Would you rather...take $500k now, or $1 million in ten years?
I know some of you can't sleep without a "would you rather" question every now and then (that someone being me), so figured i'd throw one out there to celebrate this glorious Friday. That, and I'm also trying to procrastinate here at work....only 12 more minutes to go ;)
I came up with it when i was commenting on Mrs Micha's "question and answer" post:
"Would you rather have $500k now (no taxes, fees, etc) OR would you rather get 1 million ten years from now (no fees again)?"
You're welcome.
I came up with it when i was commenting on Mrs Micha's "question and answer" post:
"Would you rather have $500k now (no taxes, fees, etc) OR would you rather get 1 million ten years from now (no fees again)?"
You're welcome.
Labels: would you rather
posted by J. Money at
4:55 PM
16 Comments:
unless I could expect to earn more than 8% on investments, which I don't expect, I have very little experience with investing, I would take the 1Mil, doubling the 500K in ten years would be quite a tall order.
I'm with childfree here - except I'd want 10% interest. I could take the interest, invest it in someone who has a business or into some real estate with the growth potential to double or triple my money, although considering my current situation, I think I'd prefer the money now, and then invest whatever's left when I'm done.
I would take the 500K NOW. I could pay off my debts and move out of my g.d. apartment into a house. I have such house-lust right now, it's driving me crazy!!
$500K now baby! I'd double that sh*t in 10 years and then some!
Ooooh you guys are fast! If only we could get some of Tom's confidence, eh?
I'm gonna have to go with.... the $500k now! That's 10 extra years of feeling secure baby ;)
I would totally take the 500K now!
So when do I get it? :D
$500K now, of course.
Not so much because of the magic of compound interest (though it is part of it), but rather because I know what the world is like right now and I know what *I* am like right now. I would much rather take my chances with the world I know and the character I know than a world/character I don't know. :-)
If I get 8%(no gauruntee, but very possible) for 10 years that 500k turns into $1,079,000. That said, I'd take the money now.
Second reason, I'd pay off my last debt and house and live financially stress free for those 10 years.
1 million later. While $500K right now sounds great, a million dollars later sounds even better. I hope to have kids in 10 years, and $1M would go a long way towards college educations.
Unless you really need to pay off bills now, I think the question really comes down to this, are you willing to gamble on yourself?
I have faith in myself (We all should have faith in ourselves!) that I could turn that 500K into more than 1 Million in 10 years.
By taking the 1 Mil in 10 years, you are basically saying that you don't think you can do it. I always side with myself and my abilities!
$500k now!
Definitely $500k now.
$500K now, but not for reasons anyone else mentioned. 10 years is a fairly long time and while i'm not expecting to kick off any time soon, you never know what could happen. so i'd rather take the $ now and invest all of it so it would be a nice little nest egg by the time i retire
I would definitely take the $500K now. I think 12% per year is quite achieveable - last year I was fortunate to get an 18% return.
while it sounds like instant gratification over a 'secure' future, I'll have to go with the $500 k.
(hypothetically) money would have dereciated enough in 10years it would negate much of the difference.
OK I may tend to over think things. But even adjusted for inflation etc, I'd go with the now.
1. Having the 500k would allow me to immediately pay off things like my school bills, saving interest.
2. I could buy in cash instead of lease or or rent things like a car (don' have one of thse yet) and place to live.
3. I could invest some, and
4. use the rest to help springboard my 'future plans' by getting my master's degree now in a field I want, while working a job I like, rather than working multiple jobs now, (only one of which is in the field I want).
which money made after that would continue furthering my retirement etc.
So while I'm not planning on this money doubling in those 10 years, I think the money I'd save from using it now, and the ability to work out my next several years a bit smoother, would be worth it.
You could be dead in 10years....... Bird in the hand.. why put off tomorrow what you could do today...
Enough said
MRHTOAD76
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