PV of $500k per year at 5% for the # of years I expect to live < $10million.

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May 4, 2024
2:48:27pm

a priori All-American

PV of $500k per year at 5% for the # of years I expect to live < $10million.

I'll take the lump sum.

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a priori

Previous username: Random Walk
Bio page: a priori
Joined: Sep 22, 2007
Last login: Jun 9, 2024
Total posts: 36,970 (1,540 FO)

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Messages

Author

Time

POLL: Which would you rather have?

Gorgias

May 4, 1:46pm

The lump sum payment so I can invest it and grow it.

BlooCoug

May 4, 1:50pm

I could probably make more than $500k/ yr with $10 million up front. So, $10 Mil

volleyjiver

May 4, 1:51pm

RE: POLL: Which would you rather have?

2FarGone

May 4, 1:52pm

Take the cash. You die next year and your family has nothing. Live for 20 more

BYUFBDAD

May 4, 1:53pm

$10 MM conservatively invested is $500k+ a year for forever. Not just my life.

May 4, 1:58pm

How much of this is taxed?

Powerbait DPM

May 4, 1:53pm

$500,000. Then I wouldn't care about investing. Just live off that.

Dark Forest Green

May 4, 1:54pm

Hope you don’t get in a wreck tomorrow and die

molodyets

May 4, 1:56pm

$500k can buy a lot of life insurance.

HuskerFan2

May 4, 2:01pm

and taxes . . . lots and lots of taxes

2FarGone

May 4, 1:56pm

Is it taxed?

bornbyu93

May 4, 1:57pm

Isn’t everything?

Gorgias

May 4, 1:57pm

So it’s really $300,000 versus $6,000,000

2FarGone

May 4, 2:12pm

So would I rather have $500,000 per year or a lot more than that plus

Plato

May 4, 2:06pm

I would invest the $500k each year and earn interest from that. Let your money

DieHarder

May 4, 2:13pm

Why not start out with $10 million and still invest $500K every year just from the proceeds from you initial $10million?

mvtoro

May 4, 2:19pm

That’s great as long as you can bring back a 5% return on your investment. My

DieHarder

May 4, 2:22pm

5% shouldn’t be a hard return for any investment. HYSAs are over 5% right now.

May 4, 2:41pm

I can get a ZERO % return over the next TWO DECADES and we’d STILL be even. Average index over the last 100 years is 10%

mvtoro

May 4, 3:48pm

The math for this is really easy. 5% of $10 million is $500k, which should be an

Skeptical Optimist

May 4, 2:24pm

This guy gets it.

dtownCoug

May 4, 3:17pm

take the lump sum, you could get run over by a car tommorrow

Count Cougar

May 4, 2:33pm

PV of $500k per year at 5% for the # of years I expect to live < $10million.

a priori

May 4, 2:48pm

Tax consideration is the difference

mobicurious

May 4, 2:51pm

In what world would the IRS give you the LTCG rate on what is obviously income?

OKchief

May 4, 7:25pm

I’ve done several deals where companies have purchased a small company

mobicurious

May 4, 7:34pm

Well yeah in that case it is LTCG because you’re selling an appreciated asset…

OKchief

May 4, 9:18pm

I'm almost 80 years old. What do you think?

cosmos son

May 4, 3:59pm

Cosmo is crazy old then.

HuskerFan2

May 4, 9:59pm

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