20-year-old lotto winner refused $1M in cash and chose $1,000/week for life.

As long as she don't die tomorrow, I don't think its a terrible decision. She can make the 1000 weekly work for her. She's probably still working so really shes set. About 19 or 20 years, she will exceed that amount. She's betting on living a long life.

 

If she dies it will go to an heir.

 

There ya have it. An heir gets 1000 weekly. Thats the better decision then.

 

@ElmerFudpucker and I both talked about how we would handle this situation. He said he would go lease purchase with Werner and run bottled water loads from Arizona to south Florida and deadhead back.

I would buy a fleet spec Cascadia from Swift, stretch it and add a lift axle and heavy steer, keep the 2.64 gears and underbid all heavy haulers with my fuel savings.

 

That's not what I said or even remotely implied. Was responding to Roger's comment about her heirs only benefiting from the lump sum if she dies. They will also benefit from the $1,000 a week if she dies. It doesn't just end if she dies.

 

Took the words out of my mouth.
Those who took the lump sum got their money while the others who went a with $1000 dollars a week for life were SOL when PCH went bankrupt.

 

Inheriting owned annuities is a fraught process. When the annuity is from a lottery, things can get 'complex' in a hurry. And by 'complex', I mean expensive. The rules change based on where the ticket was purchased, where the prize was claimed, where the winner died, and where the heir lives.

Even if the heir can inherit from the lottery provided annuity, taking the lump sum and dumping it all into annuity will generally leave the heir in a better position.

 

Definitely take the lump sum, Time Value Of Money, I guess they don't teach basic finance in high school anymore... We live in a credentialed society where nobody knows how to do anything..like basic finance/ financial decisions.. changing a tire... Etc..

 

Why settle for a Cascadia when a Mack truck awaits?? LMAO
Pardon Our Interruption

 

And keep in mind ETFs like Vangard pay dividends which is more than $1000/week at $6 million.