Tuesday, February 06, 2007

What would you do?

There is a new Canadian lottery that pays $1,000,000 a year for 25 years. I believe this lottery is available only for the month of February and the draw will be on February 28th. And...yes, I bought tickets! However, here's the thing - you can either take the $1,000,000 each year for 25 years or have a lump sum payment of $17,000,000. The owner of the convenience store and I had a discussion about this - he said he's take the lump sum! I thought that was a good idea too because $1,000,000 from the first year would run out quick after sharing with family, paying off the mortgage etc. But - then I got thinking about it - that's leaving $8,000,000 on the table. Really - who would do that? The convenience store man's point was that in 25 years $1,000,000 would not be worth what it's worth today - meaning that $1,000,000 in 2032 would not buy what it could buy in 2007. True enough but $8,000,000? What would you do?

8 comments:

Angela said...

I'd take it over the 25 years.

Knowing me, I'd blow it all on fabric, yarn and a home with property, so it would help me pace myself some.

It helps that I plan on living for more than 25 years. If I was 60+, maybe I'd choose the lump some.

~Angela

Meghan said...

I'd take a million a year, for sure! That way, you can't blow it all -- there's always more coming -- the taxes won't hurt so much all at once -- and I can still quit my job and open a yarn store -- after several months of travelling, of course!

Just think of how much yarn we'd have!!!!

Andrea said...

How much interst would you get with $17 million sitting in the bank?

I would take the million a year. It's enough to make a drastic improvement in my life and to help out my family a bit, but not enough to go completly overboard. I think a million a year, I would use the money better.

That reminds me - must buy my ticket.

Roxanne said...

You could probably take the $17,000,000 now and invest it well and make that extra $8,000,000 over 25 years easily or more. $17,000,000 now would make a heckuva lot more interest than $1,000,000 per year or so that's my morning brain is telling me...LMAO! So I guess I would take it now too...nothing says that lottery corporation will be around in 25 years either.

Isobel said...

Take the money, find a wonderful investment manager, sink it into a diversified money market fund and you could literarly live off the interest. I am assuming that the goverment has already had their cut when you get the 17 million. Also with most lotteries if you take the pay out year by year and something unfortunate happens and you were to pass away - pooof so goes the money.

Debby said...

I always take cash option. Get it all at once. What's a few million anyway lol

z said...

definitely take the $17 million rather than the 1,000,000 a year.

yup, i'd absolutely go overboard spending. i'd buy a house for us, for my parents, for my brother. i'd have the best sock yarn stash on the planet! IF i went SO overboard i spent the entire $17 million in a short time, meh... at least the houses are paid for ;)

z said...

definitely take the $17 million rather than the 1,000,000 a year.

yup, i'd absolutely go overboard spending. i'd buy a house for us, for my parents, for my brother. i'd have the best sock yarn stash on the planet! IF i went SO overboard i spent the entire $17 million in a short time, meh... at least the houses are paid for ;)