If I were Filthy Rich
By PickASwitch+40 Convince Me Why I Should Not Choose The Annuity
I would be absolutely terrified to accept hundreds of millions of dollars all at once. One go, one shot, and one false move, one shady financial advisor will completely ruin the best thing to ever happen to me.
People always say that you need to do the lump to beat inflation, to ensure you get all of your money, to invest and outpace what you’d make with the other option, you can always do the JG Wentworth shit and ruin yourself that way, etc. and I get that. But what if I just don’t care about outpacing, or doubling my winnings, or creating generational wealth? What if what I’ve got is fine?
I’m not having kids, so I don’t need to worry about building for them. I’m debt free, so there’s no race to pay off anything. If I die before getting the last payment, who cares? It’s not like I’d have spent every penny if I took the lump, so who cares? Inflation? If I can’t get by on a couple million a year, even with inflation, that’s a me problem.
I get the mathematical reasoning for the lump, but I just feel like the annuity would be the best thing for my personal circumstances. I’m totally down to hear different perspectives, though. With my circumstances being what they are, and with my concerns of an advisor pulling a Jason Kurland on me, why would I pick the lump over the annuity?
Recent responses
+69 @sedwards21 Seeing what power government officials, in high positions have. And how easy it is to overrule or break existing laws. I’d be worried somehow the government would cancel the annuity and take my money or reduce it in some way.
+46 @yawara25 Deciding between the annuity or the lump sum is basically a difference between having the jackpot invested by the state lottery commission, or invested by yourself. And in my personal opinion that choice is a no-brainer.
+18 @UnicornCalmerDowner For me....I want the lump sum because I have little faith in me or the lottery organization being around to pay me out, long into the future. I want the money now while we both exist. You are taking a hell of a gamble by waiting for someone to pay you out the money they owe you. If they go tits up or become insolvent, you are screwed. That can easily happen. These institutions are not infallible. Anyone can cause a lawsuit, management/laws/rules/precedents change more often than most of us would like. In my lifetime I've seen the lottery come to my state and I've seen the lottery and multi state lotteries crop up. Have you ever looked into the history of state lotteries (USA)? Historically they used to exist to get things paid for and towns started, but they got shitcanned because of rigging and fraud. Does that sound like something that could happen now??? Give me my share of winnings now please.
+16 @BoldElDavo Personally, there are some irresponsible decisions I'd want to make immediately. Like, $200m that I can have now or receive over the course of 30 years? Of course I'll talk to a professional and make a budget for most of that lump, but you can bet I'm gonna make a few purchases at the beginning. If that doesn't appeal to you, that's fine.
+11 @BlueRFR3100 You don't mention your age, but that is a factor in my decision to take the lump sum. I have already outlived both my father and my grandfather, but I really doubt I'm going to make it another 30 years. I want to enjoy it while I can.