If you won the Lottery...
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04-12-2017, 01:31 PM
RE: If you won the Lottery...
(04-12-2017 12:29 PM)Yonadav Kenyon Wrote:  
(04-12-2017 11:30 AM)SYZ Wrote:  I'd certainly start believing in God... as I don't buy lottery tickets. Tongue

I buy a ticket when the jackpot gets over 500 million. I buy one ticket. Buying one is fun, buying two is a delusion.

I don't care what your politics are, politician, actor, musician, Royalty, business billionaire. I never want to be that rich or that famous. You live in a fishbowl and it is harder to tell who truly like's you, or loves you.

Actor Jim Carry once said something like, "I want everyone to become famous, so they can see it isn't everything it is cracked up to be."

I want to be secure but that's about it. If I become famous, I want it to be after my death when I don't have to deal with it.

Poetry by Brian37(poems by an atheist) Also on Facebook as BrianJames Rational Poet and Twitter Brianrrs37
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04-12-2017, 01:37 PM
RE: If you won the Lottery...
The OP said it doesn't matter how much but it does...a lot. There is a vast chasm between what can be done with 1 million vs 10 million or more.

What to do with it is fun to think about, the reality is a bit different as dancefortwo’s examples. As a thought exercise these are the steps a prudent person should take imo:

1. Don't let the public know until you have spoken to your accountant and attorney. If you don’t have an already existing relationship with those two professions you are already in a bit of trouble. Money, especially large amounts, change people in ways that would astound and disappoint you.

2. Security. A newly minted millionaire is akin to red meat to a pack of wolves. Have all your mail go to a PO Box, get a new phone and number and be very circumspect as to who you give it to, close friends, dear family members, business associates. Let them know not to share it with anyone without first asking you if they don’t want you to stop answering their calls.

3. Create a business entity that can purchase things for you so you can keep your anonymity.

4. Depending on the amount, moving to a new home should be considered, let your newly minted LLC own the property and let your attorney represent you at the closing.

5. Set a realistic cash burn amount that won’t leave you living under a bridge in a few years. Use actuarial tables and family history to estimate your possible lifespan to determine what is and isn’t realistic.

6. Find a fiduciary investment advisor that fully understands your needs and desires. Use low cost, diversified vehicles to generate a monthly income stream that aligns with your realistic needs and attainable goals.

7. Ask yourself, do you want to preserve the capital and live off the generated proceeds so you can leave an inheritance to family, friends and charity, or not. This will determine your burn rate.

8. After establishing what you want/need per year and setting aside the proper amount to generate that cash flow then, and only then, can you determine how magnanimous you can be with the rest (assuming there is a surplus).

Cool

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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04-12-2017, 01:41 PM (This post was last modified: 04-12-2017 02:22 PM by skyking.)
RE: If you won the Lottery...
we are nearing retirement. Just about any reasonable jackpot would do for starting that early. We'd opt for the annuity option rather than the cash out, and set up our estate so that PBS and nature conservancies would get what is left over.
I don't care for having a large home, big boat, etc. I do have a genuine passion for aviation, so a couple of planes are in order.
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04-12-2017, 01:57 PM
RE: If you won the Lottery...
Give the whole thing to a set of charitable remainder trusts, take the tax deductions, (structured however is best), name some beneficiaries to get modest incomes, and basically forget about it. Life goes on. Meh.

Insufferable know-it-all.Einstein God has a plan for us. Please stop screwing it up with your prayers.
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04-12-2017, 02:16 PM
RE: If you won the Lottery...
(04-12-2017 01:37 PM)Full Circle Wrote:  The OP said it doesn't matter how much but it does...a lot. There is a vast chasm between what can be done with 1 million vs 10 million or more.

What to do with it is fun to think about, the reality is a bit different as dancefortwo’s examples. As a thought exercise these are the steps a prudent person should take imo:

1. Don't let the public know until you have spoken to your accountant and attorney. If you don’t have an already existing relationship with those two professions you are already in a bit of trouble. Money, especially large amounts, change people in ways that would astound and disappoint you.

2. Security. A newly minted millionaire is akin to red meat to a pack of wolves. Have all your mail go to a PO Box, get a new phone and number and be very circumspect as to who you give it to, close friends, dear family members, business associates. Let them know not to share it with anyone without first asking you if they don’t want you to stop answering their calls.

3. Create a business entity that can purchase things for you so you can keep your anonymity.

4. Depending on the amount, moving to a new home should be considered, let your newly minted LLC own the property and let your attorney represent you at the closing.

5. Set a realistic cash burn amount that won’t leave you living under a bridge in a few years. Use actuarial tables and family history to estimate your possible lifespan to determine what is and isn’t realistic.

6. Find a fiduciary investment advisor that fully understands your needs and desires. Use low cost, diversified vehicles to generate a monthly income stream that aligns with your realistic needs and attainable goals.

7. Ask yourself, do you want to preserve the capital and live off the generated proceeds so you can leave an inheritance to family, friends and charity, or not. This will determine your burn rate.

8. After establishing what you want/need per year and setting aside the proper amount to generate that cash flow then, and only then, can you determine how magnanimous you can be with the rest (assuming there is a surplus).

Cool

All of these are the main reasons I don't play the lottery. Too much to deal with.

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04-12-2017, 03:35 PM (This post was last modified: 04-12-2017 03:50 PM by Full Circle.)
RE: If you won the Lottery...
(04-12-2017 02:16 PM)GenesisNemesis Wrote:  All of these are the main reasons I don't play the lottery. Too much to deal with.

The extreme change in your monetary situation is more than some people can handle.

Recently I was invited to meet a billionaire, that is with a capital B, at his home. The estate is valued at 65 million, gorgeous place. The 90 foot boat docked by the house was his smaller one, the big one has to stay in a deep water marina...it is 177 feet long and has a crew of 14.

We share a common acquaintance and apparently common interests and thus the meeting. We have been invited to join him on the large yacht somewhere on his round the world trip and sail with him for a week or so. I was thinking how cool to hang out on a mega-yacht for a week but the reality is that you become a target. Piracy is very real, kidnappings are common in third world counties and the high seas. These are very real concerns. Every time a boat approaches the vessel you have to be on high alert, every time you go ashore you have to be escorted. This man and his family live in a bubble, yes a beautiful bubble, but a bubble nonetheless. He confided that he missed his anonymity when he was still a struggling business owner.

Being the pragmatists that I am all I could think about the entire time I was in his palatial home, surrounded by exquisite art was, “How do you protect yourself, your family and all this stuff?” I am sure that his children and family all have to have a 24/7 bodyguard. Turns out that he travels with ex-SAS bodyguards.

There is a book titled The Millionaire Next Door, it was a study done in the 1990’s to help companies identify who the millionaires are so they could market to the wealthy. One of the most interesting things that the authors discovered was that many of the millionaires they talked to were small business owners, self-made and lived a quiet life without the glitz in middle class neighborhoods. Their neighbors had no idea these people were, by all metrics, wealthy and they liked it that way.

Food for thought.

ps Found the website for the yacht. Damn!

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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04-12-2017, 03:59 PM
RE: If you won the Lottery...
^ he chose to live a life of ostentation. That in itself would make me uncomfortable.
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04-12-2017, 03:59 PM
RE: If you won the Lottery...
(04-12-2017 01:41 PM)skyking Wrote:  We'd opt for the annuity option rather than the cash out

That could be a big mistake. In the US both the Powerball and Megamillions lottery funds are managed by the state the winning ticket is sold in. Most states these days suck really really bad at managing money. They could go broke in a few years and you get next to nothing. Especially since the annuity payouts start out small and get bigger annually.

Save a life. Adopt a greyhound.

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04-12-2017, 04:06 PM
RE: If you won the Lottery...
(04-12-2017 03:59 PM)Popeyes Pappy Wrote:  
(04-12-2017 01:41 PM)skyking Wrote:  We'd opt for the annuity option rather than the cash out

That could be a big mistake. In the US both the Powerball and Megamillions lottery funds are managed by the state the winning ticket is sold in. Most states these days suck really really bad at managing money. They could go broke in a few years and you get next to nothing. Especially since the annuity payouts start out small and get bigger annually.

That's why you take the 1 time payout, and give it all away to a charitable remainder trust. You get the income for life, as does anyone else you name, and probably never pay taxes again, (including on the lottery pay-out).

Insufferable know-it-all.Einstein God has a plan for us. Please stop screwing it up with your prayers.
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04-12-2017, 04:07 PM
RE: If you won the Lottery...
(04-12-2017 01:57 PM)Bucky Ball Wrote:  Give the whole thing to a set of charitable remainder trusts, take the tax deductions, (structured however is best), name some beneficiaries to get modest incomes, and basically forget about it. Life goes on. Meh.

But if you place the whole thing in a CRT you would have income stream but no cash to buy a house or whatever other toys you may want at first. I do think this is a good idea though.

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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