Current Powerball $

theunwinder

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Jan 16, 2020
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I would first take care of my immediate family. Buy my Mom her first house and a new car. Make sure my sister, brother and family has everything they need and that my daughter's college fund was stacked. Then, I would do a road trip across the US before heading oversees. I want to touch every single state we have. I'm ready.
 

orbital

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+

$1,600,000,000


you could afford to fill your tank after going to the grocery store
 

turbodog

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I would first take care of my immediate family. Buy my Mom her first house and a new car. Make sure my sister, brother and family has everything they need and that my daughter's college fund was stacked. Then, I would do a road trip across the US before heading oversees. I want to touch every single state we have. I'm ready.

I'm highly suggesting what a client of mine did after a business deal went _well_ for him, give each sibling/parents a one time gift of $15M. This avoids 'coming back for seconds' inherent to your scenarios.
 

jtr1962

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I'm highly suggesting what a client of mine did after a business deal went _well_ for him, give each sibling/parents a one time gift of $15M. This avoids 'coming back for seconds' inherent to your scenarios.
I would also give each person who got the $15M gift lifetime services of a financial planner. $15M is easily enough to last a lifetime, even living somewhat luxuriously, but it needs to be managed. Far too many people go crazy when they get a large sum of money. A few years later, they're bankrupt. My motto-invest it, then live only off the income. If you get 3% on $15M, that's $450K a year, maybe $250K after taxes. Not too shabby. I could live great on that.

Another thing to do is to try to get these people into interesting hobbies if they don't already have them. You don't want to make someone rich, only to find out they wasted it getting high for lack of any real purpose in their lives.
 

bykfixer

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My own little Idaho
At $100k per year $15m would last 150 years. So you could stick it in a bank and draw out a living wage each month and never have to get a job again.

Both of my grand mothers lived off the interest of the life insurance policy my grand fathers had left them and a small monthly social security check. They led meager lifestyles but they never missed a meal or did without anything they needed. They both had some money left when they died.

So yeah, if somebody hands you $15m you should be ok the rest of your life.
 

bykfixer

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According to my math the 300m to 26 is about 11.m to 1.
My chances are practically 0 because I don't play the lottery. I say practically because I have won money from tickets I found on the pavement. Not a lot, but enough to think it could happen......
 

turbodog

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I would also give each person who got the $15M gift lifetime services of a financial planner. $15M is easily enough to last a lifetime, even living somewhat luxuriously, but it needs to be managed. Far too many people go crazy when they get a large sum of money. A few years later, they're bankrupt. My motto-invest it, then live only off the income. If you get 3% on $15M, that's $450K a year, maybe $250K after taxes. Not too shabby. I could live great on that.

Another thing to do is to try to get these people into interesting hobbies if they don't already have them. You don't want to make someone rich, only to find out they wasted it getting high for lack of any real purpose in their lives.
That 15M is gonna take a ~50% haircut on the front end.

They can get their own planner, cpa, tax attorney, etc.
 

jtr1962

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That 15M is gonna take a ~50% haircut on the front end.

They can get their own planner, cpa, tax attorney, etc.
You weren't clear exactly how they would gift the money. I assumed the recipient would get $15M clear, and the gifter would pay any applicable gift tax. If they're gifting it as some form of income, then yes, with income and FICA taxes that will easily eat up half. Still, $7.5 million is nice. I'd put $2.5 million in stuff with growth potential, the rest in stuff where the principal is safe and I'm earning income. $5 million at 3% is still $150K before taxes, probably $100K after. Considering I'm getting by on around 1/4 of that now, it's plenty.

My reason for suggesting the "help" is because most people won't even think about that stuff. They'll spend, spend, spend, then one day their bank account is empty.
 

turbodog

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You weren't clear exactly how they would gift the money. I assumed the recipient would get $15M clear, and the gifter would pay any applicable gift tax. If they're gifting it as some form of income, then yes, with income and FICA taxes that will easily eat up half. Still, $7.5 million is nice. I'd put $2.5 million in stuff with growth potential, the rest in stuff where the principal is safe and I'm earning income. $5 million at 3% is still $150K before taxes, probably $100K after. Considering I'm getting by on around 1/4 of that now, it's plenty.

My reason for suggesting the "help" is because most people won't even think about that stuff. They'll spend, spend, spend, then one day their bank account is empty.

The type of families where one sibling does a business deal netting 9 figures are the type of families where the other siblings are usually high earners w/ financial savvy themselves.
 
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