[–] SocratesOP 0 points 3 points 3 points (+3|-0) ago
Don't know why everyone would take the milli. It really doesn't go as far as it used to. With the other option I have a 50% chance of retiring before I hit 30. If I don't win it, then life hasn't changed for me. Things aren't so bad now, so the 50% chance is a much more lucrative offer. On average, people would get 50mil from the latter option, while you can only get 1/50 of that with the first.
[–] [deleted] 0 points 4 points 4 points (+4|-0) ago
[–] SocratesOP 0 points 2 points 2 points (+2|-0) ago
Are you assuming 100% of people who invest their million will exceed the 100mil? If anything you've now traded a concrete 50% to bank on your ability to invest and multiply that million (which will be significantly less than a mil after taxes). I know - and I hope you know too - that many times your business ventures don't turn out "all profit" like you planned them. The investors making real money have a lot more to work with than a measly 1mil. To always come out in the green you need to be a big fish now, or have good luck. I think I'd rather take the 50% chance at an early lavish retirement.
Just my perspective.
[–] oedipusaurus_rex ago
I don't want to retire. I love what I do for a living. A million bucks is more money than I know what to do with, to say nothing of 100 million. It makes more sense to me to take the million than to gamble with that much money.
[–] SocratesOP ago
It's not gambling since you didn't put any money up against it. It is just a chance. Obviously you don't have to retire, that's just a personal plus I see out of the 100mil.
If the trade off was you are either broke or you get the 100mil then I could see how this is gambling, but not getting it would mean you keep working at the job you say you love. Doesn't sound so bad to me
If you invest a million dollars properly you can retire on it. But I choose answer C. I have a gun and i take 101 million.
The million and it's not even close.
Index funds have been hitting returns pushing towards 10% for many years now. That million is potentially worth $100k a year - indefinitely. Even if we assume we pay about 40% taxes on it, that's $60k a year and capital gains in countries like the US are taxed unreasonably low meaning we're paying a lower tax rate on that 60k per year than you'd pay if you worked for and earned $30k a year.
As a software engineer that's enough to be able to work on whatever projects I want for the rest of my life without ever having to concern myself with commercial viability.
[–] [deleted] 0 points 1 point 1 point (+1|-0) ago (edited ago)
[–] newoldwave 0 points 1 point 1 point (+1|-0) ago
A million in the hand is worth a maybe 100 million any day.