Winning the Lottery

Well here is a topic I am sure many of us have thought about: Winning the lottery. What would you do? Well I am asking it in a more ATS frame of mind.

Suppose your were to win the lottery today and we will make the prize a nice low $30 million:

1. Would you want it as an annuity or lump sum? Would the current economic crises or global “wars on terrorism” change your mind? What would you do if you expected to normally live long enough to receive the annuity (ie.your average life span will extend another 26 years)?

2. Would you spend money on securing yourself for any coming cataclysmic events or nuclear wars?

3. Would you try to use the money to make the world a better place? How?

There are all kinds of questions you could ask.

I recently bought a ticket for a $23 mill lottery and it raised these sort of questions in my mind.

I know that I wouldn’t really want to change who I am. But I would also like a home and a decent running vehicle. I would like my family to have the same.

But I wouldn’t want to becoming so wrapped up in money. So I started thinking what would I do with the rest. What kind of charities are available and how much do they help. I live in the South and after Hurricane Ivan the Red Cross and the Salvation Army were here to help. So I would want to help them. But what about the starving in Niger. And then would it be more beneficial to the world to set up a place for spiritual enlightenment. To see all faiths accepted and taught. To give people a place to learn whatever pulls them. Or what about a paranormal research society?

I am young so I first thought to take the annuity. But then what if WW3 is at our back door. I wouldn’t have time to prepare. But I could have a lifetime income of ~$800,000 USD for the next 26 years. Unless I am turned into a blob of nuclear waste before then. Also, I considered the fact that the US economy seems to be on the verge of collapsing. Wouldn’t that annuity loose value. Heck the whole lottery system of payouts would probably be invalidated. So I could go ahead and purchase a lot of precious minerals ahead of time.

These are just some of my thoughts on this. But it had a real profound effect on me. I realized that if this is what I would do under ideal circumstances, why don’t I try for them now? Today. Everyday. Why must there be a huge sum dropped in my lap for me to try and help? It at least makes you think about what you truly want in life.

So anybody who has though about it, particularly in reference to the current events that some of us see as being foreshadowing, let me know your thoughts. Even if you think nothing is going on in the world other than what is on the boob-tube.

PS- Just to let you know I only got the power ball and one other number. It was worth $3 though.

forget the 26 payments scheme. if you do that the Goverment still keeps the original lump sum plus some interest gained within the first 5 to 10 years of their "dispersment" to you.

Better to take all cash right now even after taking the hit for cashing out now and paying taxes.

Investing a good portion of the money in a secured low yield return will help keep your nest egg growing while giving you tax free income.

Such as buying T-bills, with a 15 or 20 year yield. Or buying municipal bonds in city that has a high average income per capita.

Take a small portion of cash and blow it on anything you want. Pay cash for everything and do not finance anything except 1 long term (high upside potential property) whether a piece of undeveloped land in a town that is growing or an old apartment complex that could be torn down to build a new shopping mall. Look for a 5 year or even 10 year return on your investment but expect almost a 150% or more return. Such as buying a rundown apartment complex for 300,000, hold for 5 years as undeveloped property (maybe 80,000 in removal costs) and then sell off to a developer at $750,000 or more.

mitigate your exposure to fraud and deception by limiting the number of people that can come into direct contact with you.

Set up a bogus Trust fund or foundation with some obscure name that is no way related to your past. Have that organization buy everything that you want to purchase. So that your name and net worth are never associated with any real property. This will keep people from tracking you down. Make sure the agent for the trust fund etc is someone you can trust.

Pick a close personal friend or business associate and offer to pay them a great salary to be your liason. Have that person do all your business for you

Originally posted by amarenell

2. Would you spend money on securing yourself for any coming cataclysmic events or nuclear wars?

In terms of number 2. I would create a LARGE, underground bunker beneath my house, ever seen teh movie "blast from the past". something along the lines of that. But I'd also have an underground lift/helipad, just incase driving wouldnt be to easy afterwards, and a pilot license to fly a heli too .

With a lottery win, nice house, running car etc. Im not a big guy on materials ive had money to throw around before, and I still have it.

Easy. I would probably buy a nice house somewhere in Europe, like Switzerland or someplace. Invest the money and live off my investments until im old and gray

I have often thought about something similar.

I decided I would spoil my family and my friends who were my friends when I had nothing. It is my opinion that with that kind of money, "friends" would be coming out of the woodwork.

I would take a lump sum and I would trade my small house in the village for a small house on the bay -- with things built for ease of use as we age and with a garage and screened in porch.

Would get a grand RV and got to all sorts of festivals and hit different shooting ranges and go to different sporting clay shoots around the country.

Some charities I believe in would get some better contributions - some family members who think they would be on the list just because they are family would be surprised to get nothing - if they can't be bothered with us unless they need something now they shouldn't be surprised not to get anything - (sorry cranky old lady here but I don't expect a lot -- an email occasionally would do it for me)

sorry not to spell check -- major storm rolling in and I'm getting off for a while....

Oh and I would update my computers before they are completely obsolete and you can't even buy old ones to get parts to fix them.. which is what I have done for the past 3 I have had.

Think i would move to Australia or somewhere else that gets nice warm summers

Big bomb shelter... all the way. With lots of stored fuel for the times that are coming when we can't get any.

I do like (or contemplate) this topic once in a while. I have thought about it in great deal and come to the following conclusions. I live in a relatively nice house for my means, not huge but not small. It is a lot of work even though its relatively new (5 years). I have no kids but "unused" bedrooms. I only bought a house because I wanted to be responsible for all aspects (interion, exterior, landscaping etc) otherwise I would have gone condo. I really don't think I would change with a large lottery winning. Its too much more work and I don't like the concept of having gardeners, nannys and the such. I like trying to manage what I am capable of and not things I have no control over. I have heard that you are not supposed to make any financial decisions for 1 year to let the "fever" wear off. Other than taking a nice small chunk in a yield savings or money market account to secure my short term needs I cant see diving in huge and buying 5 mil worth of stuff and I am still single at 32.

Sort of a ludricrous thing to think about. The probability is so low that it's pretty much a guaranteed pipe dream ... but if you are serious the biggest concern would be how to minimize your capital gains taxes, and that sort of thing is why they have accountants. You should ask your accountant how they would go about this. If you break up the payments over a certain period of time you can reduce the capital gains taxes because you will be in a lower tax bracket than if you took it all at once, but the rules are always being changed around so you would have to do some research.

Assuming that you are a U.S. citizen, you can look forward to paying up to aproximately 38% of anything you recieve in Federal income tax (not including Alternative Minimum Tax: AMT). Figure closer to 40%. Then, unles your state of residence excludes lottery winnings as taxable income, you'll lose another 10% or so for State income taxes.

Lump Sum vs. Annuity? Kind of depends on where you see inflation going.

If you see inflation going up in the future, get your money now, because a million in the pocket now will be worth more than a million in the future.

If you see a bright sunny future with low inflation (and likely lowered taxes...The Republican Wet Dream Future) then take that annuity! You'll pay less in taxes on a reduced immediate pay-out, and less in future taxes as the rates are lowered under the benificent regime.

I'm a pessimist who preferes to think himself a "realist"; Give me my money NOW!, thank very much! I'd buy a ocean-going yacht (to ride out tsunami's and melting polar caps in style!) big enough to carry an armoured Humvee converted to bio-diesel Gas maybe hard to find where I end up, but anything with fat can be boiled into fuel oil.....

Anyone.

Er, I meant Anything!

Amarenell.....strangely enough, I have thought the same as you, and would do basically the same things you mentioned....and throw in the heli pad and underground living area, too, that Vorta mentioned....lots of charity work, that's for sure! But if you try to consolidate any religious teachings in any kind of big way, at this time, I believe you would be labeled as the antichrist or something. But spiritual healing places, or something to that effect, might work. Good going for a young person!!! Good head on your shoulders! kudoes

Hell wit 30 mill, I would buy ATS thier own OC 12 line just for this site...

Just so we dont have to wait 30 yrs sometimes to look at some cool news...

Then I would go buy a ford pinto wit the remaining 42 dollars.

i would buy a bomb shelter from heman [the army veteran in the simpsons];

-"Now, this baby is called "the Withstandinator." It can take a six megaton blast. No more, no less".

then i would buy a bar and sell cheap beer.

hahahahahahha, taxes!
what a joke.
here in aussie land, as well as warm summers, we get all of our winnings, no tax what so ever.
suck on you government other countries

I would take the lump sum.

I wouldn't change my investment strategy over my current portfolio. I am pretty happy with my current mix of investments. The lottery would just make it bigger.

There are a number of local charities I would support. I don't see myself writing big checks with lots of zeros to any of the major national charities, maybe a token amount.

I don't even think my lifestyle would upscale much. I am pretty happy now.

Ha! After hiring a whiz to take care of the financial planning, and building a fort with a moat and an underground bunker........I'd drive around looking for pore slobs that were broken down on the side of the road ( like I've been a few times), and give them enough to buy a new car. Then.....

I'd dress in ragged overalls, stuff my pockets with BIG cashiers checks and roam the high dollar department stores and car dealerships.....and when the snooty sales people treated me like dirt, I'd show them one of those big checks and tell them they'd just lost a FAT commission....lol!

Robertfenix pretty much summed it up really....but...

1. Would you want it as an annuity or lump sum? Would the current economic crises or global “wars on terrorism” change your mind? What would you do if you expected to normally live long enough to receive the annuity (ie.your average life span will extend another 26 years)?

Definitely the lump sum, you'll make way more back by investing yourself, as robert mentioned.

2. Would you spend money on securing yourself for any coming cataclysmic events or nuclear wars?

Some, yes. My custom-built home would have one heck of a fallout shelter.

3. Would you try to use the money to make the world a better place? How?

Some, yes. I'd donate some to charity (tax breaks, and it does some good). I might even become a full-time UFOlogist, if I could afford to travel, just research and write....and thus try to out the secret, etc.

Originally posted by grad_student
Sort of a ludricrous thing to think about. The probability is so low that it's pretty much a guaranteed pipe dream ... but if you are serious the biggest concern would be how to minimize your capital gains taxes, and that sort of thing is why they have accountants.

Please don't tell me that you never play - what if - when you have had a bad day and can't go to sleep.......... "What if... I won the lottery? What if....I received an huge inheritance from someone I didn't know (wouldn't want anyone I know to die for it ) What if ...... I got that super promotion at work I am up for? What if......................?"

The only person I know who doesn't dream is my BIL who is one of the most unhappy people I know -- perhaps if he allowed himself to dream a bit he would loosen up enough to crack a smile occasionally.

dreaming is good for the soul. I don't think, however, in reality, I would make any major changes for at least a year. Need to have time to let the fever die down, as stated above. Interesting fact is that many, if not most of the people who win big lotteries end up bankrupt.

I'm 57, so I would take the lump sum, no matter the tax consequence, and go from there. A financial planner would be a great start.

I think that with an infusion of cash in my life on the order of 15 to 20 million, that unless I was very, very careful, that watching my money and growing it would become a full time occupation. I guess I'm not really sure what the consequences would be. I suspect though, that there would be bad consequences along with the good. It' the old Chinese Yin yang thing.