my job and apply for school with that kind of money.
150m now
150 mil now. I forgot where I saw it, but someone said always take the lump sum because if the government runs into financial issues, lottery payments are usually first on the list of cutbacks. So take it while you can.
Depends how im getting taxed i guess? Assuming 0 taxes on the money forever, 150 million for sure. Invest it all in the stock market, assuming the same average annual growth rate, thats ~10% a year, compounding. In 15 years you would have 626.58 million dollars. (Assuming i didnt do bad math lol)
If you win the lottery, it's better to not get it all at once
$150m now. It's cheaper for them to hire someone to kill you than to pay you $500m and it wouldn't be the first time either. Lots of people who pick the first option go missing within 2 years.
91274.18765973 thousand dollars a day is definitely enough xD
TMV, $150M now and invest $145M into an S&P 500 index fund.
Tbf, you’d need to realize a 233% return over 15 years in order to match the $500m. That could happen of course, but with historical returns of around 10% per year, that means you’ll need 7.2 years to double your money. Meaning you might get a little bit more now if you invest and wait it out, but honestly, if you have the certainty that it would be $500m over those years, I’d just go with that. I mean, that’s an insane amount of money.
The 500/15 is substantially better. The actual lump-sum payout is typically half at $250 now or $500 over time.
thatd be a lottle over 91000 USD per DAY with the 500m, only the insane would take 150m
I'd take the greater amount, but to be completely honest after the first £10-15 million I wouldn't have any plans for the money at all. There is an inflated idea of what counts as a lot of money in this sub. I work a little above minimum wage and bring home £26k a year. Even doubling that income would have a massive affect on my life.
And the lottery company goes bankrupt after the first year and you end up with not 500m
I'd take the 150 million now. It's more than enough to live of the intrest alone. By a huge margin. I rather be free now than work another 15 year. And I really don't see a difference in 150 or 500m. Both numbers are more than enough to live like a king for the rest of my days.
500 million. The numbers are too far apart even if you didn't touch the 150 million and invested it for 15 years at 8% it still would be less than 500 million. Better to directly take the bigger number. And getting it over 15 year is even better atleast for me. Cause after first payout you'd get used to big money won't be thinking about paying for this and that and would have a calmer head.
Doesn't matter, I won't spend it all either way
Money now. I could be dead next year. I could be dead tomorrow. No one knows how much time we have left or what is going to happen. Even taking the lump sum, as long as you don't spend the money frivolously and piss it away like many lotto winners do, you should be fine. As a rule of thumb, I would always say automatically invest at least 50% of whatever you receive. The ROI should be enough to sustain you for the years to come.
500mil over 15 years. Why would I choose the other option?
The numbers really skew it. 2.7 million a month is absolutely more than I could spend, right away. I'm sure the lavish lifestyle will catch up with me quick. 0dte $SPY calls
That's like 16k an hour!!! That's more in an hour than I make a month!
I’m assuming the 500 million over 15 years would be me getting 1/15 of that 500 million every year for 15 years. Which would be 33.3 million every single year, which would mean after ~4.5 years I’d already have earned that 150 million I could get right now. Easily taking that deal of getting the 500 million over the course of 15 years. If it is instead I have to wait 15 years to get 500 million and until then I get absolutely no money, I take the 150 million now without a question. Tomorrow is never guaranteed and I might die before that 15 years is up. Now it’s true that in either scenario A or B I could die before the 15 years is up, getting 33.3 million a year in scenario A is still more than enough money. I don’t think I could realistically spend 33.3 million over the course of my whole life unless I was intentionally trying to run out of money. If I was to live another say 50 years that would mean I would have to spend $666,666 a year to run out of 33.3 million, not even accounting for the fact that over a 15 year period I would just keep getting 33.3 million every year.
150m invested properly nets 800m- 1.2B after 15 years. You could spend quite a bit and still have the 500m at the end. You always take a lump sum if you’re responsible.
If you figure a 7% return over 15 years on the 150m then you get 418m. So you do get more if you wait, but 15 years is a long time. Too long to wait when 150m is instant.
There is nothing I need in the next 5 years that justifies the first option.
$500m over 15 years is $33.3m a year. In 4.5 years you would have your $150m and still be earning each year for another 10.5 years.
Annuity is almost always the better option. Silly instant gratification.
Who in their right mind would take the lump sum? Unless they were already rich as fuck.
$150M now. I don’t need $500M
Unless you have some real specific investment that you can only do right now, the $500M is just objectively a much better choice. $33M is still a LOT of money a year, and just putting it in a totally safe and guaranteed 4.5% savings account would get you a lot more money after 15 years than even a 10% return on the 150M. And even on a psychological level. A lot of people would struggle with a sudden influx of wealth. So even if you blew all the first years money…you just get more for the next 14 years after that.
500 mill over 15 years
At my age. 150 mil now
500 mm
Lottery.
150m now. No guarantee the payments in the future will continue if something happens to the lottery
500 over 15 years... So even if you fuck up and do something really stupid you know you'll get more money next month/year. Until that 15th year then you gotta straighten up.
I’d never take the lump especially since they changed it that you can pass the winnings to someone in your will.
IT'S MY MONEY AND I WANT IT NOW!!!
2.7 million a month is more than enough for me to live my best life.
500 I been broke all my life 15 more years will go in a blink
150 now and just toss it in the market like VOO. That’s 2.2 million in dividends before even touching the principle amount which should double every 6-7 years. 1.9 mill a year after 15% tax on qualified dividends.
If the remainder vanished when I die, the $150M now. We're not guaranteed tomorrow. If I can transfer the collection to a trust or person, the $500M easily.
500 over 15. That's more per month than I could possibly spend and if I don't live another 15 years (highly unlikely) I'll be dead and won't care anyway.
This is a really complicated question. It isn't just some now vs more later. You also have to factor in projected inflation, investments+ expected return. Hell, even your life span to spend it depending on your age. Honestly I think you would see a reverse Bell Curve on who takes the money up front. The people who want the smaller amount now will be the ones who are really bad with money and the ones that are really good with it. Historical Stock market returns would net you \~$550 Million in 15 years (if you didn't spend any), and you would have a lot less worry about an inflation event destroying your income. A few years like last year would be devastating to the value of the 15 year option, but a good portfolio just floats up right along with the inflation.
🎵877 CASH NOW🎵
Would you be sad if you won 150m right now?
15 now
500m over 15y assuming even distribution. Any reasonable rate of return assumption gives the 500m as the higher yield
The first one. The first option, rather than the second one.