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$325,000 once or $470.00/week

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bigtravis

New member
I'm looking at either a onetime lump sum of $325,000 or reinstatement of care and $470.00/week for duration of life.
Don't know if any of you remember I was hurt and had to have two surgeries and had two bloodclots after the first one. Now I need a third.
Which would you choose?
 
Do you have to pay taxes on the lump sum? If so then forget it unless you need the cash right away. You can transfer the $470/week into a separate high interest account and your kids'/families future is secure.
 
Tax free I assume? Is it an insurance payout?
 
Yes it's all tax free including the weekly option. They can't tax but only the lost earnings which that has already been taken care of.
 
If you can get the lump sum tax free and you have no immediate need for the funds (although I think I remember you saying something about putting a portion towards kids education) than you can always pick up some inflation protected treasuries or tax free municipals. Either way your money would be safe and youd get income off of it.
 
75th said:
If you can get the lump sum tax free and you have no immediate need for the funds (although I think I remember you saying something about putting a portion towards kids education) than you can always pick up some inflation protected treasuries or tax free municipals. Either way your money would be safe and youd get income off of it.
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Yeah. But how much? Let's just say I put the 300k in and kept 25k out. How much could one draw off the 300?
 
I would go for the weekly payments. Having a lump sum payment could end up causing careless spending.
 
bigtravis said:
Yeah. But how much? Let's just say I put the 300k in and kept 25k out. How much could one draw off the 300?
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Lets say you bought some 7 year AAA rated tax free bonds...you could probably get a yield of around 3.5-4%.

$300,000 X .04 = $12,000 tax free (on average about $230 per week).

Keep in mind that bond interest is paid semiannually.
 
75th said:
Lets say you bought some 7 year AAA rated tax free bonds...you could probably get a yield of around 3.5-4%.

$300,000 X .04 = $12,000 tax free (on average about $230 per week).

Keep in mind that bond interest is paid semiannually.
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That's what I was wanting to know. I'm looking to try and keep the money for the most part and attempt to use the interest towards a mortgage if possible.
 
bigtravis said:
That's what I was wanting to know. I'm looking to try and keep the money for the most part and attempt to use the interest towards a mortgage if possible.
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That's probably your best bet. Throw in some high grade corporate bonds from GE and you can bump some of your yield up to closer to 5% or so.
 
Id take the lump sum and pay cash for a 6 plex average 700.00 per month rent after taxs you'll still have a decent little income and something to leave to who ever loves you when you do croak.
 
shrimp poboy said:
Id take the lump sum and pay cash for a 6 plex average 700.00 per month rent after taxs you'll still have a decent little income and something to leave to who ever loves you when you do croak.
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Thats exactly what I would do. Where I am you could buy 3 houses with 3-4 apartments in them in the city for that money. $450-500 per unit, your looking at $4000 monthly on the lowest end. $6000 on the high side.
 
bigtravis said:
That sounds even better. How often could the interest be drafted from that?
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99% of bonds will pay semiannually.

Your portfolio can consist of, lets say, 5 or 6 different bonds with different payout dates, so it can be structured that you receive a payment every other month or so.

If youre looking at holding onto your principle I would stay away from real estate.
 
How much would the medical bill be? If you can spring it take the weekly it would be better in the long run. Unless you plan on investing the lump sum.
 
75th said:
99% of bonds will pay semiannually.

Your portfolio can consist of, lets say, 5 or 6 different bonds with different payout dates, so it can be structured that you receive a payment every other month or so.

If youre looking at holding onto your principle I would stay away from real estate.
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For a white dude this man knows what he's talking about. Please don't get cute with real estate. There's no need to take big risks when you've already got money. That's how you end up broke.
 
Dial_tone said:
For a white dude this man knows what he's talking about. Please don't get cute with real estate. There's no need to take big risks when you've already got money. That's how you end up blaque.
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Fixed.
 
75th said:
If you can get the lump sum tax free and you have no immediate need for the funds (although I think I remember you saying something about putting a portion towards kids education) than you can always pick up some inflation protected treasuries or tax free municipals. Either way your money would be safe and youd get income off of it.
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what he said ^^^^^
 
75th said:
99% of bonds will pay semiannually.

Your portfolio can consist of, lets say, 5 or 6 different bonds with different payout dates, so it can be structured that you receive a payment every other month or so.

If youre looking at holding onto your principle I would stay away from real estate.
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Definately a thought. My boss told me to put a large sum into an account or a temp cd of some sort. Get my credit completely clear and pay great on a credit card for about 6-12 months. Jack my credit score up. Move the money into another account. Then purchase say a home "without" using that money as colateral. Draw interest on the money and work also. He said a bunch of other stuff too.
 
CDs would be fine except generally theyre paying dick right now. Tax free municipals arent paying through the roof, but theyre safe and tax free. Depending on what your tax bracket is, earning 4% in a municipal can be like earning 5-6% in a CD simply due to the fact that you pay income taxes on all interest earned via a CD.
 
Tax-Equivalent Yield Calculator

Fill in the info there and smell what Im cookin.

ETA this is my most of my clients are, and always have been, in tax free bonds. Go out long enough and you can get the equivalent of a 8% rate of return taking on very little risk.
 
what happens if u get hit by a truck tomorrow?

get the lump sum then spend as you wish. If you can't spend wisely, put it into some account that pays you weekly.

c
 
id take the weekly payments...thats a mortgage and a car payment monthly..all you need to do is work to save money and eat...

lump sum im sure would be spent ignorantly..money goes very quick...real estate is a aweful investment now..taxes,maint, evictions, insurance, vacancies...its a disaster waitng to happen..almost every investor i know is going broke...tenants dont have money there not paying there bills

unless you know you can hold the money and not spend lavishly and can invest is wisely id take long term stability
 
hayez said:
id take the weekly payments...thats a mortgage and a car payment monthly..all you need to do is work to save money and eat...

Lump sum im sure would be spent ignorantly..money goes very quick...real estate is a aweful investment now..taxes,maint, evictions, insurance, vacancies...its a disaster waitng to happen..almost every investor i know is going broke...tenants dont have money there not paying there bills

unless you know you can hold the money and not spend lavishly and can invest is wisely id take long term stability
Click to expand...

+1
 
So 2 brothers decide to sell bananas out of their truck.

They go down to the dock and buy 100 bunches for $100. They drive down to Main Street and sell the bananas for $1/per bunch.

After a few weeks 1 brother tells teh other, "I don't believe we're making any money at this".

To which the other brother responded, "told you we should have bought a bigger truck". :)
 
HAYEZ said:
id take the weekly payments...thats a mortgage and a car payment monthly..all you need to do is work to save money and eat...

lump sum im sure would be spent ignorantly..money goes very quick...real estate is a aweful investment now..taxes,maint, evictions, insurance, vacancies...its a disaster waitng to happen..almost every investor i know is going broke...tenants dont have money there not paying there bills

unless you know you can hold the money and not spend lavishly and can invest is wisely id take long term stability
Click to expand...

lol @ taking financial advice from this guy.
 
chris302001 said:
lol @ taking financial advice from this guy.
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Lol thanks buddy. My job revolves around people and there investments. Why do you think I went broke. I went from making 7-12k a month to 0-2k a month because the economy is fucked. Not because I invested bad.
To top things off in middle of everything Iseperated from my wife and I have 2 kids. Whole lot of bullshit to deal with and extra bills when you have no income. I'd like to see someone else come out different!
 
HAYEZ said:
Lol thanks buddy. My job revolves around people and there investments. Why do you think I went broke. I went from making 7-12k a month to 0-2k a month because the economy is fucked. Not because I invested bad.
To top things off in middle of everything Iseperated from my wife and I have 2 kids. Whole lot of bullshit to deal with and extra bills when you have no income. I'd like to see someone else come out different!
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Did ya'll seperate just due to the finacial issue?
 
ALWAYS get the money as soon as possible. Too many things can happen between now and the time it pays off that you'll make more in the "long run."
 
HAYEZ said:
Lol thanks buddy. My job revolves around people and there investments. Why do you think I went broke. I went from making 7-12k a month to 0-2k a month because the economy is fucked. Not because I invested bad.
To top things off in middle of everything Iseperated from my wife and I have 2 kids. Whole lot of bullshit to deal with and extra bills when you have no income. I'd like to see someone else come out different!
Click to expand...

If only when you were making 7-12K a month, you'd have lived like you were making 2K a month, eh? Just think of that big ol pile of savings you'd have to weather you through this storm!

Maybe when things get good for you again, you'll remember that lesson. I sure did. :)
 
I always had a savings but when you work on a commision based job your savings get drained waiting for the next paycheck. Part of what ruined my savings was I put everything I had into one developer and had 6 diff contracts with him. I spent a few months without a payday and the week everything was done and I should of been paid the bank foreclosed on the development. Closed the doors and I was out on my ass with no money and nothing I could do. That's how everything got Fucked up, to top off being broke then, split with my wife had to move out (my friend rented me a apt and loaned me the money) and stopped paying all my bills. I went from 217 at apprx 10% to chunky 196 because I had 200.00 last me 2 months for groceries. Took me 6 months to finally catch up and have 5000 in savings. That's why I sold my car ,stopped paying all my bills and moved in with my girl. Time to start over and see what I can do now.
 
HAYEZ said:
I always had a savings but when you work on a commision based job your savings get drained waiting for the next paycheck. Part of what ruined my savings was I put everything I had into one developer and had 6 diff contracts with him. I spent a few months without a payday and the week everything was done and I should of been paid the bank foreclosed on the development. Closed the doors and I was out on my ass with no money and nothing I could do. That's how everything got Fucked up, to top off being broke then, split with my wife had to move out (my friend rented me a apt and loaned me the money) and stopped paying all my bills. I went from 217 at apprx 10% to chunky 196 because I had 200.00 last me 2 months for groceries. Took me 6 months to finally catch up and have 5000 in savings. That's why I sold my car ,stopped paying all my bills and moved in with my girl. Time to start over and see what I can do now.
Click to expand...

what about the high end boats/car/lifestyle that you were trying to live? honestly your story sounds like the typical overspending american.
i hope you can recover and maybe live more within your means...all the debt you left behind the rest of us have to pay for.
 
I would take the lump sum. The 470 a week for life sounds great........if you live long. If you have a wife or kids though and some horrible accident happened and you died within 10 years the max you would get would be 244,400. But then you also have to figure in the time value of money due to inflation which I don't have time to explain so you can find it out here Time value of money - Wikipedia, the free encyclopedia

611,000 in 25 years really isn't 611,000 due to this. Just something else to think about.
 
Take the Lump Sum.
 
I'd take the $470 a week. The lump sum can be very tempting to go off on a spending binge, plus you'll have the $325,000 in 13 years, after that you it's gravy. If you're worried about your family, you can get a very nice term life insurance policy.

I know there is the idea of investing and stuff but that's some scary shit when you're thinking long term. I like safe and secure, personally. A $470 a week tax free income ain't nothing to sneeze at if you live within your means, particularly if you pick up some light side work.
 
bigtravis said:
I'm looking at either a onetime lump sum of $325,000 or reinstatement of care and $470.00/week for duration of life.
Don't know if any of you remember I was hurt and had to have two surgeries and had two bloodclots after the first one. Now I need a third.
Which would you choose?
Click to expand...

Take the money. Go to Thailand and get your 3rd surgery at 1/10th the cost of the USA. Take a year off there for recovery.
 
$280 per week tax free PLUS hving all the principle in a safe place is better though.
 
If they pay you off weekly, you will die in a mysterious house fire. The fire marshall will determain that it was faulty wiring, Case Closed.
 
musclemom said:
I'd take the $470 a week. The lump sum can be very tempting to go off on a spending binge, plus you'll have the $325,000 in 13 years, after that you it's gravy. If you're worried about your family, you can get a very nice term life insurance policy.

I know there is the idea of investing and stuff but that's some scary shit when you're thinking long term. I like safe and secure, personally. A $470 a week tax free income ain't nothing to sneeze at if you live within your means, particularly if you pick up some light side work.
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yes! very good, sensible, "real world intelligent" advice.

i watched my sister, a frugal, sensible, canny bargain-hunting shopper turn into a whirling, twirling spending-monster dervish after receiving an almost 7 figure lump sum divorce settlement.

in spite of my repeated pleas to use the money to buy a house, a new toyota and invest the balance in an income generating anuity fund; she pissed it all away on clothes, thin, handsome, slacker/drifter/boyfriends and repeated trips to the "redneck riviera" AKA pensacola/destin/panama city, FL.

4 years later she was flat assed broke, living with our mother; wondering where the hell all the money went.

:(
 
rnch said:
yes! very good, sensible, "real world intelligent" advice.

i watched my sister, a frugal, sensible, canny bargain-hunting shopper turn into a whirling, twirling spending-monster dervish after receiving an almost 7 figure lump sum divorce settlement.

in spite of my repeated pleas to use the money to buy a house, a new toyota and invest the balance in an income generating anuity fund; she pissed it all away on clothes, thin, handsome, slacker/drifter/boyfriends and repeated trips to the "redneck riviera" AKA pensacola/destin/panama city, FL.

4 years later she was flat assed broke, living with our mother; wondering where the hell all the money went.

:(
Click to expand...
The dreaded "curse of the lottery."

I mean, what 75th is saying makes good sense, no argument there. But there's also a level of discipline that's required. If someone has that discipline, not to buy the flashy car, or the boat, then perhaps it's doable, but I personally can't live on $280 a week. I could, however, manage on $470 a week. The investment option kind of presupposes that Travis has no major debts and will have additional income of some sort in the future.
 
$325,000 buys a lot of fucking booze and whores. Don't be a dumbass.
 
Strongbow said:
$325,000 buys a lot of fucking booze and whores. Don't be a dumbass.
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this is exactly why you will be working in a grocery store, hiding brown spots on heads of lettuce, all your life. :rolleyes: :laugh2:
 
musclemom said:
The dreaded "curse of the lottery."

I mean, what 75th is saying makes good sense, no argument there. But there's also a level of discipline that's required. If someone has that discipline, not to buy the flashy car, or the boat, then perhaps it's doable, but I personally can't live on $280 a week. I could, however, manage on $470 a week. The investment option kind of presupposes that Travis has no major debts and will have additional income of some sort in the future.
Click to expand...

bingo.
 
rnch said:
this is exactly why you will be working in a grocery store, hiding brown spots on heads of lettuce, all your life. :rolleyes: :laugh2:
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STFU you're lucky to still be here.
 
bigtravis said:
lol
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Somebody needs to hide them so that Rnch does not mistake them for assholes and rip up all of the produce with his bedazzled cock.
 
bino said:
all the debt you left behind the rest of us have to pay for.
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thanks for being one of my bitches takin care of my tab...i am grateful
 
take the lump sum and put it in tax free bonds like the other guy said...you also have to calculate the time value of money in this too...$470 will be worth quite a bit less 10 years from now in terms of purchasing power...$470 dollars in 1998 is only worth 350 bucks now...just be responsible and dont spend it on blow and hookers
 
take the lump sum. restraint + financial responsibility and you will be WAY further ahead than if you take the weekly payment.
 
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