$10 Million now or $500K a year the rest of your life? [Archive]

Millennial_Messiah

03-01-2021, 11:20 AM

Which do you choose?

NOTE: All income is taxable (federal/FICA/ and possibly state depending on which state your primary address is in).

-If you choose the 10M now, the net proceeds after taxes will be direct deposited to your bank account the first day of the next month
-If you choose the 500K a year, the net proceeds after taxes will be direct deposited to your bank account on January 1st each year starting next year.

-The 500K a year option will NOT be adjusted for any inflation (or deflation) in the future. It also won't be adjusted for any tax hikes or cuts in the future, at any level. It is a flat, nominal number.

Trainwreck2100

03-01-2021, 02:26 PM

given either one today i'd retire tomorrow

Xevious

03-01-2021, 04:21 PM

10 million will give you well north of 500k a year if invested well, so there really isn't anything to think about here.

Spurtacular

03-02-2021, 01:05 AM

10 million will give you well north of 500k a year if invested well, so there really isn't anything to think about here.

Not necessarily. It's five million after taxes. And then bad investments happen.

lebomb

03-02-2021, 07:51 AM

10 mil up front. Put it in the bank and live off of the interest.

Millennial_Messiah

03-02-2021, 08:23 AM

Not necessarily. It's five million after taxes. And then bad investments happen.
Exactly. Taxes, and even then, things aren't so simple, especially with the Biden admin and the likely bubble about to burst. That 30K is a fake number that has nowhere to go this year but down, down, down.

10 mil up front. Put it in the bank and live off of the interest.
In case you haven't noticed, interest rates have been hovering at a crisp, cool 0.02-0.04% over the past full calendar year. You can't live off the extremely paltry interest off that even if you had 5 or 10 million in the bank. You'd be lucky if it gets you a hamburger a day.

What needs to happen is interest rates need to be jacked up to 2015-2018 levels, and sequestration, two things that are far from the agenda of the Biden-Harris-Schumer-Pelosi consortium that we're stuck with until at least Jan. 2023.

lebomb

03-02-2021, 09:23 AM

In case you haven't noticed, interest rates have been hovering at a crisp, cool 0.02-0.04% over the past full calendar year. You can't live off the extremely paltry interest off that even if you had 5 or 10 million in the bank. You'd be lucky if it gets you a hamburger a day.

You cant live off of $200,000-$400,000 a year homie? Especially with no bills and your house paid for? :rollin

Im just sayin I would take the cash really. I want my money NOW!

lefty

03-02-2021, 10:40 AM

A wise man once said : why not both?

Millennial_Messiah

03-02-2021, 10:42 AM

You cant live off of $200,000-$400,000 a year homie? Especially with no bills and your house paid for? :rollin

Im just sayin I would take the cash really. I want my money NOW!

If you get 10 million then assuming you live off 200K a year then after tax it'll last you about 25 years max. Considering interest rates are near zero and the stock market is too volatile to touch right now.

Leetonidas

03-02-2021, 10:53 AM

Just give me the 10M, even after taxes i'd still be set for the rest of my life

KobesAchilles

03-02-2021, 11:58 AM

lebomb

03-02-2021, 12:27 PM

Just give me the 10M, even after taxes i'd still be set for the rest of my life

X2

Millennial_Messiah

03-02-2021, 01:13 PM

I'd take the 500k for the rest of my life. In 20 years I get my 10 million and I would have all my bills paid anyway after the first 500k and it would force me to live in some sort of means. Honestly I don't know how I would handle a large sum of cash just given to me, hard to say no to that Vegas lifestyle :lol
That's kind of what I was thinking. You're set for life even after taxes as long as you don't expect like a new yacht every year or something. Heck in 2 years you could have enough for a down payment on a large house / mansion to live in + an apartment complex in order to earn extra income on that.

10 million up front, one time = could easily piss it all away on lavish shit and be left with nothing, just like a lot of pro athletes have.

Xevious

03-02-2021, 02:43 PM

Not necessarily. It's five million after taxes. And then bad investments happen.
The S&P goes up around 10% a year on average over time, even when factoring in recession years. So if you only net 5 mil after taxes, 10% still produces your 500k a year.

Millennial_Messiah

03-02-2021, 04:30 PM

The S&P goes up around 10% a year on average over time, even when factoring in recession years. So if you only net 5 mil after taxes, 10% still produces your 500k a year.

Yes - but that's factoring in the fact the US has been the #1 economy globally for about 100 years, since the end of WWI.

When (not if) the US declines in world superiority, the dollar significantly loses global value to the yuan, yen, euro, ruble etc and others, it won't perform nearly that well. It'll be as much of a gamble as anything. You could lose all $5 million in no time flat just like what happened in Greece several years back.

Dirks_Finale

03-02-2021, 06:32 PM

Take the 10 mil.

Not guaranteed tomorrow. Today covid followed by no heat during a blizzard...tomorrow, who the hell knows :lol

Xevious

03-02-2021, 06:54 PM

You could lose all $5 million in no time flat just like what happened in Greece several years back.
If the economy tanks that bad and never recovers, we'd all have much larger problems than this silly hypothetical scenario. Bottled water and bullets will be far more valuable currency than 500k in dollars.

lefty20

03-02-2021, 09:53 PM

10 Million now. Then invest it into GME and ride it to the moon. GG!

Millennial_Messiah

03-03-2021, 11:38 AM

10 Million now. Then invest it into GME and ride it to the moon. GG!

Invest in gamestop post retailpocalypse? Good luck with that RadioShack 2.0 stock

lefty20

03-03-2021, 04:41 PM

Invest in gamestop post retailpocalypse? Good luck with that RadioShack 2.0 stock

Not for long term. Just until the squeeze gets squozed.

cd021

03-04-2021, 04:07 AM

Millennial_Messiah

03-04-2021, 11:33 AM

Take the 500k tbh. More money in the long run and can live off a 1/10th of that where I live. Probably find a job that I actually like and work part-time just to have something to do, other than blow through it.

Me likey this plan. :toast Either a part-time WFH with a high hourly rate, or start a low risk high potential reward business.

So you live out in the country/rural area?

cd021

03-05-2021, 07:16 PM

Me likey this plan. :toast Either a part-time WFH with a high hourly rate, or start a low risk high potential reward business.

So you live out in the country/rural area?

I live in between two cities (Richmond and Charlottesville) but there's a lot of rural areas in between. I could move out a little bit further of the suburbs and get some great bang for my buck while still being fairly close-ish to the city.

$50k plus a solid paying part time job could stretch pretty far out there while I invest a portion of the remaining yearly amount and squirrel away the rest. Minus maybe the occasional big-ticket item.

Allan Rowe vs Wade

03-05-2021, 10:16 PM

the first rule is to get the crown on your head. take the $10M now. PERIOD.

Millennial_Messiah

03-06-2021, 03:18 PM

I live in between two cities (Richmond and Charlottesville) but there's a lot of rural areas in between. I could move out a little bit further of the suburbs and get some great bang for my buck while still being fairly close-ish to the city.

$50k plus a solid paying part time job could stretch pretty far out there while I invest a portion of the remaining yearly amount and squirrel away the rest. Minus maybe the occasional big-ticket item.
Virginia is pretty expensive cost of living in general though. Proximity to DC, I guess. But it's not bad if you're used to the northeast or west coast cost of living.

Spurtacular

03-06-2021, 05:23 PM

Virginia is pretty expensive cost of living in general though. Proximity to DC, I guess. But it's not bad if you're used to the northeast or west coast cost of living.

People live in VA for the sake of business. If you're retiring you go to Florida or Montana or Hawaii or Texas. Whatever suits you the best.

Spurtacular

03-06-2021, 05:26 PM

If you want a good shot at being a billionaire or at least a hundred millionaire, you take the money upfront and invest or run a business. If you want a safety net and easy life and still a legit (but lesser) chance at being filthy rich, you take the $500K per year. I would take the latter because you never know who could swindle you out of your money.

cd021

03-06-2021, 08:02 PM

Virginia is pretty expensive cost of living in general though. Proximity to DC, I guess. But it's not bad if you're used to the northeast or west coast cost of living.
Depends on where, northern VA is tbh but central VA can vary. Super pricey to fairly cheap. Guess its all relative though.

DMC

03-06-2021, 10:21 PM

Just put the 10m into either Ethereum or bitcoin.

lefty20

03-06-2021, 10:36 PM

Just put the 10m into either Ethereum or bitcoin.

I'd wait for the upcoming crash. I think we're gonna see them crash over 30% by the end of the year.

But it's a good play if u gonna go long on it and not touch it for 5+ years.

DMC

03-07-2021, 12:50 AM

I'd wait for the upcoming crash. I think we're gonna see them crash over 30% by the end of the year.

But it's a good play if u gonna go long on it and not touch it for 5+ years.

They said the same when it hit 20K then again at 40K.

lefty20

03-07-2021, 07:12 AM

They said the same when it hit 20K then again at 40K.

But didn't it crash big after hitting 20k the first time?

I don't think it will crash that hard again. It has too much institutional backing. But everything pulls back, eventually.

DMC

03-07-2021, 02:46 PM

But didn't it crash big after hitting 20k the first time?

I don't think it will crash that hard again. It has too much institutional backing. But everything pulls back, eventually.

"Pulls back" is a relative term, and depends on when you take the temperature. You can find plenty chatter here and elsewhere about how BC was overvalued at under 1K per. No one will pay you for hindsight.

TimDunkem

03-07-2021, 04:59 PM

Who cares about pullback when we're talking the rest of our lives? You'd be so in the green with that much crypto that you won't care about any corrections.

Millennial_Messiah

03-07-2021, 09:00 PM

People live in VA for the sake of business. If you're retiring you go to Florida or Montana or Hawaii or Texas. Whatever suits you the best.

But in the WFH era I don't see the necessity of relocating for business unless you're a healthcare worker or something.

Retire to Texas? Lmfao horrible. Texas is a terrible state to retire to. It's been a great state for 'business' even better than Virginia for the past decade, but in the WFH era I can see Texas losing some people to cheaper states.