£10,000 per month or £1,000,000 once?

[MrL_JaKiri]

What would you choose?

Also, damn you whoever deleted those threads, I was having a nice little discussion with SI.

[pablissimo]

Ban user delete thre... ohwait what?

And £10,000 a month, dumbass.

[arbondigo]

Is the £10,000 per month for the rest of your life or until you get up to £1m? And do you have to do some "work" for it like the other thread said or not?

If no work was involved then £10k per month for me, either for rest of life or until i get up to £1m

[MrL_JaKiri]

For the rest of your life.

Originally Posted by pablissimo

Ban user delete thre... ohwait what?

And £10,000 a month, dumbass.

Personally, I'm not so sure. You couldn't buy a house for a good while off £10,000 pm, and, once you have that, the bills you have to pay are much reduced. The £10,000 will also devalue significantly over time, although you're immune to some things, like fraud.

[Structural Integrity]

Originally Posted by pablissimo

Ban user delete thre... ohwait what?

And £10,000 a month, dumbass.

But it involves "work". We wouldn't want that no? And there's inflation.
On the other hand, if I got a million at once I'd prolly waste it on useless stuff.

[MrL_JaKiri]

Originally Posted by Structural Integrity

On the other hand, if I got a million at once I'd prolly waste it on useless stuff.

Oh, but the memories will be priceless!

[CrashTester]

I'd probably take the 1 million and then just use the interest as an income to live off each year

[midge5]

I would go for the £1 million. I would then use that to buy a house, invest some in stocks and leave most in the bank to live off the interest.

If the £10k was adjusted for inflation as well though I would be more likely to go for that.

[XeeThot]

Originally Posted by CrashTester

I'd probably take the 1 million and then just use the interest as an income to live off each year

[zakoff]

it would be better to get £1mil in a lump sum. It takes 8years and 4months to generate £1mil from £10k a month, and in that time it wouldn't be worth it at all.

If you get £1mil you can invest it in lucrative ways and make alot more money. Some clever buisness man said its easier to make a second million that it is to make the first dollar. Plus the interest you can make on £1mil would be enough to survive.

[MrL_JaKiri]

Originally Posted by CrashTester

I'd probably take the 1 million and then just use the interest as an income to live off each year

You'd only get more than the £10,000 if it had 12% APR or over, though.

[Ste]

the 10k a month would mean a salary of £!20k.
Even with one of the best interest rates you wouldn't get that on £1m.
Either would be nice though - I could live off them both for the rest of my life.

[Dead_Meat]

There is no right answer, as it will depend on the rate of return on investment.

If the base rate is low, then the monthly looks better, if it's high, the lump sum pays off.

This makes interesting reading

[midge5]

If, somehow you did end up in a position to accept one of these, would you continue to work or just stay at home instead?

I think I would continue to work, maybe with a change of career depending on how much I enjoyed my job. It would just get boring after a while otherwise.

[Structural Integrity]

Originally Posted by midge5

If, somehow you did end up in a position to accept one of these, would you continue to work or just stay at home instead?

I think I would continue to work, maybe with a change of career depending on how much I enjoyed my job. It would just get boring after a while otherwise.

After I finished school I sat at home for three months. Never* again. It was boring as hell. I didn't feel like doing anything then.

* wouldn't mind having thee months off right now

[Ste]

Originally Posted by midge5

If, somehow you did end up in a position to accept one of these, would you continue to work or just stay at home instead?

I think I would continue to work, maybe with a change of career depending on how much I enjoyed my job. It would just get boring after a while otherwise.

I'd probably do volunteer work. Maybe loads of travelling.
I certainly wouldn't keep working in a job I didn't give a shit about.

[CrashTester]

Originally Posted by MrL_JaKiri

You'd only get more than the £10,000 if it had 12% APR or over, though.

But who really needs £10,000 a month to survive? With the current low interest rates you'd probably get around £50,000 per year, which is a very good income, plus the rates are more likely to rise than fall, so more money there in the long run. Any money you dont spend will continue to give you even more interest.

Plus you always have the security of knowing you have 1 million in the bank to use if you really need to.

If you take £10,000 per month and die early, you would not have recieved the full benefit of what you could have had.

Just some of the reasons why I would go for the 1 million.

[Dace]

The £million.

I have (what i believe to be very good) business plans.

Plans which im sure would net me millions a year (im serious ... but then i dont know business so maybe not).

Those plans require a large amount of capital (more as lawyers fees so the big companies dont **** me by stealing my idea).

My life in the future is basically trying to figure out how to make a mil to start my company anyways so *shrug*

[Nodrog]

Originally Posted by midge5

I would go for the £1 million. I would then use that to buy a house, invest some in stocks and leave most in the bank to live off the interest.
.

This wouldnt work, if you were withdrawing the interest every year then the amount you put in would deflate. In any case, assuming you put 500000 in the bank, you'd only be getting aroud 25K interest before tax, which isnt really a particularly large sum of money to live off.



The 10K by the way.

[Nodrog]

Originally Posted by CrashTester

But who really needs £10,000 a month to survive? With the current low interest rates you'd probably get around £50,000 per year, which is a very good income, plus the rates are more likely to rise than fall, so more money there in the long run. Any money you dont spend will continue to give you even more interest.

50K a year before tax isnt that much, especially when you know that you have 1 million waiting for you. Temptation would eventually get the better of you, and you'd end up withdrawing it and spending it on something stupid.

[Kurashima]

Originally Posted by Nodrog

50K a year before tax isnt that much, especially when you know that you have 1 million waiting for you. Temptation would eventually get the better of you, and you'd end up withdrawing it and spending it on something stupid.

[TehLollyCopter] Like 25,000 Tarantulas [/TehLollyCopter]

[Dace]

"It's funny cause Nod was stupid."

[Al Gore]

Probably the 10k, just because it's a lot more money over your lifetime than just a million, even accounting for inflation. Also, there are plenty of once rich people (eg. lottery winners, people with large inheritances) out there who are now pretty peniless; I can't see that happening with a guaranteed annual income of £120000.

[midge5]

Originally Posted by Nodrog

This wouldnt work, if you were withdrawing the interest every year then the amount you put in would deflate. In any case, assuming you put 500000 in the bank, you'd only be getting aroud 25K interest before tax, which isnt really a particularly large sum of money to live off.


The 10K by the way.

I agree that 25k a year wouldn't be much to live off but I would carry on working anyway. Assuming I only spent £250k on a house (even that might be a bit of an overestimation for parts of South Wales) that would leave me £250k to play around with in investments. I would probably put £30k in premium bonds and then mess about with different shares or something else that took my fancy.

I have no doubt I wouldn't make as much money this way as if I had the £10k each month but I would rather be able to afford to pay off the house immediately without having to endure interest payments, have money in the bank just in case something happened, I would have more fun playing about with larger sums of money than just slowly increasing it each month and if for some reason I died young at least this way I would have money to pass on rather than the prixe disappearing.

[MrL_JaKiri]

Originally Posted by Nodrog

This wouldnt work, if you were withdrawing the interest every year then the amount you put in would deflate. In any case, assuming you put 500000 in the bank, you'd only be getting aroud 25K interest before tax, which isnt really a particularly large sum of money to live off.



The 10K by the way.

£25k could be a perfectly worthwhile amount; between our whole house we're spending £50 a week on food (6 people), so making that between 1 is fairly safe. Add in another £300 per month to cover the basic bills, and that's still £20,000 or so for throwing around cash.

Most peoples major expenses are either loan/mortgages or rent. Remove that from the equation and people would be able to live much better than they can normally/

[queball]

I'd take the £1 million and throw it on the pile, I suppose.

[Tactitus]

I'd take the lump sum, US tax laws being what they are. You take a big tax hit initially, but then you can invest the rest (in tax-exempt bonds, if you prefer). With a monthly distribution, you lose more of it to taxes.

[Dead_Meat]

Originally Posted by MrL_JaKiri

£25k could be a perfectly worthwhile amount; between our whole house we're spending £50 a week on food (6 people), so making that between 1 is fairly safe. Add in another £300 per month to cover the basic bills, and that's still £20,000 or so for throwing around cash./

£50 a week, for six people? What do you eat, frozen water?

I'm sure that once you have £1,000,000 in the bank, you'll be perfectly happy living in a shared house, eating beans and nipping down the laundaurette to wash your smalls every week.

[Ebany]

We generally eat lots of nice big meaty meals. Today we had Chicken Gumbo, we have pizza and burgers and chilli and chicken and bacon melts, and generally fatty, cheesy things like that.

The £50 does only cover evening meals, we sort out our own breakfasts and lunches. These dont cost much though. And we have our own washing machine and dryer. Its just mostly cause we all eat together and cook things from fresh ingredients, rather than using anything prepared.

Its a good cheap way to eat, but it takes a lot of effort from those that do the cooking. Thankfully I am not one of those people. Mark does a great pizza though (all from fresh)

[SilverSmoke]

I would go for the 10k a month, just because I will probably do a lot of stupid things with the million. Living on 10k a month for your entire life sure does sound comfortable to me.

[Phang]

ten grand so very obviously.

[demiGOD]

1mil up front and invest - 10K might be equivalent to 1K in 5 years and that would freak me out

[Ste]

Originally Posted by demiGOD

1mil up front and invest - 10K might be equivalent to 1K in 5 years and that would freak me out

Is the American economy really that bad?

Anyway, not including rent I spend about an average of £100 a week, that's food, bills, going out, beer, luxuries etc etc.
I can't see how I'd spend more than £4k a month MAX. Thats with a decent car, a decent house and decent holidays. (thats nearly £50k a year salary anyway!)
That's £6k a month to invest and gain interest on.
Average salary in this country is £16k, and I'd say £30k is a very decent salary.
There is no way it will devalue enough for that not to be worth it...

[Yahwe]

Originally Posted by Ste

Is the American economy really that bad?

i saw his mistake but couldn't think of anything good to say.

you beat me.

hats off to you sir.

[demiGOD]

Originally Posted by Ste

Is the American economy really that bad?

not right now we dont.. but in the long term, the world's economies might or might not be, because who knows, next year a comet the size of mt everest might get in contact with planet earth and kill us all (like in that one movie) - it's just smarter to have a huge lumpsum up front than little bits of it every month - also any nation's economy can still be just as successful in 5 or 10 years but the cost of living is on a constant trend of going the upwards direction, and it's always easier to work around an amount of 1million and harvest it rather than 10K at a time with constantly consuming and with little room to improve

[roadrunner_0]

the 10k a month, it wouldn't devalue enough to make it not worthwhile, and with your investments over time it would return much much more than the million
(assuming that you didn't buy a stupid car and kill yourself inside a couple of years)

[Structural Integrity]

Originally Posted by demiGOD

not right now we dont.. but in the long term, the world's economies might or might not be, because who knows, next year a comet the size of mt everest might get in contact with planet earth and kill us all (like in that one movie) - it's just smarter to have a huge lumpsum up front than little bits of it every month - also any nation's economy can still be just as successful in 5 or 10 years but the cost of living is on a constant trend of going the upwards direction, and it's always easier to work around an amount of 1million and harvest it rather than 10K at a time with constantly consuming and with little room to improve

But if you got 1mil you'd have the same problem if you're trying to live off the interest. You'd need to do some damn fine investing if you want to stay immune for such an inflation, because if inflation was THAT extreme it would be coupled with tonnes of companies/projects going bankrupt, no?

[noah02]

gimme 1m everytime due to the fact life is unpredictable and I would rather have the chance to splash out in every way possible rather than waiting till 3 months have gone to buy that nice expensive car i was after.

[demiGOD]

Originally Posted by Structural Integrity

But if you got 1mil you'd have the same problem if you're trying to live off the interest. You'd need to do some damn fine investing if you want to stay immune for such an inflation, because if inflation was THAT extreme it would be coupled with tonnes of companies/projects going bankrupt, no?

if i had 1mil, ill buy 2 big houses that will appreciate at 15-20% (and will go up as cost of living goes up), so i make around 30-40% of the money invested every year - have both houses rented, the money i make from my tenants will be used for maintenance of the houses - whatever's left will be put in a savings bond, or a mutual fund - i will keep working to pay the usual personal bills and expenses - this way i make money off of the 1mil no matter where the economy goes

-but then again, thats just me..

[JonnyBGood]

You do realise that property prices can actually go down don't you?

[JammyJim]

tbh id take the 10k a month for the rest of my life. bear in mind ill still want to be earning 120k a year is quite a nice supplement to that especially if its tax free.

you could invest in several properties on interest only mortgages with 10k a month coming in and create a considerable amount of wealth very rapidly. especially seeing as you know another 10k is coming in a mere 4 weeks time.

[JammyJim]

Originally Posted by JonnyBGood

You do realise that property prices can actually go down don't you?

depends where you buy. usually they stay stagnant for a few years at worse then begin to rise again. unless the economy goes to the dogs and people think 'shit shit shit'

[JammyJim]

Originally Posted by demiGOD

if i had 1mil, ill buy 2 big houses that will appreciate at 15-20% (and will go up as cost of living goes up), so i make around 30-40% of the money invested every year - have both houses rented, the money i make from my tenants will be used for maintenance of the houses - whatever's left will be put in a savings bond, or a mutual fund - i will keep working to pay the usual personal bills and expenses - this way i make money off of the 1mil no matter where the economy goes

-but then again, thats just me..

15-20 appreciation...youd be lucky.... heh
youd never make 40% back in a year ever. if you could everyone would be doing it. 5-10% is more realistic tbh. unless your buying at the bottom of a boom.

[Proteus]

Originally Posted by demiGOD

if i had 1mil, ill buy 2 big houses that will appreciate at 15-20% (and will go up as cost of living goes up), so i make around 30-40% of the money invested every year

What?

[Phang]

Originally Posted by Proteus

What?

maths

[demiGOD]

Originally Posted by JonnyBGood

You do realise that property prices can actually go down don't you?

its possible but not very probable in places like california where property values have been going up in the last 60 years - so it is a risk, but then any investment is a risk, im just going for an investment where the trend of appreciation is constant, and property values appreciating in california (specially in the northern bay area, and southern california) has been very stable for a long time now

[Yahwe]

Originally Posted by demiGOD

if i had 1mil, ill buy 2 big houses

i'm confused by this statement.

[demiGOD]

Originally Posted by JammyJim

15-20 appreciation...youd be lucky.... heh
youd never make 40% back in a year ever. if you could everyone would be doing it. 5-10% is more realistic tbh. unless your buying at the bottom of a boom.

property appreciation in california bay area and los angeles and san diego counties varies from 5%-20% hard to believe but it is, my uncle's house in glendale (a suburb of LA) went up 35% in 2002.. i couldnt believe it!

[demiGOD]

Originally Posted by Yahwe

i'm confused by this statement.

confusion is good, it reminds you that youre still alive

[JonnyBGood]

Originally Posted by JammyJim

depends where you buy. usually they stay stagnant for a few years at worse then begin to rise again. unless the economy goes to the dogs and people think 'shit shit shit'

Obviously. Frankly I'm not going to credit demigod with being that much ahead of the pack that he's got every value buy sniffed out well in advance.


PS Remember that they have to rise ahead of inflation. Back in Ireland in the 80s they never actually started to fall but real value declined.



PPS Property prices go up by 5-20% per annum? How the hell can people buy houses in the first place? Averaging out at 12.5% that'd mean they treble inside of ten years.

At 20% a 200,000 dollar house in 1995 would now be worth ~1.24 million.