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customerserviceguy

(25,199 posts)

2. That's the good thing about the long payout period

Reply to PoindexterOglethorpe (Reply #1)

Wed Aug 7, 2019, 05:13 PM

Aug 2019

A lot of lottery winners get urged by "financial planners" to go for a lump sum, if that is an option. The discounting on such an option is terrible, and if expressed as an interest rate, is far more than any reliable investment return. But the "planner" wants the commissions generated by the lump sum, so they push that option. And, in a few years, the winner goes broke.

Maybe people will blow the money for the first couple of years, then realize that they need to salt some of it away. The long payoff period protects them from both unscrupulous "planners" and themselves.

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Amazon Worker in UK To Quit Job After Winning $4.4 Million Lottery [View all] appalachiablue Aug 2019 OP

I hope he understands that 30 years, while longer PoindexterOglethorpe Aug 2019 #1

That's the good thing about the long payout period customerserviceguy Aug 2019 #2

Yeah, the lump sum idea is suicide. He's young, hopefully bright appalachiablue Aug 2019 #3

Even the long payout period isn't a guarantee PoindexterOglethorpe Aug 2019 #4

Well, he's got thirty years to figure it out customerserviceguy Aug 2019 #5