You have just won a $50,000,000 Lottery what 5 things will you do first!?

Question

as real as Possible I know you have all thought about it . what would you really do with that kind of fortune

Answer 1

Yep, I've thought about it.

First, form a trust and pick a solid company to administer it. That prize is paid out over 30 years (usually, or something close) and I don't want to lose over half of it in order to get the cash lump sum, yet I might not live long enough to see it all come in. The trust then keeps it going for my family after I croak.

Second, a big chunk is going to taxes first and before I see a dime they will want to withhold at least a third. Current taxes, state and federal would be really close to 40 percent (a rate that undoubtedly will go up in the future, but hopefully not as much as to cost the loss of the over 50 percent discount of the lump sum payment). So instead of 30 percent withheld, I would have the full 40 percent withheld. I would rather have government owe me than owe government. Also, current rates are something like 35 percent for federal and 4 percent (actually 6, but the federal tax is deductible) state, which is 39 percent, so tack on the 1 percent that the trust company expects and make the numbers easier.

Third, I would want to make some charitable donations, so set aside a quarter for a trust fund or foundation to distribute that. As a Christian, I like to pay my tithe, an old word for a tenth, so that still leaves some 15 percent for things like schools and scholarships and helping poor families out with their health bills, medicines, and such.

Fourth, I would want to make some investments to keep the money working. With today's uncertainty, I might shop for a bunch of banks to make jumbo certificate of deposit (CDs) accounts and get the better interest rates. When the bank needs to give the money back, especially if I go to federally-insured small banks, they will probably notice that I have a few bucks and want to let me in on local opportunities like some good housing developer that needs some partnership money (he will incorporate first and give me shares or it ain't gonna happen with me). When I identify an opportunity that will make me money better than the CDs, cash them in when they mature and invest elsewhere. I've got a couple of practice stock portfolios, one making 19 percent and the other 6 percent increases, so those strategies might work for some of this.

Finally, with the ten percent that remains, divy it up over the time as income. With that I pay off my bills, go on to get my doctorate. My wife can get her master's or more too. My son will probably want to open an upscale coffee shop which will then be no problem. I can travel abroad periodically, as well as about this country, because there are lots of beautiful places and fascinating things I haven't had a chance to actually experience yet. Besides, there might be some fun opportunity to invest in and while I'm holding the checkbook folks tend to be nice who otherwise probably wouldn't give more than the time of day.

50 million over 30 years is 1.6 million a year. That's 1 million after taxes at the current rate. That's a little over $400k for contributions and another for investments. An annual $166k for disposable income is more than enough for what I want to do. Besides, as contributions are often tax-deductible, I expect to get a chunk of that tax withholding back in tax refunds. Thanks for the dream.

Answer 2

Wow, this is somewhat scary. No wonder most people who win the lottery end up filing for bankruptcy.

People need to learn the difference between ASSETS and LIABILITIES!

ASSETS are things that ADD value to you, and LIABILITIES are things that TAKE AWAY value. For instance an asset would be a business or investment, and a liability would be a big house or a sports car.

If you go out and drop $130,000 for a super-luxury exotic sports car, don't leave out gas, insurance (!!!), maintenance, repairs, and all the other costs associated with owning an automobile. And don't think you can roll your Ferrari into the nearest Jiffy Lube... you need specialized auto care for your rare, imported, super-luxury set of wheels, which all come at an incredible expense.

Thinking about that $5 million super jumbo house? Great! What about property taxes, utilities, upkeep, landscaping, security, etc... etc...

I understand that if you won the $50M jackpot, these would all seem like nickels and dimes to you, but think long range. You won that money ONCE. Most people would quit their careers, eliminating the income stream. Now you have just set a financial time bomb. And every time you acquire another liability, you jump closer and closer to the end of your financial rope.

People who can afford to OWN these things (not just acquire them) did not make their riches one time and call it quits. They have a constant stream of income, which covers all of their liabilities. This stream of income comes from their assets.

Think of Bill Gates. His asset is his company, Microsoft. Bill brings in money that Microsoft provides, therefore it is an asset.
The super-super-jumbo house he's building is a liability. Bill puts out money for the house, therefore it is a liability. The money he brings in from his asset, is enough to cover his liability, therefore he is in a secure financial position to obtain his house.

Note that he is a business owner, and not self employed. He set up a system of people to do the work for him, and he cashes the checks. NOT him doing all the work. Alot of people confuse being a self-employee and a business owner, and use the term interchangeably. They are very very different, but that's another topic.

WORLD, PLEASE UNDERSTAND THIS: What makes a person wealthy?
If you won $50M in the lottery, YOU ARE NOT WEALTHY! Especially if you quit your career, or otherwise sever your means of income. The true definition of wealthy is if your assets outweigh your liabilities, you are wealthy. If your income is $1000 a month, and your expenses are $900, you are wealthy. Not by much, but indeed you are.

If your income is $100,000,000 and your expenses are $100,000,001, you are BROKE, and on a massive level.

Just think about this if you ever find yourself in this situation. Stockpile your assets FIRST, then carefully acquire the liabilities you desire.

It's scary to see all of you indulge in houses and cars and vacations, and very few say anything about investing or venturing.

BE WISE!

Answer 3

Holy crap, the butt crack thing was so funny!!!

Really, I would
1. Pay off all of my debt
2. buy a house
3. get another degree
4. give my parents 1/2 of it
5. take all of my friends to an all inclusive resort in the islands for a week

Answer 4

1.give some to my family
2. get a car
3. go on on a vacation to Hawaii
4. Save for college
5. Give to Charity

Answer 5

1. 10% goes to my church.
2. 50% goes in a saving bond that can't be touch for at least 20 years.
3. Pay off all of my debt.
4. Give each household in my family $5,000 each.(b4 you get a new cousin you've never seen)
5. Go back to school and finish my degree in Engineering.(after I take a 30 day vacation!)

Answer 6

It is easy:

1) distribute with my family part of the money;
2) pay the loans of my family;
3) go in a trip around the world;
4) Build a foundation to help people around the world;
5) Buy a space trip.

Now i just need the money :-)

Answer 7

That is a hard one...I would call my boss and let her know I would not be in to unlock my office and she would have to drive 200 miles to do so...or rather i would hire a locksmith to open my office, simple. I would call my husbands family and start dividing up the money....I would put my house up for sale right after I started building my dream home. and I could take some of the millions and try to buy the info. about where the bad guys are in the middle east so our undercover guys can take them out. Thus ending the war in Iraq.

Answer 8

1. Pay off Debt
2. Invest it and live off the interest (which would net a minimum of 2.5 million a year, much more if you make the right investments)
3. Help family & freinds with their burdens and/or career goals.
4. Donate a % of my interest every year to charitable causes.
5. Perform random acts of kindness that I couldn't otherwise do without being filthy rich.

Answer 9

Pay off all my student loans
Set both families (wife and I) with good houses and cars
Buy a house for ourselves
New Nissan Vehicle
Donate to Charity and Scholarships

Answer 10

1. Buy a house
2. Buy everyone in my family a house
3. Put money away for my kids college/house/car
4. Get myself and my family out of debt
5. Quit work!