this post was submitted on 30 Dec 2024
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Statistics show it's literally best NOT to take the lump sum and that most people have no self control.
Most people who gamble have no self control.
Interesting... The fact that they're eligible to win the jackpot makes them statistically unable to handle it ...
Feels similar to the Plato quote "those who seek power are unworthy of that power".
"I'm an cryptocurrency trader now, despite no finance education whatsoever. It's easy, just look at the chart and predict when it'll go up or down."
Isn’t that the entire plot of the movie “Trading Places”?
…which is a Christmas movie.
Give me the winning lottery ticket and I'll show you how it's supposed to be done.
The issue is the mathematically best outcome in a vacuum does not take into account the fact that gambling has a negative expected value, and anyone participating in it was already more likely to be really bad with money. There can be a mathematically ideal outcome that is different than the statistically best outcome in real life situations. Probably anyone considering this the mathematically ideal option will work best, but the average gambler the statistically best is.
The expected value of buying a video game is about -$60, but people keep doing it, what chumps!
Some people get pleasure from playing the lottery occasionally. The value of the ticket, to them, is the same as the price. There are gambling addicts and people who buy lottery tickets as a way to try to make money, and they have made an error, but I don't think that's most people who buy tickets, even if it may be who most tickets go to.
I don't think those are even close to equivalent. The enjoyment from video games does not come from a hope of it "paying out." The fun of gambling is usually from the chance of getting a reward. If the reward were not there, would they still enjoy it? Probably not, so they're not just enjoying the act. Sure, there's some dopamine release that's driving the behavior, which is enjoyable, but there are methods to get this with better EV and more rationally.
As i said
Which is why you can work with a financial advisor and other wealth management strategies to set yourself up for success.
But yes, lots of people have lack of self control but if you're going to throw around big words like statistics then show those receipts. And i mean actual studies not an article pulling numbers out of their ass.
Statistics is a “big word”?
No, but it has meaning. So claiming statistics without said statistics is just speaking out of your ass
Ah, big as in meaning, not just “difficult big word.” Misread, and totally agree.
i've seen bigger
Statistics is a big word, yet you toss around "wealth management strategies" as if that isn't meaningless textbook bullshit.
I opened a bank account today and put $20 in it. It's a "wealth management strategy."
Yeah i knew you didn't have the data but thanks for confirming with this logical fallacy trash.
Wealth management are certified professionals who would be able to look at your entire balance sheet and help manage assets, provide financial advice, tax advice, etc. I specifically was referring to setting up an LLC or trust to claim the funds through and structure those entities in a way that you don't have direct access to all the funds to avoid burning through all the funds.
To your nonstatistical point: people have no self control, just look at you and me needing to reply to each other, but someone who wins the lottery will be able to afford professionals whose job it is to help beat those odds.
Anyway I'm glad you've saved $20 today and hope you have a great day
Most people are stupid and don't understand that even before you claim the ticket that you need to hire and consult with lawyers and financial advisors.
Why? Why would you want to do that? I'm a stupid person — I would just spend the money by investing them into stocks and opening a bank deposit, so that at least one of these enterprises has a chance to become a sustainable source of income. Organize a business I always wanted to maybe. Certainly wouldn't spend a single dime on 'lawyers' and 'financial advisors'.
So you can maintain some semblance of anonymity and not get murdered for the money when the news publishes your identifying information, and you dont get completely fucked by the IRS for not knowing every rule about being a millionaire
Money at this level has some pitfalls. Once you get into hundreds of millions, you can single-handedly move the market just by making a trade of that volume. That may or may not work to your advantage.
Statistically, people may tend to blow their lottery winnings and end up broke if they take the lump sum.
Financially, the lump sum is the better option because if it's well invested, it will grow faster than the full payout over the term of the full payout. It turns out that if you have near unlimited money for the best financial advisors, you will make a lot of money.
Most people except for me. I'm smart. /s
The only commenter who gets it.
It's not like you can't go into debt and lose the annuity too.