Weekly Pay > Lump Sum
Would you take $780,000 today, or $1,000 a week for the rest of your life? Either decision you make is a good one, but one could be better depending on how you use it.
According to TIME Magazines Money page, a Canadian teen purchased her first lottery ticket on her 18th birthday and won the jackpot. Charlie Lagarde bought a $4 scratch lottery ticket along with a bottle of sparkling wine on March 13 to celebrate her 18th birthday and realized she won the grand prize once she got home.
After sharing the good news with her family, Lagarde took a few weeks to figure out if she wanted to receive a lump sum of $780,000 (after taxes) or opt for $1,000 payouts per week throughout her life.
The BBC reports, after consulting with a financial adviser, Lagarde opted for the $1,000 a week since it’s not taxed, which translates to $52,000 a year. Considering it’s tax-free she’s set to make more than the average household income in the U.S without having to work a day the rest of her life.
What would you do with the winnings? I think it has a lot to do with what age you are in this situation. With Lagarde being 18 years of age it will only take her 16 years to equal the equivalent of the $780,000 lump sum, so in my opinion, it’s a no-brainer why she chose the weekly payout. If you were older it might make sense to take the lump sum and just invest the money to try and make more money. Everybody’s case would be different, but the good news for her is that she’s rich.
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