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I"d take a lump sum in a heartbeat, convert it to gold coins and move someplace like Uruguay. if you think that this gov't is going to be AROUND for 20 years, or the money they give you will be the same value each year, you are NUTS, man.
Lump Sum, not even a question. I can make SO MUCH money with the interest for save as hell CD's and whatnot instead of earning 0.0000000% with the government holding my money. And as others have stated, time / money value actually makes that a -% account if you don't do lump sum.
I could make a killing in the stock market as a day trader with that much money. 2-4% gains...oh boy. I've done before and I'll be doing it again.
The only reason, and the only main reason why I would take payments is because, dealing with $6M in one shot is not easy.
However dealing with 600k for the first year will help you align your lifestyle, it;ll help you understand the reality of the situation and it'll help you spend some time over how to spend the money.
If I had a 600k/yr lottery for 20 yrs.
I'd "probably" retain my job, atleast for the first yr or so.
Start looking at various business options based on the fact that I can put forward about $450k in downpayment. The rest $150k goes into a savings account. Yes, my lifestyle will change, but slowly. It'll gain a direction which I would have spent serious time upon.
The first 5 years, I'd start 5 new businesses. It could be 5 pizza shops. It could be 2 gas stations and 3 ice cream shops.
Diversify. Different locations. Will delegate a lot of supervising positions.
If I end up with $6M, I'll end up buying a house for $3M. and couple expensive cars for another 1M and spend a lot of money on useless exotic vacations.
I'd take the lump sum. I have no concerns with spending it all with my finance mindset, and with that amount of money I'm not too worried about eeking the extra pennies out of a financial strategy A vs B. I'd start a bar/music venue (with a nice but small studio attached to it as well) with a friend as well as start a small/ local architecture and design firm for extra side work. I think it helps my wife and I both enjoy minimalism to an extent. We could build our modern minimalist dream-house in our current city on a prime downtown lot for a very reasonable price and be happy still working, but working slightly different jobs.
1. Deposit check.
2. Open accounts at various banks at 250k each for the FDIC insurance.
3. Pay off all debts. Tear up all credit cards.
4. Max out my Roth IRA.
5. Invest the rest of the cash into the stock market.
I would continue to work and use the dividend money as extra income. As some stocks pay between 4-5% returns, I could easily get 2-3x my currently salary.
I understand that you may get more in the ling run if you get annual pymts. BUT if I get lump sum, pay off car, home, loans, etc. .. saving the interest rates PLUS. Paying for a new home vs interest over 20 years. Will save me alongside putting it in high yielding accounts (etc) and getting more interest. All combined seems to save you more. I'd honestly out a million away in either a high interest CD or something, and try leaving there and bot even putting it as part of my budget. That way, if I mess up and lose everything... I'd still gave that to fall back on: )
Ohhhhhh. Also: my grandmother used to say it'd be selfish to keep your good hob if you win lotto because there may be someone who is struggling who needs it to survive And there u are, having lottery winnings abd hogging the job too! ! So you see I'd have no choice but to quit my job, u know... for Granny's sake only... lol
I understand that you may get more in the ling run if you get annual pymts. BUT if I get lump sum, pay off car, home, loans, etc. .. saving the interest rates PLUS. Paying for a new home vs interest over 20 years. Will save me alongside putting it in high yielding accounts (etc) and getting more interest. All combined seems to save you more. I'd honestly out a million away in either a high interest CD or something, and try leaving there and bot even putting it as part of my budget. That way, if I mess up and lose everything... I'd still gave that to fall back on: )
Lump sum. I live in CA, and I'd be afraid they would be bankrupt before they made the payments!
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consider the bills interest, etc
