Lady Butterfly @lazysoci.al to Ask@lemm.eeEnglish · 6 days agoWould you rather have 2 million dollars now or 100k a year for the rest of your life? All tax freemessage-squaremessage-square35linkfedilinkarrow-up146arrow-down12
arrow-up144arrow-down1message-squareWould you rather have 2 million dollars now or 100k a year for the rest of your life? All tax freeLady Butterfly @lazysoci.al to Ask@lemm.eeEnglish · 6 days agomessage-square35linkfedilink
minus-squareGissaMittJobb@lemmy.mllinkfedilinkEnglisharrow-up2·6 days agoSure, but the expected return of the $2M is greater than $100k yearly, so you’re not really going to be able to get ahead with the $100k/year. Compounding then further tips the scales in favour of the lump sum.
minus-squareHamsterRage@lemmy.calinkfedilinkEnglisharrow-up1·6 days agoFor sure, assuming that the annual amount isn’t indexed to inflation. But the question is just simple math if it isn’t. See my longer answer. Indexed, $100K/yr wins hands down if you’re young.
Sure, but the expected return of the $2M is greater than $100k yearly, so you’re not really going to be able to get ahead with the $100k/year. Compounding then further tips the scales in favour of the lump sum.
For sure, assuming that the annual amount isn’t indexed to inflation. But the question is just simple math if it isn’t. See my longer answer.
Indexed, $100K/yr wins hands down if you’re young.