Canadian teenager Charlie Lagarde purchased her first $4 lottery ticket (and a bottle of sparkling wine), on March 13th to celebrate her 18th birthday! She probably spent less than $20 on her trip to the store, but ended up making it all back…plus a little extra!
Charlie won the lottery jackpot–what a birthday gift!
She won, and had the choice between taking a C$1m ($780,000) lump sum or earning $1,000 a week for life. After consulting with a financial adviser, the young winner opted for the $1,000 annuity because it is not taxed.https://t.co/HjjmJMTsic— Tommy C (@MegaMuggins) March 28, 2018
Given the choice between one lump sum of about $718,000 or $1,000 for life, Charlie chose the latter.
Canada teen wins $1000 a week for life on 18th birthday https://t.co/qM7XDmunIy - must remember to dig up the research on how happy lottery winners become. $1000/week def. smarter than the lump sum...— Tim Harford (@TimHarford) March 28, 2018
$1,000 a week would cover your needs for…well, forever! But $780,000 all at once could make quite an impact.
It depends on age (and mentality) of the person.— Andy Millard (@AndyM530) March 28, 2018
Personally I'd take lump sum and invest. Always wanted to have properties
I'd go for the guaranteed weekly income.— Jo (@MsJamandPickle) March 28, 2018
Twitter wished Charlie the best of luck with her winnings and encouraged her to spend it wisely.
Wonderful. Hopefully, it will be well invested, well spent and will bring more good luck to her.— Doktor Agos (@doktoragos) March 28, 2018
So she won what we all want - guaranteed minimum income.— Brock Carter (@brockcarter) March 28, 2018
The mathematicians of Twitter also argued over whether or not she made the right choice.
Say she lives to age 78: $1000 weekly for 60 years comes to about $3.12 million.— Jack MacDonald (@BlackJackMac) March 29, 2018
I hope it gets indexed otherwise $1000 in 10 or 20 years time won’t be worth what it is today.......— Guy Schweitzer (@nature_runner) March 29, 2018
3.6 million in 70 years is a terrible return on $800K.... much smarter to take the lump sum especially since you could just throw that in an ETF or a Roth and expect close to 7-8% returns every year for the next 70 years. Calculate that and it’s much more than 3.6 mil— Michael (@__michael___1) March 28, 2018
Just remember: money can't buy you happiness.
Does the research distinguish between getting a lifetime annuity and a lump sum? I think the former would be more likely to lead to happiness. It's kind of like basic income on steroids.— Rob Carver (@investingidiocy) March 28, 2018
In other news, the rest of us will have to get by without a lottery win under our belts. Oh well,
c'est la vie!
Surprised? No. Jealous? yes. Broke? YES @dflores483— Jorge (@Ohsnapjorge) March 28, 2018
I don’t remember what I got for my 18th birthday, but it CERTAINLY was not this. https://t.co/PExYwYEfNp— Hanna Bolaños (@hannabolanos5) March 28, 2018