October 21, 2005
FOUR FOR FRIDAY
Q1: When you're in the privacy of your own home, what--if anything--do you tend to read while youíre in the bathroom?
Q2: How did you first learn about your current job?
Q3: On this date in 1915, American Telephone and Telegraph Company engineers in Arlington, Virginia, initiated the very first transatlantic radiotelephone call (they called a telephone placed at the Eiffel Tower in Paris, France). What was the last country you placed a call to besides your own?
Q4: If you had picked the winning numbers in this week's Powerball Jackpot, which was worth an estimated $340,000,000.00, you would have been given the option of choosing between a one-time cash payment of $170 Million, or 30 annual payments of approximately $5.6 Million each. Which would you choose and why?
Posted by Mikal at October 21, 2005 12:02 AM
| TrackBack
I think your math might be wrong or my understanding of lotteries is way off.
If I won $340 million you say I would have the choice of taking half of it now: $170 million.
Or I could take it over 30 years in payments of roughly $5.6 million.
But 30 times 5.6 million only equals $168 million, so why is this even an option? Surely the annual payments would be closer to $11.3 million so it would total up to $340 million at the end of 30 years?
Either way, I'd take my money now on the basis of two beliefs:
1)I can invest the money (I figure I'd have about half of that ... $85 million?), live handsomely for at least 30 years off the interest and still have the main portion of my winnings to leave to my heirs, which seems important.
2) OR, I could buy everyone I love a dream home up front, then invest in an annuity that would pay the taxes and insurance on those homes for 30 years. If I had only $50 million or less at the end of that I could still live more than comfortably on $1 million a year for 50 years, couldn't I? I mean, my house would be paid for, so that expense would be gone. I could educate my kids well and help them understand that they have to earn their own living because there's not going to be a gigantic fortune when mommmy dies -- mommy's going to spend it all on herself and them and charity and Many Other Things she'd like to do, making sure only that she has enough to live comfortably until the age of 100, which I'll undoubtedly not make.
Oh, this is a good day dream (err, night dream, it's almost 11 where I am).
Kristine
1. Business 2.0 or Skiing magazines.
2. From an ex-coworker, that became my co-worker when I joined the company, but is about to become an ex-coworker again. I just can't keep up with the kid.
3. Canada or Puerto Rico, while I was managing the tech support call center for a major hotelier in-room entertainment provider.
4. Easy, I would have taken the lump sum, because I could get hit by a bus next week, which means that I would forfiet all those winnings. Screw that. I would have immediately put half into my mother's trusted hands to invest. I would definitely own some Berkshire Hathaway, just because I'd finally be rich enough to afford a single share ($84,500/share at the time of this writing). Then, I would buy a house that I've been eyeying just down the block, pay off my house, pay off my mother's house, pay off "the parent's" house, pay off my uncle's house, set up a SERIOUS college fund for my younger cousins & my older cousin's child, give $1M to Jon & Lisa, buy an Audi TT (black with chrome spinners), buy this old tour bus that is out by Rocky Flats, get Xzibit to Pimp My Ride, and plan a major party with Ween, Ludacris, Matisyahu, and The Specials (I'd fly in all my friends that were interested in attending & rent out some serious space in a pimp hotel). Then, I would go on a tour of the United States. After the tour was over, then I would start on Earthship housing developments. Then, I would learn how to sail. Dude...I got SOOO tangental. Yeah, I'd take the $340M so I could immediately start making plans for taking care of others.
1. Runner's world & Men's Journal
2. Company website
3. Spain
4. Take it all now baby! Why should they get the interest when I could have it?
1. Magazines.
2. Actually, the job I have now came as a result of another job I applied to, sent to me from a friend.
3. I don't usually call my friends outside the U.S., we stay in touch by email.
4. I'd want to have the $170 million up front. I'd be able to live off the monthly interest alone, and still have enough for the next 30 years.
1. Whatever book I'm reading at the time.
2. From a friend of a friend. She knew I was looking for a job and called our mutual friend right away when the position I was looking for opened up.
3. Mexico. I was housesitting during the week of the 9/11 attacks for people who were vacationing there and they had to stay a few extra days because their flight back was canceled. Fortunately, I was able to stay with their dog until they got back because my next housesitting gig wasn't for a couple of weeks.
4. I'm torn between wanting more money in the annual payments (that is how it works, isn't it?)and wanting to invest the lump sum. Either way, I'm sure I could comfortably live off the interest after purchasing a nice home to share with my girlfriend and paying off the homes of friends and family.
Q1: Rolling Stone or Newsweek
Q2: I read about it in the funny papers, submitted a resume, and was hired after several grueling interviews.
Q3: Spain, and if I recall the conversation correctly, it wasn't worth the money I spent for it.
Q4: I would take the lump-sum $170 million. Who knows what'll happen 30 years down the road?
Re: Kristine
Your math is correct, but the conclusion is not. You still owe taxes on the $170 million, but tax is already factored into the payment plan.
1. In my bathroom you'll find Dwell Magazine along with a random sampling of a few other periodicals (none of which stand out right now). I donít spend a lot of time in there, if you know what I mean, so I donít feel the need to keep a lot of reading material on hand.
2. My current job doesn't apply (I'm currently looking for work). I learned about my last job from someone who already worked at the company and who encouraged me/recruited me to apply for the opening.
3. The last country I called would be Germany, and since I used Skype to place the call, I spoke for 45 minutes or so with my longtime friend Christoph for free.
4. Oh, I'd choose the lump-sum payment, no doubt about it. Since there's no telling how much the $5.6 Million annual payment would be worth 15 years from now, I'd take all of the money now and start to put it to work for me and the causes I choose to support now.
1)GameAxis or maybe reread my Harry Potter books.
2)I don't have a job, I am a student.
3)None, I don't call other countries since I don't have relatives there.
4)I would prefer to take everything at one go. *Laughs*
Thanks for the good questions! I answered them at my blog, since I'm wordy. :)
I love those questions :)
I've answered it on my blog, yes again in french :)
Q1: This is an easy question; I donít read anything.
Q2: When one of the engineers was leaving where I used to work to come here, I gave him my resume and that was twenty-seven years ago. When the supervisor of this department was leaving one of his employees told me of the opening and I applied for the opening, that was twenty years ago.
Q3: Another easy one. I have never made a phone call to another country. I have received one from Italy two years ago when my brother and his family was over there, but I have never made one.
Q4: I would that the installment payments of $11.3 million a year because I am really lousy with money and with the lump sum if I made a bad investment I might lose it all. But with the installment payments I might be able to budget the monies better.
Post a Comment:
|
