This 20-year old lotto winner refused $1M in cash and chose $1,000/week for life. Which option would you pick?

By taking the $1,000 weekly payments, Aubin-Vega has effectively locked in a 5.2% annual yield on her jackpot. Since the payments are provided by the Canadian province of Quebec, this annual yield is nearly as safe as the yield on a government treasury bond. Canada’s 10-year bond currently offers a 3.4% yield, which makes Aubin-Vega’s move seem more financially savvy (5).Fortunately for Aubin-Vega, she’s Canadian and faces no taxes on lottery winnings (4). In other words, she could have claimed $1 million w ...