The man who won half of the 588 million dollar lottery wants to wait until he makes a sound financial plan before claiming his winnings but has decided to opt for a lump sum prize.
That strategy doesn't make sense too me. It just sounds greedy.
Half of the prize money is around 294 million dollars, or 9.8 million dollars per year for the next thirty years. I could live quite well with 9.8 million dollars per year.
One of the biggest problems with the lump sum is people not used to large sums of money believe that it is an endless supply and some times don't realize the hidden costs of some purchases. Take a trip but the money you spend never earns a return. Invest in family members but most often their start up ventures end in failure and again no return. Buy a fancy car but face the depreciation. Huge houses are nice but the upkeep is huge too. Without due care, one can spent it all in a short time and even end up in debt.
But, with the yearly withdrawal, even if you blow the 9.9 million dollars this year, you have another 9.8 million coming next year. Hopefully one would get used to having money after a years or so, most of the beggar relatives and friends have gone away, and you can really start to enjoy your money and make wise decisions with it.
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