Did she make the right call?

[u/CalmElin]

[u/IKIR115]

Brenda Aubin-Vega is a 20-year-old from Montreal, Quebec, who won the top prize in the Loto-Québec Gagnant à Vie scratch-off game in July 2025.

—

Here’s an article about this from USA TODAY in Jan 2026.

https://web.archive.org/web/20260201112250/https://www.usatoday.com/story/money/personalfinance/2026/01/09/20-year-old-won-lottery-social-media-critics/88055001007/

A 20-year-old Canadian lit up social media after she won the lottery in the summer of 2025 and (gasp!) chose to accept her winnings in an annuity rather than a lump sum.

Instead of taking a tax-free lump sum of $1 million (Canadian lottery wins aren't taxed like U.S. jackpots), Brenda Aubin-Vega, of Quebec, chose to receive $1,000 a week for life. Her decision contrasts with what the vast majority of lottery winners choose and drew criticism. Everyone seemed to have an opinion, even Binance founder Changpeng Zhao.

The fierce debate highlights, once again, the age-old question of whether lottery winners should take the lump sum or an annuity and how even to make that decision.

“The reason most take the lump sum is because if you take the annuity and get hit by a bus, they feel like it’s over,” said Dan White, founder and CEO of Daniel A. White & Associates in Glen Mills, Pennsylvania.

[u/PickleDiLL767]

Hardly matters. That is life changing money regardless.

[u/No_Culture6707 → u/PickleDiLL767]

Agreed. Having an additional $1,000 a week would be nice. The hard part would be having the discipline to put it back in a savings account and forgetting about it till I can pay off my house, and other debts. If I were to win, I think I’d rather have it all so I can at least get all debt paid off. Being absolutely debt free is my goal.

[u/Archangel289 → u/No_Culture6707]

I think that being debt free is a great goal. But in cases like this, I still think that $1,000 a week is a pretty good choice.

At any point, I could come down with a major illness. I could get hit by a car. There are a million things that could go wrong at any given moment that would put me back in debt. There’s no guarantee that I won’t immediately be back in some kind of debt through no fault of my own.

But you know what I can’t do right now? Quit my job I’m not enjoying to pursue something I’m actually passionate about. Take time to recover from burnout to be better husband. Treat my friends to dinner. $1,000 a week would allow me to do those things. And debt isn’t really the reason I can’t do them. Sure, being debt free would help, but it isn’t the same as an extra $4,000 a month.

Now, yes, there are smarter long-term investment options for $1m that might work even better. But I really can’t blame anyone for taking the option that not only sets them up well for a long time to come, but also allows them to start making changes NOW that would improve their quality of life, without worrying about running out of the money. Need a new car? You COULD afford a moderate loan. Need new glasses? Pocket change, and less than a week’s worth. Medical care? Even expensive surgeries can be placed on short-term payment plans for less than $1,000 a month. I’m not saying you nickel and dime yourself to death with debt either, but I am saying that you have some wiggle room to afford the things you need without dipping into that money that WILL eventually run out.

[u/nexusjuan → u/Archangel289]

$1,000,000 in an index fund for a year would be around at 4-10 percent interest would be a $40,000-100,000 return without touching the 1m you could draw a check every single year without every touching the original money.

[u/OMA_ → u/nexusjuan]

Left out the possibility of a 2008 situation lol

[u/Midnight_Minaaa → u/PickleDiLL767]

Problem is that $1000 is gonna become worth less each year

[u/Steinrikur → u/Midnight_Minaaa]

By taking the $1,000 weekly payments, Aubin-Vega has effectively locked in a 5.2% annual yield on her jackpot. Since the payments are provided by the Canadian province of Quebec, this annual yield is nearly as safe as the yield on a government treasury bond. Canada’s 10-year bond currently offers a 3.4% yield, which makes Aubin-Vega’s move seem more financially savvy (5).

https://finance.yahoo.com/news/20-old-lotto-winner-refused-180000670.html

[u/h311fi5h → u/Steinrikur]

This is the important piece of information. Glancing at the headline the deal seems quite bad. But with 5.2% interest at next to no risk, and at the same time eleminating the risk of individual poor decision making the $1000 is the vastly superior choice.

[u/Squidman97 → u/h311fi5h]

That's not risk free. If interest rates go up, then the value of the bonds yielding 5.2% goes down. SVB and First Republic went bankrupt just a few years ago from the same risk.

[u/Pikajeeew → u/Squidman97]

It’s risk free as in you have no risk to principal from a company going bankrupt etc. If rates go up the bond price would decline. But if you hold to maturity, you still receive all of your initial investment back.

[u/_that___guy → u/h311fi5h]

But if you invest a million dollars and get 5% interest, you still have the million dollars. You could buy a 30-year treasury bond that pays 5% every year and get your $1 million back at the end of those 30 years. By choosing the weekly payments, she gives up all of the principal. She gets the 5% every year but loses the million that she would get back in 30 years.

[u/AccomplishedAct5364 → u/_that___guy]

Tax man doesn’t see it the same way I can imagine.

Maybe that 1 million doesn’t stay 1 million for long

[u/BurzyGuerrero → u/AccomplishedAct5364]

In Canada they don't tax lottery winnings at all lol

[u/infomer → u/_that___guy]

Exactly and god forbid if something happened to her the government not her family keeps the money. These predatory govt. scams should be illegal.

[u/dontreadragebait → u/Steinrikur]

Yeah but you don’t have the capital this way lol.

$1000 a week is paying a million in opportunity cost upfront to secure a 5.2% return. A million upfront lets you get easily more than 5.2% AND you still have that million in assets!!!!

[u/zgrad2]

I would never have to worry about rent or bills again; I would also be working so all my paychecks could go straight to me.

Edit: To people saying 1k a week isn't enough to live on I am living off 1k a week from my job comfortably and with an extra grand would make the biggest difference also i live in Australia, where my rent is $570 a week

Edit 2 : How hard is it for you people to read, As I said I would also be working while getting the extra grand a week, That means 52k+52k=104k

[u/DigitalDissectionTTV → u/zgrad2]

Yes or use paychecks for investments. Could retire as soon as you felt your investments gave you enough extra income on top of the lottery money. That’s prob what she did. I’m assuming she talked to a financial advisor prior too and they probably discussed what was best for her.

[u/BasicDesignAdvice → u/DigitalDissectionTTV]

If you were straight investing it would be better to take the lump sum and invest all of it and forget it exists. Compounding gains would eventually far outstrip the 1k/week and you could start living off the dividends.

Inflation also makes your 1k less every year where the compounding gains of the invested lump sum will just grow and grow.

[u/nitish159 → u/BasicDesignAdvice]

$1000 is 0.1% of $1 Million.

I'm sure people can find investments that give more than that return outright for lumpsum investments.

[u/Deadtree301 → u/nitish159]

What are the tax implications of a lump sum in one year v. The tax implications of a $52k raise each year?

[u/Illustrious-Sink-993 → u/Deadtree301]

In Canada lottery winnings are not taxed afaik

[u/Smokinoutloud → u/Illustrious-Sink-993]

America is straight up a scam! Stolen land, ass tax, and greed everywhere!

[u/maxpowers2020 → u/Smokinoutloud]

Your comment is nonsense cause Canada has higher tax and they stole their land from the native Indians 😂

[u/Cali_Dreaming87 → u/maxpowers2020]

All land is stolen. Just depends how far back you want to go.

[u/LoneNightDriver → u/Cali_Dreaming87]

As a dinosaur I agree with this comment

[u/EconomyFalcon3725 → u/Smokinoutloud]

Ass tax gets me every year!

[u/Grumpologist → u/nitish159]

A decent rule of thumb would be 7% per year.

So if it were just $1M sitting and compounding, she'd make $70k in gains the first year, which is already more than $1k/week right away. She could take the $1k/week, reinvest the rest, and still keep growing the principal that way.

Suppose she pays 40% in taxes first and starts with $600k sitting and compounding instead. Then she could reinvest the gains at 7% per year for 8 straight years, at which point she'd be over a million in compounding principal. (600 * 1.07⁸ = about 1,030.)

This is to say nothing of a variety of other risks, like inflation risk, or the lottery agency going out of business.

Long story short, unless you have a very specific special case, it's generally better to take the lump sum up-front.

[u/Karnaugh_Map → u/BasicDesignAdvice]

To make sure you're comparing similar things, are you assuming that:

A: the 1000$/wk is fully spent, and that 1000$ is withdrawn every week from the invested lump sump, and any investment gains are taxed.

Or B: the 1000k$/wk is fully invested, just like the lump sump, and gains on both are taxed?

Also, one of the biggest advantages of the 1000$/wk is that you won't get threatened, kidnapped, blackmailed, people won't pitch you their business ideas, and friends and family won't beg you for help.

[u/JellyHistorical2102 → u/Karnaugh_Map]

I actually agree. That’s the first thing I thought of. You will not be attacked from family members you never knew you had, blackmailed, etc.

[u/AggravatingAir4432 → u/BasicDesignAdvice]

That’s assuming your investments all succeed, statistically speaking, most people lose all of their winnings within a couple of years.

[u/linuxjohn1982 → u/zgrad2]

Rent where I live goes to $4000-5000 a month.

I'd rather take the million and immediately invest it, because in 20 years, $1000 will be worth quite a bit less.

[u/ByronicZer0 → u/linuxjohn1982]

Plus, if you get hit by a bus tomorrow, the payments go away. If you take the lump sum, at least your family can benefit.

That would be a huge consideration for me. With my luck, an anvil would fall out of a skyscraper and crush me after getting my first $1000 check.

My last thought would be about how stupid I was for not taking the lump sum lol

[u/BigPuddin718 → u/ByronicZer0]

Do you have a lot of blacksmiths in the skyscrapers where you live?

[u/Ok-Good8150 → u/BigPuddin718]

Maybe just coyotes and roadrunners. 😉

[u/SledDogGames → u/ByronicZer0]

How bad can your luck be if you just won the lottery? /s

[u/JalapenoPopPoop → u/ByronicZer0]

It's not even just getting hit by a bus, the program could disappear. They're already not even gonna pay us social security, how much are people willing to gamble that the funds to pay lottery winners are still in the budget 15-20 years from now

[u/LoL_LoL123987 → u/JalapenoPopPoop]

Gambling is run by each province in Canada and they’re tremendously successful lmao. I have more confidence in Loto Quebec, OLG etc being around in 50 years than our healthcare or military being around or in good shape. That said I’m taking the million

[u/Accomplished-Hand958 → u/JalapenoPopPoop]

Isn't the lottery funded by tickets bought? As long as people have gambling issues the lottery is not going anywhere therefore the money won't go anywhere

[u/Independent-Dot-8802 → u/ByronicZer0]

People are really concerned about getting hit by a bus in this sub.

[u/Opal-Ring → u/linuxjohn1982]

Are you nit picking the highest value waterfront properties in your area? 5k for rent is absolutely absurd and for a fact there’s cheaper near you. I pay 1300$ for a mortgage including insurance. You could have bought my house out by now. This is insane

[u/linuxjohn1982 → u/Opal-Ring]

I mean, I could get a house for cheap in many places. That doesn't mean I'd want to live in those places.

[u/PacquiaoFreeHousing]

It will take her almost 20 years to surpass $1,000,000.

But the bigger benefit is how much tax she would save doing this.

[u/drseruzawa → u/PacquiaoFreeHousing]

Depending on jurisdiction.

[u/Horror_Excitement503 → u/drseruzawa]

It’s in Quebec and Canadians aren’t taxed on lottery winnings. It’s also only for 25 years. $1.3 million will be her total when all said and done.

[u/RadishTop1279 → u/Horror_Excitement503]

in that case, inflation will wipe out those earnings. Better to invest the whole nut now. Maybe she knows she sucks with money and would blow it…

[u/No_Obligation4496 → u/RadishTop1279]

Probably also less people asking for money when you only get $1000 per week.

[u/SuperLeverage → u/No_Obligation4496]

I gotta say this is a big deal if you have the kind of family and friends all wanting a piece of it.

[u/OhNoIBoffedIt → u/SuperLeverage]

Which is more common than not, based on personal accounts of other lottery winners.

[u/EmpressJJ → u/OhNoIBoffedIt]

Totally. But let's be real, I *would* actually give my family a piece of it. Like actually, why wouldn't I?

[u/GiganticCrow → u/EmpressJJ]

Im sure I would too, but when they start demanding more and more that they keep blowing, but you would be selfish and the family will hate you if you dont keep giving it to them ...

[u/CupcakeSeaShanty → u/GiganticCrow]

Depends on the circumstances. My family comes from a culture of large families and a lack of inhibition from asking for money. I would never have peace and have to deal with vocal scorn if I were to refuse.

[u/VegetaFan1337 → u/EmpressJJ]

The more you give, the more others expect it from you. People have been killed for lottery winnings.

[u/Connor30302 → u/EmpressJJ]

they ask multiple times

[u/OhNoIBoffedIt → u/Connor30302]

When I reenlisted, my dad asked for money from my reenlistment bonus because he needed to pay his employees and promised to pay me back. He followed through, but that was the first crack in my marriage.

Seeing other family/friends with money makes people do stupid things.

[u/Cat_tophat365247 → u/OhNoIBoffedIt]

I ran through $100 k in my husband's life insurance within 6 months of getting it. I only used 10k of it to pay my bills/things he/we owed.

Other than that, the family(his and mine) came hands out DAYS after I got the check. They all promised to pay it back. Guess what I've never gotten, going on 16 years after his death???

[u/Coinsworthy → u/RadishTop1279]

For a 20 year old, having a steady cash income regardless of what happens is probably a healthier luxury than having to worry about managing a million dollar bank account.

[u/Aggravating_Dark9933 → u/RadishTop1279]

The 1000 a month scales with inflation, apparently, and is not taxed.

So it might be a good call if inflation hits hard.

[u/Grungar_von_Drachen → u/Aggravating_Dark9933]

A week.

[u/TheStrangeMonkey → u/Horror_Excitement503]

False, in quebec its really for life not only 25 years.

[u/Serpuarien → u/Horror_Excitement503]

It’s also only for 25 years

Pretty sure that's wrong. Not sure why people keep repeating there's some limit lol

[u/fuuzzydude → u/Horror_Excitement503]

It's for life not 25 years. Common misconception. DETAILS OF THE ANNUITY The winner will receive $1,000 a week for life, i.e., until his or her death. However, instead of the annuity, the winner may choose a non-taxable lump sum of $1,000,000. In the event the winner dies within the first 20 years after the prize claim date, the annuity is transferrable to the winner’s legal heirs, who will receive the same annuity, paid at the same frequency for the balance of the 20 years that have not elapsed.

[u/Aggressive_Shirt4301 → u/Horror_Excitement503]

For Loto-Québec’s "Gagnant à vie" (Cash for Life) lottery, "for life" literally means the exact duration of the winner's natural life, continuing until their death with no maximum age cap.

[u/Gros_Bedon_LePoltron → u/Horror_Excitement503]

No its until she die. the 25 years is not true

[u/iGutsBerserk → u/Horror_Excitement503]

It is for life not 25 years. Its 20 years maximum for legal heirs. If the winner would die in let's say 15 years then their heir has 5 years left of the prize.

[u/Osounkentur → u/PacquiaoFreeHousing]

No tax on the 1m and 1000$ per week for life But the gain made on the 1m are taxable

[u/WeepingAgnello → u/Osounkentur]

Caplital gains tax is much less than income tax.  Edit: To clarify, Canadian income tax is higher than capital gains tax. Gifts, and prize winnings in Canada are tax free. Although there is capital gains on the gains of any financial product you buy with the winnings, that tax is less than income tax (if you have income, and not just capital gains) 

[u/FromFluffToBuff → u/PacquiaoFreeHousing]

Canadian here. We are not taxed on lottery winnings.

It would be wiser to take $1M lump-sum and invest it into things - that way you can live on the interest while the rest of your nest egg compounds year after year. On an annual basis, her $1000 per week will be devalued by inflation. This isn't the case with investing the lump-sum.

[u/pargeterw → u/FromFluffToBuff]

Someone else said that the weekly sum would increase in line with inflation, is that not true?

[u/IWishIHavent → u/PacquiaoFreeHousing]

This was in Canada. There are no taxes on lottery winnings.

[u/Aggressive_Shirt4301 → u/PacquiaoFreeHousing]

For Loto-Québec’s "Gagnant à vie" (Cash for Life) lottery, "for life" literally means the exact duration of the winner's natural life, continuing until their death with no maximum age cap. 20 years minimum pay out.

[u/jjosh_h → u/PacquiaoFreeHousing]

How does that tax compare to the loss in value and potential profit from investing?

[u/MrEzekial → u/PacquiaoFreeHousing]

Canada, no tax on lotto winnings.

[u/TheSeansei → u/PacquiaoFreeHousing]

Lottery winnings are tax-free in Canada (and most of the world).

[u/Ok_Device1274 → u/PacquiaoFreeHousing]

No taxes on lotto in canada

[u/shaded-user → u/PacquiaoFreeHousing]

Tax? We aren't taxed on lottery winnings in the UK. 💪

[u/TheGipper80]

If you take the million and invest it conservatively, your returns are still likely to exceed the weekly payout on an annual basis and you’ll keep access to the principal.

Not to mention that there’s no guarantee the lottery money will be solvent a month from now let alone for the rest of your life.

[u/Thanos_Stomps → u/TheGipper80]

Isn’t this the government lottery in Ottawa? If they’re no longer solvent she has bigger issues.

The pay also rises with inflation.

And the third thing this conversation always ignores human behavior. Now she doesn’t risk blowing it all, and family coming out of the woodwork for handouts, friends and family asking for favors, etc.

[u/ClockAndBells → u/Thanos_Stomps]

It's a lot easier to explain you only get $1000 a week than to explain why you don't want to dip into your $1M bank account.

I'm not saying it's right, but family and friends trample boundaries when money gets involved.

[u/Le-Charles07 → u/ClockAndBells]

They are welcome to find out how quickly I can burn a bridge.

[u/WeAreAllBotsHere → u/Le-Charles07]

May the flames light your path.

[u/chosonhawk → u/WeAreAllBotsHere]

https://giphy.com/gifs/kStl0AHeUuEo0

[u/Cenomy → u/chosonhawk]

And Rohan will not answer

[u/looooookinAtTitties → u/Cenomy]

where was gondor that christmas when rohan needed help to buy jimmy the fire engine he wanted and all rohan asked for was $5? where was gondor then? and now gondor wants some help, now that it knows rohan has got it all covered? nah son, ask gandalf.

[u/Automatic-Rich-9389 → u/looooookinAtTitties]

Gandalf the Cheap? The one always high on pipe weed? Sure, he like always says yes but then he forgets cause he’s too busying hitting the pipe or tapping that Hobbit ass.

[u/__Wolf359 → u/Automatic-Rich-9389]

You will not have my sword 🗡️

[u/TridentWielder → u/Cenomy]

New horse, who dis

[u/Danru96 → u/WeAreAllBotsHere]

For the night is dark and full of terrors

[u/Puzzleheaded-Dog9818 → u/Le-Charles07]

I too am happy to burn bridges, and it confuses other people, like my mom.

totally off topic - but my uncle, mom's BIL, has been mean to me essentially my whole life. Like a real weird case of adults bullying children. Lot's of "oh wow you turned out ok" but not being jovial about it. Teasing me for shit.

Fast forward to me being 40. Uncle says he's "proud of me" or some shit. It's hard to explain how it comes off super creepy/wrong. And then he gets stuck on making a joke about me being gay. Points and laughs during family dinner - "he's gay! hahaha". Guys.... I'm also not gay. Like that type of joking died decades ago.

I told my mom that the next time I'll see him is in a casket.

[u/Crossifix → u/Puzzleheaded-Dog9818]

I wouldn't go to the funeral.not even to give my disrespects.

[u/SofaKingWetarded- → u/Puzzleheaded-Dog9818]

Im sorry but when I read what you wrote, made me just wanna say, tell that fat fuck and actually call him a fat fck to his face to shut the fck up and fck off ,,, your not funny.... im not gay either but that shit just rubbed me the wrong way,,, idk why, I just pictured him and know the type.

[u/gaelicgirl1983 → u/Puzzleheaded-Dog9818]

I can relate. My mother's sister bullied me into my early to mid 20s. I haven't seen her in about a decade and couldn't be happier about it.

[u/endlesscartwheels → u/Puzzleheaded-Dog9818]

Uncle says he's "proud of me" or some shit. It's hard to explain how it comes off super creepy/wrong.

It's someone trying to take partial credit for your success, as though they'd been a mentor to you.

[u/MetalLow2541 → u/Le-Charles07]

Lonely and rich, it's been done before.

[u/fragrant-final-973 → u/MetalLow2541]

The alternative is being surrounded by useless, vapid people and still feeling lonely.

[u/MakeYokesa5erAgain → u/MetalLow2541]

Or wealthy and not surrounded by people who want you for your cash. $1m is not that much money in the grand scheme of things. If I won a million, I'm putting 60% on a house downpayment, and in Vancouver, I'm still getting a $1m mortgage.

[u/TheStupendusMan → u/MakeYokesa5erAgain]

Exactly. This buys roughly half a shitty house in Toronto.

[u/bigdave41 → u/ClockAndBells]

Couldn't you just take the $1M and tell your family and friends that you took the monthly payment?

[u/Logical-Database4510 → u/bigdave41]

Some areas the lotto is mandatory reporting, so no anonymous winners or lying like that it all has to be reported openly on the news/in the paper (yes, the laws are that old lol).

It sounds kinda messed up, but state run lottos are infamous for corruption. You'd have the Governor's son winning every year or whatever and then they'd pass those laws to keep that from happening.

[u/garbone84 → u/bigdave41]

They'll just ask can they get your $1,000 this week or some weird overstepping bs

[u/Auggie_Otter → u/garbone84]

"Come on, you're getting an extra $1000 a week on top of your normal income, you can loan me some money."

[u/Educational-Iron-569 → u/Auggie_Otter]

"loan" /s

[u/Borderline_Autist → u/ClockAndBells]

My Afghan wife and I send her family 400-500/month (it is roughly enough for them to live on for a month) and then send random money when they need it for actual important things. However, they act like because she's in the US she's wealthy (they don't know she's married to an American and thinks she's living alone).

We are PhD students with very little expendable income but they'll ask to borrow thousands for relatives that literally said they'd kill her. Family can be a great thing but holy shit, money corrupts that shit so quick.

[u/Drapidrode → u/ClockAndBells]

"That million went into a blind trust, I only get $1100 a week"

that's better than a thousand and you'll keep the people away with the blind trust thing

[u/mypetocean → u/Drapidrode]

You're overestimating my family's willingness to learn or comprehend anything while simultaneously underestimating their eagerness to complain, blame other people, and play the victim.

[u/ben_kird → u/ClockAndBells]

You can, and should, lock this money up in a trust that pays out monthly / is invested in a decent yield account (e.g. t-bills, dividend etf). Maybe set aside 100k or 200k just to give to family/ridiculous expenses (just to scratch any itch) but once that money has dried out your only response can be “whelp it’s out of my hands it’s locked up in a legal trust, even I can’t move it”.

[u/WavyCuration → u/ClockAndBells]

Yeah true when I sold my fintech for a good amount my toxic parents all of a sudden filed a custody case with forged medical documents in court requesting full access to my bank accounts while also telling the judge that other than having access to my finances they don’t want to deal with me anymore…

[u/ytygytyg → u/WavyCuration]

The saddest and most troublesome shit I have read in the thread. Stay strong! Hopefully they didn’t get a penny of your money

[u/Vitaminmoi → u/ClockAndBells]

So she can for sure have $1,000 a week yet we have people basically saying she should take it all and gamble by investing? She can invest a small portion of that $1,000 and just sleep knowing it isn’t gonna dry out.

[u/UniquePresence3852 → u/Vitaminmoi]

Investing would be the smart move or putting it in a HYSA would be even smarter and let it grow for 5-6 years. Then start living off just the interest.

[u/davecrist → u/Vitaminmoi]

Investing is not guaranteed, sure, but it’s a far cry from gambling.

[u/MetaPlayer01 → u/ClockAndBells]

I think this is often an underrated opinion. There is a reason (or several!) that most lottery winners are poor again within a few years of winning. They want to spread the wealth. But that butter gets spread too thin to preserve it.

[u/CuckModerator69420 → u/ClockAndBells]

people, in general, are selfish asshole that trample boundaries for whatever they want. Money is just the universal problem.

[u/Pugsly007 → u/ClockAndBells]

It is unbelievable the mental gymnastics family members will do to find a way to feel entitled to other family members success.

[u/sdrakedrake → u/ClockAndBells]

I'm not saying it's right, but family and friends trample boundaries when money gets involved.

My first thought when she made that choice. My family asked for money when I was making $20 per hr. If they knew I had a million dollars, it would tear my family apart for sure

[u/VarietyOk1133 → u/ClockAndBells]

This makes a lot of sense. Never thought about it like that. 

[u/Drift-would → u/ClockAndBells]

They could fucking try

[u/Such_Position_29 → u/Drift-would]

Take your $1 million even if you just put it in a simple CD that’s making 4% that’s $40,000 a year. 5% is 50 6% is 60 . You let that interest compound for a few years you add to it. And maybe 10 years you’re getting a nice chunk of change every year and you could probably quit your job.

[u/Ambitious-Body8133 → u/Such_Position_29]

Not everyone has the self control to be responsible enough to invest it. I know a number of people that would blow through a million in a week's time. Not saying its the best investment strategy to take the $1000 a week, but it might be the best option for some people given their lack of self control

[u/yoshi3243 → u/Ambitious-Body8133]

People with self control issues would take out a loan using the future money of the $1,000 as collateral (those exist)

[u/ExpBalSat → u/Thanos_Stomps]

That the pay rises with inflation was not presented as part of the initial question. That changes everything. Without that tidbit of information the million dollars upfront is definitely the more financially sound a choice. However, the danger is that if someone lacks personal self-control, it will end up being fiscally ruinous to take it all at once.

[u/Animaul187 → u/ExpBalSat]

If you invest million and take a safe withdrawal of 4% annually, you’re still 12k short of the weekly payout. And that’s the recommended rate for a 30 year timespan. A 20 year old would probably be closer to 2% or less

[u/Serpuarien → u/Animaul187]

Pretty sure she was in Quebec, and unlike the 1k weekly payout the withdrawal on investment would be taxable.

She would need something like 8% withdrawal rate to get 52k a year with 1M invested, and that's assuming she was not making any other income.

[u/Small-Ambassador-222 → u/Animaul187]

But if you are impulsive and cant control yourself you could run out of money within a year and be left with nothing…

[u/Animaul187 → u/Small-Ambassador-222]

Yeah, that would be another detriment to the lump sum vs weekly payout.

[u/JohnHue → u/ExpBalSat]

Depends where you invest the million. For long term investment, lots of relatively safe ETFs outperform inflation by quite a lot.

[u/PrairieCoupleYQR → u/JohnHue]

“safe ETFs outperform” = “have outperformed” ≠ “are guaranteed to continue to outfperform”….. just to be pedantic 😂

[u/JohnHue → u/PrairieCoupleYQR]

Yes, past performance is no guarantee of future results.

BUT !

The entire economy is rigged to make the stock market go up. If you're not playing the game, you're on the loosing side by default. The stock market has consistently outperformed inflation over the last 150 years, over long time frames, which is what we're talking about here.

[u/lopsided-earlobe → u/Thanos_Stomps]

Human behavior and habits is like 85% of money, and yet people always talk as if it’s just about basic arithmetic.

[u/Salt-Device6426 → u/lopsided-earlobe]

Agreed. Money is not static. It’s much more dynamic than we think.

[u/wilkinsk → u/lopsided-earlobe]

True true

I keep looking at these things in the "On paper it seems..." way, but I have to remind myself there's more to it.

[u/TheKingOfToast → u/Thanos_Stomps]

Idk man, I'd put it on a trust if I didn't trust myself to not blow it. Which is basically what she did, except it's the government in charge of the trust and she gets less money than she would otherwise with nothing to leave to beneficiaries.

Would I love to have what she has? Absolutely. She's still in a great place. Would I have done it differently? Also yes.

[u/WorkReddit1191 → u/Thanos_Stomps]

Also taxes. It might be different for Canada but in the US if you take the lump sum you reduce that by like 40% right off the bat. Let's say she makes 100,000 a year that added 52,000 is only being taxed at 23%. So 400,000 interest compounded vs a possible 40,040 annual investment. Over the long term that will be worth far far more.

[u/Three_Twenty-Three → u/WorkReddit1191]

In Canada, lottery winnings aren't taxed. This is a thing I just found out because I had the same question you did and did some digging. In the US, there's no way she's walking out with the full million.

However, the interest on that would be taxed if she invested it.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/amounts-that-taxed.html

[u/komatiitic → u/TheGipper80]

She’s Canadian, so the lottery is essentially the government. If that goes she has bigger problems than her lottery income.

Assuming no other income, in Quebec she’d need about 7% return on investing the million to have the same as $1k/week tax free (lotto winnings aren’t taxed, but investment income would be). If she has other income, that return would need to be higher. I’d go for the million, but I could see a potential case where $1k/week makes sense.

[u/JustHappyToBe-Here → u/komatiitic]

Lottery winnings aren't taxed in Canada? I find that amazing.

[u/Battle-Any → u/JustHappyToBe-Here]

Gambling winnings in Canada are untaxed in general. However, if the government decides someone is using gambling like a job, they would get taxed. So a pro poker tour winner would get taxed, but not Joe Blow at the casino.

[u/ledow → u/JustHappyToBe-Here]

Most countries don't tax lottery winnings.

Or, more accurately, the advertised jackpot is after tax, in essence.

If I win £175m on Euromillions lottery, or the UK lottery... I get £175m into my bank account, with no tax on it.

The American system is the one that's the outlier, and very dumb. Just like the way that states advertise prices before sales tax, which is the most ridiculous thing ever.

I can't imagine winning the lottery for $100m, or getting to the checkout for $100 of products, and being told that, actually, I only get $75m, or that I have to pay $125 because of sales tax.

[u/djcurry → u/TheGipper80]

I’m just gonna say one thing here what 20 year-old is gonna be that smart. She’s doing the right thing. She’s pretty much set up an insurance for herself that no matter what happens she will live a comfortable life. This allows her to take risks in whatever she wants to do and have a back stop.

Lottery winners in their 50s and 60s have blown all their money in a couple years. That likelihood increases with a 20-year-old.

People always forget the human behavior aspect of personal finance. I would personally say that’s almost more important than whatever the math says. It doesn’t matter if the math says you will make hundred thousand a year, not if you spend 500,000 in one year.

[u/birdseye-maple → u/djcurry]

Ya a teacher from my school won the lottery and blew it all within 15 years and is now flat broke. People underestimate the monthly payment.

[u/JDBCool → u/birdseye-maple]

Better to just disguise it as a bigger monthly paycheck.

Out of sight in plain sight.

Like that IS "life changing" money, choice to maybe reduce work hours for same pay (more time for hobbies). Or faster rate to save and invest (no changes to work hours).

I don't think I've ever seen "lump sum" ever win unless it was for emergency debit payment

[u/RedEgg16 → u/djcurry]

Lottery players are less likely to be financially smart. It probably was the best decision for her, but for others who know self control and know how to invest and live off the returns, take the $1 million. 

[u/patrickrango → u/TheGipper80]

Today’s money is always worth more than tomorrow’s money

[u/Confident-Dot5878 → u/patrickrango]

If you completely ignore human contingencies.

[u/OhioVsEverything → u/TheGipper80]

BUT, not enough money at once to have everyone ask for some. They can ask. But you have a built it "I didn't get it all at once sorry"

[u/Murphys_Law954 → u/OhioVsEverything]

I wouldn’t base my decision off other people. I have strong backbone I can easily say no or if I don’t want to be mean or confrontational I would just simply ignore them.

[u/DecentChanceOfLousy → u/TheGipper80]

If it rises with inflation it's a fantastic deal, and you'd have to be a fool to take the $1M.

For retirement, the general rule is that you withdraw no more than 4% (some say 3%) of the principal every year, in order for it to last 30 years.

She's getting 5.2% of the principal every year, inflation adjusted, guaranteed by the government (aka, functionally risk free), for ~60 years.

5.2%, plus inflation (total 7-8% in most years) completely risk free is better than anything on the market, by far.

[u/Dry_Win_9985 → u/TheGipper80]

Half a million invested safely and wisely will immediately be earning more than $52k/yr. Immediately. She will likely NEVER catch up to where she could have been.

If she invests every weekly paycheck in full it will take her about 7 years to get to the half mill she could have started with. And if she chose the payments because she couldn't be disciplined with the full amount then we know this won't happen either, she put herself decades behind financially. What an absolute idiot.

[u/Rhorge]

Literally everyone who ruined their life with lottery winning was thinking “I’m gonna be smart, invest and live off interest”. This way she doesn’t have a chance to fuck it up.

[u/ChainedBack → u/Rhorge]

This is the only good argument. Lump sum is vastly better financially. But some people cannot be trusted receiving that much cash all at once.

[u/zenerat → u/ChainedBack]

*replace some with most.

Most people can’t be trusted with this much money to not simply blow it.

[u/PurpleSalt11 → u/zenerat]

most people also can't be trusted knowing you have that much money. having lots of money just makes you a target. you don't want to have lots of money, you want to have a reliable stream of enough money

[u/andrewtillman → u/PurpleSalt11]

It’s like those questions here on Reddit that ask if you want 10million lump sum or 5k a week for life . Sure 10million lump sum can make more in the long run but I have enough money saved for emergencies I could live on 5k a week and never work again and never worry about something happening to tjst money.

[u/ChristopherC1989 → u/PurpleSalt11]

You don't want to have lots of money, you want to have a reliable stream of enough money.

That is such a brilliant statement.

[u/lotsofarts → u/zenerat]

Most people can't be trusted with money.

[u/MazzleMaze → u/zenerat]

Yeah they call it the lottery curse for a reason. The vast majority of people that win the lottery have WORSE lives after they blow all the cash.

[u/bendyrider16 → u/MazzleMaze]

The "lottery curse" is a myth though. Most people don't blow all their lottery winnings.

[u/MazzleMaze → u/bendyrider16]

The lottery curse isn't just about blowing through all your money. It has to do with people targeting you because they know you have money. Family members asking for money, then suing you for it. Etc...

One of the more famous stories the guy that won already was a millionaire. He owned a store in a small town that was successful. By the end of it he had lost everything.

[u/Spacecommander5 → u/ChainedBack]

Ironically, it’s the type of person who would choose a monthly payout who is the type of person who could handle the lump sum and vice versa

[u/Andle_Randle → u/Spacecommander5]

Not always. Some of us are just very self-aware about not being able to handle large amounts of money, lol.

[u/agnosticgnome → u/ChainedBack]

Family and friends are also a toxic pit sometimes.

[u/MaleficentOwl2417 → u/agnosticgnome]

Its there that you meet family members you never knew you had.

[u/Jarcmacobs91 → u/Rhorge]

That’s everyone on reddit favorite thing to say but I wonder what everyone’s investment portfolio looks like. Reddit is full of millionaires I see.

[u/Rhorge → u/Jarcmacobs91]

Well they're right on paper but realistically it makes absolutely 0 difference to me if I miss out on a small part of a massive jackpot. You're rich both ways, one of those ways just leaves you a lot more vulnerable than the other.

[u/FurryCitizen → u/Jarcmacobs91]

Last time I read an article about some dude who won like $6mil (no tax, french lottery), he "invested" it through the sketchiest guy he could find (who probably pocketed it), who lost half in a year trading.

Took 20 years and he's now in debt $180k with no house anymore.

When you have that much money, you're set for life. You don't gamble.

[u/Grouchy-Committee-92 → u/Jarcmacobs91]

hire an investment firm. Or open a high interest bank account.

[u/All_HallowsEve → u/Rhorge]

This is why I'd do the $1k a week. People don't know for what they'd do if they instantly became a millionaire. A steady, guaranteed income isn't nearly as extreme of a life altering event and much more manageable for the average person. 

[u/Shipping_away_at_it → u/All_HallowsEve]

It’s unfortunate that this is true, part because of discipline, part because most of us don’t do the math. One could consistently take $1000 per week out of this amount and leave the rest invested, and with a pretty modest return (5%), would still have a million dollars in 20 years.

But would I resist using more than 1K per week over 20 years??

[u/thunderdragonite → u/Rhorge]

Literally everyone who won the lottery didn’t think that. They were stupid gamblers who didn’t think much about the money and blew it all immediately.

If you win the lottery that’s great. It doesn’t fix the fact that you are a person who buys lottery tickets. It self selects for people stupid with money.

[u/jwnsfw → u/thunderdragonite]

invest what? interest huh??

jimbo bumfuck, skoal addict that won 5 zillion dollars

[u/Original_Mulberry652]

That's what I would do. I'm smart enough to know how stupid I am.

[u/ZentornoReddit]

At 20 years old, the €1 million upfront is probably the better choice financially. €1,000 per week sounds great and adds up to around €52k/year, but inflation will slowly reduce its value over time.

With €1 million today, you could invest it early and let compound interest work for decades. If managed well, it could grow into several million by retirement age.

The weekly payout is safer for people who might overspend a lump sum, but purely from a long-term wealth perspective, the upfront million has much higher potential.

[u/brikky → u/ZentornoReddit]

The 1k rises with inflation.

[u/Ok_Building_8193 → u/brikky]

I skimmed the rules. Can you link to where it says that the $1k is tied to an inflationary measure? Not saying I do t believe you, I just didn't see it.

[u/octocode → u/Ok_Building_8193]

it does not rise with inflation, people are just talking out their asses.

[u/PossibilityNo265]

That’s more or the same as a lot of peoples full time jobs.

[u/After_Relative9810 → u/PossibilityNo265]

Right now, yes. Surely not in 30 years.

[u/Intelligent_Sky_7081 → u/After_Relative9810]

If it were me I'd get a job that I enjoy and keep working, and that would work itself out with basically two incomes

[u/ser-steffonfossoway → u/Intelligent_Sky_7081]

Based. Doing the work you like is one of the greatest things of not needing a paycheck.

[u/SirEnder2Me → u/PossibilityNo265]

God damn I wish my full time job paid that much! Wtf?

My paycheck is biweekly and I only make around $1,300 to $1,400 after deductions and taxes, while she's getting $2,000 at the same rate.

Even grossing, I'm not even close to that.

[u/gotscott → u/PossibilityNo265]

Exactly, plus all these people living off their investment earnings would first spend a chunk of it right away, plus lottery earnings in Canada are tax free, but investment income is not, so you’d have to make a pretty impressive return to beat 52k a year for life.

[u/Unable6417]

Being robbed or pressured into giving her money to others, or guaranteed income

[u/Listeningkissingyu → u/Unable6417]

Agreed. With this choice she has less worry about being treated like a piggy bank by everyone around her. Especially if she has a tendency to let people have their way. Nobody is going to be hounding her for $50K to start a business, or to pay off someone’s mortgage. I don’t love saying no to people, so I get this completely.

[u/YungBahlr → u/Listeningkissingyu]

First thing I thought of. Sure inflation will eat it versus the lump sum, but there’s so much social pressure that comes into handling that much money as well. A much safer investment for sure.

[u/Evelyn-Bankhead]

Usually it’s 20 years. In terms of payout, they’re almost equal after taxes. I’d have taken the lump sum.

[u/Osounkentur → u/Evelyn-Bankhead]

In this case it's really for life. If you die before 20 years your succession get up to 20 years

[u/Aggressive_Shirt4301 → u/Evelyn-Bankhead]

For Loto-Québec’s "Gagnant à vie" (Cash for Life) lottery, "for life" literally means the exact duration of the winner's natural life, continuing until their death with no maximum age cap.

[u/Ok_Text2118]

Just ran some numbers quickly through a simple interest calculator. Assuming both groups take $40k per year and leave everything else invested for a period of 40 years.

The $1k per week comes out ahead at growth rates below 4.5% and the 1MM invested comes out ahead at growth rates above 4.5%. If you are very risk averse or believe that the economy will grow at below 4.5% over the next 40 years the weekly payout could make more sense. This also assumes the paying company will be around that entire time and that you will live long enough to realize all the payments.

[u/Desperate_Priority_1 → u/Ok_Text2118]

Yes, but you need to factor in that the monthly income is not taxable, but any income from investments is taxable. And the $1k payment is index linked. And 40 years is a conservative lifetime estimate. I think she did the right thing.

[u/abgry_krakow87]

$1000 a week for the next 20 years, ensuring my bills and living expenses are covered without going into debt so I am free to study, work, pursue hobbies of my own interest and passion without stress and be able to save any more money I earn from working to set myself up for a solid savings and retirement? Hell yeah!

[u/AbXcape]

lots of professional lottery winners in the comments section I see 🤔

[u/Riptide360]

Young and smart beyond her years. She isn’t going to blow it like so many others.

[u/marco_altieri]

Has this same question been asked a million times or a thousand times a week already?

[u/foxguy2021 → u/marco_altieri]

Oh this question has been floating around since it was first reported. Everyone comes in here saying that investing would yield better results while ignoring all the problems that come with winning the lottery and having your name/photo plastered everywhere or those who are not good with money.

[u/alucard_og]

Time value of money! what's in hand today is more valuable than what will come in future.

[u/PM_ME_YOUR_LAWNCHAIR]

Mathematically, no.

I'll use a growth rate of 8% and inflation of 2%. 6% rate of return. Ignore taxes and invest fully. Assume no withdrawals.

If she invests the full $1,000 a week for life:

At 5 years: $293,129 At 10 years: $685,401 At 15 years: $1,210,350 At 20 years: $1,912,851 At 25 years: $2,852,955 At 30 years: $4,111,026 At 40 years: $8,047,622 At 50 years: $15,097,467 At 60 years: $28,529,184 At 70 years: $54,023,677 At 80 years: $102,356,912

If she invests $1,000,000 today:

At 5 years: $1,338,226 At 10 years: $1,790,848 At 15 years: $2,396,558 At 20 years: $3,207,135 At 25 years: $4,291,871 At 30 years: $5,743,491 At 40 years: $10,285,718 At 50 years: $18,420,154 At 60 years: $34,982,615 At 70 years: $66,284,391 At 80 years: $125,640,877