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Would You Pick Guaranteed Money Now (Five Figures) or Take A Large Risk To Get Six Figures+?
- Thread starter DestinyArrives
- Start date
Eh. It all depends on context. 10k vs 100k? I'm going for it. 60k vs 100k maybe not. 50k vs 1 mill? Going for it.
Depends on the randomness of the game too and my confidence.
Depends on the randomness of the game too and my confidence.
The point of these things is that you might say guaranteed money now but in the moment with the big money in front of you a lot of people would go for it.
Depends on what the risk is. Do I gotta answer a trivia question.............might risk it depending on the category.
If we're talking 50K as the minimum, and not something like 10K, then the former easily. And invest at least half of it.
That's what I would do, but that wording.
That's what I would do, but that wording.
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Folks, $99,999.99 is five figures. Get that and go fish a penny out of the urinal and boom - six figs 😎
I feel like 90% of people would take the guaranteed $50k, myself included. That's a hell of a house down payment. If it were 50/50 odds, it'd need to be something closer to 7 figures for me to turn town that much cash money. Game shows tend to intentionally screen for risk-taking contestants, so they're not a terribly good representative sample.
Regardless though, as others have said even the lump sum is still probably worth more investing in the long run amortized by the risk involved in the higher reward. Only the chumps go for the annuity.
Regardless though, as others have said even the lump sum is still probably worth more investing in the long run amortized by the risk involved in the higher reward. Only the chumps go for the annuity.
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People do this all the time with tech jobs.
They'll turn down an established, well-paying job, for one at a startup that pays less, but has the upside bet of equity.
If the company goes bust, it's a loss, but if the company pans out that equity can easily be enough to retire on.
Depends on what you have to do. Also depends on how much the difference is. I'm pretty risk adverse though.
Yep and be halfway to a million dollars. My response may change depending on how old the person is, but if your in your thirties or younger, absolutely take the $50k.
It would be worth around $250k after 20 years.
I'd take the guarantee. That's a large enough number to significantly impact my life immediately as well as give me something to invest with for the future.
50K to 500K is a pretty big jump, but generally if I get too greedy it backfires on me so I'd probably just take my ball and go home with 50K.
There are a lot of factors in play, here. Even going with the 50k/500k example, is there any aspect of skill involved here or is it random luck? How does the game I'm playing work? How much are the taxes? Is there a guaranteed minimum point like HWTBAM where once you're past a threshold you are guaranteed 32k or whatever?
Isn't it 42% tax rate on gambling winnings? Y'all would just end up owing a ton of money you can't pay, to the IRS.
same.
im not gonna fault anyone for taking it that needs it though.
but i do have to laugh at some of these 'invest it" remarks. At an average rate or 6% it would take 25 years to get to 220k
call JG Wentworth!
Great, 25 years from now is exactly when I hope to retire. A guaranteed windfall of $50k right now gives me an additional $220k in 25 years that I otherwise wouldn't have had.
If I had $50k extra right now I would have $40k left over after starting a business that would likely be a great secondary form of cash flow. I'll go the safe route. I'm likely to be dead within 8 years, gotta make my money work for my family now so they can have something later.
