Okay--question time: lottery winner

[hyphenate]

So say you became the latest lottery winner, with more than ten million dollars in one lump sum. The taxes have been removed, and the rest is free and clear.

So think about this: many of the people who win a significant lottery and become fabulously wealthy have a difficult time with such instant change of economic status, and often end up broke or broken several years later.

Among the problems winners have had:

Addictions: drugs, alcohol, gambling, adultery, smoking

Having people try to con the money off the winner

Arrogance: beating their wives, children and other family members

Tabloid stories of how fifth cousin once removed asked for some of the pot, and was turned down

A loss of motivation to do anything and simply live off the money

A new circle of friends you barely know, but who help to drain some of your resources away with plans of traveling, booze and "loose" women

Finding out ten years later that the true friends are those who were friends before the win, and who never asked for anything

Overall disillusionment that your life really isn't all that much better than it was before you won the money




So I'm sure there are some day dreamers like myself who feel they can stay happy with the winnings, and who are not likely to go one of the routes above.

I don't smoke, drink or gamble

I know who my friends are now, and I'm not likely to accept new ones on face value

I have a lot of charities which I would endow

I love to travel, and I don't mind at all traveling alone

I would spend a large portion on habitats--my mom and sister need a good sized home, and my mom needs nursing care most of the day, I would pay off my brother and SIL's mortgage, and I want a house on the east coast and the west coast at a minimum

I would adopt more animals because I would have the ability to take in more

I'm a jeans and tee-shirt girl, so I wouldn't indulge in expensive clothing, shoes or other such items. I might get one standard outfit for going out, and a formal for some occasions, but that's about it. (And only comfortable footwear! I'm lame as it is, don't need to squeeze my feet into prisons of their own!)

I would be perfectly comfortable spending less than $1000 a week, if that, except when I go on a trip when I'd carry a little more. I'm a true Yankee in the fact that practicality would win out over frivolous choices every day.



So that's my story and I'm sticking to it.

What is your plan for this non-existent fantasy? Your weaknesses? Your obligations? Your potential bad mojo?

[DarkTirade]

1. I can't sit on my ass and do nothing. I'd use my money to start a business

and keep myself busy and also keep earning money so even if I do something stupid and blow most of it, I won't end up in the poorhouse. :)

[lost-in-nj]

2. And maybe

buy a new camera phone that has a flash...

:shrug:


just saying........



:hi:

lost










:rofl:

[DarkTirade]

4. But I like my shiny purple phone...

:P

[Wcross]

3. I would make sure nobody knew about it.

I would form a LLC to collect the winnings. Tennessee has a law that forces the winners name to be disclosed. All that would be known is that "happy pup LLC" won the powerball. I would have an attorney fill out the forms for me at the lottery office. I would keep my current home as a "front", If anyone came to visit me it would be right here. I would buy a 1000 acre+ farm and build a real home smack dab in the middle of it. I Would start a no kill animal shelter for dogs & cats that are about to be put down at local shelters. I wouldn't be able to save them all but I could help some. I would set up areas for different "packs" of dogs that got along well togeather & hire local teenagers to help care for them as well as give them enough attention. I would also have a vets office on retainer.

At least thats the plan. BTW, I actually won 1000 bucs last week and then today I found out I won another 300 bucks! I only play 5 dollars a draw so I am thinking I am on a roll!

[DS1]

5. I'm getting a 5 foot wooden skull on a wooden spine stick

[Hugin]

6. Yessssss!

:lol:

[carlyhippy]

7. First off I would pay off all my bills

Take a rather lengthy world vacation, buy a home in Colorado, buy my kids and husband new vehicles, give money to my parents and DH brother, put the rest in the bank....not very exciting, but it's exactly what I would do, no need to go overboard and spend it all in one place, I would not be one of those who would be broke in 6 months, no way.

Carly

[Xipe Totec]

8. First thing I'd buy is decent health care

if any money is left after that, I'd go back to school full time.

[warrior1]

10. I'd get some new socks!

Best idea is to keep your trap shut.

[Xipe Totec]

11. come again?

:wtf:

[Hugin]

12. I think it was a misplaced post...

Comments pertain to the results of widely announcing your winnings.

[Xipe Totec]

13. Ah, thanks!

:hi:

[Hugin]

14. Welcome.

:hi:

[pitohui]

17. lotteries are public and winner's names must be disclosed

if you think about the history of the lotteries in previous eras, you will see why, if lottery winners names are not open to the public, it is never long before it is friends and families of the governor and the lottery commission officials who win the lottery

you can keep your name private when you win private jackpots such as megabucks, you can sign a release to allow your name/photo to be used or you can refuse to allow your name to be used

i agree that if possible it is best to keep a solid win a secret, but in the case of the lottery, "keep your trap shut" is probably not an option, does anyone even know of a state where it's legal not to name the winners?

in louisiana for certain your name is a matter of public record

an alternate idea may be to change your name afterward to make it a little more difficult for the scumbags to find you

[Hugin]

9. Long ago I posted what I'd do...

But, $10 M was my cut off threshold for quiting my current job and venturing forth to pursue
a business interest of my own.


at... $100 M I'd start some sort of Foundation dedicated to investigating things I found of interest and
general Philanthropy.

Those were the high lights, IIRC. :)

[pitohui]

15. weak-willed losers can screw up anything, even winning the lottery, but we're not weak willed losers

there's no reason that it wouldn't work out fine for you or for me either

the most important gift you need when you win money is the ability to say NO -- i won significant money in years gone by and i had a firm rule that i didn't loan a penny of it to anyone, and i mean including my mom, you don't attract hangers-on if you don't give the hangers-on something to hope for, when the users realize that you're not an easy mark they'll find another target

i lived for many years from my winnings, and you can't do that if you're open to a "new circle" of so-called friends who want to help you spend your money

i know a man who won $80K and built a gambling related business that has sustained him for many years, i know a couple who won $400K and wasted every penny of it and are now stuck back in their old jobs as casino dealers their once-in-a-lifetime chance to pay off their house thrown away on garbage like partying and gucci sunglasses

[supernova]

16. You need an excellent financial plan

which most people who have never had much money lack. It's such a huge payout that it overwhelms them and they just don't know how to get their heads around it. Sad.

You need a way for dealing with all that money:

How much you want to keep as spending money
How to divvy up the rest into investments/charity or other goals.

Luckily I have a great financial planner. She'll be the first to know should I win. :evilgrin:

[pitohui]

18. an "excellent" plan is desirable but even a "so-so" plan would probably be OK

actually i believe the less money you have won, the more important it is to have an "excellent" plan

if you have $100K to invest, you really can't make any mistakes and still plan to retire

with $10 million, a screw-up or two along the way isn't so crippling

most financial planners wouldn't agree but i believe one of the legs of a secure retirement is a paid-off home, it may not be very sophisticated of me but that's one of the first things i did when i was winning money, first i put aside the quarterly tax payment each quarter, next i would pre pay some portion of my mortgage (until my home was completely paid off)

there is no "sensible" investment i could have made that has done as well as removing that monthly payment from my expenses, hell, the stock market is back to lower than it was 8 yrs ago under clinton so stocks and mutual funds have gone NOWHERE and they are the first investments that everyone recommends...

[supernova]

19. Totally agree with you

My house is paid for. (I'm struggling to get $$ for remodeling but that's a different story). I love not having a house payment every month. It's saved my hide more than once.

:thumbsup:

[XemaSab]

20. I have to say that I'd probably blow the winnings looking at birds

This could be good or bad, depending on your perspective.

[triguy46]

21. It takes some math, and you need to know the assumed interest rate...

that the lottery is using. If you win $10 million, it is usually based on a 30 year payout, so in addition to taxes, you would have to reduce the amount by the present value of an annuity to determine how much you would get in a cash out, and that will be greater or lesser based on the assumed interested rate by the lottery manager. If you could take the winnings and invest in a steady income flow, such as treasury notes, and it was greater than the assume rate, you would be ahead. If you cannot, then take the annual payments.

I have read that if you get a lump sum, take 1/4 to play with, stick the rest in tax exempt securities and live off the interest. That takes discipline. If you decide that what you need is a 59 room mansion, 12 grand pianos (and you don't know how to play) and 30 sets of silver, you will lose.

[Lyric]

22. Ten million dollars?

I'd hire a lawyer, a financial planner, and an accountant before I even turn in the ticket. Once I'd claimed the money and gotten the deposits all made, I'd invest a million in gold as a trust for my kid--it'll pay for his college education and reasonable living expenses, but otherwise he can't touch it until he's graduated with at least a bachelor's degree. If he drops out of college, he gets a quarter of the money and the rest will wait until *his* kids graduate college...then get split up evenly among them.

With the other nine million, I'd buy houses, cars, furnishings, appliances, clothes and other things needed to make a home a True Home for my Mom/Stepfather and my Brother and Sister-In-Law. I'd offer the same deal to my sister, but she'd have to agree to go through counseling and (potentially) rehab first, and she'd also have to agree that if she tries to sell anything, she loses it all. I'd set up college funds for all my nieces and nephews, too.

I'd pay off my own student loans, plus ThinkBlue1966's student loans, then I'd give ThinkBlue's Mom $50,000 cash. I'd hire private detectives and Australian lawyers to track down my son's deadbeat father, take him to court to force the paternity test that he fled the country to avoid, and sue him for years and years of unpaid child support--all of which would go into OktoberKid's trust fund. I'd also offer him supervised visitation, because I don't believe in using your kids to get revenge. I'd give $100,000 to Amnesty International in honor of OktoberKid's paternal grandmother and stepgrandfather (long story.) I'd give $50,000 to OktoberKid's paternal aunt, who is the only member of his father's family to ever acknowledge him, to be used to help her kids get an education.

And of course I'd buy a home for us--likely a small, well-kept farm and acreage somewhere in Appalachia, and hire people to help take care of planting food crops--not only for our own table, but also to benefit the entire local community. I'd also start a shelter for abandoned and abused horses, and give flvegan $200,000 to start a dog rescue organization that reaches farther than Florida, and helps to shelter dogs that are victims of all kinds of abuse. I'd give $50,000 to the local Humane Society to pay for a spay/neuter/food/vaccination program for people who love animals, but can't afford Vet care and good food, because I believe that even poor people deserve the chance to love a homeless animal. Then I'd become a foster parent, and hopefully an adoptive parent to as many more needy children as I could handle at one time.

Finally, I'd donate half of my remaining money to my university, to be used in the form of small grants to help low-income students pay for college, and the other half I'd put into a trust meant to manage my estate and pay for repairs, emergency expenses, upkeep of my animal shelters, expenses related to any foster/adoptive children, etc. Then I'd sit on my front porch, watch the summer storms roll in over the forests and hills, and write poetry for the rest of my quiet, private life.