2006-08-24 22:40:35 · 11 answers · asked by Ronald Allan Z 1 in Business & Finance ➔ Careers & Employment
Most lottery winners go broke after one to two years. Seriously, that's a fact.
5 million invested in some solid investmests will likely return about about 6-7% per year. That means you have to invest the money and live on the returns (i.e. $300-350,000 a year). For most people, that would give you a VERY comfortable lifestyle.
But there's two big additional factors to consider:
Taxes on your original win:
Depending on which state you live in, you'll end up paying between 30-40% of your money to federal, state, etc. taxes. Which means your original $5M will dwindles down to 3-3.5M! Let's say 3.25M.
Then, taxes on your yearly income. On 3.25M, w/ 7% return every year, you'll end up with $227,500/year. That's about $19K/month. Still quite reasonable. But I wouldn't expect to live anything other than a comfortable lifestyle with that. Mortgage on your new house will probably take up 1/3-1/2 of that. No yachts, etc.
Finally, where to invest? I'd say rental properties or established fast food restaurants. These would be the easiest places for someone who doesn't have sucessful experience managing a business to not lose all their money.
2006-08-24 23:16:34 · answer #1 · answered by henrytut2 2 · 1⤊ 0⤋
First thing I would do is JUMP!!! Then I would have a talk with my husband about getting out the military. Buy a house, open up a business, have a nice big church wedding with family and friends....
And hit up a very popular restaurant....
Ahh, that would be so nice. I might just go play the lotto tomorrow!!
2006-08-25 05:50:46 · answer #2 · answered by Sandy H 3 · 0⤊ 0⤋
pay off my study loan, credit cards debt and parents' properties debt. buy myself a nice convertible and a small car for mom (she hates dad's bulky rides!), treat the family to an oversea vacation somewhere and appoint a financial advisor to help me sort out the rest of my money :)
2006-08-25 06:05:50 · answer #3 · answered by aishah 5 · 0⤊ 0⤋
First, buy a nice $600-800k house (I'd pay off my parents but they already payed it off). Fix up my awesome 2005 Civic Si, then buy a Mercedes-Benz E55.
Buy a private Island.
2006-08-25 05:46:20 · answer #4 · answered by Petey 3 · 0⤊ 0⤋
After paying taxes, maybe purchase a small beach house for summer fun...
2006-08-25 05:46:20 · answer #5 · answered by Ladeebug71 5 · 0⤊ 0⤋
get a law degree and help the needies who need justification but can't afford legal fees
2006-08-25 07:26:00 · answer #6 · answered by Daniel 2 · 0⤊ 0⤋
pay off my parents house, fix my mom's van, buy my sister a car and pay for her college tution, pimp out my truck, get gastric bypass for me and my friend and then buy a house.
2006-08-25 05:47:02 · answer #7 · answered by foreverknightisforever 2 · 0⤊ 0⤋
Invest in gold.
2006-08-25 05:43:19 · answer #8 · answered by arthur.krill@sbcglobal.net 2 · 0⤊ 0⤋
If God will work won many charities
2006-08-27 19:51:37 · answer #9 · answered by bat_man6452 1 · 0⤊ 0⤋
donate to animal shelters
2006-08-25 05:44:01 · answer #10 · answered by MeLissa 3 · 0⤊ 0⤋