The folks at rotten.com have already figured this out.
The article includes a long list of people who have screwed up their lives after winning the lottery. Note that this doesn’t seem to discourage people from playing…
I suggust a considerable amount into an annuity. Figure you want a monthly payout that will continue your life of leisure. This is just in case you go crazy. 1 or 2 million will do, that’s 4-12K/mo.
Note that if you get your annutity from several non-profits, you get a tax deduction, too.
Some great ideas here. Especially that “overseas stash of money to kill domestic swindlers” idea, LOVE that one.
I’m picturing something akin to Jason Bourne’s safety deposit box-- cash, multiple passports, guns, you name it. Just in case, of course.
O/T: That said, the way the political winds are blowing right now, we may not have anymore overseas bank accounts-- at least, not in the sense that they’re private and exempt from domestic taxes and liens. I don’t understand how the solution to overseas tax havens is to eliminate them-- why not just lower your own taxes to be competitive?
Anyway, that’s for another thread.
As for this one? I really would like to win that money just so I could do something for myself. I have never been possessed by dreams of opulence, but I do appreciate a number of things: comfort, security, the ability to easily travel (and travel well), and the freedom to do whatever motivates me that day, week or year. After a nice vacation or two, I’d almost certainly end up working again-- but this time, I’d be my own boss, and manage my own time investment.
I’d also probably use a lot of my newfound free time to do nothing more than manage my money. Or, at least, learn how to. I’m good with money right now, but that’s because I don’t have real money. Since I’m too paranoid to trust accountants-- every one is Bernie Madoff waiting to happen in my fearful mind!-- I’d want to learn to track my own investments. At this dollar amount, I’m sure that’d be a big job.
We’ve already got a plan:
one firend that I trust implicitly is also a lawyer. He’s my voice of reason.
another than is super honest, meticulous and a common sense gal is my accountant already.
out of the original 30:
2 each to mom and dad
1 to my brother
1 each to my 2 nieces and nephew, in a trust fund
1 split between 2 cousins who are like my pseudo-nieces, in a trust fund
3 set aside to pay for college for all 5 of them.
5 in the bank, making interest but safe
the rest is split between us to do as we wish. I want to use it to make micro-loans/help small businesses. She wants to use it for nature conservancy.
Oh, and a house outside the US as well as our current house IN the states.
I’ll turn into a land baron. And businessman.
I’ll buy as much land as I can around where the few people who are on my lifelong blacklist (for good reason) live.
Then I’ll build some massive pig farms. Or maybe chicken houses.
I saw a program on that. Some people have done very well.
Although one woman who won said she could not manage money before she won. Now she mismanages with more zeros.
Sign the ticket. Put it in a safe place.
I have 180 days. I will spend that time researching financial planners, accountants, and tax attorneys. We will tell no one and I will continue to work. We plan to give some to family members, so that will need to be set up too.
Once we have everything ready to go, we claim the winnings. We invite the family to a three-day weekend at Disney World, at which point we tell them what happened, introduce them to the financial planners (this is in a conference room, catered breakfast) who will outline to each family what they’re getting and how they will be paid.
We will pay off all our bills, invest heavily, and I will continue to work for another year as we get used to our new lifestyle. I’ve told Ivylad he can design our last house, wherever he wants, as long as there’s no income tax (I did veto Alaska.) We will also donate to charity and fund some scholarships.
Then, we have fun. Probably travel.
I worked with a guy who won an early Michigan lottery. He was about 55 years old and thinking of retiring. He got 50 K a year for 20 years. The check he got, I think was 37 K after taxes. It was over 30 years ago, so that was good money then. He just retired earlier and took it easy the rest of his days.
First call (after informing my wife, of course) is to my lawyer, and then to my financial advisor. If so permitted by the lottery, I’ll send my lawyer to claim it and collect. Lump sum option- I reckon I could invest it better than the lottery board.
The hard part would be figuring out how to enjoy the money while not changing my lifestyle so noticeably that everyone would wonder what’s up. For instance, if I quit my job, it would raise questions. Why? Why now? What will you do instead- you have a family to support? You just bought a house- where’s your new job? etc… I’d like to keep working, but I’d prefer to volunteer and do lots of charity work, although again that would raise questions.
I would want to give some money to my parents, to supplement their retirement funds so my dad could retire. Also, some to my siblings, but how to do it is a question. One sib is extremely successful and doesn’t really need financial assistance, but another could use lots of help. Do I give the same amount to each, or adjust as per neediness?
I’d constantly be worried for the safety of my family- any nutjob could kidnap one of my kids and demand a payoff, which is why I’d want to enjoy it without attracting any attention to the fact that I was loaded.
The more I think about it, it would cause too many problems. I better not win…
You could just change your name to “John Smith” or “John Doe,” then claim the money. Then if anyone tried to find you, well good luck trying to Google or track down John Smith or John Doe
If you take the lump sum, you get like half then you lose half to taxes so you probably wind up with something like 25% or maybe 30% or something like that.
If I won I’d do things to cheese people off. Like bail out Drew Peterson (the guy accused of killing his wife) not because he’s innocent, just because it’d hack people off
I dunno, in the hands of the Lotto people is safer than anywhere else.
Keep working for a few months, but put the max legal amount in the 401(k) and IRAs so that even if we squander cash, we’ve got something to live on in retirement.
Blow a million or so in funding trusts for my nephew (who will never hold a job) and my son (who may never earn enough to live on but will probably hold a job at least).
Blow 100K for each remaining niece / nephew, and of course my daughter, to contribute to college expenses.
Blow a few hundred thou to pay off the mortgage on this house.
Set up some sort of annuity for the in-laws who have no money for retirement.
Set up some sort of annuity or other relatively safe investment so that whatever’s left over, even if we squander the “ready cash” part, we have some income to last 30+ years.
Buy a few “toys” (nice TV, newer car for spouse).
Donate to charity of course.
And my biggie - TRAVEL. A nice RV to go all around North America one summer. A month or so in Europe the next. A trip to Australia / NZ in there somewhere (constraints due to kids and school and preferring to go when it’s summer down there).
In my scenario, the financial planners will meet with the families one on one to discuss the payout. They will be told to keep it confidential, as “they” are getting more than others.
Not true, but it makes them feel good and keeps things peaceful.
I’d immediately call one of my fraternity’s alumni who donated 700k to build our new house. He’s a multi-millionaire and I’d ask him for his money guy and lawyer. I figure if he trusts him, I will too. He has some experience with having money, so I’d ask him some basics. What do rich people do? What do I need to watch out for? Who decorated your house (it’s awesome).
Once I have a financial planner and lawyer I trust on retainer, I will figure out where I’m stashing away my money. I agree with having a 1-5m rainy day fund in a swiss bank where it’ll be safe, just in case. I’m not gonna use it as a tax haven, but just as a safety deposit in case I ever need it.
I’ll start off partying hard. Probably hold a huge party (rent out the VIP area of a big club in the area) for all my friends, maybe take em to Vegas or around Europe. Make em feel like I’m spending some money on em, and explain that this (and you know, when we’re hanging out) is it, I’m not gonna be accepting requests for money. I’d buy a whole lot of weed and booze.
Once I’ve gotten party-ing out of my system, or maybe even during, I’d pay off my family’s (grandparents and down, aka, people I know) debts here and abroad. My parents get 5 million and to retire. My sister gets 1-2 mil in an annuity. (She can’t just live off me, and I want her to finish college). The rest? I’ll probably live a lot like I do now, just with better stuff. And if I see something I want, I probably won’t think twice. I’d be a way worse impulse buyer, but I’m not talking about ridiculous purchases, just gadgets and stuff.
I’d get one really nice “I’m rich” car, and it’d be an Aston Martin DB9. For my daily driver, I’d probably get an M3 or comparable Audi. Something that wouldn’t stick out ridiculously, but still show I’ve got some money.
I’d buy some property (beach, lake, and ski) and rent it out when I’m not using it.
Well, I’d obviously do my due diligence to decide, in this economy, what the smartest way to claim the winnings is and how best to minimize my tax burden. I’d absolutely do everything in my power to keep my identity secret. I think I’d contact a series of large wealth management companies and have them each lay out strategies to maximize my return on investment and help me facilitate any and all of my future gifts and business ventures. I’d pit them against each other to see who could offer the most with the fewest fees and complications.
Once I had all the niggling details sorted out I’d have an utterly epic weekend in Vegas with my closest friends. We’d make the trailers for The Hangover look tame.
Then I’d go off on my own, traveling all over the US and world for a solid 6 months. Just seeing cities and beaches and every interesting vacation spot I’ve always seen on TV. I might buy a new luxury car to road trip in, an Audi, M-B or BMW, nothing too ostentatious.
I’d probably mix in a short period of hookers and blow into that short indulgent stretch. I don’t want to live like a rock star, but I wouldn’t mind trying it out for a couple weekends. I figure if I’m going to have a long happy moderate life for the next 50 years I’m going to have to get some of the wild and crazy millionaire fantasies out of the way early.
Then I’d buy and build a bar here in Chicago. It’s ultimately how I’d like to retire as it is and winning the lottery would let me do that while I’m still young and fun. Nothing too trendy, just a great neighborhood spot with outstanding wings, pizza and beer. Last night I fantasized a fun little beach themed spot with a aquarium and stuffed shark on the wall, why not start there!
After that I’d become a real estate speculator. I would love to buy dilapidated and foreclosed properties in upscale or up-and-coming neighborhoods in Chicago and then take the time to rehab them myself. I’d do as much of the labor as I could myself, working around the clock whenever I wanted just getting it finished. I’d see each as a investment and flip them or rent them for profit. Hopefully growing my nest egg with hard work and savvy choices.
All in all, I wouldn’t want to be lazy and retired. I’d want to be my own boss and run a string of businesses that aren’t so high maintenance that I can’t fly off on the spur of the moment for a week to party. I figure real estate and bars would be the types of things I would find fulfilling and easy.
I’d want to help friends and loved ones but I wouldn’t want to be doling out gifts or big chunks of money at the outset. Madness that way lies. I’d ensure my parents retire and I’d give them a credit card with unfettered access to my funds, maybe I’d incorporate and hire them as employee’s or something in order to skirt the “gift tax”. I’d much rather just pay their way instead of giving them $5 million and letting Uncle Sam get another 40%.
As for friends and cousin’s I’d prefer to become a angel investor for them. No gifts, but if they have a business idea they’d like a silent partner in I’m their guy. Want to start a business or buy a home…call me, put together a business proposal and I’ll create favorable terms for them. No freebies though. I’d let anyone I care about live in my investment properties for a pittance and I’d sell it to them a below market prices if that’s what they want, but no free hand outs.
So, no one is looking to drop a couple million on the mother of all Dopefests, huh?
Although I answered this like everyone else did, I think the OP was really wondering (at least partially) about the practicalities - how does one go about finding a trustworthy lawyer and financial planner? That’s something I’ve wondered about too, actually. Somehow, I suspect that the ones calling me the day after my winnings are announced in the papers offering their services are not necessarily the ones I want handling my affairs.
I don’t know if $100 million would do this, but my most recent “money is not an issue” daydream . . .
I’d buy a ton of land out in the great plains where it’s real cheap. Way more than I’d need, actually.
I’d take several square miles in the middle of it and do whatever it takes to make it into a city.
I’d build a new urbanist town with shops that the shopkeeps live above, mixed housing and business, schools, a post office, etc.
I’d hire lobbyists to attract a couple big eco-friendly businesses to open operations there (such as Google.)
I’d pass a city ordiance banning cars. People could walk, ride bikes, and drive golf carts. I’d build a huge garage on the edge of town to house cars that people want or need for out of town driving.
I’d populate the outskirts of town (which I own, remember) with windmills. Owning this land also means we wouldn’t eventually be surrounded by towns who allowed cars.
I’d do whatever I could to keep chain/franchise stores out and encourage independently owned restaurants, grocery stores, etc.
I’d sit around and wait for someone to suggest building a statue of me in the middle of this new mecca, this ultra-successful experiment and model for dozens of new towns across America :).
I have lots more details in my head but I don’t want to bore you all to death.
Taking the lump sum payment is a fools bet. MegaMillions and PowerBall are now paid out over 30 years. The lottery just loves lump sum payouts. Go to the PowerBall web site. Whatever the jackpot is, they really only have 1/2 of the money on hand. Take $50 million (because that’s all they have) and they are done with you but still can say that the jackpot was $100 million.
We will assume a tax rate of 30% for illustration purposes only. Even though when you take the lump sum you will be paying a larger proportion to taxes than if you took it over time.
Lump sum: When you take the lump sum you only get 1/2 of the jackpot at once, you don’t get it all. So $50 million minus 30% is $35 million.
Annuity: You pay the tax each year when you recieve your check. $100 million divided by 30 years is $3.33 million dollars per year. $3.33 million minus 30% tax is about $2.3 million dollars per year. Over 30 years of this you will end up with $69 million dollars. And it’s a myth that you can’t pass the annuity on to your heirs, it’s part of your estate and will get paid to someone for 30 years even if you die.
So I would not take the $35 million up front because I would rather have $69 million over time.
Sure you could be a better investor than the state, or you could loose it all in a few years of bad choices.
And no to question #3. The winners name is public record. You don’t have to go on TV or do any other publicity, but you can’t hide that you claimed the prize.
I think you’ve been playing SimCity too much. (Reply meant for Cisco.)