Sounds like an easy question, but here are the scenarios:
You can have one of the three....
A) You've won a 1 million dollar lottery. You decide to get paid out via annuity. This means you get equal installments for 20 years. The total of all years equals 1 million dollars minus taxes. You don't work for money.
B) You've won a 1 million dollar lottery. You decide to take your payout as a lump sum distribution. This means you roughly get half the money immediately. You're smart, you want the money to last. You invest it and get 8% annual return. You don't work for money.
C) You land a job that pays you 50,000 a year and are confident you will get 5% raises annually. You don't play the lottery.
Assuming you live 20 years following each scenario, which one are you financially better off with? Which option would you personally prefer? Why?
2007-05-14 08:11:20 · 13 answers · asked by Zeltar 6 in Entertainment & Music ➔ Polls & Surveys
i would choose c, because it is hard to live without doing anything, a person needs to be complete and valuable and to do something else except spending...
2007-05-14 10:53:16 · answer #1 · answered by lanithka 4 · 1⤊ 0⤋
A decade ago, the Bush tax cuts had their desired effect of getting out of the slump we ere in AND increasing revenues. However, the cuts have now been part of the economic landscape and have become the norm. Not extending them now is equivalent to a huge tax increase. Even a number of Democrats in Congress know that raising taxes during weak economic times is a bad idea. This is why Pelosi adjourned the House when she did to sidestep the vote on extending the cuts, there were too many Dems that would vote for extending them all. The top 10% (including the 2%) of wage earners are responsible for most of the small and large business in the country. If you dump on them, you are placing a big, fat jockey on the back of thoroughbred business and asking why they aren't winning races. What they save of THEIR money, they reinvest into theirs and others business. Investment is key to expansion. Expansion creates jobs. The high unemployment at the end of the Bush Administration (>9%) had NOTHING to do with the tax cuts. It had EVERYTHING to do with the mortgage meltdown due to the pushing of risky sub-prime adjustable rate mortgages (ARMs) on to people that couldn't afford them. Democrats (and their ACORN minions) were behind this push but Republicans liked the quick buck Wall Street made on them. Bush played "don't rock the boat" politics because everybody was happy doing what they were doing, until the mortgage rates reset higher. Not only are keeping the tax cuts in place good for business, it's another important signal to business that the government is actually interested in making policy that is business-friendly. Business is ready to expand but, up until now, has had the Sword of Damocles hanging over their heads of anti-business policies. A Republican House alone gives confidence to business that someone has their backs.
2016-05-18 00:16:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
win the lottery why cause I live in Canada so if I win the million dollars its TAX FREE & I get the whole thing right there at the lottery office..... so now I can do what I want without having to to to my job hey I have been working for a long time now so I deserve the break.....
2007-05-14 08:15:24 · answer #3 · answered by muffett1 7 · 0⤊ 0⤋
C. I would suppose that for tax purposes, I would pay less into the governement by working and investing in a Roth or 401(K), buying a home and purchasing stocks and bonds. No one would ask me for much.
With the lottery, you're paying huge amounts in taxes and you will be beseiged by every charity and charity case imaginable, to the point where you would have to move or hire security or guard your family. It isn't worth it.
2007-05-14 08:27:09 · answer #4 · answered by Jess 7 · 0⤊ 0⤋
I'd prefer A, becuase I always find a job that'll bring in some cash, and the lottery money can be my rainy day money.
2007-05-14 08:18:02 · answer #5 · answered by mury902 6 · 0⤊ 0⤋
land the job
2007-05-14 08:14:41 · answer #6 · answered by rejecttf 2 · 0⤊ 0⤋
Man those words are like a big computer manual, I wish I had easy money.
2007-05-14 08:15:12 · answer #7 · answered by Anonymous · 0⤊ 0⤋
UH, VERY DETAILED QUESTION...
I WOULD RATHER WIN THE LOTTERY....
WOW, THAT QUESTION WAS VERY SPECIFIC....
2007-05-14 08:14:54 · answer #8 · answered by Anahl's Cousin 2 · 1⤊ 0⤋
I would take lump sum and open a business
2007-05-14 08:15:04 · answer #9 · answered by Jellybean 4 · 0⤊ 0⤋
I'd have to say "C", because if you dont work you get lazy...& if you just keep getting paid then you become snobby.
2007-05-14 08:16:04 · answer #10 · answered by lilmsclay 2 · 0⤊ 0⤋