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You have 1 million straight away or Earn 100k for the next 10 years? Watch

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    Which one and why?

    1. You are given 1million upfront for the rest of your life (you can't earn any more money e.g investments)

    2. You earn 75k each year for the next 10 years (you can't earn money on investments). But after 10 years you will be earning money on your salary of 25k per year.
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    1 millions stragiht away
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    Are you unfamiliar with the concept of PV discounting or are you banking on negative interest rates and asset depreciation across the board? :holmes:

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    I'll take the cool million buckaroos, thanks :scrooge:
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    (Original post by ViewsFromSi6)
    Which one and why?

    1. You are given 1million upfront for the rest of your life (you can't earn any more money e.g investments)

    2. You earn 75k each year for the next 10 years (you can't earn money on investments). But after 10 years you will be earning money on your salary of 25k per year.
    :albertein:hmm.. option 1: £1 million upfront
    option 2: £1 million spread over 20 years

    i'd probably go for 1, not sure we can all wait around forever :cool:
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    1 million upfront, even if I saved it up and spent it at the rate of 75k a year, I'd make more money from interest?
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    Million now. Buy everything I could ever want and then return the rest
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    Neither, I'm rather expecting to do better than that.
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    Option 1 because life's too short.
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    (Original post by Potally_Tissed)
    Neither, I'm rather expecting to do better than that.
    How much better?
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    No brainer, really. If you can find a bank account with even 4% interest per annum, you'd be earning £40k a year purely on interest and you wouldn't have had to lift a finger for it (aside from finding a bank account with 4% interest).
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    (Original post by King's Regent)
    How much better?
    Not accounting for inflation, present value, or pay increases etc (or tax), my lifetime gross income will hit a million quid somewhere in my mid 40s. Accounting for pay increases etc, I'd hope it would be somewhat sooner than that. So actually a million quid up front and then no further income ever doesn't look such a tempting proposition
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    (Original post by Drunk Punx)
    No brainer, really. If you can find a bank account with even 4% interest per annum, you'd be earning £40k a year purely on interest and you wouldn't have had to lift a finger for it (aside from finding a bank account with 4% interest).
    Someone didn't read the rules

    (Original post by ViewsFromSi6)
    1. You are given 1million upfront for the rest of your life (you can't earn any more money e.g investments)
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    (Original post by Potally_Tissed)
    Someone didn't read the rules
    Does interest count as an investment? I mean sure, technically it is because you're investing it in a bank account that'll give you a half decent return every year, but I assumed that OP meant you can't earn any money from assets bought with the million.

    Although if earning money off of interest is a no-go then I'd go for the second option.
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    (Original post by Drunk Punx)
    Does interest count as an investment? I mean sure, technically it is because you're investing it in a bank account that'll give you a half decent return every year, but I assumed that OP meant you can't earn any money from assets bought with the million.

    Although if earning money off of interest is a no-go then I'd go for the second option.
    I assumed that was included :dontknow:
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    (Original post by Potally_Tissed)
    I assumed that was included :dontknow:
    (Original post by ViewsFromSi6)
    x.
    Yo man, clarification needed concerning post 13.
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    So I can get a million, or I can wait ages and get a million?

    I'll take a million thanks.
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    Being given 1million pounds and not ever being able to earn more than that, be it through employment or investments is not a good thing. Most people earn more than 1 million throughout their lifetimes.
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    (Original post by Foo.mp3)
    Are you unfamiliar with the concept of PV discounting or are you banking on negative interest rates and asset depreciation across the board? :holmes:
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    I'll take the cool million buckaroos, thanks :scrooge:
    Exactly. This isnt even a choice. Even if inflation was zero, you could still make more money over the 10 years with the money right now, than spread out.

    A better question might be £1m today, or £150k per year for 10 years?
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    (Original post by Ronda Rousey)
    Exactly. This isnt even a choice. Even if inflation was zero, you could still make more money over the 10 years with the money right now, than spread out.

    A better question might be £1m today, or £150k per year for 10 years?
    The whole point of this thread was logical not inflation or interests with banks etc. Just a straight up question, 1 mill now and never earn a penny again or 1 mill spread over 10 years but could earn a fixed salary of 25k per year after the 10 years.
 
 
 
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