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re: Would you take $50 million tax free or $2 million/year tax free for life

Posted on 2/13/20 at 12:43 am to
Posted by lsutiger2010
Member since Aug 2008
14790 posts
Posted on 2/13/20 at 12:43 am to
(no message)
This post was edited on 10/19/21 at 7:55 am
Posted by CGSC Lobotomy
Member since Sep 2011
80288 posts
Posted on 2/13/20 at 1:13 am to
$50 million up front. If you were to put $10 million in my bank account, I could make that last the rest of my life.
Posted by Barstools
Atlanta
Member since Jan 2016
9426 posts
Posted on 2/13/20 at 3:47 am to
50. No guarantee I live 25 more years.

Plus, I will invest most and have 100 million sooner than 50 years.
This post was edited on 2/13/20 at 3:50 am
Posted by ItNeverRains
37069
Member since Oct 2007
25478 posts
Posted on 2/13/20 at 4:15 am to
Terrifying anyone on here said 2 million.
Posted by Lithium
Member since Dec 2004
61968 posts
Posted on 2/13/20 at 4:36 am to
50 Million. I’m old
Posted by WITCH DOCTOR
Louisiana
Member since Mar 2009
3474 posts
Posted on 2/13/20 at 6:23 am to
Take the $50 mil....live of the interest and never touch the principal..
Posted by UpToPar
Baton Rouge
Member since Sep 2008
22157 posts
Posted on 2/13/20 at 7:19 am to
You’d have to get at least $5M per year (probably closer to $10M per year) to even consider taking the yearly payment.
Posted by slackster
Houston
Member since Mar 2009
85008 posts
Posted on 2/13/20 at 7:33 am to
quote:

You’d have to get at least $5M per year (probably closer to $10M per year) to even consider taking the yearly payment.



$5MM would make it worthwhile for many on this board.

A) $5MM payments, 6% discount rate (very reasonable after taxes), 30 annual payments would have a NPV north of $72MM

B) You could buy a $50MM face value 30 yr term policy for $35k-$60k/yr in premiums for someone in their 20s.
Posted by Rosyfinchboy21
Member since Oct 2018
57 posts
Posted on 2/13/20 at 4:14 pm to
Kind of surprised all these OT ballers dont understand TVM
Posted by BRIllini07
Baton Rouge, LA
Member since Feb 2015
3016 posts
Posted on 2/13/20 at 6:58 pm to
What I would do:

Take the $50MM

Risk: I accidentally try to live like I make $50MM/yr in year 1, and go broke trying to keep up with my new yacht friends as a result of the severe reduction in cash flow year 2.

Risk management: I set up a (fairly) low risk mutual fund account with a $2MM/year withdrawal until it goes dry (hopefully never). This magical account adjusts every 10 years for inflation. I set up 7 different passwords, 25 characters each, that must be all entered correctly in order to change this setup. I do this by taking $1MM, going to Vegas, and having hookers and blow parties every day for a week, and each night at 5AM I enter a new password into the system without writing it down.
Posted by fr33manator
Baton Rouge
Member since Oct 2010
124330 posts
Posted on 2/13/20 at 7:01 pm to
Compound interest, 50 mil now. Duh. Plus invest it
Posted by yatesdog38
in your head rent free
Member since Sep 2013
12737 posts
Posted on 2/13/20 at 7:03 pm to
I would take the 2 million a year because someone else is more deserving of the 50MM.
Posted by Clark14
L.A.Hog
Member since Dec 2014
19458 posts
Posted on 2/13/20 at 7:15 pm to
Though I'd be more than happy with either,,I'd take the fifty million and live more than comfortably off the interest..

My family can piss the rest off when I'm gone.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
71428 posts
Posted on 2/13/20 at 7:21 pm to
50 million and I'd invest 30% in rock solid investments, 50% in normal investments, 10% in higher risk ones, and 10% is spending cash.
Posted by CheEngineer
Louisiana
Member since Aug 2019
4234 posts
Posted on 2/13/20 at 9:10 pm to
50 million easy put in stock market and never think about money again 2 million is only 4% shite you make that in a January of this year on Microsoft or Visa
Posted by SquatchDawg
Cohutta Wilderness
Member since Sep 2012
14218 posts
Posted on 2/13/20 at 9:15 pm to
quote:

50 million up front because if you can make a 5% return per year from mutual funds and bonds, you can make $2.5mil a year from that


It’s sad it took this long for somebody to figure that out.
Posted by Man4others
Member since Aug 2017
2056 posts
Posted on 2/13/20 at 9:17 pm to
I’ll take $50 million. Buy a portfolio of preferred stock at 6% a year and make $3 million a year in interest.
Posted by gthog61
Irving, TX
Member since Nov 2009
71001 posts
Posted on 2/13/20 at 9:18 pm to
Since I have 10 years max left I opt for the $fiddy mil
Posted by CaptainJ47
Gonzales
Member since Nov 2007
7353 posts
Posted on 2/13/20 at 10:00 pm to
Wait... so I take 50, invest it at at 4% and get 50 + 2m per year forever... what am I missing
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