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Started By
Message
re: Annuity or Lump? Updated for 1.6 Billion
Posted on 10/19/18 at 9:44 am to Powerman
Posted on 10/19/18 at 9:44 am to Powerman
quote:
With that type of capital, do you really care if you make a 1% annualized gain
Because I want the money to outpace inflation
quote:
or a 10% annualized gain?
Because I love capitalism
1
Posted on 10/19/18 at 9:44 am to LSU6262
quote:
You could live a pretty damn good life off the interest and it could last generations if managed well
You could live a pretty good life regardless of what you did so long as you don't do something stupid and lose it all
Even the returns on CDs or money market accounts would be huge with that type of capital
Posted on 10/19/18 at 9:45 am to Thib-a-doe Tiger
quote:
Because I want the money to outpace inflation
If you were gifted 100 million+ overnight there is 0 percent chance you would give a frick about this unless you're a moron
Posted on 10/19/18 at 9:47 am to Powerman
Many people already invest what they can (small trading account, 401(k), some land) and would like to invest more. I agree it's something people feel like they have to say, but another motivation to invest more and in different things is to stay busy since most people would quit their job with that kind of win.
Posted on 10/19/18 at 9:47 am to Powerman
quote:
You could live a pretty damn good life off the interest and it could last generations if managed well
You could live a pretty good life regardless of what you did so long as you don't do something stupid and lose it all
Even the returns on CDs or money market accounts would be huge with that type of capital
You missed this part
Posted on 10/19/18 at 9:48 am to Powerman
quote:
If you were gifted 100 million+ overnight there is 0 percent chance you would give a frick about this unless you're a moron
What? I’m going to spend a lot of money. I want my children to inherit as much as possible.
Whether you earned it or not, people want their money to grow
Posted on 10/19/18 at 9:48 am to Powerman
quote:you are 100% wrong. The moron would keep the cash in a mattress. The smarter person would put that money to work.
If you were gifted 100 million+ overnight there is 0 percent chance you would give a frick about this unless you're a moron
Posted on 10/19/18 at 9:48 am to ell_13
quote:
Time value of money means nothing if you're not working to appreciate the value of said money.
While I 100% agree that the goal should be appreciation of the money, it doesn't change the fact that for those wanting to spend the money, it would have more buying power now than it will in 30 years.
Posted on 10/19/18 at 9:49 am to Thib-a-doe Tiger
quote:
Taxes, taxes is the answer you’re looking for.
We currently know that we are in the lowest income tax environment in history. Do we know that will be the case in 15,20,30 years?
That's part of it. That is a large factor in the buying power of money.
Posted on 10/19/18 at 9:51 am to SaturdayTraditions
quote:you do realize that if you opt for annuity it adds up to more than the lump sum, right? Did you factor that in against inflation?
While I 100% agree that the goal should be appreciation of the money, it doesn't change the fact that for those wanting to spend the money, it would have more buying power now than it will in 30 years.
Posted on 10/19/18 at 9:52 am to Powerman
quote:
Why would you feel compelled to "invest" when you have that much cash?
Why wouldn't you?
Cash flow shouldn't be an issue, so you could afford even the worst of recessions/depressions.
The people that say they're throwing it all into treasuries or munis crack me up too. Address your cash flow, sure, but all of it there makes no financial sense.
Posted on 10/19/18 at 9:53 am to slackster
quote:
The people that say they're throwing it all into treasuries or munis crack me up too.
I got roasted in the other thread for saying this
Posted on 10/19/18 at 9:53 am to Powerman
quote:
The annuity also saves you from yourself
You'll never be the big lotto winner that blew it all and is now broke if you take the annuity
Exactly. Nobody ever thinks about the other side of "gains" or it never occurs to them that they could lose their arse in investments. Any investment losses from the money in the annuity scenario is offset by the guaranteed return of those annuities, plus the limited amount invested.
Posted on 10/19/18 at 9:53 am to SaturdayTraditions
quote:
While I 100% agree that the goal should be appreciation of the money, it doesn't change the fact that for those wanting to spend the money, it would have more buying power now than it will in 30 years.
Take a loan then.
Posted on 10/19/18 at 9:54 am to GRTiger
quote:
Exactly. Nobody ever thinks about the other side of "gains" or it never occurs to them that they could lose their arse in investments. Any investment losses from the money in the annuity scenario is offset by the guaranteed return of those annuities, plus the limited amount invested.
Anybody who tells you they lost most or all of their money in investing is a fricking moron who dumped everything into a pink sheets pot dispensary
Posted on 10/19/18 at 9:55 am to Thib-a-doe Tiger
quote:
got roasted in the other thread for saying this
That thread went sideways because they thought you were saying those investments had principle risk.
Posted on 10/19/18 at 9:56 am to slackster
What I was trying to say is that if the US was not longer the global leader that it is today, they would be stuck with a bunch of t-bills nobody wanted to buy
Posted on 10/19/18 at 9:57 am to HeyHeyHogsAllTheWay
quote:
Lump is the ONLY correct answer.
this ^^^^
break it down into 4 portions, 1/4 portion for having fun party time and going mad money, 1/4 portion to invest wisely in low risk areas with good investment firms.
then take about half of it and set up your own annuity totally controlled by you where you get ALL of the profits from it, with the states annuity plan, they take a portion of the interest for managing it so they make money off that just as you do
Posted on 10/19/18 at 9:58 am to Thib-a-doe Tiger
quote:
a fricking moron who dumped everything into a pink sheets pot dispensary
but we carded a birdie on 18 and won the party
Posted on 10/19/18 at 9:58 am to keakar
quote:
break it down into 4 portions, 1/4 portion for having fun party time and going mad money, 1/4 portion to invest wisely in low risk areas with good investment firms.
I’d adjust those numbers a bit but I’m with you so far
quote:
then take about half of it and set up your own annuity totally controlled by you where you get ALL of the profits from it, with the states annuity plan, they take a portion of the interest for managing it so they make money off that just as you do
:facepalm:
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