Canadian Winner Rejects Lump Sum in Favor of Weekly Lifetime Payout
A Canadian native Brenda Aubin-Vega discovered she won the $1 million lottery prize, but instead of claiming the entire pot, she chose to receive a payout of $1,000 a week for the rest of her life. A lump sum is a one-time payout that most lottery winners claim, instead of an annuity, which is a set amount of money received over a period of time. Aubin-Vega will receive $1,000 a week for life, but her choice has divided the internet, with people debating whether it was the right decision. The Canadian lottery is not taxed like the US, so the Montrealer could have claimed the million dollar prize tax-free. Even cryptocurrency moguls are drawing criticism on her decision with Binance CEO Changpeng Zhao speaking out. The crypto CEO wrote on X that she should have taken the lump sum, invested it in a fast-growing asset like Bitcoin, and grown her prize instead of receiving $1,000 a week. Canadian Brenda Aubin-Vega sparked controversy by choosing weekly payouts of $1,000 instead of the lump sum.
Changpeng Zhao Weighs In Sparking a Global Debate
The decision has divided the internet, with people debating whether it was prudent. Changpeng Zhao, the Binance CEO, wrote on X that she should have taken the lump sum, invested it in a fast-growing asset like Bitcoin, and grown her prize instead of receiving $1,000 a week. 'I saw this this morning and instantly I knew it was bad decision. She needs 20 years to get her million.' 'Some people still think the $1k weekly is the right choice, couldn't be me,' 'At her age it makes sense unless she had some amazing investment plan. It also guarantees that she will never be broke,' 'She made the right decision. She saved a bunch in taxes and had a guaranteed income for 19 years,' Yahoo News noted some pros of her choice, noting that weekly payouts are safer than the unpredictable stock market and that her age matters. Is playing it safe with steady income smarter than risking it all for a shot at millionaire status? The Montrealer could have claimed the million dollar prize tax-free. Since the payouts are for the rest of her life, she would reach $1 million by age 39, and by 80 she could have about $3 million in total, per the outlet.
Pros, Cons and the Price of Inflation in a Lifetime Payout
Despite the debate, the lifetime payments are guaranteed, but the lump sum could have been invested to grow faster and bigger over 30 years. The Canadian lottery is not taxed like the US, which changes the tax calculus. Yahoo News notes that weekly payouts are safer than the stock market, and age matters in the calculation. Since the payouts go on for the rest of her life, the projections suggest she would reach $1 million by age 39, and by 80 she could total around $3 million. The Montrealer was ecstatic to learn she was the lucky winner during her break at work. 'I couldn’t believe my eyes! I checked my ticket over and over again,'
