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200k vs 1m


Glen

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1 hour ago, Glen said:

Question is simple.

If given the option would you rather take 1 million dollars cash now but never be able to work again, or would you take 200k a year but be forced to work the same job you're currently at till you're 80 years old?

I'll take the 200.

I work from home and barely put in 10 hours per week.

The 200 would make those other hours much more pleasurable.

Edited by Mega Ron
Ish.
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I'm confused why anyone would take the 200k. Not only is it 80% less money but then you also have to work until you're 80. Hard pass 

Give me the 1m, I'll move somewhere cheap like Argentina and buy investment property

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4 minutes ago, N4L said:

I'm confused why anyone would take the 200k. Not only is it 80% less money but then you also have to work until you're 80. Hard pass 

Give me the 1m, I'll move somewhere cheap like Argentina and buy investment property

I plan on living more than 5 years so the 200k is more money. And I don’t have a real job. So give me the 200k 

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1 hour ago, N4L said:

I'm confused why anyone would take the 200k. Not only is it 80% less money but then you also have to work until you're 80. Hard pass 

Give me the 1m, I'll move somewhere cheap like Argentina and buy investment property

 

1 hour ago, Whicker said:

I plan on living more than 5 years so the 200k is more money. And I don’t have a real job. So give me the 200k 

This 

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12 hours ago, Dome said:
12 hours ago, Whicker said:

I plan on living more than 5 years

wow mr optimism over here

Yeah, I guess @Whicker is 75?? 

Putting the 'have to work until you are 80' aspect aside. I think this shows how little people understand the time value of money. 

It's a comparison between 800k now (difference between two options) or the right to be able to earn money in future years. Even if you were making 100k a year at your job after taxes, and saved 100% of it, it would take 10 years to catch up. 

800000    100000
840000    205000
882000    315250
926100    431012.5
972405    552563.125
1021025.25    680191.2813
1072076.513    814200.8453
1125680.338    954910.8876
1181964.355    1102656.432
1241062.573    1257789.254
1303115.701    1420678.716

The last line ^ is year 11. Both columns assume 5% interest per year. 

10 years to catch up with making 100k after taxes and paying living expenses. SO, there are some people out there who could potentially say they would rather take the 200k and have it actually make sense financially (other than "I like my job" line) but those are people who are already in the 1% to where 200k doesn't change much of their life so they would probably go option C which is take neither. People in the 1% don't want to be forced to work until they are 80 as the question is posed, and 1m without being able to work again is a net negative as well (for them). 

So, unless you are making tons of money, have a career that could grow into a 400k+ a year job and you're under 35, you would be wise to take the 1m then go to a part of the globe where that money goes a lot farther, and proceed to ride off into the sunset 

200k to be forced to work the rest of my life? I actually wouldn't take that deal even if there wasn't 1m on the table. Life is too short

4 hours ago, LETSGOBROWNIES said:
4 hours ago, Malfatron said:

is the 200k per year before or after taxes?

Wouldn’t that apply to either sum?

It actually changes things dramatically, because 1m would be 500k in California after tax, where the 250k would be like 140k after tax (I think). Instead of 800k difference it's a 360kish difference which greatly alters the math 

So let's just assume it's 1m net 

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