Would you take £1m now, or £1,000 a week for the rest of your life? | Hannah Jane Parkinson

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A Canadian teenager didn’t just win the lottery, she got to choose how she was paid. Which presents a dilemma …

It’s a nice dilemma to have, and quietly devastating for the rest of us who will probably never have to face such a conundrum. A Canadian teenager who won the lottery, after buying her first ever ticket to celebrate her 18th birthday, was given a choice: take home an instant C$1m, which works out at around £550,000; or receive C$1,000 (£550) a week for the rest of her life. It’s hardly Sophie’s choice.

After consulting a financial adviser, Charlie Lagarde chose the latter option. The adviser pointed out that as the allowance came untaxed, it was roughly equivalent to an annual salary of C$100,000. The Canadian economy is pretty stable, which also works in Lagarde’s favour, and the cost of living there is relatively cheap. As for pesky inflation eating away at that annual C$1,000, it’s estimated that Lagarde only has to live about 30 more years to reach $1m winnings in real terms.

A 2016 study found that lottery winners’ neighbours often ended up in financial difficulty, because they try to keep up with the spending

Related: National Lottery: on some scratchcards it’s impossible to win top prizes

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view The Guardian: Money
#family finances
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#life and style
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