£1000 every week for life or £1m now?

[Guest Kopfkino]

http://www.bbc.co.uk/news/business-43566894

 

An 18 year old in Canada won on the lottery and the prize was a choice of £1k a week for life or £1m now. She chose the £1k a week which is probably a wise choice at 18. 

 

Which would everyone choose? 

Edited 29 March 2018 by Guest

[Carl the Llama]

£1k/week, it's a no-brainer unless you expect to shift off this mortal coil in the next 20 years.

[David Guiza]

The box, obviously. 

 

[ealingfox]

Grand a week - no brainer. 

[Charl91]

£1000 a week, easily.

 

 

[StanSP]

£1k per week for sure.

 

No tax on it and you're gonna get more than £1m if you live for another 20 years.

 

 

[urban.spaceman]

1K a week. 

[Finnegan]

I'm totally retarded with money. Like, there are chimpanzees that understand economics more than me. 

 

What about the risk of inflation killing the value of a grand versus any interest you'd yield from that million? 

 

Is the grand a week still a much better investment? 

[Countryfox]

7 minutes ago, StanSP said:

£1k per week for sure.

 

No tax on it and you're gonna get more than £1m if you live for another 20 years.

 

 

 

Not necessarily ...   depends what you do with the money ...     I'd go for the £1m.

[DB11]

The million just so could have a wild few holidays and buy a house for a good investment.

 

A grand a week in a few years might not be worth as much as it is now

[ScouseFox]

1 mill in my wallet right now. what a year we’d have. 

[lildave3]

Definitely a million now. 

[yorkie1999]

Million quid now, buy a house for 500k and live off the rest. 20 years time the house will be worth 2 million, but you’d never save a grand a week Unless you carried on working.. but wasn’t the win in Canadian dollars? Which is 500 quid a week 

Edited 29 March 2018 by yorkie1999

[Jattdogg]

I've played this game and never won. Plays it once and wins ffs you lucky sob.

 

At her age I'd take the 1000 every week. She will still have to work  fulltime to really enjoy that money but probably wont spend stupidly and will have a better appreciation  for the cash (then having 1 mill tossed on her plate).

 

Smart move.

 

[TiffToff88]

14 minutes ago, ScouseFox said:

1 mill in my wallet right now. what a year we’d have. 

Does that mean we're all invited to the party?

[Babylon]

2 minutes ago, Jattdogg said:

I've played this game and never won. Plays it once and wins ffs you lucky sob.

 

At her age I'd take the 1000 every week. She will still have to work  fulltime to really enjoy that money but probably wont spend stupidly and will have a better appreciation  for the cash (then having 1 mill tossed on her plate).

 

Smart move.

 

Errrrr no she won't really. 4k a month, if someone can't live off that and have a great life then they are doing something very wrong. 

[Guest Col city fan]

Million for me. I’m fifty this year and wish to grow old disgracefully.

 

[yorkie1999]

16 minutes ago, Babylon said:

Errrrr no she won't really. 4k a month, if someone can't live off that and have a great life then they are doing something very wrong. 

Try telling my Mrs that

[Fox92]

I'm brilliant with money, which leads me to be called "tight", and at my age I think I'd take the 1k a week.

[Merging Cultures]

£1m now and invest it in property. The £1k a week won't be worth anything in 20 years, but the properties I would have bought will be bringing in lots of rent and increased in value.

 

[abc]

No brainer for me. Take the £1M, Invest it to give you a higher than 5.2% apr return and you'll be making more than £1,000 per week, plus the capital grows and so does the interest you get back. The younger you are the better this is than taking the 1K a week, as that also gets smaller (relatively as you get older).

[leicsmac]

19 minutes ago, abc said:

No brainer for me. Take the £1M, Invest it to give you a higher than 5.2% apr return and you'll be making more than £1,000 per week, plus the capital grows and so does the interest you get back. The younger you are the better this is than taking the 1K a week, as that also gets smaller (relatively as you get older).

As long as the rate of return was guaranteed above 5.2% in perpetuity and it was all insured, this would probably be the way to go.

 

Interesting question though - do any investments at all guarantee (in ironclad fashion) that big a rate for a real long time, even if you stick in a mill? 5.2% return sounds like you're heading into higher risk territory for me.

[Jattdogg]

1 hour ago, Babylon said:

Errrrr no she won't really. 4k a month, if someone can't live off that and have a great life then they are doing something very wrong. 

Its 4000 Canadian which is probably 2200£.  It's not that she can't live off of that but to really enjoy a life of more exotic travel and some finer things she would have to work. If she doesn't care for all of that then she can live a comfortable life without ever having to work. 

 

If she's looking for a decent 2000+ square foot detached house in the immediate greater Toronto area then she's looking at a minimum $750000 (£410k) More than likely higher. Terraced style houses (townhomes) run $550000 minimum. The closer to Toronto the faster those rise.

 

Investing the whole lot could be a very good option if you know what you are doing but most people have a hard time with basic finances. Trusting a financial advisor with your money is something else.

 

[DB11]

1 hour ago, Fox92 said:

I'm brilliant with money, which leads me to be called "tight", and at my age I think I'd take the 1k a week.

You don't have to be "tight" to be good with money.

 

What's the point in having a healthy bank balance if you never go out and enjoy yourself or treat yourself?

[ealingfox]

This isn't Zimbabwe lads, a grand is still going to be a fair wedge in ten years time.