Lottery Winning Choice - Which Would You Take?

Question

If you won a national lottery that gave you the following choice, which would you take? (both choices are tax free) Also, for this example, let's say you are 25 years old.

Choice #1: $2,000,000 up front

Choice #2: $2,000 per week, for the rest of your life

Answer 1

Take the 2 million, and invest a good bit of it in something thats pretty much a sure thing, such as real estate. Much more profit that way.

Answer 2

$2K per week. Assuming you live till 80, you would make a TON more money. Plus they would tax the h**l out of the $2,000,000.

Take the weekly payment!

Answer 3

Choice 2. That was an easy choice

$2,000 a week = 104,000 a year

To equal that you would need to invest the 2000000 in something that give a rate of return of around 20%

EDIT

"while it is possible you may make more with the weekly payout, it's not guaranteed."

What do you mean it's not guaranteed.  Investing 2000000 in something that gives a 20% return ois not giaranteed

Answer 4

wow what a tough question. there's so many advantages both ways. while it is possible you may make more with the weekly payout, it's not guaranteed. also, the only way to really enjoy the weekly amount is to save it up for X number of weeks before buying what you want...putting it into investments really kills the whole idea of winning the lottery in the first place.

overall, i think i would be happier with the 2 mil up front than having it a bit at a time.

Answer 5

I'd take the money up front - then I could buy what I want when I want. ie if I went out and saw a car for 8k I'd have to wait at least 4 weeks before I could buy it if I only got 2k every week.

Answer 6

$2000 per week for the rest of your life...you'll end up with way more.