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Jun 16, 2021
2:10
:24
pm
garyfan
Truly Addicted User
Edit: I think inflation-adjusted was an edit that wasn’t there originally.
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garyfan
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garyfan
Joined
Sep 19, 2013
Last login
Apr 28, 2024
Total posts
37,607 (3,853 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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