|
|
Post by Chicago Jake on Feb 9, 2011 0:48:07 GMT -6
It's my money, and I WANT IT NOW!!!!!!!!!  |
|
|
|
Post by Ardbeg... innit on Feb 9, 2011 6:11:15 GMT -6
Watched these ads for year and always wondered what their discount for calculating the value of the future payments is. I always figured that it was not very beneficial to the customer.
But then, I dont feel sorry for the schmuck who probably went on a spending spree with whatever new found riches they thought they had and overspent... hence, "I need cash now"
In my mind the phone number is something of an inside joke, "877CASHNOW" should actually be "877CASHCOW"
|
|
|
|
Post by Merlot Joe on Feb 9, 2011 13:45:26 GMT -6
Must be one hell of a discount they ask for to buy it from someone.
|
|
|
|
Post by Chicago Jake on Feb 9, 2011 14:14:16 GMT -6
I'd guess it's on the order of 10 to 20% to take advantage of the poor schmucks who don't know any better. Assuming an average duration of 20 years on the settlements, the discount factors would be:
(P/A,10%,20 yr) = 8.514
(P/A,20%,20 yr) = 4.870
So if you were getting, say, $10,000/year for 20 years, they'd give you $85,140 right now (if they were using 10%) or they'd give you $48,700 right now (if they were using 20%).
Some rubes would actually jump at that deal!
|
|
|
|
Post by Merlot Joe on Feb 9, 2011 17:22:11 GMT -6
So people are real stupid. They get a big chunck of cash and blow it away thinking that it will never dry up. Happens everyday.
|
|
|
|
Post by innit Geezer on Feb 9, 2011 17:54:00 GMT -6
Off hand I know of two people that came into money very young and both pissed away every penny.
One guy became sick when he realized how fast he spent it all.
The other one inherited $400,000 (30 years ago, that's a lot of cake!) at age 18 had no guidance. He salvaged $80,000 which he used for a down payment on a house.
|
|
|
|
Post by Tex on Feb 9, 2011 18:12:27 GMT -6
In Kilgore, the richest people in town when I was a kid have fucked off most of it and a new group of entrepreneurs have have far surpassed them. The wealthiest family in town now was made so by a man who was driving a butane truck when I was a kid. It seems like when money comes easy, you don't learn the skills necessary to keep and grow it.
|
|
|
|
Post by innit Geezer on Feb 9, 2011 18:26:32 GMT -6
It seems like when money comes easy, you don't learn the skills necessary to keep and grow it. Well spoken. |
|
|
|
Post by Merlot Joe on Feb 9, 2011 19:48:35 GMT -6
Like my dad says. It takes two generations to make it and one to piss it away
|
|
|
|
Post by Chicago Jake on Feb 10, 2011 0:23:42 GMT -6
Like my dad says. It takes two generations to make it and one to piss it away I've heard it as: - The first generation makes it - The second generation enjoys it - The third generation loses it. |
|
