₦airaland Forum

20-year-old lottery winner decides against $1M lump sum, opts for lifetime weekly annuity in hopes of buying a home

A 20-year-old Canadian woman named Brenda Aubin-Vega won the Gagnant à Vie lottery in Quebec and was faced with a choice between a one-time $1 million payout or $1,000 per week for life.

According She chose the weekly payments $1,000 every week.

The weekly payment isn’t just a gimmick lottery rules in Quebec often allow winners to pick annuity-style lifetime payments. In similar past cases, other winners have also chosen the weekly option.

To dear nairalanders, what's Ur thoughts about her decision, does she make wise decision or financial blunder?

If you are in her shoes, which one will you pick?

Source: https://ca.news.yahoo.com/20-year-old-lottery-winner-decides-against-1m-lump-sum-opts-for-lifetime-weekly-annuity-in-hopes-of-buying-a-home-120026248.html?utm_source=chatgpt.com&guccounter=1

SHE MADE A VERY WISE CHOICE

Make I go choose weekly payment for life...

Make the company go fold after 2 years due to mismanagement, bankruptcy, legal cases or whatever uncertainties of life that exists.


Oga give me the complete cash make everybody find their way. You and who want do that one.

I don't roll that way biko!

First off, it’s going to take her roughly 20 years to get a million bucks at the rate of $1k per week. So, why don't you just grab the twenty years' worth of payments right now and start planning your retirement? It’s like picking a quick 10k over getting a solid 500k—you can actually do something tangible with the bigger amount (rent, enough provision etc), but the small one won't even buy dinner for 2 days. Besides the company might crash before then.

Poor decision, if you consider the time value of money

This wan don turn to football deal
With $1k/week, it will be difficult to save up or use it for something tangible, you collect this week own, you squander it in hope of another one, coming next week and by and by, years to come nothing to show for it

Lai lai... give me my 1m. If i perish, I perish.

By the time she's 37, she would have collected a million bucks. She's smart

She made a big mistake. She should have taken 1m and invest 500k in mutual funds in Canada

I hope the company doesn't fold without paying her the lifetime thingy. She should've collected all her money

Collect all the money, invest 70% in stocks and real estate. Use the rest to finance your education and lifestyle.

obembet:
20-year-old lottery winner decides against $1M lump sum, opts for lifetime weekly annuity in hopes of buying a home

A 20-year-old Canadian woman named Brenda Aubin-Vega won the Gagnant à Vie lottery in Quebec and was faced with a choice between a one-time $1 million payout or $1,000 per week for life.

According She chose the weekly payments $1,000 every week.

The weekly payment isn’t just a gimmick lottery rules in Quebec often allow winners to pick annuity-style lifetime payments. In similar past cases, other winners have also chosen the weekly option.

To dear nairalanders, what's Ur thoughts about her decision, does she make wise decision or financial blunder?

If you are in her shoes, which one will you pick?

Source: https://ca.news.yahoo.com/20-year-old-lottery-winner-decides-against-1m-lump-sum-opts-for-lifetime-weekly-annuity-in-hopes-of-buying-a-home-120026248.html?utm_source=chatgpt.com&guccounter=1

It's a wise decision on her path..
$52,000 per year for 19yrs and two months.

Gambling is bad and horrible. It will wreck you financially.

For each of the lady used in this PR sponsored post, there are millions of lives destroyed by betting and gambling.

Don't choose any of the two so it doesn't even cross your mind.

Update: Canada doesn’t tax lottery winnings and it looks like she even gets the lump sum if she opts for the cash value, so yes to most people she made a mistake

For $1 million, It wasn’t a blunder per se especially since she’s young. It all depends on her plans and life goals.

If you opt for the cash prize, you only get about half the money. After paying taxes, you’re left with a quarter of the money you won.

If you opt for the monthly sum, you get the full amount, and because your annual payout is low, tax on the payout will be lower

First year she saves enough to make a down payment on a home. Then she uses the monthly sum to continue paying her mortgage, keeps her current job and doesn’t have to work extra hard like most people abroad.

She made a right choice because she is in a sane country where she knows she is safe.

Who guarantees that you will live for the next 20 years to get $1million .

Why not 1$million once and invest or least enjoy it to the fullest.

You're not promised tomorrow

obembet:
20-year-old lottery winner decides against $1M lump sum, opts for lifetime weekly annuity in hopes of buying a home

A 20-year-old Canadian woman named Brenda Aubin-Vega won the Gagnant à Vie lottery in Quebec and was faced with a choice between a one-time $1 million payout or $1,000 per week for life.

According She chose the weekly payments $1,000 every week.

The weekly payment isn’t just a gimmick lottery rules in Quebec often allow winners to pick annuity-style lifetime payments. In similar past cases, other winners have also chosen the weekly option.

To dear nairalanders, what's Ur thoughts about her decision, does she make wise decision or financial blunder?

If you are in her shoes, which one will you pick?

Source: https://ca.news.yahoo.com/20-year-old-lottery-winner-decides-against-1m-lump-sum-opts-for-lifetime-weekly-annuity-in-hopes-of-buying-a-home-120026248.html?utm_source=chatgpt.com&guccounter=1

what a decision,
Na only she understand the reason when life doesn't promise tomorrow.
I would have collect the money.

Collect the $1mil then invest. for profit of 1k per week

Omo, this one strong oo. No right or wrong decision. 52k a year. Laifa lai gbe. If tax go dey for that $1m, then it's a right decision to getting $1k per week. At least she young. After collecting for 30 years as of her 50th birthday, she go don collect pass $1m. But anyway, she has back up even if she no work.

Financial blunder... with 1m I'm sure she can get a house or two houses and rent them out,getting more than 4 to 5k monthly from them, by age 50,she fit still sell am

Poor descision, even though the T&C of such a deal was not made public. What happens if she dies early, business folded up, issues of inflation?

Make I go choose life payment,make I come die after 2 years.....YES ITS A VERY F00LISH DECISION😂😂

She can invest 1m dollars in business, and gain more than 20k weekly, maybe she not business oriented

SpencerForbes:
First off, it’s going to take her roughly 20 years to get a million bucks at the rate of $1k per week. So, why don't you just grab the twenty years' worth of payments right now and start planning your retirement? It’s like picking a quick 10k over getting a solid 500k—you can actually do something tangible with the bigger amount (rent, enough provision etc), but the small one won't even buy dinner for 2 days. Besides the company might crash before then.

This particular lottery is government run and it's trust fund backed also

Pipefitter:
By the time she's 37, she would have collected a million bucks. She's smart

Do you ever think she can turn the 1million dollars to over five million dollars before 37 years if well managed and wisely invested.

With the devaluation of money over time, that $1k per week might end up being worth only $100 per week in few years. And like someone pointed out already, the risk of the company folding up even within a year is there. And furthermore, with proper investment that 1million can become 100 million in few years. On the contrary you can't do any reasonable investment with $1k dollars.
I think the $1million would have made a better choice.

A big financial blunder.
She is 20, so the payments sound like a lot of time… but the lottery gains the upper hand here.

If she lives to 80, she gets around $3.1 million total but in tiny slow payments.

If she dies early (accident, illness, etc.), the lottery keeps the remaining money. There’s usually no inheritance value in these annuities.

Inflation will eat away the value of the $1,000/week. In 20 years it will feel like pocket change.

I am sure she must have spoken to financial experts for the best advice with regards to her situation. 1 thousand dollar a week equals to 52.000 dollars a year. It would take 20 years to make a million. She is 20 years and could live for another 50 years consequently making more than twice the original sum.

Whilst a lone sum of 1 million is very tempting there is a risk for a youngster losing all that money to bad investments in under a year. At 1K weekly she is guaranteed a lifetime of financial stability...Saving for a year is enough to start a good business with 52K

obembet:
20-year-old lottery winner decides against $1M lump sum, opts for lifetime weekly annuity in hopes of buying a home

A 20-year-old Canadian woman named Brenda Aubin-Vega won the Gagnant à Vie lottery in Quebec and was faced with a choice between a one-time $1 million payout or $1,000 per week for life.

According She chose the weekly payments $1,000 every week.

The weekly payment isn’t just a gimmick lottery rules in Quebec often allow winners to pick annuity-style lifetime payments. In similar past cases, other winners have also chosen the weekly option.

To dear nairalanders, what's Ur thoughts about her decision, does she make wise decision or financial blunder?

If you are in her shoes, which one will you pick?

Source: https://ca.news.yahoo.com/20-year-old-lottery-winner-decides-against-1m-lump-sum-opts-for-lifetime-weekly-annuity-in-hopes-of-buying-a-home-120026248.html?utm_source=chatgpt.com&guccounter=1

She's not very intelligible

Wetin gove her assurance she will live another 20 years? Dumbest collect your money. Lottery win na once in a lifetime. Wasted opportunity. The lottery company sef can get a hired assassin to wipe her of their books after 2 years

She will not ev3n get 1m dollars.

The deductions on that win will gulp almost 40% of it.

She will likely on recieve 600k

Blunder of the highest order! Financial literacy is key. This goes to show that being poor is a mindset, if you are going to be rich it's only a matter of time and if you are destined to be poor, even if you win a billion dollars, you would eventually die poor. Selah.

What if she kpai or the company folds

Statistics have shown that more than 80% of those who win lotteries end up broke in just 2 years. That means people generally don't know how to grow money, she won't be an exception, nor would all the BIG mouths on Nairaland. $4000 a month may not be the worst of things that can happen to her, depending on her lifestyle. Spreading the price money for a lifetime gives her time to research what could be good opportunities, and then learn to compound, without being under pressure. if she later finds a way to invest compoundly $500 weekly, $ 1million would be child's play to her in 10 year. Slow and steady is what makes one rich and wealthy, not suddenly stumbling on cash