Basher Posted June 2, 2005 Report Share Posted June 2, 2005 We can all dare to dream.A new lottery launched today where, if you win, you are presented with the following choice:$1,000 a week for life, or $675,000. The break even point is 13 years. Just wondering which one you would choose?I think I would take the $1,000 a week for life. It amounts to the equivalent of a $90,000 per yer salary, which after taxes would be close to $52k. Link to comment Share on other sites More sharing options...
Jaimoe Posted June 2, 2005 Report Share Posted June 2, 2005 I'd go cash for life.It would kill begging from relatives and alleged friends, plus you could work at a job that inspires you. Link to comment Share on other sites More sharing options...
Gr8FuL Posted June 2, 2005 Report Share Posted June 2, 2005 Oh yeah the 1000 per week would be soo sweet..i know a guy who won this a few years back here in n.b..he was a total douche..took all the money up front...bought this big stupid red neck hick truck to go with his nascar team racing hat and matching jacket.He was shwoing off in the parking lot at a tim hortons..by doing doughnuts in the parking lot..on dry pavement...buddy spun his truck into a huge pole and wrote off the whole thing..funy thing is that buddy's insurance never went through..yet...it was a total loss..hahaa Just thought i'de shar...it looked so good on this red neck fool! Link to comment Share on other sites More sharing options...
AD Posted June 2, 2005 Report Share Posted June 2, 2005 I think I'd take the $675k up front... It would be enough to wisely invest and get settled in a comfortable home. Investment income, even compound interest and real-estate value would probably make up the difference in the long run.AD Link to comment Share on other sites More sharing options...
Jaimoe Posted June 2, 2005 Report Share Posted June 2, 2005 It would be smart for anyone with a half-decent paying job to take the $1000 a week for life, especially if you add that dough to you current salary. It would only take you 4-5 years to make 675,000 - and would be a millionare in less than 10 years. Not bad I say. Link to comment Share on other sites More sharing options...
Ms.Huxtable Posted June 2, 2005 Report Share Posted June 2, 2005 I think I'd do the $1000.00 per week. It would keep me out of too much trouble and if I live a nice long life I wouldn't have to worry about pension or supporting myself ever! Even if I'm not responsible for the first 10 years, I would have the opportunity to do it right at some point.I think I could plow through $685K without difficulty considering the size of my family and my circle of friends that I love to spoil.I have a ticket. Link to comment Share on other sites More sharing options...
Jaimoe Posted June 2, 2005 Report Share Posted June 2, 2005 Ms Hux, I bet you'd build one mean wine cellar. Link to comment Share on other sites More sharing options...
Ms.Huxtable Posted June 2, 2005 Report Share Posted June 2, 2005 You better believe it Jamoe. You better believe it. Link to comment Share on other sites More sharing options...
AD Posted June 2, 2005 Report Share Posted June 2, 2005 It would be smart for anyone with a half-decent paying job to take the $1000 a week for life, especially if you add that dough to you current salary. It would only take you 4-5 years to make 675,000 - and would be a millionare in less than 10 years. Not bad I say.I think I'd do the $1000.00 per week. It would keep me out of too much trouble and if I live a nice long life I wouldn't have to worry about pension or supporting myself ever! Even if I'm not responsible for the first 10 years, I would have the opportunity to do it right at some point.I think I could plow through $685K without difficulty considering the size of my family and my circle of friends that I love to spoil.Both very good points. I'm changing my mind. I want a nice house now though!!AD Link to comment Share on other sites More sharing options...
Jaimoe Posted June 2, 2005 Report Share Posted June 2, 2005 You still could buy a nice house. Use the lottery money to pay for the house payments. It's all so easy. Link to comment Share on other sites More sharing options...
Ms.Huxtable Posted June 2, 2005 Report Share Posted June 2, 2005 You don't need to pay for a house all at once to have one. You'd have no trouble securing a 0-5% down mortgage with that kind of income security. Link to comment Share on other sites More sharing options...
AD Posted June 2, 2005 Report Share Posted June 2, 2005 Heheh, yes no doubt. But I don't have that cash now, and I can't really see me winning the lottery, but I still want a house NOW. Me wanting a house is separate from the lottery. But a lottery win would definitely help as that would be the first thing I'd buy, besides a tune-up for my car. And possibly a trip to Chile.AD Link to comment Share on other sites More sharing options...
SevenSeasJim Posted June 2, 2005 Report Share Posted June 2, 2005 I think I would take the $1,000 a week for life. It amounts to the equivalent of a $90,000 per yer salary, which after taxes would be close to $52k.So it's $1000 clear per week? That would be sweet. Find a job where you can work for just 6 months a year and "really" enjoy the other 6 months. Link to comment Share on other sites More sharing options...
CyberHippie Posted June 2, 2005 Report Share Posted June 2, 2005 Incidently, if you took the 700k (yes i'm rounding for simplicity sake) and invested it, it shouln't be too hard to make at least 5% on that a year. 5% of 700k is 35k. Not a bad annual salary for doing nothing, plus you'd be getting compound interest on the principle. But Bashers figures of 52k per year (after taxes) does sound more attractive. Although what gurantee is there that after 10 years you'd still be getting it? Then again, what gurantee is there that your 700k in investments wouldn't just disapear... Hmmm.... Link to comment Share on other sites More sharing options...
Tissue Man Posted June 2, 2005 Report Share Posted June 2, 2005 I thought lottery winnings in Canada are not taxed. Link to comment Share on other sites More sharing options...
rubberdinghy Posted June 2, 2005 Report Share Posted June 2, 2005 (edited) But Bashers figures of 52k per year (after taxes)Lotto winners don't pay taxes on winnings in Ontario Edited June 2, 2005 by Guest Link to comment Share on other sites More sharing options...
Basher Posted June 2, 2005 Author Report Share Posted June 2, 2005 Lottery winnings are not taxed, I never implied that.Also, Cyberhippie, your 34k per year interest on investments WOULD be taxed. Link to comment Share on other sites More sharing options...
Jaimoe Posted June 2, 2005 Report Share Posted June 2, 2005 Sooo, without a taxed jackpot, I'd be a millionare in less than 5 years, and it wouldn't end there. Link to comment Share on other sites More sharing options...
rubberdinghy Posted June 2, 2005 Report Share Posted June 2, 2005 What will $1000 a week be worth in 20 years though? Link to comment Share on other sites More sharing options...
AdamH Posted June 2, 2005 Report Share Posted June 2, 2005 Hard to say what solution works best. On the one hand if you took the lump sum you'd be paying capital gains on your investments that weren't RRSPs. You could put some of the lump into RRSPs and not pay on them now, which would be good, although most people have a maximum contribution that you'd be well over, even if (as most wookies) you've never made a contribution before. Still with that amount of coin you could set yourself up with an Advisor who would dole out your investments fairly into high, medium and low-risk, and probably help you figure out how to make the most of it. He/She would also make it that much harder for you to waste the money away.if you take the $1000 per week I'm assuming that is counted as income, even though we don't tax winnings as they do in the states. You'd automatically be in a higher tax bracket and thus pay a higher percentage, but you could also offset that by making RRSP contributions with the extra salary you'd be getting. Finally there's the cost of inflation. 1000 a week now vs. 20 years from now. Who's got my heady financial formula to help establish the winner?BringRationaleAndDeductionMang! Link to comment Share on other sites More sharing options...
bradm Posted June 2, 2005 Report Share Posted June 2, 2005 Actually, I'm not sure the $1,000/week would be taxed. Either it's $1,000/week as lottery winnings (which aren't taxed), or they take the lump sum money and buy an annuity, which pays out weekly. Since you could also take a lump sum and buy an annuity (paid for with after-tax dollars), and the paid-out money wouldn't be taxed, I doubt the weekly lottery winnings would be taxed.I did some checking, too: I took $675,000, and calculated it to come out to about $1.83 million after 13 years, compounding yearly at 8%. I then took $1,000/week, and figured out how much it'd be after 13 years, at an 8% annual rate, compounded weekly. Guess what? It also came out to $1.83 million. (I've omitted the formulae for future value of money calculations.)Aloha,Brad Link to comment Share on other sites More sharing options...
AD Posted June 2, 2005 Report Share Posted June 2, 2005 BrainReallyAgonising over theDetails ofMoney-makingAD Link to comment Share on other sites More sharing options...
rubberdinghy Posted June 2, 2005 Report Share Posted June 2, 2005 So, if I had 3 apples and took away 2, that would leave me with 4 apples? Link to comment Share on other sites More sharing options...
rubberdinghy Posted June 2, 2005 Report Share Posted June 2, 2005 did anyone buy tickets? Link to comment Share on other sites More sharing options...
Ms.Huxtable Posted June 2, 2005 Report Share Posted June 2, 2005 I got a freebie when I bought my weekly 649. No one else should get one to increase my chances please.Thank you. Link to comment Share on other sites More sharing options...
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