If you won the lottery, what would you do with the money?

[Diggin It]

One of my clients has a sister that won $8 million in the lottery. She and her husband quit their jobs, bought a nice house on the lake ... . . . ... They filed for bankruptcy and lost their house when the money ran out. I think it was gone in something life 5 years, but I'm not sure.

That kind of thing makes no sense to me.

You buy the house and property and pay for it in full. Then you at least TRY to work out a deal with the taxing authority to pay any property taxes 10-15 years in advance at the current rates and set aside as much as you can for utilities.

I can't understand why people don't make housing their number one priority.

 

[Paddy]

retire now, 5 years early. No other changes

 

[Oaktree]

One of my clients has a sister that won $8 million in the lottery. She and her husband quit their jobs, bought a nice house on the lake in Austin, and traveled a lot. They bought new cars every year, and partied a lot too. They did not share any of it with anybody, which caused a lot of anger and resentment. They filed for bankruptcy and lost their house when the money ran out. I think it was gone in something life 5 years, but I'm not sure. It was pretty quick. The last I heard was that they where working again, renting a place to live, and their family still doesn't like them. That client moved away a few years ago, so I don't know anything more about this.

Sadly, that happens way too often. People win all this money, then proceed to psss it all away. Long lost "friends" and relatives come out of the woodwork with their hands out expecting you to share it with them, and get an attitude when you don't.
Other than the fact that you're mostly throwing money away, that would be the biggest deterrent to me playing.

 

[WM75Guy]

You buy the house and property and pay for it in full. Then you at least TRY to work out a deal with the taxing authority to pay any property taxes 10-15 years in advance at the current rates and set aside as much as you can for utilities.

I sit on the board of a taxing entity. You cannot pay taxes in advance. If you pay in advance the tax collector will send you a refund check.

Taxing entities have to set the tax rate each year based on valuation changes and any percentage increase. Then the notices are sent out to the owner of record for you to pay. The tax collector will not keep a balance going forward as the owner of record might change.

 

[Torvy]

500k would get invested. Never touch the principle. 250k would not only pay off what little debt we have, but upgrade house and equipment for property. 200k to charity. 40k divided among the 4 kids. 10k for a nice vacation.

If any left over on the 250k, I might want to add a little more land adjacent to ours.

 

[shooterdon]

$1 million is not as much as it sounds. But if I had that much more, I would buy one of those RV's based on the Mercedes van ($150k?) and travel the US and Canada for two years. I figure it would cost about $250/day in fuel, extra meals out, a couple of days/wk in a hotel, and park fees. Call it $100k per year. Add in $500/mo to have someone caretake the homestead (check in once a week, cut grass, and plow snow)... $6000/yr. Total cost for two years, near $500k. Leaving a $500k cushion.

I used to have a 43' toy hauler 5th wheel and something that big is a PITA.

 

[Doughknob]

$1 million is not as much as it sounds. But if I had that much more, I would buy one of those RV's based on the Mercedes van ($150k?) and travel the US and Canada for two years. I figure it would cost about $250/day in fuel, extra meals out, a couple of days/wk in a hotel, and park fees. Call it $100k per year. Add in $500/mo to have someone caretake the homestead (check in once a week, cut grass, and plow snow)... $6000/yr. Total cost for two years, near $500k. Leaving a $500k cushion.

I used to have a 43' toy hauler 5th wheel and something that big is a PITA.

I'd go for one of these vans instead. But your trip sounds like fun.

ModVans: Modern & Modular Camper Vans

www.modvans.com

 

[Dftodd]

If you won the lottery, what would you do with the money?

I'm not talking about the huge 300-400 million dollar ones. But a smaller payout of one million cash in the bank after taxes.

What would you do with the money?

A new tractor? A new truck? A new home? A dream vacation/cruise?

Would you have enough to pay off your debts?

Distribute to kids, grandkids, or relatives?

What would you do?

RSKY

Pay off all debt, purchase a modest home with large property. Rest will get set aside for retirement. Not much different from what we are already looking to do with the money from the sale of our current home.

 

[5030]

Plus one on that. The ONE thing I'd do is remain anonymous. Don't need any carpetbaggers harassing me.

 

[cqaigy2]

I don't have any debt, so nothing to pay off. Would do something similar to Torvy, except no new land.