if offered the choice between a million — free and clear — or $200 a day for the rest of my life... I'd take the $200 every time!
That statement kind of goes against the whole idea of this post, as I understand it. If you could get $1M free and clear right now, then if you can just invest it at a 7.3% annual return you could generate $200 / day AND still have the $1M in assets.
You're precisely right @yabapmatt!
I failed to make it clearer that what usually happens when people "suddenly" end up with $1M is that they don't invest it... instead they buy cars, boats, hookers and blow... and then wonder why they are broke again. Consider the large number of lottery winners or sports stars/celebrities who end up declaring bankruptcy a few years later... I meant to make that clearer.
You and I would both be smart enough to invest the money... but an awful lot of people aren't.