You just won the powerball lottery, and let's say it was the current 193 million dollar jackpot. How would you take the money?
1. Give it all to me in one big check?
Okay, that means you already have to give half to someone who has been screwing you for years without so much as a kiss; taxes. Leaving you with a big old 96.5 million dollar check to deposit somewhere. But where?
It isn't like you can just take the check over to National City and plop it into your checking and savings accounts. Well, you could but if they go under you'll only be covered by the FDIC for around 250k per account. That means your life now depends on that bank staying in business, and/or you being able to come up with enough variations to your name, your wife's name, etc., to be able to put the maximum amount into each account to cover the 96.5 million bucks you now have. CD's are an option too, but unless you want to regularly visit the bank to fill out paperwork and sign your names more times than you do when buying a home, at minimum two or three times a year, it might be problematic. . .
Then there are the family arguments that will appear with such variety and regularity as to make the century's old conflict in the middle-east look like a playground squabble. Yes, nothing like money to feed jealousy, greed, and lots of other human frailties that most of us spend the majority of our lives in pleasant naiveté surrounding their very existence. But they are there and they'll arise from the ashes like a Stephen King Phoenix once word gets out about the accounts you are creating in relatives names. And it will get out no matter how strongly you try concealing it.
Okay, investments. These days going to the local casino is probably going to deliver about the same return as the average investment fund out there; in any case the risk is about equal. And it isn't just the fund you have to be worried about, but the individual(s) managing the fund, their staff, the broker, and a cornucopia of other greed stricken jackals that fill the pyramid of trust investing has become in today's world.
For every greed ridden, airplane crashing, investor fleecing skunk's butt they catch there are a division of replacements out there drooling to get at your hard won umbilical cord. How the hell are you going to know who, what, where, and when to trust? Think about it. The minute you take delivery of that check the vultures will begin circling and lining up at your door, waiting for the kill. You are going to make mistakes and there is just no way around it. The key is minimizing their impact isn't it?
Do it yourself investment is an answer, with places like E-Trade out there it is a viable alternative, but then again wasn't the idea of playing the lottery in the first place, to allow you to live out your life in pursuit of activities and endeavors that interest you, and free you from the harness of the plow? Hah! Choose this course and you will work harder and sweat more than you have at any job you have ever held in your life! And like having daughters seems to do, sleep will elude you regularly; only visiting you when your body is beyond exhaustion or via chemically induced coma! And do that enough and Mr. Heart Attack will pay you a visit or two, and may even bring along Mrs. Stroke too! So unless the objective is to trade the harness for one you own yourself, better think about this one a bit more eh?
You could try spreading the wealth out to a portion of your family, but that too represents the potential for huge battles in the family war of life. Not to mention that if you didn't include their names on the winners filing, an old Uncle, (Namely Sam), will come back and take another bite or two at the 96.5 million dollar apple you just found. So if you intend to go this route you better have the duck family all lined up in a neat row, or the corporate structure for the "Family Business" all figured out before you even set foot into that office to file the claim. Oh, and a lawyer, and accountant or two on retainer are going to be necessary, so hopefully you have identified them ahead of time as well, and they are trustworthy. . . Hopefully.
And if you are going to do this remember that you can only gift up to 22,000 in cash or value before having to cut Uncle Sammy back in on the deal again. (There is a wife exception but really, giving her half tax free; is that such a good idea? You sure you won't later be giving her half of your half as well?)
Given that you are going to make a mistake or two along the way, one has to consider the potential risks associated with them. What happens if you wind up investing in a fund or entity that carries with it the risk of being required to invest further because of your high level of ownership? OOOOH. And suppose that exposure ends up sucking up whatever funds you have left after doing so? Guess what, bye-bye home(s), watches, cars, boats, blah, blah, blah, and hello old harness, I missed you so badly. . . NOT!
Then again, there may be those amongst you who strongly believe that you know what you are doing and can handle the financial responsibilities along with the personal attacks, financial skullduggery of investment managers and guerilla attacks from blood relatives. Hey, more power to yah but if I wanted to spend my life participating in war I'd have stayed in the military until they forced me to leave!
Humm. . . Okay then how about just buying up a bunch of real estate then? While historically a safe bet and solid investment, given the recent declines I am not thinking it will be very solid again for several years, and perhaps not for decades. Still, managers cannot steal land from you, or can they? Anyway old Dave will be more than happy to sell you some additional insurance policies to cover your newly acquired real estate, as well as bump up that umbrella policy to make sure that when Cooter, who rents one of those places from you, snaps and goes off the deep end, taking 35 of his neighbors with him, their families won't be able to snatch all that property from you for renting to him in the first place. . . Of course now civil court cases could follow until long after you are fertilizer. . .
OR
2. Give it to me in installments over 30 years?
Now this may be an option that most may find a little more manageable from a lot of perspectives. Representing an annual payment of $3,184,500.00 a year AFTER old Uncle Sammy takes his bite, it would place your annual income into the range of those enjoyed by professional athletes.
Of course all of the above issues still apply; you still cannot buy aunt Gertie a 300,000 dollar watch and avoid Uncle Sam again, nor can you avoid the sharks, family greed, jealousy, or scammers any better. What you can do is minimize the impact.
If they steal everything you have, you work for Walmart for a year, then get paid again and have another swing at the plate. And you can keep on doing this for 30 years, unless you over expose yourself in an investment deal and they garnishee your future income. . .
Aww crap, forget it. I am not playing the lottery! Who needs the headaches!
Anybody know how good Walmart's retirement plan is?
:sa: :sa: :sa:
What would you do?
I have NEVER played the lottery....not even once. :no:
with THAT said, my father plays it every week, and he has since the beggining....and his one and only reason for playing it is, to give it to me and my brother and sister.
So, with THAT said, I think, one lump sum...which after Sam and my siblings, would leave me around 32.1 Mill....my first thing would be set up MY kids with trust funds....set back enough for my wife and I to live "comfortable" .....I know who my friends are now, so I would except no NEW friends...It would be nice to be able to contribute to those friends and family...as much as possible.
you bring up a good question though PH....where do you start?....like you said, you just can't walk into National City and deposit it.....I'm pretty sure they would just "cash it" for you....so WHERE do you go? :confused:
Exactly my point. Most players engage in the game hoping to win, but very few if any are armed with the ability to deal with the results should they win.
The lottery steers winners toward reputable financial advisors as a means to help educate them, but for a majority of them the education goes over their head. Thus, the pack of vultures and wolves grows each time a new victim, errr. . . winner comes forward. And they are getting rich off of them.
I personally have some of the support necessary already in place due to a family situation, but the fact is I am never going to win the damned thing. The ones that do are rarely prepared to do so, with a lot of them gathering up a bunch of property, cash, arms, and "staff" that end up bilking them of their possessions and bankrupting them.
If I did win, I'd take the installments, tell no one, and live as I am doing right now. I'd just have a lot more "toys" and a vacation property or two. (One North, one south I am thinking).
Each one of my children would go back to school on my dime. For as long as they will.(Not a problem with 3 of the 6 currently enrolled in college, and the other 3 looking for ways to get back) My grandchildren would each have a substantial college fund, (already in place but not as substantial as it would be should I win).
I have already identified a few philanthropic endeavors I would throw some cash at, as well as a couple of charities. All others would be stopped at the gate and refused entry. Including relatives. (I also do this already so it would be no change. Most of my relatives hate me, due to my direct style of communication, which would not change either).
Until recently i entertained the idea of maintaining my home here in Anderson should this ever happen; but not anymore. I would be gone from this town the second the check hit the bank, so to speak. I'd sooner chew glass than spend another second more than necessary as a resident here. The sad part is I really like my neighbors and the area, its the crooked governance that sickens me. (Coincidentally, some of those philanthropic endeavors include enabling some folks to get the hell out as well). :smile:
I'd turn it into Gold Bullion. Store it in a safe in my basement.....and cash one in whenever necessary. :biggrin:
Quote from: pariann on October 02, 2009, 04:37:01 PM
I'd turn it into Gold Bullion. Store it in a safe in my basement.....and cash one in whenever necessary. :biggrin:
you GOT to be carefull, you never know who is .... in nearby trees, JUST watching you.... :icon_twisted: :o ;) :razz:
Quote from: Henry Hawk on October 02, 2009, 04:09:29 PM
...so WHERE do you go? :confused:
I'd start by paying a visit to the financial institution you currently do business with. They have financial advisors on staff, and it won't cost you a penny to make an appointment with them to sit down and discuss some options. Then make an appointment with another one that you don't do business with too, as well as a private financial advisor (and this one might cost you). And do all of it BEFORE you file your claim.
The idea is to get a plan of action together that will support your life goals, provide you a comfortable income, and enable you to do whatever it is you want to do with your life; before you claim the friggin money! Then, execute it.
Make sure you fully understand the risks, your responsibilities, the demands your plan will place upon your time and that of your partner(s). And make sure you have a backup plan in place should problems arise or risks become a problem.
Also, visit an insurance specialist before claiming. Get the coverage and policies you need to provide you peace of mind and adequate medical coverage. Understand their costs fully and the financial impact they represent to the plan. Shop it around but it is a good idea to use the purchasing power you represent to get preferred insurance with a solid carrier, and get it all in one place if at all possible. Life, health, home, auto,boat, bike, umbrella, - get them all and keep them all. A lot of them will require medical examination and testing, so take the time necessary to get it done and in place.
You can usually tell the winners who take the time to do this. They are the ones who let the prize sit unclaimed for several days / weeks before claiming it. :wink: :smile:
Before I ever collected it I would go to a lawyer and set up a family trust dividing it equally between our two children and my husband and I. Then I would ask a few people I know who they would recommend as an investment consultant/accountant and talk to them. I would set up a trust fund for my sister and my husband would do the same for his sister. Set up a charity trust fund, then, I don't know. My husband and I have talked about it, daydreaming don't ya know, and maybe some travel, two new vehicles, and after that we are lost.
Quote from: Palehorse on October 02, 2009, 04:50:56 PM
I'd start by paying a visit to the financial institution you currently do business with. They have financial advisors on staff, and it won't cost you a penny to make an appointment with them to sit down and discuss some options. Then make an appointment with another one that you don't do business with too, as well as a private financial advisor (and this one might cost you). And do all of it BEFORE you file your claim.
The idea is to get a plan of action together that will support your life goals, provide you a comfortable income, and enable you to do whatever it is you want to do with your life; before you claim the friggin money! Then, execute it.
Make sure you fully understand the risks, your responsibilities, the demands your plan will place upon your time and that of your partner(s). And make sure you have a backup plan in place should problems arise or risks become a problem.
Also, visit an insurance specialist before claiming. Get the coverage and policies you need to provide you peace of mind and adequate medical coverage. Understand their costs fully and the financial impact they represent to the plan. Shop it around but it is a good idea to use the purchasing power you represent to get preferred insurance with a solid carrier, and get it all in one place if at all possible. Life, health, home, auto,boat, bike, umbrella, - get them all and keep them all. A lot of them will require medical examination and testing, so take the time necessary to get it done and in place.
You can usually tell the winners who take the time to do this. They are the ones who let the prize sit unclaimed for several days / weeks before claiming it. :wink: :smile:
you are hired!!...I will give you a call, WHEN, my dad hit's it.... ;) :yes:
if i won the lottery, i would take the money to my banker, have accounts set up for my kids and parents. then i would go to the atlantis hotel and stay til i was broke. then i would plan a comeback album to get more money.
;D