1.5 million lump sum
fukk waiting years to make real money
i'd take the 1.5mill and immediately start trying to make more, dedicate my life to learning finance/investments and then reap the benefits
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View Poll Results: ?
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1.5million lump sum
72 21.43% -
100k per year for life
264 78.57%
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10-13-2011, 12:03 PM #31
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10-13-2011, 12:05 PM #32
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10-13-2011, 12:05 PM #33
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10-13-2011, 12:05 PM #34
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10-13-2011, 12:07 PM #35
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10-13-2011, 12:08 PM #36
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10-13-2011, 12:11 PM #37
No, lottery winnings are not taxed in Canada. The purchase of the lottery tickets are taxed individually.
One other thing to point out is that most ontario lotteries are not for the rest of your life. They put disclaimers stating that life is classified as a maximum of 25 years. Read the fine print.
Also personally I would take the 100k/yr and limit myself. I know if I was given 1.5million I would be broke within 2 years by wasteful spending.
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10-13-2011, 12:12 PM #38
well a dollar today is worth more than a dollar tomorrow....really depends on what the market is doing and projected inflation.
if there was a monetary/fiscal collapse in 10 years, $100k might buy you a loaf of bread [read Zimbabwe inflation]
really depends.
assuming everything went well, id go the 100k a year route as I would expect to live for greater than 15 years...I feel it would be easier to budget.
Theres a lot of different economic factors that play into a decision like that though...Im not smart enough touch on all of them
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10-13-2011, 12:14 PM #39
Is that just the average annual dividends, or the average annual growth?
http://www.google.com/finance?q=INDEXDJX:.DJI#
In 1970 the Dow was like 1000, in 2000 it was like 10000. Maybe my 10% mark was off, but in 30 years that's still a 1000% increase.
Even if it's only 5%, 5% of 1.5M is still 75k.
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10-13-2011, 12:15 PM #40
Time Value Money.
The time value of money is the value of money figuring in a given amount of interest earned over a given amount of time. The time value of money is the central concept in finance theory.
For example, 100 dollars of today's money invested for one year and earning 5 percent interest will be worth 105 dollars after one year. Therefore, 100 dollars paid now or 105 dollars paid exactly one year from now both have the same value to the recipient who assumes 5 percent interest; using time value of money terminology, 100 dollars invested for one year at 5 percent interest has a future value of 105 dollars.[1] This notion dates at least to Martín de Azpilcueta (1491–1586) of the School of Salamanca.
The method also allows the valuation of a likely stream of income in the future, in such a way that the annual incomes are discounted and then added together, thus providing a lump-sum "present value" of the entire income stream.
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10-13-2011, 12:16 PM #41
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10-13-2011, 12:17 PM #42
1.5 Mil invest > 100K
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10-13-2011, 12:18 PM #43
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10-13-2011, 12:18 PM #44
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10-13-2011, 12:19 PM #45"on the bech press i usually start off with 205 doing it 5 times then once i ad my usual extra 5 pounds on i can barely do it twice. How can i increase my chest cardio? so i can rep heavy weight easier" -dc1992hp
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10-13-2011, 12:19 PM #46
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10-13-2011, 12:19 PM #47
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10-13-2011, 12:19 PM #48
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10-13-2011, 12:20 PM #49
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10-13-2011, 12:21 PM #50
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10-13-2011, 12:29 PM #51
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I'd take the 1.5, move to the Caribbean where most banks give at least 9% returns, and ball out of control.
When it comes your time to die, be not like those whose hearts are filled with the fear of death, so that when their time comes they weep and pray for a little more time to live their lives over again in a different way. Sing your death song and die like a hero going home.
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10-13-2011, 12:31 PM #52
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10-13-2011, 12:33 PM #53
if you invest all $100k every year and get 6% return then after 15 years you will have $2,680,918
if you invest the $1.5 mill then after 15 years you will have $3,681,140
$100k every year after 30 years at 6% will be $9,014,734
$1.5 mill after 30 years will be $9,033,862
$100k-45 years $24,558,511
$1.5 mill 45 years =$22,169,944
So after 30 years the $100k will start to out earn the $1.5 mill, but this is assuming that the agency doing the payouts still exists or hasnt gone bankrupt after those thirty years. If this was a computer simulation where you knew the agency would still esxist after thirty years and you knew that you would live longer than 30 years, the $100k would probably be best. in real life terms, you miss out on too much because you will probably die in the next 30 years and you will miss out on the opportunity cost of not having the lump sum.
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10-13-2011, 12:34 PM #54
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10-13-2011, 12:37 PM #55
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10-13-2011, 12:40 PM #56
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10-13-2011, 12:42 PM #57
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dont worry guys, im a business major
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10-13-2011, 12:43 PM #58
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10-13-2011, 12:52 PM #59
At a 5% ROR break-even is around 25 years where 100k/yr option is better beyond that. 6% is 32 years. 7% is over 40 years.
This is of course assuming the entire amount is invested, when in reality most people will blow a good portion of the 1.5M lump sum right away.
I would take the $1.5M because I can control my spending. Most should take the $100k/yr.
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10-13-2011, 12:57 PM #60
The answer is 100k for life. ANYTHING ELSE IS WRONG.
You fuking morons need to shut up about investing the 1.5mm in stocks. You are acting like that return is risk free. You need to discount cash dividends every year at a much higher discount rate than ~2% risk free rate because of the risk of dividends being cut AND losing your principal if the stock price goes down. Go read a damn book, idiots.
(assuming it's people around our age... seniors are different)
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