Financial intelligence
This is something very weird I read today, about a 20 year old girl that won a lottery in the United States.
The lottery gave her two choices:
Or
- She cashes in a cheque of 1 million dollars at once.
Or
- She gets a deposit of a 1000 USD in her bank account every week for the rest of her life.
She took the wrong pick, and went for the weekly deposits. Which would indeed give her more prize money if she lives past 38. But it didn’t account for interest or profit!
Put 1 million dollars in a mixed stock fund or an index ETF and you get between 7 and 10 % profit per year. Which is more than 52000 dollars per year, so with the million dollars you give yourself a 1000 USD per week too, and make your capital grow!
That’s what’s called financial intelligence!
Always do your due diligence!
Sincerely,
Pele23
Posted Using INLEO
Maybe there's another angle, she didn't trust herself not to wax the lot as soon as it hit her account or have the discipline to properly invest 1 mil, and not squander the capital?
Maybe, still I would not choose this option!
Ditto! :)