C. I’ll take the $50/month. Stay humble.

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Jun 16, 2021
1:14:49pm

TCuz Disgraced Rules President

C. I’ll take the $50/month. Stay humble.

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TCuz

Previous username: TCuz13
Bio page: TCuz
Joined: Mar 1, 2014
Last login: May 14, 2024
Total posts: 58,553 (19,206 FO)

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Messages

Author

Time

POLL: Choose one. Assume both choices will be taxed at the usual rates and will not be adjusted for inflation.

Nikomedes B+

6/16/21 1:14pm

C. I’ll take the $50/month. Stay humble.

TCuz

6/16/21 1:14pm

The present value of the 5k a month is really close to $1million at 6% growth.

Turbo

6/16/21 2:01pm

Because inflation and because one can diversify the risk with the $1M lump sum.

garyfan

6/16/21 2:09pm

Edit: I think inflation-adjusted was an edit that wasn’t there originally.

garyfan

6/16/21 2:10pm

Correct.

supertux

6/16/21 4:17pm

Inflation adjusted makes it obvious in favor of the guaranteed income

Turbo

6/16/21 8:03pm

Time value of money is not the same thing as inflation. Those are two different

garyfan

6/16/21 9:18pm

Because you’re giving up $1million right off the bat. You’re only considering interest. I START with $1mil in hand.

mvtoro

6/16/21 2:30pm

That’s factored in the present value calculation dude. Kind of the point of the

Turbo

6/16/21 8:00pm

It’s still the wrong choice. See my last paragraph in my other post taking tax into account. Inflation makes it a no-

mvtoro

6/16/21 10:16pm

Wow. Right now 60%+ of respondents are pretty clearly wrong IMO.

mvtoro

6/16/21 2:21pm

He said it would be taxed at the usual rate, so the $1M immediately becomes

Pickett

6/16/21 3:12pm

And your income isn’t taxed if you don’t take a lump sum? Yes. Depending on your income you’ll probably pay a higher

mvtoro

6/16/21 10:07pm

You should take a finance class…

Turbo

6/16/21 8:04pm

I have, thanks 👍🏻. YMMV, but the $5K/month would have been a terrible decision for me. Annual passive income has been

mvtoro

6/16/21 10:27pm

Big lump sum every time.

OPINIONS

6/16/21 5:25pm

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