$5000 Per Month for 10 years or $500,000 Lump Sum?

[The_Sheff]

Knowing who I am, I need 5k a month.

Yep.

My wife would fukk up that lump sum in a hurry. We need the steady money coming in.

 

[Blackrogue]

Y'all realize 5k a month is 60k a year and 600k in ten years?

I'm taking the lump sum and I can easily make the leftover hundred K in that time with investments, interests and business. Secondly money now is more valuable than money in the future as far as what it can buy

 

[IIVI]

But if you take the installments over the same period you'll have 600k to throw in the same place(s)

Not if you keep working and doing what you're doing...especially in Louisiana.

Grabbing land for the sake of it isn't the the better option.

An extra $10k gained the first year from monthly payments vs an extra $25k from your first year with a 5% interest rate on $500k.

The next year it’s 5% on $525k. I’ve basically made that extra $100k back by the 4th year and be loaded up with $600k going into year 5 making 5% interest.

The 5% interest on $500k year-after-year outpaces the flat extra $10/year with 5% interest on a smaller amount. Compound interest really favors striking in early. The sooner you can capitalize on it the better.

 

[TEH]

$500K Lumpsum. A 10 year US Treasure bond with a YTM 4.29%, will turn that $500K into $714,500 after 10 years. Taking the 5K per month will give you $600k over the 10 years. Even if you have no intention of investing the lumpsum, the lumpsum is $500k now at the present value of money, compared to $600k total from the $5K payments with the constant rise of inflation.

You could purchase a growth asset now, that will have more worth over those 10 years too. Like a rental property, that grows in value, while also giving you a somewhat steady extra source of income near immediately. While the $5000 payments will stop in 10 years. the payments from the rental can continue on long after that point with the added bonus possibility of the rental property growing in value long after that point.

"Time value of money is the concept that money today is worth more than money tomorrow. That is because money today can be used, invested, or grown. Therefore, $1 earned today is not the same as $1 earned one year from now because the money earned today can generate interest, unrealized gains, or unrealized losses."

Why not a CD instead?

 

[Dorian Breh]

"How financially uneducated are you" the thread

If you choose the annuity you don't deserve a high school diploma

 

[IVS]

ill take the lump sum...in 10 years i could turn that into quite a bit.

 

[Shadow King]

An extra $10k gained the first year from monthly payments vs an extra $25k from your first year with a 5% interest rate on $500k.

The next year it’s 5% on $525k. I’ve basically made that extra $100k back by the 4th year and be loaded up with $600k going into year 5 making 5% interest.

What is the final figure for taking the monthly installments and doing the same thing?

 

[NotAnFBIagent]

Lump sum
Time value of money

 

[Shadow King]

Single minded babble

 

[The Guru]

That;s only 100.000 more after 10 years. That's not enough to justify waiting for me.

 

[Dorian Breh]

@Shadow King with your remedial ass

Ask @ChatGPT-5 its not as useful as people say it is, but it is useful for the math or English language challenged like yourself

 

[IIVI]

What is the final figure for taking the monthly installments and doing the same thing?

I think it’s about $810k vs $750k. Quick estimate/napkin math.

 

[Thurgood Thurston III]

But if you take the installments over the same period you'll have 600k to throw in the same place(s)

Nope.

The things you can buy with the 500k right now are a lot cheaper than what you can buy with 600k in 10 years

That 600k will also be worth less than the 500k now.

 

[Shadow King]

@Shadow King Bìtch niqqa babble I couldn't utter in your presence

Oh aight

 

[Shadow King]

Nope.

The things you can buy with the 500k right now are a lot cheaper than what you can buy with 600k in 10 years

That 600k will also be worth less than the 500k now.

I'm not looking to buy anything...