Since the FDIC only insured up to $500,000, how would you distribute the money safely? Would you open 80 accounts across multiple banks? Please let me know because I plan on winning the lottery soon. Thanks.
2007-01-14 14:02:49 · 12 answers · asked by napsterator 2 in Business & Finance ➔ Personal Finance
Diversify -- Don't put everything in one place. Invest in Real Estate, Mutual Funds, Annuities, Trust Funds, charities. Invest and try to live off the interest.
2007-01-14 14:08:32 · answer #1 · answered by T N 1 · 1⤊ 0⤋
Diversify! Depending on your goals and your age. Some in the bank, not much just a little "mad money" so that you don't blow it. Some in the market, mutual funds, bonds. Financial planners would be chomping at the bit to help you do this. The word I focus on is safe. No Financial Planner can guarantee that you won't lose every dime. The word guarantee is not is their vocabulary. If you are in the market, you are at risk. FDIC guarantees up to $100k per account. Insurance companies offer guaranteed Fixed Annuities, and can guarantee that you will not lose a dime if you don't cash it out immediately. Interest is good these days on Annuities. Financial planners can put you in Annuities, but seldom do because then they don't continue to make money on moving it around until the Annuity Matures (usually around 8 years). Go directly to a reputable Insurance Co. and as a rule of thumb I say: If you are 40, put 40% of your assets in a safe Guaranteed Fixed Annuity. 60% of your assets in the market with a Financial Planner. If the stocks tank and your mutual funds don't do well as in the last 5 years, then at least you won't lose all your money. If you are young enough, then you will see the market come back in your lifetime. Leave your money in the Fixed Annuity for your retirement. 1035 exchange the Annuity every 8 years to get the bonus interest rate as many times as possible before you need it. No tax implications to move the Annuity this way. Good luck. Look me up if you win!
2007-01-14 17:22:51 · answer #2 · answered by Susan C 3 · 0⤊ 0⤋
Buy treasury bonds. They'll pay interest and have almost no risk of default. However, as the previous poster stated, your real fear is not a bank defaulting, its the money losing purchasing power due to inflation. If you do put the money in a bank, which is silly due to the poor yield you'll likely get, just make sure its a reputable firm with a high credit rating. A large national firm like Wells Fargo, Bank of America, or Chase is your best option. These firms also have large financial investment and planning departments that would likely help you for free due to the large size of business you would give them.
2007-01-14 16:14:57 · answer #3 · answered by MagicalMke 4 · 0⤊ 0⤋
That's dumb.
Even if you put $40Million in one bank account, the chance of the bank defaulting is so miniscule anyway.
Your REAL risk is the loss of value of your money.
As a financial advisor who has helped lottery winners, our objectives are usually safety combined with growth.
You stick your money in the bank that pays you 2% interest and you pay tax of 40% on it, and the cost of living goes up 3.3% you've lost real money year after year.
A well-planned investment portfolio makes more sense.
Of course, ya gotta buy your momma a new house, first. And a Cadillac for yourself!More than 50% of all multi-million dollar lottery winners have LESS than before they won the jackpot within 60 months of the prize payout.
The Real WealthBuilder
2007-01-14 14:11:31 · answer #4 · answered by WealthBuilder 4 · 1⤊ 1⤋
Hell No but I would give 40 million dollars to a charity rather than buying that many lottery tickets because giving is good for the soul when it is a good cause.
2016-03-28 22:02:38 · answer #5 · answered by Anonymous · 0⤊ 0⤋
i think that you should put it in the bank so no one will not steal it and if you need to take some mony out take some of it not all of it
i hope that this work for you when you make $40 million you should put it in the bank right away
2007-01-14 14:13:47 · answer #6 · answered by megan s 1 · 0⤊ 0⤋
i would stuff some in my mattress because most millionaires keep some there. i would also bury some in the yard in jelly jars cause that's what my sister does. and then some i know this isnt safe but i would spend on a ginormous party for the unpopular kids at school and i would be their king. you could also hide some in your shoes.
2007-01-14 14:10:08 · answer #7 · answered by pundragonrebel 3 · 0⤊ 0⤋
spread it out between Merrill lynch, Goldman Sachs, and a few other of the larger investment firms in the country, and most buy tax free municipal bonds and live off the interest and not even have to pay taxes on the money..........you could not even spend the interest
2007-01-15 09:30:44 · answer #8 · answered by besthusbandever 4 · 0⤊ 0⤋
Private Bank in Switzerland.
2007-01-14 19:20:58 · answer #9 · answered by Anonymous · 0⤊ 1⤋
When you win, I am sure you'll find plenty of safe places to keep your money. Until that time, don't lose sleep worrying about it.
2007-01-14 14:20:57 · answer #10 · answered by Anonymous · 0⤊ 0⤋