If you won the Lottery...
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04-12-2017, 09:40 PM
RE: If you won the Lottery...
I would like to build a giant haunted house attraction.

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04-12-2017, 10:20 PM
RE: If you won the Lottery...
(04-12-2017 09:40 PM)jerry mcmasters Wrote:  I would like to build a giant haunted house attraction.

Well,yeah, you live in Houston ... no zoning means you can do it without moving.
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04-12-2017, 11:13 PM
RE: If you won the Lottery...
Go Nicholas Cage in Leaving Las Vegas. Except I'd add hookers and blow. Big Grin

#sigh
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05-12-2017, 02:18 AM (This post was last modified: 05-12-2017 02:26 AM by RBMG.)
RE: If you won the Lottery...
(04-12-2017 06:29 PM)Full Circle Wrote:  While 1 million sounds like an infinite amount, it really isn’t.

You are putting 25% or $250,000 into investments. If I can assume you mean stocks and bonds then that amount in a 60/40 allocation has historically grown by 8.7% nominal and only 5.5% real (after inflation). Your $250,000 represents, on average, a gain of $21,750 before taxes.

The other 25% you say you are placing into long term savings, what does that mean? A money market account? A CD? The yield on a 5 year CD is currently about 2.3% and on a 1 year 1.7%. This means that your money is barely keeping up with inflation.

Now, if you put 70% or $700,000 into a balanced portfolio that had a yield of 4% you would have a steady income stream of $28,000 before taxes without eating up the capital. Meanwhile the $700,000 of capital should be allowed to grow in value. Remember that the minute you start using up the capital the income stream will be reduced and once the capital is gone you go back to work.
Someone just took their first finance class.

No one said a millions dollars is "unlimited." No one said CDs are a good way to hold long term savings.

You're making way too many assumptions about what my goals are. We could talk about how much passive income I hope to make, the volatility of specific investments and what age I hope to retire at. Not really sure if you're looking for a debate about investing strategies or if you're just eager to show everyone how much you know about managing money. Either way, I'm not really too interested in engaging in this.

This is a hypothetical thread about winning the lottery - relax.
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05-12-2017, 04:14 AM
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.
Oh yes, I understand, I mean as it's a "what if..." question, the amount didn't matter all that much. I meant more in a general sense of what people would do with lots of money Smile

Great answer though Thumbsup
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05-12-2017, 08:03 AM
RE: If you won the Lottery...
I'm going to award myself a jackpot of about $5 million after taxes, which I'd arrange to be paid in annual installments, which I'd then use to...

1. Pay off the mortgage.
2. Pay the rest of my son's college costs.
3. Set up a trust fund for my son.
4. Buy more instruments and paraphernalia.
5. Fund a low-cost, high-expectations music lesson program in my community.
6. Travel.
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05-12-2017, 05:59 PM
RE: If you won the Lottery...
(04-12-2017 10:20 PM)Thumpalumpacus Wrote:  
(04-12-2017 09:40 PM)jerry mcmasters Wrote:  I would like to build a giant haunted house attraction.

Well,yeah, you live in Houston ... no zoning means you can do it without moving.

Yeah, but don't know if my homeowners association will allow giant animatronic squid tentacles higher than ten feet.

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05-12-2017, 07:20 PM (This post was last modified: 05-12-2017 07:50 PM by Full Circle.)
RE: If you won the Lottery...
(05-12-2017 02:18 AM)RBMG Wrote:  Someone just took their first finance class.

You're welcome.

And btw that's me being relaxed. Smile

“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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05-12-2017, 08:27 PM
RE: If you won the Lottery...
Some wag on TV once remarked that lotteries are a tax on people who can't do arithmetic. Laugh out load
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05-12-2017, 10:45 PM
RE: If you won the Lottery...
Pay my debts

Buy a more comfortable place to live

Travel to occasional sports events and concerts

Hire an accountant, lawyer, and financial advisor who hopefully perform a sort of “checks and balances” on each other and must report to me individually on a monthly basis.

Donate to Doctors Without Borders

Promote a large scale education campaign to explain why human overpopulation is a disastrous problem
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