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

[NoMorePie]

600k over 10 years vs 500k immediately

what if you die in year 2

 

[Scaaar]

I'm taking the 5k a month especially if I can keep working I'll. Just turbocharge paying my home off and all other debt. I'll be completely debt free by there first year and then invest the rest in those payments afterwards. Most of the brehs talking lump sum will probably blow half of if on materialistic things in the first 6 months.

 

[Rekkapryde]

The ONLY way the monthly plan makes sense is if you're terrible with money

that's most people sadly.

 

[prince_peoples]

Tomorrow isn’t promised

This isn’t even a hard choice.

Shoulda did 500k now vs 15k a month over ten years.

 

[Dorian Breh]

Oh look someone who actually struggles with English

There's no instincts involved.

This is academic.

 

[jadillac]

5K per month.

You could pay a nice mortgage with that in addition to your current job.

You end up with 100K more overall. If you're not in a jam right now, it's an easy choice for me.

But if the premise is you can't have any other income, then give me the 500

 

[Shadow King]

There's no instincts involved.

This is academic.

Quote where I used the word "instincts" before this very post

 

[OneManGang]

Man this is clearly the lump sum. Accounting for time value of money as well as possibility of death, you take the 500K. 5K a month is almost losing money in this scenario.

 

[FTBS]

500000 easy. 500000 today >>> 600000 in a decade and you likely wont even have 600000 unless you just got it like that financially and are super disciplined. And if you work it right you can grow that 500000 over the next decade.

 

[Dorian Breh]

I'm taking the 5k a month especially if I can keep working I'll. Just turbocharge paying my home off and all other debt. I'll be completely debt free by there first year and then invest the rest in those payments afterwards. Most of the brehs talking lump sum will probably blow half of if on materialistic things in the first 6 months.

this shyt always cracks me up

brehs see the opportunity to defer and think its the smart option, and that only an idiot would not defer

just knee jerk reaction

my friend, if you took the lump sum and paid off all your debt with it immediately, and then invested the remainder, exactly like you said you'd do with the annuity only doing it day 1 instead of after a year

youd be in an even better place at every single day along the ten year calculation. il

if you have existing debt that you are paying interest on it makes even more sense to take the lump sum and clear that debt ASAP*

* provided your interest terms aren't incredibly low like you got your mortgage during covid in which case you might be better served just keep paying it off every month. but thats more advanced math of course and doesn't impact the choice between lump sum and annuity.

 

[Dorian Breh]

Quote where I used the word "instincts" before this very post

You got me

 

[xXOGLEGENDXx]

The ONLY way the monthly plan makes sense is if you're terrible with money

That is majority of people in this thread. Don't let all the figures and money talk they just googled fool you. Majority of this thread would not know what to do with a lump $500K and burn through it easily.

It's easy to explain how you would manage money when you don't have to actually manage it. Majority of brehs would benefit from the monthly payouts.

 

[Michael's Black Son]

500k now

 

[Swirv]

10 years. You get taxed at once with lump sums. At least you can minimize tax effects through careful planning.

 

[ZEupTWN]

I would instinctually go for the 5k/10yrs...
But IDK I'd have to have a lawyer or specialist read over the terms with me cause you just never know..