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What you're suggesting already exists. While lotteries in the US often advertise the lump sum winnings, many are actually paid out in installments over a few d
by judah 11y ago
What you're suggesting already exists.
While lotteries in the US often advertise the lump sum winnings, many are actually paid out in installments over a few decades.
What happens is that winners demand the full lump sum. For the lotteries that offer it, the lump sum is less than the total winnings paid out over the years. (Something like 10% less.)
This has created a niche for businesses to crop up where the company will give you the lump sum total due, with a nice chunk extracted for themselves.
- amelius 11y ago> This has created a niche for businesses to crop up where the company will give you the lump sum total due, with a nice chunk extracted for themselves. What prevents these businesses from approaching these Kenyian people?
- bryondowd 11y agoI'd wager the gross value is too low to be worth the effort of going out there. I'm assuming a basic income for these rural Kenyans would be a very small amount in USD.
- AnthonyMouse 11y ago> What happens is that winners demand the full lump sum. For the lotteries that offer it, the lump sum is less than the total winnings paid out over the years. (Something like 10% less.) Hence proving the intuition that the people who buy lottery tickets are bad at math.
- maxerickson 11y agoUS lotteries advertise the total of the payments. They usually also offer, themselves, a much smaller lump sum amount that roughly matches the money needed to create an annuity to pay the installments (it's usually closer to 50% of the advertised jackpot than 90%). The businesses I'm aware of will offer a lump sum up front for assignment of any annuity.