If I won a multi-million dollar lottery...(fantasy thread)

[Beth Andrea]

So I started thinking after reading Annah's "My friend won the Lottery!" thread...what would I do with the money?

Let's work with a decent amount, say a $50 million dollar prize.

First question would be...do you want it over 25 years, or half of it immediately, and forfeit the rest?

25 years = 2 million, after 20% taxes = 1.6 million each year

Immediately = $50 million, after 20% taxes = 40 million/2 = 20 million one-time payment


Frankly, I'd be happy with the 25 year plan, with the caveat that I'd make a trust fund, which would be awarded the winnings...the trust fund's officers would be myself, my immediate family (in my absence), and whomever I/we designate as an officer...this would be simultaneous with a financial advisor and lawyer to ensure everything's legal and proper.

So, now how to dispose of 1.6 million?

(I'll come back to this thread in a bit...there's a Seahawks game on right now... )

Feel free to post your visions and choices, I'm interested in what "you people!" would say...*hugs*

[Ms. OBrien CVT]

I would probably take the 25 year plan too.  After all I could invest it in up and coming industries.

[Beth Andrea]

I don't know the first thing about investing, or how to determine which technologies/ideas would be "good"...so *if* I were to want to do that, it'd be something that'd happen probably a couple or 3 years down the road...

In the meantime, I'd do the obvious...pay off all my bills, and then take some time off. "They" say to take a sizable amount (say, $100K) and just blow it on something that doesn't mean a whole lot...in theory, this will get the "burning a hole in your pocket" feeling out of your system.

So...I'd take the $100K, and another $100K to buy a decent road-trip car, gas, hotel stays, etc. and just lounge around the country, driving hither and yon with a trusty wifi laptop, deciding WTF do I want to do? 

I'm thinking that will take a few months (4ish), and by then I'll have a good idea where I would like to buy a house at (Lichtenstein! LOL)

[twit]

I'd be a little hesitant about the 25 year thing. Knowing that it is administered by a government agency doesn't instill much confidence in that money being there to distribute down the road. Plus I'd want to share it with my siblings and their families, so lump sum would be good for that. I'm a thrifty person and don't tend to blow money on things without thinking hard about it, so I'm confident I would be ok with putting a lot to bed for the future and invest a little in something fairly safe.

[Ms. OBrien CVT]

Can we say private plane and crew?

[Beth Andrea]

Can we say private plane and crew?

Well, let's see...a Lear jet costs about $2 million (not including maintenance, fuel, etc); a dedicated aircrew of 4 would be about $350k/year (pilot, copilot = $100K each wages + bennies; waitstaff x 2 = $75K each)...umm, so such a privately owned high-end deal would be out of the question. A charter aircraft? More likely...but then, where would you go?

FIRST STOP THAILAND, OH YEAH BABIEEE...

[Ms. OBrien CVT]

Thailand, Australia, England, then Europe.  In fact I might even just start a small charter airline.

[EmmaMcAllister]

I'd take a lump sum. With my health, I don't expect that I'd have 25 years to collect incrementally. In Canada, we don't pay tax on lottery winnings, so a lump sum on 50m here would be around 40m. But to keep thing consistent, here is what I'd do with 20m:

1) 4 million to my family
2) Up to 1 million for transition expenses
3) Up to 1 million for a penthouse in one of: Toronto, Montreal, Berlin, Stockholm, or Amsterdam
4) Up to 1.5 million for vacation homes in three of: Paris, Madrid, Halifax, Tokyo, Manhattan, San Francisco
5) 8 million invested for living expenses (never eating into the principal)
6) 4 million for travel
7) 500k for misc expenses

When I die, my properties will be sold off and, with my untouched 8 million, the money will be used to set up a foundation for the arts.

[SarahM777]

What would one do with a windfall that,Hmm

First year payoff all the debts,take another 200,000 and invest it into my business,then hire some people. Then go look for a 50 acre parcel of land with zoning ordinances that will allow to do what I would really like to do. Build a house on a part of that parcel of land that would have the ameneties so my mom could get around fairly easily. Figure about 500,000+ for the land and house depending on where the land is. Look for an architect to design the building plans for the next project. So that would wipe out the first year.

Out of the 1.6 I would only take about 50,000 (My expenses are very low and I really don't need much) Take and build small houses that could be used like a safe house with private security. They could stay there for however long they need to so they can get back on their feet,only thing they may have to pay for is electricity and heat. I would also provide schooling for those that need it.
That is my dream if I could ever see it.

[gennee]

First, I'd pay off all my bills. Second, set p my family members. Third, I'd take a nice vacation.

[Jeatyn]

My first thought was "travel! lots!" then I remembered I have a young child. Backpacking for a year around the world wouldn't be the greatest thing to do with a toddler in tow

So new thought, I'd build a house from scratch. Have it all done exactly the way I want it. Nothing too huge, just a nice family house.

In fact if I had a huge chunk of money I'd love to get in to house renovation. Buying crappy places and turning them in to something awesome would be a brilliant way to make a living.

[Annah]

If I won 50 million dollars I would:

1. Buy the Roslyn home. It's a block from my Seminary. It's been up for sale for 3 years at only 800,000 (it's worth 6 million). No one will buy it because everyone says it's too haunted. Meh, I still want it.

Roslyn home:



2. Pay off my school debts

3. Sue my ex with the best lawyers money can afford, get my children back and give her about 200,000 dollars to get her life in order

4. Give 10% to my home church

5. Give my Seminary a 3 million dollar endowment

6. Give the Johnson Scholarship committee 3 million towards their LGBT Scholarships for LGBT Seminarians.

7. Pocket the rest.

Just a side note....if you plane on buying a leer jet and crew, your money will be gone in a few years. Just a heads up

[RedFox]

I've given this lots of thought over the years (someday i'll win!)   

Lump Sum.  Invest $18 Million of the 20 Million and use the other $2Million to pay off debt and purchase/build a nice home.
Assuming an average yearly return of the invested principle (10% stock market avg) - leave 8% (of the 10%) to build the principle and use the other 2% as an annual income.

It's an easy calculation on a spreadsheet.

First year you have 18 million in the bank and 2 million to use.
Second year you have 19.4 Million in the bank and $360,000 to live off of (remember no debt and house is paid for plus whatever is left of original 2 Million).

At the 25 year mark:  $114 Million in investments and over $2 Million annually to live off of

I like my plan much better than trusting the govt to hold my money and give it to me slowly over 25 years with no interest on the principle.

What would I do with the money I have to use?  Whatever I want.  Take care of my family and friends - travel, enrich my life and the lives of those I care about (and that care about me).

[Beth Andrea]

I've given this lots of thought over the years (someday i'll win!)   

Lump Sum.  Invest $18 Million of the 20 Million and use the other $2Million to pay off debt and purchase/build a nice home.
Assuming an average yearly return of the invested principle (10% stock market avg) - leave 8% (of the 10%) to build the principle and use the other 2% as an annual income.

It's an easy calculation on a spreadsheet.

First year you have 18 million in the bank and 2 million to use.
Second year you have 19.4 Million in the bank and $360,000 to live off of (remember no debt and house is paid for plus whatever is left of original 2 Million).

At the 25 year mark:  $114 Million in investments and over $2 Million annually to live off of

I like my plan much better than trusting the govt to hold my money and give it to me slowly over 25 years with no interest on the principle.

What would I do with the money I have to use?  Whatever I want.  Take care of my family and friends - travel, enrich my life and the lives of those I care about (and that care about me).

Never thought of it like that...but I surmise my financial adviser would say something like that (but, I'd get the adviser *after* choosing the 25 year plan). Thanks for the heads up!

What are the risks/bad things that might happen--beyond the "investments turning sour"--part?

[Edge]

I want that castle.

I would probably use it to buy a small home and pay for my university until I get a bachelor's degree. Then, get a good lawyer and go back to court so I can move with my son out of this backwards province and to one with a lot more opportunities. We would sell the small home and buy a really nice house in the new province. Then I'd use it to pay for my masters and PhD. Also, I'd transition. Of course, a lot of it will also go to things like bills, clothing, food, other necessities, a university fund for my son, toys and other things for my son, and travel.

[RedFox]

What are the risks/bad things that might happen--beyond the "investments turning sour"--part?

The trick to mitigating risk in investments is to have a great deal of diversity in the stocks, markets, and funds you put your money into.  like if the US market is not doing well, they Tokyo or Hong Kong exchanges might be going strong or have a strong sector.  Also, spread it across various sectors (ie. energy vs IT stocks) and long and short term investments (low to high risk investments).

The best investment one can make when it comes to money:  educating yourself on how to use what you have.

[RedFox]

One more thing I want to say on this topic.

I always used to use my daydreams about the lottery what-if question as a way to figure out what I really wanted in life.  We obviously can't control the "winning the lottery part" in life - but we can control what we'd do with our lives.

So the better questions should be:  If money weren't a barrier, what would you do with your life?  If that's what you really want out of life, what are you doing now to make it happen?

[John Smith]

I'm terrible with money, but I guess the 25 year plan would be good for me.

First on my list would be to quit my job. Or, maybe I'd work part time just to make sure I don't become a complete hermit. Then, I'd buy a home. Nothing too big and fancy, but it needs to be modern and asthma friendly. I'd get rid of all debt, of course. And then I might travel overses for my surgeries, if the waiting time at home turned out to be very long. Some money would drip down on my immediate family, and some would go to  various charities.

I guess I'd do some travelling too.

[Kevin Peña]

25 year plan.

-Give my dad $3 million after 2 years.
-Ride my bicycle across the US.
-Move to Ecuador and buy a house.
-Donate the rest.

[Elena G]

When you buy that house... who you gon' call?