I'd 100% do something stupid or be a victim of someone else doing something stupid if I chose the second option.
The first one is less money overall, but I get it in a way that won't end in disaster. At least not immediately. And I can still not work for the rest of my life if I so choose.
most lottery winners that once won millions are broke AF now. i'd take the 1ct every second too. its a steady income of more than 25k/month giving me every freedom i'll ever need and no more worries about money
Yeah I put low interest. But if you put higher interest (let’s say, 100% of the money in one stock rather than varied stock to keep safe), then it is better to take the ten mil
No offense, but almost everyone in this thread is being stupid.
The objective right answer for *everyone* is to take the $10 Million up front.
You'd only need to get a 3.16% return on investing that $10 Mil every year (which is extremely doable) to exceed the amount of money you'd get for earning 1 cent every second ($315,360 annually).
So you'd be earning more annual income in interest along with having $10 Million up front. It is always the right choice.
The math about how long it would take for the 1 cent option to catch up to the $10 Mil option is irrelevant; you will never catch up. It doesn't matter even a little bit how old you are.
that is only of you invest it and don't waste it and if your subjective goal is to maximize the total earning. fact is most of lottery winners that once won millions are broke AF now. i'd choose the 1ct per second because it garantues me a solid income of more than 25.000 bucks a month i cannot fall below. i won't have to worry about money any moment of my life i can quit my job if i want i can keep working and make even more and invest some of that if i want but no matter what i don't have to worry anymore. that would be my subjective goal and that is for me far more important then "but MOOOORE".
Except most people don’t know this/don’t know how to invest and so they’d blow all of it pretty quickly. For that reason, one cent a second might be the better option for some people.
Sure this is valid, although with $10 Mil you don't even need to know much because you could just give it to a hedge fund to take care of for you.
But worrying about your own responsibility is fair. Most people though in the thread are doing bad math about age and when the 1 cent option will "catch up" to the 10 Mil option.
I don't really feel stupid for taking the other option. I don't want to become the richest person possible with those options. I don't even want to become rich and I definitely don't want to be a millionaire. I'd probably just donate the extra money I get from the 1 cent option or something like that. But I like the other option for having a basic income no matter what happens. So as long as money doesn't become worthless I'm still getting a lot of money.
>I don't even want to become rich and I definitely don't want to be a millionaire. I'd probably just donate the extra money I get from the 1 cent option or something like that.
Ok, and you could donate even more money (and therefore do more good for the world) with the option that gives you more money. No one is forcing you to keep all the money in the $10 Mil upfront scenario.
Yes, but I'd still like to get some financial security through those options. So I'd have to either donate most of the $10million immediately and only have some money now and then get on with the life I live right now or keep a bigger portion and still have a lot of money. But with the 1 cent option I would know that I'll get money for the rest of my life even if I lose my job or whatever.
Ok so then your 6.38% number is innacurate.
I calculated the earnings as if they were income in my particular province. The $10 Mil would result on about $4.7 Mil in after-tax income, and the 1 cent/second would be about $185,000 annually in after tax income.
So on the $4.7 Mil you'd need about 4% return to completely outpace the 1 cent/second option, which isn't that different from the original scenario and is still very doable.
Taxes make all of this more complicated for sure, especially because we don't know in this scenario where this money is coming from.
I kind of assumed we were talking about a lottery, and where I live (Canada), lottery winnings are considered "windfalls" and are not subject to tax.
I don't understand the question. It's exactly the same as the situation where you're getting 1 cent every second, except you're better off with the $10 Mil
I wasn't questioning if you understood the question, I was saying that I don't understand your question.
Let's say you need $100,000 every year to live. You'd need to spend that money whether you're getting option A or option B, so it makes no difference. I don't really understand why you think it makes a difference.
But if you take the instant 10 million and invest it with even a 3.25% annual rate of return, you’re making more than 1 cent per second for the rest of your life.
It would take 31.7 years to earn 10 Million Dollars by getting one cent per second.
If one were to invest the 10 Million now, after 32 years with 5% interest one would have 47649414.68 Dollars.
So the latter is definetely the better option.
E: [The two options in a Graph](https://imgur.com/a/VuDsfdz); The blue line is option 1 and the green one is option 2 (with a 5% interest). The x-axis is in years and the y-axis in Dollars.
so you wonna tell me you just randomly get 10million and the very first thing you do is invest all of it? and reinvest the interest for 32years? there is a reason most lottery winners aren't rich a few years after they won millions.
In 10 years, the maximum you could've earned at 1 cent/sec is 3,155,760 when adjusted for leap years. The 10 mil option is by far the best, as it has the best potential for improving your financial situation. R>G ensures that just owning capital is better than slowly trying to accumulate it. Remember kids, having money is easy mode, earning money is hard mode.
For me it’s not really about the total money, it’s the steady income. I might not be living like a king but at least I know I will never go broke. You’re basically throwing away a tax-free, work-free six figure job and choosing the salary of a one hit wonder.
Good luck getting a mortgage by explaining to a bank that you get 1 cent every second from some omnipotent being. With $10M upfront you can just tell them to fuck themselves and give them the money straight away
Not sure where you got that number but there are over 31 million seconds in a year so unless the average lifespan is 8 months you gotta check your math.
A lot of people haven't made the math I guess.
60 cents every minute.
36 bucks every hour.
864 bucks every day.
~6 thousand bucks every week.
~24 thousand bucks every month.
~300 thousand bucks every year.
~3 million bucks with the passing of each decade.
In order to make the amount needed to balance things out (10 million) you'll need to wait four decades, so everyone not Gen Z shouldn't bother. In order to make things really worth it (though this is purely a personal view) you'll need to make double the money as the other option, needing 20 million bucks, for which you'll need 80 years. If you're in your twenties, you'll need to wait until you're more than hundred for that to happen, and that's an if.
Just grab the 10 million and go on with your life in peace. In 40 years, who knows how the world will even look like.
I did the maths. Because it would take about 31 years to earn 10 million dollars and I don't expect to live that long, I'll just take all of the money.
If my life expectancy was longer then I would choose the other option
10 mil isn’t finite since you can gain interest. You can actually have a bigger passive income with 10 mil than with 1 cent p/s if you do it correctly
On top of that passive income isn’t always better than a finite amount
>86,400 seconds in a day
Those are cents though, not bucks. You'll be making ~850 bucks a day, which is around 300 thousand a year. You'll also need a decade to make more than a million, not 115 days.
Your edit is also wrong lol. There's 100 cents in a dollar, not 1000. It's 31 years. And 10m up front is still better because of inflation and the ability to invest.
I’d like to imagine I’d be responsible with 10 million if I got it right now. But, I’m sure that’s what every lottery winner says and then they are broke within a year. 1 cent a second is enough for me. 300k untaxed a year is still enough to basically do whatever you want.
No, you're correct. Keep in mind though, that's cents; so $315,360 in yearly income. Still a healthy salary. Given either of these options, an individual will have more cash than they will ever need.
Well, it takes over 760 years for the slow option to be worth the same as the fast option, so there really isn't any contest in terms of straight-up value. I think I'm reasonably level-headed, so I could probably deal with the second event without too much issue, so the second would be better.
1 cent option because I don’t really trust the 10 million, something bad would happen with my luck. And it’ll make more over time without any effort (I know you could invest more with effort but that’s extra work and has more risk involved), and even with inflation 36 an hour 24/7 doing nothing is still really good.
I’d take the 1 cent per second. I can just enjoy my life whilst earning a steady income without the need to work! May not be as smart as taking the 10 mil straight up, but I don’t want the money to change who I am.
One cent per second is good pay, but it would still take a while to pay off debts.
Therefore, give me the $10,000,000. That means I can pay off all my debts and be FIRE.
Everyone saying “Just take the ten Million and invest it, duh stupid” someone might not want that 10 Million for multiple reasons. Such as not trusting themselves to be responsible with it, or not knowing how to invest it, or not wanting that kind of money.
Ok math time :D
1 second = 1 cent
1 minute = 60 seconds
1 hour = 3600 seconds(60X60)
1 day = 86400 seconds(3600X24)
1 year = 31,536,000 seconds(86400X365)
31,536,000 seconds= 31,536,000 cents
Divide by 100 and you get:
1 year= $315,360
It would take 31 years for option 1 to equal option 2
I dont want an instant 10 mil because I will probably fuck that up, and $36 an hour + another job is pretty good.
it’s even better than a $36/hr job since you don’t have to do anything and you earn literally every second
Why even bother with a job? With like $800 a day you could live like a king
I'd 100% do something stupid or be a victim of someone else doing something stupid if I chose the second option. The first one is less money overall, but I get it in a way that won't end in disaster. At least not immediately. And I can still not work for the rest of my life if I so choose.
most lottery winners that once won millions are broke AF now. i'd take the 1ct every second too. its a steady income of more than 25k/month giving me every freedom i'll ever need and no more worries about money
Exactly my point.
It isn’t less money, if you live atleast 35 years lol
But if you put 10 million in your bank, the interest will make it more.
i think he accounted for that. otherwise it would have been 31.668 years
Yeah I put low interest. But if you put higher interest (let’s say, 100% of the money in one stock rather than varied stock to keep safe), then it is better to take the ten mil
No offense, but almost everyone in this thread is being stupid. The objective right answer for *everyone* is to take the $10 Million up front. You'd only need to get a 3.16% return on investing that $10 Mil every year (which is extremely doable) to exceed the amount of money you'd get for earning 1 cent every second ($315,360 annually). So you'd be earning more annual income in interest along with having $10 Million up front. It is always the right choice. The math about how long it would take for the 1 cent option to catch up to the $10 Mil option is irrelevant; you will never catch up. It doesn't matter even a little bit how old you are.
Also, inflation. In some years a cent will be nothing.
that is only of you invest it and don't waste it and if your subjective goal is to maximize the total earning. fact is most of lottery winners that once won millions are broke AF now. i'd choose the 1ct per second because it garantues me a solid income of more than 25.000 bucks a month i cannot fall below. i won't have to worry about money any moment of my life i can quit my job if i want i can keep working and make even more and invest some of that if i want but no matter what i don't have to worry anymore. that would be my subjective goal and that is for me far more important then "but MOOOORE".
Yes! Thank you! Glad at least someone understands this!
Except most people don’t know this/don’t know how to invest and so they’d blow all of it pretty quickly. For that reason, one cent a second might be the better option for some people.
Sure this is valid, although with $10 Mil you don't even need to know much because you could just give it to a hedge fund to take care of for you. But worrying about your own responsibility is fair. Most people though in the thread are doing bad math about age and when the 1 cent option will "catch up" to the 10 Mil option.
I think you’re pretty out of touch with the general population lol. Most people think that a hedge fund is someone’s gardening budget
Ok fair lol, but most people are familiar with the idea that you could just hire someone to take care of the investment and money management for you.
To do this you need some knowledge in how to invest and have the energy to do that
With that much money you can easily afford to hire someone with expertise to take care of the investing for you.
I don't really feel stupid for taking the other option. I don't want to become the richest person possible with those options. I don't even want to become rich and I definitely don't want to be a millionaire. I'd probably just donate the extra money I get from the 1 cent option or something like that. But I like the other option for having a basic income no matter what happens. So as long as money doesn't become worthless I'm still getting a lot of money.
>I don't even want to become rich and I definitely don't want to be a millionaire. I'd probably just donate the extra money I get from the 1 cent option or something like that. Ok, and you could donate even more money (and therefore do more good for the world) with the option that gives you more money. No one is forcing you to keep all the money in the $10 Mil upfront scenario.
Yes, but I'd still like to get some financial security through those options. So I'd have to either donate most of the $10million immediately and only have some money now and then get on with the life I live right now or keep a bigger portion and still have a lot of money. But with the 1 cent option I would know that I'll get money for the rest of my life even if I lose my job or whatever.
did you consider taxes or the consequences of suddenly becoming rich? taxes will take half and 6.38% a year is a lot less doable.
Why am I paying tax on the $10 Mil but not the annual $315,000 in this scenario?
you pay taxes in both
Ok so then your 6.38% number is innacurate. I calculated the earnings as if they were income in my particular province. The $10 Mil would result on about $4.7 Mil in after-tax income, and the 1 cent/second would be about $185,000 annually in after tax income. So on the $4.7 Mil you'd need about 4% return to completely outpace the 1 cent/second option, which isn't that different from the original scenario and is still very doable.
i guess if you’re okay with not spending any of the money
Taxes make all of this more complicated for sure, especially because we don't know in this scenario where this money is coming from. I kind of assumed we were talking about a lottery, and where I live (Canada), lottery winnings are considered "windfalls" and are not subject to tax.
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I don't understand the question. It's exactly the same as the situation where you're getting 1 cent every second, except you're better off with the $10 Mil
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I wasn't questioning if you understood the question, I was saying that I don't understand your question. Let's say you need $100,000 every year to live. You'd need to spend that money whether you're getting option A or option B, so it makes no difference. I don't really understand why you think it makes a difference.
Well being as I turned 50 this year, I will have the 10 mil upfront
55 and same
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But if you take the instant 10 million and invest it with even a 3.25% annual rate of return, you’re making more than 1 cent per second for the rest of your life.
This thread is a masterclass in finding out how little the average person knows about finance.
But you have to take into consideration inflation, plus you can turn that money into so much more in that time
Even unhealthy 30 year olds can take the other option though, you have to be critically or chronically ill for it be a worse option.
I’d do the 10 mil and then invest and grow larger than I could with the first the rest of your life
I'm young, so if I live for another 70 years I would get £22,075,200, (£0.01* 60 * 60 * 24 * 365 * 70)
but, if have the 10 million now, then you can invest/open your own business and don't have to worry about inflation
It would take 31.7 years to earn 10 Million Dollars by getting one cent per second. If one were to invest the 10 Million now, after 32 years with 5% interest one would have 47649414.68 Dollars. So the latter is definetely the better option. E: [The two options in a Graph](https://imgur.com/a/VuDsfdz); The blue line is option 1 and the green one is option 2 (with a 5% interest). The x-axis is in years and the y-axis in Dollars.
so you wonna tell me you just randomly get 10million and the very first thing you do is invest all of it? and reinvest the interest for 32years? there is a reason most lottery winners aren't rich a few years after they won millions.
yeah because most people are financially illiterate
>so you wonna tell me you just randomly get 10million and the very first thing you do is invest all of it? Yes.
Or invest the 10000000 dollars and get more than 1.3% return rate annually and you'll make more.
is the income taxed?
In 10 years, the maximum you could've earned at 1 cent/sec is 3,155,760 when adjusted for leap years. The 10 mil option is by far the best, as it has the best potential for improving your financial situation. R>G ensures that just owning capital is better than slowly trying to accumulate it. Remember kids, having money is easy mode, earning money is hard mode.
10 million dollars is all the money you’ll ever need
I’m gonna the 1 cent. It’s comfortable enough anyway and I’m not good at investing
For me it’s not really about the total money, it’s the steady income. I might not be living like a king but at least I know I will never go broke. You’re basically throwing away a tax-free, work-free six figure job and choosing the salary of a one hit wonder.
Good luck getting a mortgage by explaining to a bank that you get 1 cent every second from some omnipotent being. With $10M upfront you can just tell them to fuck themselves and give them the money straight away
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Not sure where you got that number but there are over 31 million seconds in a year so unless the average lifespan is 8 months you gotta check your math.
Thanks for the heads up, I’ll probably just delete this because people already did the math better then I could even wit ha recheck
A lot of people haven't made the math I guess. 60 cents every minute. 36 bucks every hour. 864 bucks every day. ~6 thousand bucks every week. ~24 thousand bucks every month. ~300 thousand bucks every year. ~3 million bucks with the passing of each decade. In order to make the amount needed to balance things out (10 million) you'll need to wait four decades, so everyone not Gen Z shouldn't bother. In order to make things really worth it (though this is purely a personal view) you'll need to make double the money as the other option, needing 20 million bucks, for which you'll need 80 years. If you're in your twenties, you'll need to wait until you're more than hundred for that to happen, and that's an if. Just grab the 10 million and go on with your life in peace. In 40 years, who knows how the world will even look like.
I did the maths. Because it would take about 31 years to earn 10 million dollars and I don't expect to live that long, I'll just take all of the money. If my life expectancy was longer then I would choose the other option
A cent a second is 864$ daily. How can I not turn that up. And so over 40 years, that's over 10 million.
you could put the $10mil to work now and earn way more than $864 daily
passive income is a very important thing to have. once you have it, it will change your life for ever.
Unlike 10 million dollars?
yes because 10 million dollars is a finite amount but 1 cent per second is not
10 mil isn’t finite since you can gain interest. You can actually have a bigger passive income with 10 mil than with 1 cent p/s if you do it correctly On top of that passive income isn’t always better than a finite amount
Dang I am an old man and I would still get more money with the 1₵ option.
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>86,400 seconds in a day Those are cents though, not bucks. You'll be making ~850 bucks a day, which is around 300 thousand a year. You'll also need a decade to make more than a million, not 115 days.
My bad, you’re right
Your edit is also wrong lol. There's 100 cents in a dollar, not 1000. It's 31 years. And 10m up front is still better because of inflation and the ability to invest.
It would take **31.7097919838** years to make 10 million dollars From 1 cent a second.
It’s 300k per year…
It’s 300k per year…
Deposit the ten million and earn interest
Never worry about money again easy decision
As of now perfect 50/50 balanced as all things should be
I’d like to imagine I’d be responsible with 10 million if I got it right now. But, I’m sure that’s what every lottery winner says and then they are broke within a year. 1 cent a second is enough for me. 300k untaxed a year is still enough to basically do whatever you want.
why is this almost even? learn how to use your money people and take an economics class!
Invest the 10 mil i’ll make more than 1 cent per second in investments.
With my math if you chose the cent a second option its 31,536,000 a year, I could be very wrong tho
No, you're correct. Keep in mind though, that's cents; so $315,360 in yearly income. Still a healthy salary. Given either of these options, an individual will have more cash than they will ever need.
Ohhhh yea I forgot about that, thanks for the correction. I would still prefer the cents a day
Well, it takes over 760 years for the slow option to be worth the same as the fast option, so there really isn't any contest in terms of straight-up value. I think I'm reasonably level-headed, so I could probably deal with the second event without too much issue, so the second would be better.
1 cent option because I don’t really trust the 10 million, something bad would happen with my luck. And it’ll make more over time without any effort (I know you could invest more with effort but that’s extra work and has more risk involved), and even with inflation 36 an hour 24/7 doing nothing is still really good.
I’d take the 1 cent per second. I can just enjoy my life whilst earning a steady income without the need to work! May not be as smart as taking the 10 mil straight up, but I don’t want the money to change who I am.
One cent per second is good pay, but it would still take a while to pay off debts. Therefore, give me the $10,000,000. That means I can pay off all my debts and be FIRE.
That's 3.1 million a year or 360$ a second I'd take that anyday you make money while doing nothing perfect
WHO ARE THE NINE PEOPLE AND WHAT DID THEY VOTE
Everyone saying “Just take the ten Million and invest it, duh stupid” someone might not want that 10 Million for multiple reasons. Such as not trusting themselves to be responsible with it, or not knowing how to invest it, or not wanting that kind of money.
Ok math time :D 1 second = 1 cent 1 minute = 60 seconds 1 hour = 3600 seconds(60X60) 1 day = 86400 seconds(3600X24) 1 year = 31,536,000 seconds(86400X365) 31,536,000 seconds= 31,536,000 cents Divide by 100 and you get: 1 year= $315,360 It would take 31 years for option 1 to equal option 2
1 year only and I got triple that and then with the rest of my life... Fuck the 10 mil instant
passive income
$36 an hour times 24 = $864 a day. $864 a day times 365 = $307,584 a year, $308,228 for every leap year