LETSGOBROWNIES Posted August 22, 2017 Share Posted August 22, 2017 4 minutes ago, EliteTexan80 said: Let's not go there. You mean like... together? Link to comment Share on other sites More sharing options...
Ty21 Posted August 22, 2017 Share Posted August 22, 2017 Once i win I'll buy this site just so I can ban ET Link to comment Share on other sites More sharing options...
theJ Posted August 23, 2017 Share Posted August 23, 2017 20 hours ago, DontTazeMeBro said: I don't even know if I want to win. I don't want to never work again You don't have to not work. If i won, i'd start my own small woodworking business. I can almost guarantee i wouldn't make money, but i really enjoy woodworking and could do it closer to 30-40 hours/week rather than the 3-4 i get now. that being said, i didn't buy any tickets. I haven't really been paying attention to the lotto lately. Is it really high right now? Link to comment Share on other sites More sharing options...
cddolphin Posted August 23, 2017 Share Posted August 23, 2017 4 minutes ago, theJ said: I haven't really been paying attention to the lotto lately. Is it really high right now? Cash value atm is about $443 million. I'll probably throw down $2. The drawing is tonight at 11. Link to comment Share on other sites More sharing options...
ET80 Posted August 23, 2017 Author Share Posted August 23, 2017 22 minutes ago, cddolphin said: Cash value atm is about $443 million. I'll probably throw down $2. The drawing is tonight at 11. Yup, and that number should rise through the course of the day. Another question - cash value or 30 annual payments? I've always been a proponent of cash value, due to time value of money, etc. I'm actually leaning towards 30 annual payments with this sort of jackpot. Has nothing to do with the economics; That kind of money is reality altering money. You can be a bright financial mind, but if someone cuts you a nine figure check, your logic can go out the window in a hurry. Link to comment Share on other sites More sharing options...
cddolphin Posted August 23, 2017 Share Posted August 23, 2017 4 minutes ago, EliteTexan80 said: Yup, and that number should rise through the course of the day. Another question - cash value or 30 annual payments? I've always been a proponent of cash value, due to time value of money, etc. I'm actually leaning towards 30 annual payments with this sort of jackpot. Has nothing to do with the economics; That kind of money is reality altering money. You can be a bright financial mind, but if someone cuts you a nine figure check, your logic can go out the window in a hurry. 30 annual payments is the dumbest thing you could possibly do. Link to comment Share on other sites More sharing options...
Ty21 Posted August 23, 2017 Share Posted August 23, 2017 Just now, cddolphin said: 30 annual payments is the dumbest thing you could possibly do. Why?? I figure if I'm extremely dumb with an annual payment, I'm still gonna get paid the next year. If I blew the whole amount like a lot of lotto winners do, then where am I? Link to comment Share on other sites More sharing options...
skywindO2 Posted August 23, 2017 Share Posted August 23, 2017 2 minutes ago, Tyty said: Why?? I figure if I'm extremely dumb with an annual payment, I'm still gonna get paid the next year. If I blew the whole amount like a lot of lotto winners do, then where am I? With the lump sum, you can easily hire someone to manage your finances for you. If they're good at their job, they'll be able to buy you more money with your money. I bought 2 tickets since that's all I had cash for without breaking my $20. Link to comment Share on other sites More sharing options...
cddolphin Posted August 23, 2017 Share Posted August 23, 2017 Just now, Tyty said: Why?? I figure if I'm extremely dumb with an annual payment, I'm still gonna get paid the next year. If I blew the whole amount like a lot of lotto winners do, then where am I? The real value of your winnings isn't adjusted for yearly inflation, so that's 1.5/2% annually out the window right there, plus you severely handcuff your ability to increase your wealth by investing it. I'm too lazy to do some math as an example but I wouldn't be surprised if choosing the annual payments causes you to lose out on tens of millions of dollars, probably more, compound interest is amazing (or terrible depending on what side of the equation you're on). Link to comment Share on other sites More sharing options...
ET80 Posted August 23, 2017 Author Share Posted August 23, 2017 14 minutes ago, cddolphin said: 30 annual payments is the dumbest thing you could possibly do. Explain. 10 minutes ago, skywindO2 said: With the lump sum, you can easily hire someone to manage your finances for you. If they're good at their job, they'll be able to buy you more money with your money. ... assuming that financial advisor is trustworthy. Given what I've learned over my 20+ years in the industry, I'll tell you to be careful. Link to comment Share on other sites More sharing options...
ET80 Posted August 23, 2017 Author Share Posted August 23, 2017 12 minutes ago, cddolphin said: The real value of your winnings isn't adjusted for yearly inflation, so that's 1.5/2% annually out the window right there, plus you severely handcuff your ability to increase your wealth by investing it. I'm too lazy to do some math as an example but I wouldn't be surprised if choosing the annual payments causes you to lose out on tens of millions of dollars, probably more, compound interest is amazing (or terrible depending on what side of the equation you're on). I don't necessarily doubt anything you're saying. My stance is that with that level of money, you're bound to do something you normally wouldn't do with it, simply because you have THAT kind of money. My thought isn't derived from logic of the workings within finance (well, not all of it at least). It's derived from discipline - or lack thereof - most of us would fall into following such a windfall. Also - aren't you the anti-banking fella? Link to comment Share on other sites More sharing options...
cddolphin Posted August 23, 2017 Share Posted August 23, 2017 2 minutes ago, EliteTexan80 said: Explain. I did. If you get $443m all at once, you can immediately begin earning interest on that sum. If you only get $15m annually, you are earning far less from investing that money. Your $15m is also worth less every year you get it in terms of purchasing power. So the $15m payment you get in 2030 might be only worth 80% in real terms what it was worth in 2017. Link to comment Share on other sites More sharing options...
ET80 Posted August 23, 2017 Author Share Posted August 23, 2017 Just now, cddolphin said: I did. If you get $443m all at once, you can immediately begin earning interest on that sum. If you only get $15m annually, you are earning far less from investing that money. Your $15m is also worth less every year you get it in terms of purchasing power. So the $15m payment you get in 2030 might be only worth 80% in real terms what it was worth in 2017. Saw your follow up, and your logic is sound. I'm basing my stance on more of a non-linear understanding of what happens to people when they stumble into such an amount. Again - my stance goes away logic from a traditional sense. Don't deny that one bit. Link to comment Share on other sites More sharing options...
cddolphin Posted August 23, 2017 Share Posted August 23, 2017 5 minutes ago, EliteTexan80 said: My stance is that with that level of money, you're bound to do something you normally wouldn't do with it, simply because you have THAT kind of money. Oh. Well I mean you can make plenty dumb decisions on $15m per year too. But I see where you're coming from. 5 minutes ago, EliteTexan80 said: Also - aren't you the anti-banking fella? Yeah. My "investment portfolio" would certainly look a lot different than your average Joe, including tangible asssets. But when you're talking about hundreds of millions of dollars, there's really not much choice but to put a good chunk of it in a bank. Link to comment Share on other sites More sharing options...
ET80 Posted August 23, 2017 Author Share Posted August 23, 2017 Just now, cddolphin said: Oh. Well I mean you can make plenty dumb decisions on $15m per year too. But I see where you're coming from. At the least, I'd get another $15mm in due time. Both lump sum and annual payments have risk. Annual payment has practical risks you spelled out, lump sum has less practical risks, but risks nonetheless. 3 minutes ago, cddolphin said: Yeah. My "investment portfolio" would certainly look a lot different than your average Joe, including tangible asssets. But when you're talking about hundreds of millions of dollars, there's really not much choice but to put it in a bank. Very Ron Swanson-esque. You get a football for this. Link to comment Share on other sites More sharing options...
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