I always volunteer at my local NPR affiliate during their pledge drives, but even I get sick of hearing them beg and plead for money (of course, I understand they have to do it, but it gets old). They say they’ll end the drive (and they do) as soon as they reach their stated goal. So one of my dreams is to be sitting in the other room by the phones when the drive starts. And just as the on-air talent launches into their first spiel of the drive, I calmly walk over to the booth, raise a hand to silence them, hand them a check in the amount of the entire pledge drive’s goal, and walk out.
Having accomplished that, I would set up family (there isn’t much, so that’s no big deal), then try to convince my wife that it would be a good idea to own a John Madden-style bus with a driver so we could tour the country (most of which we haven’t seen). Then we tour the world.
If and when we got sick of traveling, we’d figure out where we wanted to live on a permanent basis (which would be part of the reason we were traveling to begin with) and then probably go back to school just for the hell of it. I never graduated from college, and I’ve managed fine in life so far (I’m 30) without a degree, but I’d love to have the time and financial freedom to pursue higher education just for the fun of it.
We don’t have any kids, but our nephews and nieces would definitely be set up for life. And there are a number of charities I’d like to look into more closely and then donate generously to.
Also, if we still lived in the Los Angeles area, I’d buy lifetime season tickets at Dodger Stadium and have a corner of the home team locker named after me or something. And one year, I’d follow the team on all of their road trips just to be the True Blue fan in enemy territory.
Then I’d buy a house and build a bowling alley in it.
The usual stuff: pay off mortgages, etc. Set up comfortable trusts to supply an on-going stipend.
Then…
Build a house in the Dominican Republic, with an adjacent generator facility so that I’d be completely independent of local electrical power. Said house would have air conditioning. Said generators could keep air conditioning running at full blast.
Take over a local theater for a year. Produce four musicals that I love but no one will run because people don’t know them so they don’t make money.
Large donations to Catholic Charities, local parish, local diocese, local Catholic school. Perhaps scholarship funds for needy and for academically worthy students.
Complete my collection of really good cigars and really good scotch.
Create an organization similar to factcheck.org that would be relentlessly neutral AND have the money to buy TV ads during election seasons. Air and critique political ads for their honesty during this time.
Maybe run for Senate.
Large donations to various adoption and non-abortion pregnancy crisis centers. Perhaps a trust set up to provide an on-going source of funding for these.
One-time trip to AC to play blackjack at $500 per hand.
Send regretful note to Helen Hunt: “Hey, too bad for you. I’m married now.”
Let’s say I clear 200 million on the Canadian lottery (whose winnings are tax-free :D). Then…
I suspect the lottery organisation has counselors for teaching people how to manage their sudden wealth. I would learn from them. (That would be an interesting job, come to think of it…)
Very first thing: quit day job.
Then I’d pay off debt of family and selected friends. Take care of a few other annoyances like cars in bad condition, house repairs, etc.
Then I’d buy material things I want, like an HD flatscreen TV, a Prius and a Smart car, etc. To be honest, though, most ‘rich people’ stuff just doesn’t interest me that much.
I would hire a personal trainer/counselor and get fit. The trainer would help me discipline myself in organising myself, eating better and exercising.
I’d buy a vast tract of The Beautiful Land (the Canadian Shield) and build a hilltop retreat burrowed into the granite, a residence with workshops and studios and all that.
I’d slam most of the rest into a private anonymous foundation that would give cheques to causes I support.
One such cause would be a private space program, baby…
In real life, I will pay off my debt next month. So I don’t need to win the lottery for that one…
This is an important point that most people are skipping. With the current $340 million jackpot, if you are the sole winner, and if you take the cash option lump sum, you probably will end up with about $100 million dollars and change. The cash option, broadly speaking, is the amount of money it would take to generate the full value of the jackpot, when invested, for the period of the annuity payments.
So, for example (and these numbers are purely hypothetical), you could take $340 million in 25 yearly payments of $13.6 million, or you could take $150 million, which when invested at a 4% annual rate of return, would generate about $340 million over the course of 25 years. Many lotteries prefer that winners take the lump sums, as it’s less money out of the lottery’s pocket.
And before you get that wire transfer for a cool $150 million, you can expect federal and state taxes (where applicable) to get their fingers into the pie, and I’d consider it a safe assumption that you might jump a tax bracket or two.
Of course, it’s all a moot point, as I bought the winning numbers this afternoon.
Barring that, I’d set up scholarships at a number of universities. I would also endow chairs at certain universities, but with strings. For example, I’d offer to endow a chair in Economics at Cal, but only if it is called the “Milton Friedman” chair. Things like that.
I’d breed. Now there’s a horrid thought for you all!
Seriously, I’ve had zero luck with women, and I’d be a prime target for gold-diggers, so I’d simply pay some women to have children for me, hire wetnurses, nannies, etc. With a lot of money, I could afford a lot of children. And I’d give them the very best starts in life. Except that my daughters would not intern at the White House!
I believe that you can put the ticket in the name of a trust and send an attorney to pick up the money; I seem to remember that happening in Massachusetts (so, MegaMillons, not Powerball).
I think I’d do that; establish a family trust with certain amounts going to family members. Otherwise, I’d be taxed when receiving the money, and then they’d be taxed on any amount over $10K that I’d want to give them.
I believe the calculations above are roughly accurate. If the Powerball jackpot is advertised as say $340 million, you would “only” receive about $164 million as a lump sum (approx 48%). MegaMillions pays out more for their lump sum, about 59%, don’t know why. Then give 39% of your lump sum to the IRS, plus state tax (YMMV) for your actual cash in hand. Still a very respectable amount of money.
There was a thread in the Staff Reports about a year ago that discussed whether it would be better to take the lump sum or the annuity. I don’t think that it was ever definitively settled.
Charitable giving would be very important. This year, especially, has made that very clear to me.
So, for myself? I’d think about quitting, or at least cutting down my hours. I’d buy a new house, maybe in Western Massachusetts, have it designed with whatever I have always wanted. Nice woodshop in the basement. Spend a lot of time reading, gardening, cutting big pieces of wood into little pieces of wood in the shop. So, I guess I need a woodstove, too.
I’d build a haunted house with secret passages and lots of fun spooky stuff then host murder mystery parties and open it up on Halloween for anybody to see.
Then I’d travel the world via private jet.
Always have some incredibly gorgeous bimbo on my arm.
I’d give a sum (five figures) to my siblings (More money than you think, I’ve got a lot of siblings!), with no attention to spouses, children, whatever - they all get the same amount. A six figure sum to my folks.
The rest is mine all mine hee hee hee hee.
I’d buy a house and do some travelling. Invest some, donate some, waste some.
(hijack)
Since no one has actually addressed the real numbers thus far. The current $340 million jackpot would provide either:[ul]
[li]$11.33 million per year, before taxes, for 30 years with a minimum of 28% of that going to federal tax for $8.16 million per year excluding state income tax and other tax obligations above 28%.[/li][li]Take the one time cash option of $164 million which after the duduction of the 28% becomes $118 million excluding state income tax and other tax obligations above 28%.[/li][/ul]
Since IANA Lawyer or an Accountant, I have no idea what further tax burdens would be placed on the winnings. What are the implications of taking the annual annuity in terms of if you die and what happens to the money , etc.?
I’m certainly no lottery expert, but I seem to have read and heard many times (sorry, no cite as of yet) that lottery winnings are not transferable upon death (or for any reason).
Maybe the law is different in various states; I’m in California, if that matters.
Ya know what sucks? I can’t win. So I can’t even spend a buck for a couple days worth of kickass daydreaming. The company I work for has an the Minnesota Lottery as an account. To limit any appearance of impropriety, nobody that has a business relationship with the lottery can win it. Even lowly IT folks.
As a side note, my wife knew that we were pitching the business, so when we landed it I gave her a call.
Never, ever, ever, call your wife and tell her casually “we won the lottery”. She’ll forget any business pitches in the works and suffer a brain freeze of shopping spree proportions.
The Massachusetts State Lottery posts the names, town and ticket purchase location of all lottery winners. Most other states probably do as well. Since you are required to provide personal identification to collect, remaining anonymous is probably not possible.
First step, set up a trust. Don’t go public before you do that.
With that sort of money, the money I still own on my student loans would seem like nothing, and I’d pay them off immediately. My brother’s loans too, and pay if he decided he wanted to finish his degree. Me, I’d be applying to grad school to get a masters in creative writing.
I’d pay off my parents house, put an addition on it and finish their basement. Buy new cars for myself and my mom, pay off my brother’s car (I’d offer to buy him one, but he loves his car) and pay off dad’s too. They won’t be having any more money problems in general.
Then I’d buy a nice b-i-g house. Why big? If I’m rich I’m going to do try to do something I want to do: adopt siblings who need a home together. If I hired help I can imagine being able to handle five or six kids, as long as none of them are infants. Maybe more if I ever marry. At Christmas we’ll have a fantastic light display at the house. And maybe a model pirate ship. Also decorated with lights.
I like YellowTail’s haunted house idea, but I’d like to do something else. It wouldn’t require a lot of money, but being rich makes people think of you as eccentric rather than crazy, so it’d make the idea palatible to others: grown up trick or treating. I’ve always hated the fact that I’ve out-grown trick or treating. If I’m rich, I’m gonna arrange it so I can again, somehow.
Last, I’d be making some large donations to non-profits that specialize in helping poor kids, probably starting with ones I’ve worked for.
I was in the same predicatement until last July vis-a-vis the Connecticut Lottery. Past two drawings we’ve had about 35 people pool one dollar each.
But I’m not sure if you’re totally correct. When we had the CT Lottery as a client, you just couldn’t purchase a ticket inside the state lines. Maybe the Minn. Lottery is different.
