A Real-Life Case
This is a real-life case of a 20-year-old lottery winner.
Let’s call her Brenda.
Brenda was given two options:
A guaranteed weekly payout for life.
Or a large lump-sum payout upfront.
She chose the guaranteed income.
Was this a wise decision — or did she miss the math?
The Setup (Converted for Context)
In USD terms, her options were:
$1,000 per week for life.
$1,000,000 lump sum.
To make this relatable, I’ll use a conversion of $1 = Ksh 130.
Option A: Ksh 130,000 Per Week (Guaranteed for Life)
This option offers certainty and peace of mind.
No investing.
No market risk.
No decision fatigue.
No stress about money management.
Just consistent income.
The Math
Weekly: Ksh 130,000
Monthly: Ksh 520,000
Money hits the account.
You withdraw.
Life continues.
This structure is very similar to a life annuity in our market.
You give an insurance company a lump sum and receive guaranteed income for life.
Safe.
Predictable.
Simple.
The Downside
There’s no inflation protection.
Over time, the purchasing power of that Ksh 130,000 per week will shrink.
Secondly, once you exit, the inflow ceases.
There will be nothing to pass down to the next generation.
Option B: Ksh 130 Million Lump Sum
This is where real wealth strategy comes in.
Brenda admitted something important.
She didn’t trust herself with such a large amount of money.
So she opted out.
But let’s run the numbers anyway.
If Brenda invested Ksh 130 million in a low-risk portfolio earning an average 10% per year,
Focused on capital preservation, here’s what would happen.
The Math
Monthly income (interest only): Ksh 1,083,333
Weekly income: Ksh 270,833
Key Insight
She would be living purely on interest.
While never touching the principal.
That means:
Her income adjusts over time.
Inflation is absorbed.
Her purchasing power is preserved.
Her capital remains intact.
Yes, this option comes with responsibility.
Market fluctuations.
Discipline.
Proper portfolio management.
The Reward
Higher income.
Inflation protection.
Capital preservation.
A legacy of Ksh 130 million (or more) for the next generation.
This is the equivalent of choosing an income drawdown strategy, or investing your money, instead of locking yourself into a fixed annuity.
Now It’s Your Turn
If you were in Brenda’s shoes,
Would you choose:
Ksh 130,000 per week — guaranteed and simple.
Or
Ksh 130 million — strategic, scalable, and legacy-focused?
Choose wisely.
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Alex Mwangi | WhatsApp 0703472299
