Which do you think would improve your life the most?

$1.2 Million windfall now or $10k per month income for the next 10 years?

It’s the same amount of money so which one do you think would have the biggest effect on you.

I remember having conversations with friends and work colleagues many years ago about what it would be like to win the lottery. Fantasizing about the sorts of things you would do with the money. The cars and houses you would buy and the holidays you would go on.

I think you will agree that $1,000,000 (approx £600,000) is sadly not enough to actually retire on, unless you are fairly close to your job retirement age already, but it is a substantial sum of money, none the less.

I think that something like a lottery win of this size brings with it some pressures and expectations.

Assuming that you cannot keep it completely secret, even if you wanted to, people will know you have come in to this money. I do not want to go into the debate about whether you have a duty to pass on or donate portions of your luck to other people, maybe close family, but people who are aware of your windfall will naturally have an idea of what they would do if they were in your position.

They would assume that money is going to be spent in putting some expensive car on the driveway and possibly, that driveway will be part of a different house all together.

They are probably expecting to see you tanned from your recent holiday to a tropical paradise.

So what if you did none of those things?

Are you worried what people think? Are you looking at it as something you can invest for your future and therefore not actually spending it at all. Satta It’s not going to change your life to any degree and you still keep going to the same job. Would it bother you if your work colleagues starting treating you differently.

There are too many cases of people that have had lottery wins far in excess of the amount I am discussing and will say, with all honesty, that it ruined their life.

Compare that with the other option of having $10k per month for 10 years.

With that amount coming in, your household bills and regular financial commitments are likely to be handsomely covered, no problem. You are going to have a large amount left over as disposable income.

If moving house is something that appeals to you, your income allows for you to take on a far larger mortgage on a more luxurious property and still have plenty left each month.

Because you have not had any sort of publicised windfall, there are no expectations on you to purchase expensive cars or go on amazing holidays, but you could if you wanted to and nobody would bat an eyelid.

You may get some people wondering how you can afford it but those that don’t know you will just assume you have a well paid job, which, of course, you do.

From a purely sensible financial view, the more lucrative option would probably be to have the $1.2 million lump sum and find some sort of investment that gives you interest on it but also allows you to withdraw $10k per month. You have the same high monthly income, plus the security of the remaining lump sum AND it is earning some interest too which means it will probably last a little longer than 10 years.

It seems to be the best of both worlds.

But I can’t help thinking that having that lump sum, whatever you opt to do with it, you will always have those expectations and pressures attached to it.

If you had $1.2 million in the bank and a relative asked you to lend them $5k and you said no, can you begin to imagine the fallout?

But if you were just getting your $10k per month and seen as the person that has a well paid job, would that relative even ask for the money?

It’s an interesting debate and the more I think about it, I can’t help thinking that the $10k per month option is better. You still holiday where and when you like (within reason), you can still buy whatever car you like (within reason) and you can still move to that luxury house if you like.

But the perception of you by others seems to be totally different.

I know that what other people think is irrelevant, but that is a statement that can only be made in an ideal world and, as we all know, we don’t live in one of those.