What could possibly go wrong?
50% in tax exempt bonds (VWLUX). 30% in US stocks indexed (VTI). 10% in international stocks indexed (VEU). 10% in physical gold bullion as an insurance policy stored overseas. And finally enough money in cash or a near equivalent (VGSH) to live like a pharaoh for the next 20 years or so.
I’m buying a bulldozer, always wanted one.
I’d donate a million to FR and end the FReepathons for FOUR YEARS!!! lol
My sister could get some new dentures and my mother-n-law could finally get her toenails cut.
Then I go downtda barbershop and get my hur did.
If I win... I plan to fully fund a Militia of my own choosing.
No wait, not that.
I'd buy guns and bodyguards.
No, wait.
I'd buy actors and set-creators to live out my own Fallout 4 in real life.
THAT ONE.
You can give gifts annually up to $14,000.00 tax free. Since that wouldn’t touch this payout even if you gave $14K a year to 20 family members, you would want to do some estate planning to minimize your estate taxes.
It would be much less than $350 million after taxes if you took it all in a lump sum.
Don’t quit your job. Don’t buy anything. Pay off whatever bills you may have. Keep one million for your retirement and give the rest to St. Jude’s.
Hookers & blow, baby!
From the article: “Another thing to consider when trying to make the winnings last is to choose to receive the money over time instead of taking the lump-sum payout. The annuity would pay out the winnings over a 30-year period, which would keep some winners from blowing through the cash in a few years, says Andrew Stoltmann, a Chicago-based investment fraud lawyer who has represented lottery winners who sued their advisers.”
Of course that maybe sound advice but we’ve all seen the “It’s My Money and I want it Now!” commercials. A lot of folks blow through the annual allotment and then call JD Wentworth and wind up getting even less for their money.
Another problem with this strategy is this. Suppose your 60 years old and you sign up for the annual payout over 30 years. Most likely you’ll be dead before the end of the 30 years. You leave the remaining payout to your heirs. Guess what. Your heirs owe taxes to the feds on the proceeds. Taxes on the whole remaining amount.
For example. Suppose this jackpot hits $750M or $25M per year. Suppose you die with 20 years remaining. The feds want you to pay taxes on $500M immediately, that tax year. You’ll only be getting $25M that year but your heirs will still owe, maybe $150M in taxes. Call JD Wentworth, they need the money now. Between the federal and state taxes and what JD will hold out, they will wind up with very little. The only way around that is a very big life insurance policy which, if you’re fairly old, will be very expensive.
Me, I’ll take the lump sum and try to stretch it out. I’ll hire an assistant to open my mail and tell most everyone to buzz off.
The smart money is in playing Fan Duel/Draft King. /s
The best advice I’ve heard for those winning a lottery is to set aside, say, a $250K. Blow it on a new car, a cruise, whatever. Don’t do anything very big. This advice says that no one knows what it’s like to suddenly be that rich. You need time to figure out exactly what it is you want and where you want it. Just blow through your $250K and spend a few months really thinking about life. Who knows, you might decide you need to get to know Caitlyn Jenner.
A parent can gift their child up to $100K/year tax free.
What could possibly go wrong?
First thing to do is to incorporate.
After setting up funds to pay for the grandkids educations, and getting a solid 65’ sailboat for a world cruise, fully stocked and equipped, I’d be happy to invest whatever was left. Something like $10.5 million a year sounds doable.
With that kind of cash you need professional money managers. I would run not walk to Bessemer Trust, in business over 100 years and first rate.
With $800 million you first spend $50 million to hire the best combat generals and staff. Then you spend $300 million to hire 50 divisions of combat troops.
Next, pick a banana republic, overthrow it and name yourself “Big Friggin’ Cheese No. 1.”
Live happily ever after, with money left over.