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Originally Posted by Donny
What some of you are missing when saying they should take the money over 30 years is this:
The reason there is a lump sum option is because that is the actual cash value of the prize. To pay it out over 30 years, the lump sum is the amount that the lottery would invest in order to pay the winner their yearly payments. The lottery either puts that money into the investment vehicle they've chosen to use, or they put it into the winner's hands. Either way, it's the exact same amount of money out of the lottery's pockets.
Personally, I'd rather have full control. And if a person is smart enough to hire an attorney I'd say they're also smart enough to hire a financial advisor. I think most of the meat plant workers will be smart enough to hire an advisor who will educate them on this, yet still allow them plenty of money to blow initially.
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Yes, but as I said, most people can't handle "full control" which is, I think, the very root of the discussion. Most people want to have full control of their money. That's not a shock. But can all those people handle it? No.
Money has a way of.... messing with your head. If you aren't smart with your money to begin with, than having $$ signs in your eyes all of a sudden won't help.
For 99% of the middle/lower class people, having someone invest that money and bring them back some every once in a while is just about the smartest thing they can do because they aren't capable of doing it themselves.