[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 53 KB, 560x420, Lottery-Mega-Millions.jpg [View same] [iqdb] [saucenao] [google]
814773 No.814773 [Reply] [Original]

If a person won the lottery what would be the right choice: the lumpsum or the payments? My intuition tells me the lumpsum is the right choice since the payments would lose their value due to inflation.

>> No.814778

Does opportunity costs count too ?

>> No.814780

>>814778
Sure

>> No.814801

The lump sum is mathematically superior in every scenario

>> No.814823

lump sum
you can make so much more money with the money upfront over a 20 year span rather than getting annual payments over 20 years and trying to make money over that time span.

>> No.814882

>>814801
This for so many reasons

It is commonly held that the annuity is better for someone who does not have the capability of managing thier own money. This is also incorrect. Financial degenerates can do more damage to thier lives with the annuity.