$5000 Per Month for 10 years or $500,000 Lump Sum?
- Thread starter Stuntone
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richaveli83
Veteran
Lump sum
Edit: Is the 5k a month in addition to what I make now?
Edit: Is the 5k a month in addition to what I make now?
IIVI
Superstar
Lump sum.
Compound interest for 10 years on $500k will get you about $800k.
5% interest rate on $500k the first year is an extra $25k.
A few thousand dollars not invested one year can lead to multiple millions of dollars missed 30 or so years from now, so imagine what a few hundred thousand can do.
Compound interest for 10 years on $500k will get you about $800k.
5% interest rate on $500k the first year is an extra $25k.
A few thousand dollars not invested one year can lead to multiple millions of dollars missed 30 or so years from now, so imagine what a few hundred thousand can do.
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I think I'd take the lump sum. I know investing successfully isn't easy as most say and think. But I'd buy some land and put some mobile home it down here in Louisiana. Can't really lose.
And I'd get comfortable with that 5k a month, and I'd be devastated when it comes to an end.
And I'd get comfortable with that 5k a month, and I'd be devastated when it comes to an end.
$5K/month
$500K today vs $600K over 10 years?
As inflation increases and the dollar’s value decreases, the $600K in 10 years would be worth less than or equal to $500K today.
Give me the lump sum.
As inflation increases and the dollar’s value decreases, the $600K in 10 years would be worth less than or equal to $500K today.
Give me the lump sum.
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.I think I'd take the lump sum. I know investing successfully isn't easy as most say and think. But I'd buy some land and put some mobile home it down here in Louisiana. Can't really lose.
And I'd get comfortable with that 5k a month, and I'd be devastated when it comes to an end.
Grabbing land for the sake of it isn't the the better option.
2 Up 2 Down
Veteran
Is the 500k after tax? If so, then I'll take the lump sum. 100k to use and throw the rest into retirement.
Lump Sum
stay humble you can go anyday
stay humble you can go anyday
Tres Leches
Empire Business
lump sum easily
$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."
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."
lump sum. inflation will eat away at the 5k
Hard to decide
But ill take that 5k a month, since im old now
But ill take that 5k a month, since im old now