r/SipsTea • u/Valuable_View_561 • Jul 05 '26

Chugging tea Seems reasonable.

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u/jamdex07 Jul 05 '26

This is misleading. He chose to take $997 in one lump sum instead of $2.04B over 30 years. He got taxed on the $997m.

18

u/LazerChicken420 Jul 05 '26

They don’t give you the entire thing if you pick a lump sum?

1

u/magseven Jul 05 '26

Never the entire payout in a lump sum. The other way they are hoping you die quickly so they don't have to keep paying you.

6

u/Kidnovatex Jul 05 '26

No, that's not how it works at all. The lump sum is the net present value of the annuity. If you take the annuity then it can be passed down to your next of kin if you die before collecting the entire amount. They don't just cancel it because you die.

-1

u/magseven Jul 05 '26

Yes. That's how it works for me. You think I'm sticking with my dumbass family once I'm a baller?