The rationale behind taking the lump sum is that if you take a lump sum now and invest it, you can live off the proceeds from the investment and the overall value will outstrip inflation and the losses from the taxes and you can take advantage of compound interest to really ramp things up. You can actuality make more money in the long term by taking less now.
Yeah, if you’re financially responsible you can totally do that. Most people, however, from what I’ve heard, aren’t and don’t really make good use of their winnings. When you win that much, however, pretty hard to go back to being poor no matter which way you go.
The rationale behind taking the lump sum is that if you take a lump sum now and invest it, you can live off the proceeds from the investment and the overall value will outstrip inflation and the losses from the taxes and you can take advantage of compound interest to really ramp things up. You can actuality make more money in the long term by taking less now.
Yeah, if you’re financially responsible you can totally do that. Most people, however, from what I’ve heard, aren’t and don’t really make good use of their winnings. When you win that much, however, pretty hard to go back to being poor no matter which way you go.