Current Events > Should I take a lump sum of 195k 300k over monthly installments?

(+) Yeah! (+)

itll be a monthly payment of 4,800

This from the crash?

Always take the lump sum.

eh...idk. would depend on my current bill situation...

that over 5 years right? I probably go paymants...100k ain't nothing

Lump sum.

Inflation is going fast. If you invest smart 195k now will end up worth more then the 300k.

Also probably easier for taxes doing one lump sum as opposed to ~five years of the monthly.

King Rial posted...

This from the crash?

Yeah.

went I forgot the lawyer takes 25 percent too

Unsuprised_Pika posted...

Lump sum.

Inflation is going fast. If you invest smart 195k now will end up worth more then the 300k.

Also probably easier for taxes doing one lump sum as opposed to ~five years of the monthly.

it wont be taxed because workers comp disability payment

Unsuprised_Pika posted...

Lump sum.

Inflation is going fast. If you invest smart 195k now will end up worth more then the 300k.

Also probably easier for taxes doing one lump sum as opposed to ~five years of the monthly.

The last part is huge

300k and donate it to the families of unjust police shootings

With compounding interest, if you invested the lump sum, you would need a 9% annual return for the 5 years of the payout length to break even.

Ultimately depends on your current needs and goals, and then whether you think you can beat a 9% ROI within your risk tolerance.

seems like the monthly payments are spread out over 5 years?

assuming a modest return of 7%, in five years that 195k will be worth: ~$273.5k. you can most likely get a higher RoI than 7%, though, so if you got 10%/year you'd have $314k. so if you can get better than ~8.5% you'll be better off taking the lump.

personally, i'd take the lump sum and take my chances on my investments. you can always pull the money out if the market is doing bad.

CapnMuffin posted...

With compounding interest, if you invested the lump sum, you would need a 9% annual return for the 5 years of the payout length to break even.

Ultimately depends on your current needs and goals, and then whether you think you can beat a 9% ROI within your risk tolerance.

I got about the same.

An important difference is that you can buy something worth 200k immediately, which grants you access to more opportunities. There is also the opportunity to waste it all.

Lump sum and crypto, so many millionaires on CE right, join their ranks.

Hmm...tough call. Look at your priorities and see if the lump sump right now would be very important to you. If not, payments.

I think Im gonna take the lump sum. After lawyer takes 25 percent. I want to pay off my challenger and f-150. I should be left with 120k

There is always a right answer please provide how long the term is

It really depends on what your current situation is, monetarily.

To use myself as an example, neither amount would really change much for me.

I could probably use the lump sum to pay off my mortgage, and then take the $1700 monthly I was using towards my mortgage to invest. But it's really no different than just taking the lump sum and investing it.

But if you're just making it out there on your own, $195K would put a significant dent in a first time home purchase. Or basically using that monthly payouts to pay the mortgage and have a 4-5 year mortgage instead of a 15-30 year one.

So I was reading the contract and only the first immediate payment is that 4,800. Then its 4,800 a year lmao. Fuck that

darkprince45 posted...

So I was reading the contract and only the first immediate payment is that 4,800. Then its 4,800 a year lmao. Fuck that

$400 a month for 61.5 years?

I'm bored so ill crank some numbers, I'm assuming things are taxed as income and going with the assumption of no state income tax and no other personal income to raise brackets (but if you give me those I can get more exact for you) and also i'm assuming that the lawyer is getting paid 25% of the 300k as a whole.

195k lump sum after lawyer cut (25%) = $146,250
Lump sum after fed income taxes (32%) = $99,450
$99,450 invested @ 7% RoR for 5 years = $139,483

57,600 after lawyer cut (25%) = $43,250/yr
43,250 after fed income taxes (22%) = $33,696
Invest at 7% RoR for 5 years (36054 + 38578 + 41279 + 44168 + 47260) = $207,339

the monthly payments are better in this scenario

darkprince45 posted... So I was reading the contract and only the first immediate payment is that 4,800. Then its 4,800 a year lmao. Fuck that

Nevermind fuck that

Always take the lump sum. Nothing in the future is guaranteed, the company that owes you money can go bankrupt tomorrow. Good luck getting your payments then.

darkprince45 posted...

So I was reading the contract and only the first immediate payment is that 4,800. Then its 4,800 a year lmao. Fuck that

Lmao

Debt first. Take the lump sum so you can pay off your cars, invest most of the rest, and keep a bit for savings/emergency.

And fuck around with a little of it too. No point in having lots of money if you don't have fun with it once in a while.

What Rolex after tho

darkprince45 posted...

What Rolex after tho

@OliviaWildThing @No_U_L7 @ScofieldReturns

EDIT: Holy shit his two alts are banned and he's in purg lmfao what happened

Uh theyre all suspended