• nimble@lemmy.blahaj.zone
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    11 days ago

    Lotterys are usually paid out in annuities where you would get that amount over a period of 10-30 years. However, they also give a lump sum amount which is usually ~half the stated amount and after taxes you could expect to receive 1/3 the stated amount.

    Still, it’s generally best to take the lump sum unless you have very bad self control and would blow through the money.

    • callouscomic@lemm.ee
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      11 days ago

      Statistics show it’s literally best NOT to take the lump sum and that most people have no self control.

      • saigot@lemmy.ca
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        11 days ago

        most people have no self control.

        Most people who gamble have no self control.

      • nimble@lemmy.blahaj.zone
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        11 days ago

        As i said

        unless you have very bad self control and would blow through the money.

        Which is why you can work with a financial advisor and other wealth management strategies to set yourself up for success.

        But yes, lots of people have lack of self control but if you’re going to throw around big words like statistics then show those receipts. And i mean actual studies not an article pulling numbers out of their ass.

    • nimpnin@sopuli.xyz
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      11 days ago

      it’s generally best to take the lump sum

      Why? I would assume it’s the other way round.

      • f314@lemmy.world
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        11 days ago

        The lump sum will grow to be worth more than the annuity over the same period if properly invested

          • Swedneck@discuss.tchncs.de
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            11 days ago

            plenty of people do, they just don’t have 400 million to do it with

            like my brother used the cheapo student loans here in sweden to just chuck a bunch of money into low-risk index funds (i think that’s the term) and he’s gotten 2000 bucks from that for basically 0 effort.

            now imagine doing that with millions of dollars