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Originally Posted by HoboGod
that dumbass wanted 88.5 milion dollars all at once instead of 5.7 million dollars for the next 26 years? Does this asshole plan to spend more than $5.7 mil (after taxs) in one year?
People are idiots. -_-
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There's such a thing as investment -- he could bank the 88.5M and if he can make 8% a year on average, that's 6.4M, which is much better when you consider that our tax system favors capital gains compared to earned income -- tax on capital gains / dividends / etc. comes out to around 10-15% (depends on your state) while income you earn from working is taxed more, anywhere from 23% to 40% and up. When you consider the economics of it, lump sum is definately the way to go, in the short run and the long run.