Sure, almost $500 a week would be cool, BUT, they won't be getting that much. As Peter shows, after taxes it's closer to $300/week... at first. But don't forget inflation. Sure, you'll still be getting your $1300+/mo after taxes during the 40th year, but by then it'd only buy $350 worth compared to today's prices. (Assuming the standard of 3.5% inflation.) In all, the total after-tax purchase power of the $ you would get is close to $350,000.00

From what I've seen a lump-sum of $300,000 is probably accurate enough. You can purchase pretty much the same amount of "stuff" over the next 40 years, but you can do it NOW instead of in 40 years. Pay that $25k in debt you have (average american) and buy a $275k house. Don't go back into debt and stick the extra $ you are no longer paying on debt interest or housing into a retirement fund or something.

Still, that pales to the $600k or so you'd have in your pocket after taxes from a flat $1 mil payout.