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(NBC Washington)   Let's talk financial strategy, Farkers. You've got your $600 weekly paycheck to invest. Powerball has the better odds *and* a bigger prize. But Mega Millions' purse would push winnings to almost a billion. Do you go all in for Powerball or diversify?   ( nbcwashington.com) divider line
    More: News, Mega Millions, Mega Millions prize, Powerball, giant jackpots, annuity jackpot, Powerball game, annuity prize, Tuesday afternoon  
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196 clicks; posted to Discussion » on 02 Jan 2018 at 8:19 PM (2 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



47 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2018-01-02 06:41:15 PM  
Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.
 
2018-01-02 06:45:26 PM  
Or you can take your paycheck and use it to pay the bills that keep mounting up, instead of pissing it away in a 300 million to one never-gonna-happen pipe dream
 
2018-01-02 06:49:08 PM  
When the prize gets this big, I figure, "what the heck" and dip into the children's college fund.
 
2018-01-02 07:03:31 PM  

eurotrader: Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.


i am glad i am not the only one who specifically thinks like that.  When I think monster jackpots, i don't think about mansions or cars or toys.  I think, "I can just about take a god damn private jet anywhere any time I want."
 
2018-01-02 07:04:32 PM  
Diversify into scratchers, baby!
 
2018-01-02 07:05:16 PM  
imgs.xkcd.comView Full Size
 
2018-01-02 07:10:42 PM  

blastoh: eurotrader: Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.

i am glad i am not the only one who specifically thinks like that.  When I think monster jackpots, i don't think about mansions or cars or toys.  I think, "I can just about take a god damn private jet anywhere any time I want."



Besides the occasional private jet, I would try to fly first class on as many foreign airlines as possible.

/Especially "The Residence" on Etihad.
 
2018-01-02 07:18:48 PM  
Or you could buy one of each. Quick-Pick, of course, because no one specific combination of numbers is more likely to be the winning numbers than any other combination (despite TV shows having an episode to the contrary where the characters spend the whole episode calculating factors like the weight of the ink on the golf balls to predict which numbers will be the winning numbers and their predictions are correct, but they spend so much time doing the math and stuff that they forget to actually buy the winning tickets).

Also, don't buy more than one ticket per drawing, since the second ticket will not have any better odds of winning than the first, and that first ticket is the point of diminishing returns.


/also also, don't ever make financial plans that have "win the lotto jackpot" as step one
 
2018-01-02 07:21:08 PM  

The_Sponge: blastoh: eurotrader: Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.

i am glad i am not the only one who specifically thinks like that.  When I think monster jackpots, i don't think about mansions or cars or toys.  I think, "I can just about take a god damn private jet anywhere any time I want."


Besides the occasional private jet, I would try to fly first class on as many foreign airlines as possible.

/Especially "The Residence" on Etihad.


No TSA no bs the car takes you to the plane. Become a trusted passenger (form and fingerprinted) and customs become pleasant. The difference between private jet and 1st class on any airline is too big to quantify. The cost  of private jet is ridiculous
 
2018-01-02 07:52:55 PM  
Can't win if you don't play.  '100% of the shots you don't take ever score' - Gretsky
 
2018-01-02 07:53:53 PM  
I've diversified in scratch tickets and Amibo dolls.
 
2018-01-02 07:54:51 PM  

The_Sponge: blastoh: eurotrader: Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.

i am glad i am not the only one who specifically thinks like that.  When I think monster jackpots, i don't think about mansions or cars or toys.  I think, "I can just about take a god damn private jet anywhere any time I want."


Besides the occasional private jet, I would try to fly first class on as many foreign airlines as possible.

/Especially "The Residence" on Etihad.


Singapore Airlines lad, that is what you want.  Trust me.....Crossed the Pacific 4 times with them, Tokyo, Taiwan, Singapore and Singapore again. Finest outfit I know.
 
2018-01-02 08:22:07 PM  
I invest in Dodgecoin.

Better odds.
 
2018-01-02 08:25:05 PM  

Lt. Cheese Weasel: Can't win if you don't play.  '100% of the shots you don't take ever score' - Gretsky


Also can't lose if you don't play. <debbiedownerhorn.mp3>
 
2018-01-02 08:31:27 PM  

OptionC: [imgs.xkcd.com image 635x945]


Reminds me of the receptionist at YouTube who ended up with $1.3 million in Google stock after the buyout in 2006/2007.  She had some quote about "it just goes to show that if you work really hard and stick with something..."
 
2018-01-02 08:31:42 PM  
Hmm... throw away your money on Powerball, or throw it away on Mega Millions?

Well, let's see, the PB jackpot is now about $440M, and the MM is $361M. Both pretty fat. Of course, those are the spread-out-over-20-years values, and everyone knows that's a shiatty deal compared to just taking the "cash option" so let's use the cash option values: $278.3M PB and $225M MM.

But realistically, Uncle Sam will take about 39% of either jackpot, so what you'll really get:
Today's post-tax, cash option Powerball Jackpot: $169.8 M
Today's post-tax, cash option Mega Millions Jackpot: $137 M

PB jackpot odds are about 1 in 292M.
MM jackpot odds are about 1 in 258M.

Ignoring the smaller prizes and the chances of splitting the pot:
Expected value of a $2 Powerball ticket today: about $0.58
Expected value of a $2 Mega Millions ticket today: about $0.53

Not that different really. Either way, you're going to lose a lot of money. I took a look at the numbers for my state, and in the most recent drawings there were about 389000 Mega Millions tickets sold, and about 827000 Powerball tickets sold. So assuming those sales figures are similar across different states, you're a little more than twice as likely to split the pot in Powerball as you are playing Mega Millions. On the other hand, the chances of splitting the pot are still pretty low in both games.

Overall, I'd say your best bet is opening a Vanguard.com IRA and going 'all in' on a low-fee index fund.
 
2018-01-02 08:31:58 PM  
Hookers and blow.
 
2018-01-02 08:35:39 PM  
Donald Trump's Vagina:

If a paycheck was actually big enough to pay those bills, less people would play the lottery.
 
2018-01-02 08:37:24 PM  
I like how everyone tells you to pay down bills instead.
If you bought 1 ticket for each drawing it would cost yo $32 a month.
If you got rid of cable you could save anywhere between $89-$150 a month.
Bring your lunch to work and save $50-$100 a month
Buy generic brands and use coupons and save $40 a month
Don't eat out more than once a month.
All these things are frugal, but none of them has the (albeit astronomically small) chance of netting you a quarter of a billion dollars.
If $32 dollars is all that keeps you from financial ruin, yeah, you probably should not spend it on lottery tickets. Also, you should rethink some of your other life choices.
/only buys a ticket once in a while on an impulse
//didn't buy one tonight because I didn't go to any place that sells them
///now I want a private jet
 
2018-01-02 08:43:06 PM  
I put $500 into Bitcoin and Etherium a couple years back. Took my $500 back out, have about $6300 in crypto currency remaining.
 
2018-01-02 08:48:01 PM  
I put $10 into ripple coin (XRP), $2.00 each, so I've got 5 of 'em.  Already up 85 cents.  Looking at monocules and top hats now...

I also got a $2 PB ticket
 
2018-01-02 08:52:06 PM  
$600?  Christ buddy, just write me a check, I'll kick you in the balls, and you're good to go.
 
2018-01-02 08:56:07 PM  
If I'm going to flush that money anyway, I'm taking it to the Apache casino here on the mountain and playing roulette and blackjack. At least I'll have a few hours of fun with it.
 
2018-01-02 09:02:19 PM  
I keep this in a Google Doc and reread it every time I buy a lottery ticket. It's not mine; I don't even know where it comes from. Some farker posted it some time back and I immediately saved it. Anyways, here you go:

Congratulations! You just won millions of dollars in the lottery! That's great.

Now you're farked.

No really.

You are.

You're farked.

I've seen this question (what to do if you win the lottery), a few times on ARFCOM. Amusingly, it recurs quite often. I posted a similar article to this one "back when" but I've updated it with some actual stories and slapped it in GD because, well, why not?

Keep in mind: IAALBNY (I Am A Lawyer, But Not Yours). Consult professional advisers before spending your hard earned lottery cash.

It's long. There are no cliff notes. But if you just want to skip the biographical tales of woe of some of the math-tax protagonists, skip on down to the next line in bold.

You see, it's something of an open secret that winners of obnoxiously large jackpots tend to end up badly with alarming regularity. Not the $1 million dollar winners. But anyone in the nine-figure range is at high risk. Eight-figures? Pretty likely to be screwed. Seven-figures? Yep. Painful. Perhaps this is a consequence of the sample. The demographics of lottery players might be exactly the wrong people to win large sums of money. Or perhaps money is the root of all evil. Either way, you are going to have to be careful. Don't believe me? Consider this:

Large jackpot winners face double digit multiples of probability versus the general population to be the victim of:

Homicide (something like 20x more likely)
Drug overdose
Bankruptcy (how's that for irony?)
Kidnapping

And triple digit multiples of probability versus the general population rate to be:

Convicted of drunk driving
The victim of Homicide (at the hands of a family member) 120x more likely in this case, ain't love grand?
A defendant in a civil lawsuit
A defendant in felony criminal proceedings

Believe it or not, your biggest enemy if you suddenly become possessed of large sums of money is... you. At least you will have the consolation of meeting your fate by your own hand. But if you can't manage it on your own, don't worry. There are any number of willing participants ready to help you start your vicious downward spiral for you. Mind you, many of these will be "friends," "friendly neighbors," or "family." Often, they won't even have evil intentions. But, as I'm sure you know, that makes little difference in the end. Most aren't evil. Most aren't malicious. Some are. None are good for you.

Jack Whittaker, a Johnny Cash attired, West Virginia native, is the poster boy for the dangers of a lump sum award. In 2002 Mr. Whittaker (55 years old at the time) won what was, also at the time, the largest single award jackpot in U.S. history. $315 million. At the time, he planned to live as if nothing had changed, or so he said. He was remarkably modest and decent before the jackpot, and his ship sure came in, right? Wrong.

Mr. Whittaker became the subject of a number of personal challenges, escalating into personal tragedies, complicated by a number of legal troubles.

Whittaker wasn't a typical lottery winner either. His net worth at the time of his winnings was in excess of $15 million, owing to his ownership of a successful contracting firm in West Virginia. His claim to want to live "as if nothing had changed" actually seemed plausible. He should have been well equipped for wealth. He was already quite wealthy, after all. By all accounts he was somewhat modest, low profile, generous and good natured. He should have coasted off into the sunset. Yeah. Not exactly.

Whittaker took the all-cash option, $170 million, instead of the annuity option, and took possession of $114 million in cash after $56 million in taxes. After that, things went south.

Whittaker quickly became the subject of a number of financial stalkers, who would lurk at his regular breakfast hideout and accost him with suggestions for how to spend his money. They were unemployed. No, an interview tomorrow morning wasn't good enough. They needed cash NOW. Perhaps they had a sure-fire business plan. Their daughter had cancer. A niece needed dialysis. Needless to say, Whittaker stopped going to his breakfast haunt. Eventually, they began ringing his doorbell. Sometimes in the early morning. Before long he was paying off-duty deputies to protect his family. He was accused of being heartless. Cold. Stingy.

Letters poured in. Children with cancer. Diabetes. MS. You name it. He hired three people to sort the mail. A detective to filter out the false claims and the con men (and women) was retained.

Brenda, the clerk who had sold Whittaker the ticket, was a victim of collateral damage. Whittaker had written her a check for $44,000 and bought her house, but she was by no means a millionaire. Rumors that the state routinely paid the clerk who had sold the ticket 10% of the jackpot winnings hounded her. She was followed home from work. Threatened. Assaulted.

Whittaker's car was twice broken into, by trusted acquaintances who watched him leave large amounts of cash in it. $500,000 and $200,000 were stolen in two separate instances. The thieves attempted to spiked Whittaker's drink with prescription drugs in the first instance. Whittaker was violently allergic to the drug used, and likely would have died given the distance to the nearest emergency room, and the lateness of the hour, but, unfortunately he did not consumed the drink containing the narcotics. The second incident was the handiwork of his granddaughter's friends, who had been probing the girl for details on Whittaker's cash for weeks.

Even Whittaker's good-faith generosity was questioned. When he offered $10,000 to improve the city's water park so that it was more handicap accessible, locals complained that he spent more money at the strip club. (Amusingly this was true).

Whittaker invested quite a bit in his own businesses, tripled the number of people his businesses employed (making him one of the larger employers in the area) and eventually had given away $14 million to charity through a foundation he set up for the purpose. This is, of course, what you are "supposed" to do. Set up a foundation. Be careful about your charity giving. It made no difference in the end.

To top it all off, Whittaker had been accused of ruining a number of marriages. His money made other men look inferior, they said, wherever he went in the small West Virginia town he called home. Resentment grew quickly. And festered. Whittaker paid four settlements related to this sort of claim. Yes, you read that right. Four.

His family and their immediate circle were quickly the victims of odds-defying numbers of overdoses, emergency room visits and even fatalities. His granddaughter, the eighteen year old "Brandi" (who Whittaker had been giving a $2100.00 per week allowance) was found dead after having been missing for several weeks. Her death was, apparently, from a drug overdose, but Whittaker suspected foul play. Her body had been wrapped in a tarp and hidden behind a rusted-out van. Her seventeen year old boyfriend had expired three months earlier in Whittaker's vacation house, also from an overdose. Some of his friends had robbed the house after his overdose, stepping over his body to make their escape and then returning for more before stepping over his body again to leave. His parents sued for wrongful death claiming that Whittaker's loose purse strings contributed to their son's death. Amazingly, juries are prone to award damages in cases such as these. Whittaker settled. Again.

Even before the deaths, the local and state police had taken a special interest in Whittaker after his new-found fame. He was arrested for minor and less minor offenses many times after his winnings, despite having had a nearly spotless record before the award. Whittaker's high profile couldn't have helped him much in this regard.

In 18 months Whittaker had been cited for over 250 violations ranging from broken tail lights on every one of his five new cars, to improper display of renewal stickers. A lawsuit charging various police organizations with harassment went nowhere and Whittaker was hit with court costs instead.

Whittaker's wife filed for divorce, and in the process froze a number of his assets and the accounts of his operating companies. Caesars in Atlantic City sued him for $1.5 million to cover bounced checks, caused by the asset freeze.

Today Whittaker is badly in debt, and bankruptcy looms large in his future.

But, hey, that's just one example, right?

Wrong.

Nearly one third of multi-million dollar jackpot winners eventually declare bankruptcy. Some end up worse. To give you just a taste of the possibilities, consider the fates of:

Billie Bob Harrell, Jr.: $31 million. Texas, 1997. As of 1999: Committed suicide in the wake of incessant requests for money from friends and family. "Winning the lottery is the worst thing that ever happened to me."

William "Bud" Post: $16.2 million. Pennsylvania. 1988. In 1989: Brother hires a contract murderer to kill him and his sixth wife. Landlady sued for portion of the jackpot. Convicted of assault for firing a gun at a debt collector. Declared bankruptcy. Dead in 2006.

Evelyn Adams: $5.4 million (won TWICE 1985, 1986). As of 2001: Poor and living in a trailer gave away and gambled most of her fortune.

Suzanne Mullins: $4.2 million. Virginia. 1993. As of 2004: No assets left.

Shefik Tallmadge: $6.7 million. Arizona. 1988. As of 2005: Declared bankruptcy.

Thomas Strong: $3 million. Texas. 1993. As of 2006: Died in a shoot-out with police.

Victoria Zell: $11 million. 2001. Minnesota. As of 2006: Broke. Serving seven year sentence for vehicular manslaughter.

Karen Cohen: $1 million. Illinois. 1984. As of 2000: Filed for bankruptcy. As of 2006: Sentenced to 22 months for lying to federal bankruptcy court.

Jeffrey Dampier: $20 million. Illinois. 1996. As of 2006: Kidnapped and murdered by own sister-in-law.

Ed Gildein: $8.8 million. Texas. 1993. As of 2003: Dead. Wife saddled with his debts. As of 2005: Wife sued by her own daughter who claimed that she was taking money from a trust fund and squandering cash in Las Vegas.

Willie Hurt: $3.1 million. Michigan. 1989. As of 1991: Addicted to cocaine. Divorced. Broke. Indicted for murder.

Michael Klingebiel: $2 million. As of 1998 sued by own mother claiming he failed to share the jackpot with her.

Janite Lee: $18 million. 1993. Missouri. As of 2001: Filed for bankruptcy with $700 in assets.

Mack Metcalf: $65 million. Kentucky. 2000. As of 2001: Divorced. As of 2002: Sued girlfriend for $500,000 claiming he was drunk when he gave it to her. Sued by wife for child support. As of 2003: Died of alcoholism. As of a few months later in 2003: Second wife bought a mansion with the money, collected dozens of stray cats and died of a drug overdose immediately after moving in.

I could go on quite a bit.

So, what the hell DO you do if you are unlucky enough to win the lottery?

This is the absolutely most important thing you can do right away: NOTHING.

Yes. Nothing.

DO NOT DECLARE YOURSELF THE WINNER yet.

Do NOT tell anyone. The urge is going to be nearly irresistible. Resist it. Trust me.

1. IMMEDIATELY retain an attorney. Get a partner from a larger, NATIONAL firm. Don't let them pawn off junior partners or associates on you. They might try, all law firms might, but insist instead that your lead be a partner who has been with the firm for awhile. Do NOT use your local attorney. Yes, I mean your long-standing family attorney who did your mother's will. Do not use the guy who fought your dry-cleaner bill. Do not use the guy you have trusted your entire life because of his long and faithful service to your family. In fact, do not use any firm that has any connection to family or friends or community. TRUST me. This is bad. You want someone who has never heard of you, any of your friends, or any member of your family. Go the the closest big city and walk into one of the national firms asking for one of the "Trust and Estates" partners you have previously looked up on http://www.martindale.com from one of the largest 50 firms in the United States which has an office near you. You can look up attornies by practice area and firm on Martindale. The top 50 firms by size are:

Baker & McKenzie
DLA Piper Rudnick Gray Cary
Jones Day
White & Case
Latham & Watkins
Skadden, Arps, Slate, Meagher & Flom
Sidley Austin Brown & Wood
Greenberg Traurig
Mayer Brown, Rowe & Maw
Morgan, Lewis & Bockius
Holland & Knight
Wilmer Cutler Pickering Hale and Dorr
Weil, Gotshal & Manges
Kirkland & Ellis
Morrison & Foerster
McDermott, Will & Emery
Shearman & Sterling
Hogan & Hartson
Kirkpatrick & Lockhart Nicholson Graham
Reed Smith
O’Melveny & Myers
Akin Gump Strauss Hauer & Feld
Paul, Hastings, Janofsky & Walker
Foley & Lardner
Fulbright & Jaworski
Cleary Gottlieb Steen & Hamilton
Pillsbury Winthrop Shaw Pittman
Dechert
King & Spalding
Bingham McCutchen
Wilson, Elser Moskowitz, Edelman & Dicker
Winston & Strawn
Squire, Sanders & Dempsey
Hunton & Williams
Gibson, Dunn & Crutcher
Orrick, Herrington & Sutcliffe
Bryan Cave
Vinson & Elkins
Ropes & Gray
Proskauer Rose
Heller Ehrman
Alston & Bird
McGuireWoods
Simpson Thacher & Bartlett
Baker Botts
Sonnenschein Nath & Rosenthal
Debevoise & Plimpton
Nixon Peabody
Paul, Weiss, Rifkind, Wharton & Garrison
LeBoeuf, Lamb, Greene & MacRae

2. Decide to take the lump sum. Most lotteries pay a really pathetic rate for the annuity. It usually hovers around 4.5% annual return or less, depending. It doesn't take much to do better than this, and if you have the money already in cash, rather than leaving it in the hands of the state, you can pull from the capital whenever you like. If you take the annuity you won't have access to that cash. That could be good. It could be bad. It's probably bad unless you have a very addictive personality. If you need an allowance managed by the state, it is because you didn't listen to point #1 above.

Why not let the state just handle it for you and give you your allowance?

Many state lotteries pay you your "allowence" (the annuity option) by buying U.S. treasury instruments and running the interest payments through their bureaucracy before sending it to you along with a hunk of the principal every month. You will not be beating inflation by much, if at all. There is no reason you couldn't do this yourself, if a low single-digit return is acceptable to you.

You aren't going to get even remotely the amount of the actual jackpot. Take our old friend Mr. Whittaker. Using Whittaker is a good model both because of the reminder of his ignominious decline, and the fact that his winning ticket was one of the larger ones on record. If his situation looks less than stellar to you, you might have a better perspective on how "large" your winnings aren't. Whittaker's "jackpot" was $315 million. He selected the lump-sum cash up-front option, which knocked off $145 million (or 46% of the total) leaving him with $170 million. That was then subject to withholding for taxes of $56 million (33%) leaving him with $114 million.

In general, you should expect to get about half of the original jackpot if you elect a lump sum (maybe better, it depends). After that, you should expect to lose around 33% of your already pruned figure to state and federal taxes. (Your mileage may vary, particularly if you live in a state with aggressive taxation schemes).

3. Decide right now, how much you plan to give to family and friends. This really shouldn't be more than 20% or so. Figure it out right now. Pick your number. Tell your lawyer. That's it. Don't change it. 20% of $114 million is $22.8 million. That leaves you with $91.2 million. DO NOT CONSULT WITH FAMILY when deciding how much to give to family. You are going to get advice that is badly tainted by conflict of interest, and if other family members find out that Aunt Flo was consulted and they weren't you will never hear the end of it. Neither will Aunt Flo. This might later form the basis for an allegation that Aunt Flo unduly influenced you and a lawsuit might magically appear on this basis. No, I'm not kidding. I know of one circumstance (related to a business windfall, not a lottery) where the plaintiffs WON this case.

Do NOT give anyone cash. Ever. Period. Just don't. Do not buy them houses. Do not buy them cars. Tell your attorney that you want to provide for your family, and that you want to set up a series of trusts for them that will total 20% of your after tax winnings. Tell him you want the trust empowered to fund higher education, some help (not a total) purchase of their first home, some provision for weddings and the like, whatever. Do NOT put yourself in the position of handing out cash. Once you do, if you stop, you will be accused of being a heartless bastard (or biatch). Trust me. It won't go well.

It will be easy to lose perspective. It is now the duty of your friends, family, relatives, hangers-on and their inner circle to skew your perspective, and they take this job quite seriously. Setting up a trust, a managed fund for your family that is in the double digit millions is AMAZINGLY generous. You need never have trouble sleeping because you didn't lend Uncle Jerry $20,000 in small denomination unmarked bills to start his chain of deep-fried peanut butter pancake restaurants. ("Deep'n 'nutter Restaurants") Your attorney will have a number of good ideas how to parse this wealth out without turning your siblings/spouse/children/grandchildren​/cousins/waitresses into the latest Paris Hilton.

4. You will be encouraged to hire an investment manager. Considerable pressure will be applied. Don't.

Investment managers charge fees, usually a percentage of assets. Consider this: If they charge 1% (which is low, I doubt you could find this deal, actually) they have to beat the market by 1% every year just to break even with a general market index fund. It is not worth it, and you don't need the extra return or the extra risk. Go for the index fund instead if you must invest in stocks. This is a hard rule to follow. They will come recommended by friends. They will come recommended by family. They will be your second cousin on your mother's side. Investment managers will sound smart. They will have lots of cool acronyms. They will have nice PowerPoint presentations. They might (MIGHT) pay for your shrimp cocktail lunch at TGI Friday's while reminding you how poor their side of the family is. They live for this stuff.

You should smile, thank them for their time, and then tell them you will get back to them next week. Don't sign ANYTHING. Don't write it on a cocktail napkin (lottery lawsuit cases have been won and lost over drunkenly scrawled cocktail napkin addition and subtraction figures with lots of zeros on them). Never call them back. Trust me. You will thank me later. This tactic, smiling, thanking people for their time, and promising to get back to people, is going to have to become familiar. You will have to learn to say no gently, without saying the word "no." It sounds underhanded. Sneaky. It is. And its part of your new survival strategy. I mean the word "survival" quite literally.

Get all this figured out BEFORE you claim your winnings. They aren't going anywhere. Just relax.

5. If you elect to be more global about your paranoia, use between 20.00% and 33.00% of what you have not decided to commit to a family fund IMMEDIATELY to purchase a combination of longer term U.S. treasuries (5 or 10 year are a good idea) and perhaps even another G7 treasury instrument. This is your safety net. You will be protected... from yourself.

You are going to be really tempted to starting being a big investor. You are going to be convinced that you can double your money in Vegas with your awesome Roulette system/by funding your friend's amazing idea to sell Lemming dung/buying land for oil drilling/by shorting the North Pole Ice market (global warming, you know). This all sounds tempting because "Even if I lose it all I still have $XX million left! Anyone could live on that comfortably for the rest of their life." Yeah, except for 33% of everyone who won the lottery.

You're not going to double your money, so cool it. Let me say that again. You're not going to double your money, so cool it. Right now, you'll get around 3.5% on the 10 year U.S. treasury. With $18.2 million (20% of $91.2 mil after your absurdly generous family gift) invested in those you will pull down $638,400 per year. If everything else blows up, you still have that, and you will be in the top 1% of income in the United States. So how about you not fark with it. Eh? And that's income that is damn safe. If we get to the point where the United States defaults on those instruments, we are in far worse shape than worrying about money.

If you are really paranoid, you might consider picking another G7 or otherwise mainstream country other than the U.S. according to where you want to live if the United States dissolves into anarchy or Britney Spears is elected to the United States Senate. Put some fraction in something like Swiss Government Bonds at 3%. If the Swiss stop paying on their government debt, well, then you know money really means nothing anywhere on the globe anymore. I'd study small field sustainable agriculture if you think this is a possibility. You might have to start feedng yourself.

6. That leaves, say, 80% of $91.2 million or $72.9 million. Here is where things start to get less clear. Personally, I think you should dump half of this, or $36.4 million, into a boring S&P 500 index fund. Find something with low fees. You are going to be constantly tempted to retain "sophisticated" advisers who charge "nominal fees." Don't. Period. Even if you lose every other dime, you have $638,400 per year you didn't have before that will keep coming in until the United States falls into chaos. fark advisers and their fees. Instead, drop your $36.4 million in the market in a low fee vehicle. Unless we have an unprecedented downturn the likes of which the United States has never seen, should return around 7.00% or so over the next 10 years. You should expect to touch not even a dime of this money for 10 or 15 or even 20 years. In 20 years $36.4 million could easily become $115 million.

7. So you have put a safety net in place. You have provided for your family beyond your wildest dreams. And you still have $36.4 million in "cash." You know you will be getting $638,400 per year unless the capital building is burning, you don't ever need to give anyone you care about cash, since they are provided for generously and responsibly (and can't blow it in Vegas) and you have a HUGE nest egg that is growing at market rates. (Given the recent dip, you'll be buying in at great prices for the market). What now? Whatever you want. Go ahead and burn through $36.4 million in hookers and blow if you want. You've got more security than 99% of the country. A lot of it is in trusts so even if you are sued your family will live well, and progress across generations. If your lawyer is worth his salt (I bet he is) then you will be insulated from most lawsuits anyhow. Buy a nice house or two, make sure they aren't stupid investments though. Go ahead and be an angel investor and fund some startups, but REFUSE to do it for anyone you know. (Friends and money, oil and water - Michael Corleone) Play. Have fun. You earned it by putting together the shoe sizes of your whole family on one ticket and winning the jackpot.

You 'da Man (Woman)
 
2018-01-02 09:06:32 PM  
mgshamster:

Lawyer says, "If you win the lottery, tell us lawyers first, because other people are greedy."
 
2018-01-02 09:19:20 PM  

mgshamster: I keep this in a Google Doc and reread it every time I buy a lottery ticket. It's not mine; I don't even know where it comes from. Some farker posted it some time back and I immediately saved it. Anyways, here you go: ...



This is a perfect example of why Fark need a text amount limit.
 
2018-01-02 09:20:08 PM  

mgshamster: I keep this in a Google Doc and reread it every time I buy a lottery ticket. It's not mine; I don't even know where it comes from. Some farker posted it some time back and I immediately saved it. Anyways, here you go:

Congratulations! You just won millions of dollars in the lottery! That's great.

Now you're farked.

No really.

You are.

You're farked.

I've seen this question (what to do if you win the lottery), a few times on ARFCOM. Amusingly, it recurs quite often. I posted a similar article to this one "back when" but I've updated it with some actual stories and slapped it in GD because, well, why not?

Keep in mind: IAALBNY (I Am A Lawyer, But Not Yours). Consult professional advisers before spending your hard earned lottery cash.

It's long. There are no cliff notes. But if you just want to skip the biographical tales of woe of some of the math-tax protagonists, skip on down to the next line in bold.

You see, it's something of an open secret that winners of obnoxiously large jackpots tend to end up badly with alarming regularity. Not the $1 million dollar winners. But anyone in the nine-figure range is at high risk. Eight-figures? Pretty likely to be screwed. Seven-figures? Yep. Painful. Perhaps this is a consequence of the sample. The demographics of lottery players might be exactly the wrong people to win large sums of money. Or perhaps money is the root of all evil. Either way, you are going to have to be careful. Don't believe me? Consider this:

Large jackpot winners face double digit multiples of probability versus the general population to be the victim of:

Homicide (something like 20x more likely)
Drug overdose
Bankruptcy (how's that for irony?)
Kidnapping

And triple digit multiples of probability versus the general population rate to be:

Convicted of drunk driving
The victim of Homicide (at the hands of a family member) 120x more likely in this case, ain't love grand?
A defendant in a civil lawsuit
A defendant in felony criminal proceedings

Be ...


tldnr....

or you could just change your name, disappear from the grid and live in anon as Joe Smith, from BFE.

/duh
 
2018-01-02 09:22:36 PM  

Lt. Cheese Weasel: The_Sponge: blastoh: eurotrader: Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.

i am glad i am not the only one who specifically thinks like that.  When I think monster jackpots, i don't think about mansions or cars or toys.  I think, "I can just about take a god damn private jet anywhere any time I want."


Besides the occasional private jet, I would try to fly first class on as many foreign airlines as possible.

/Especially "The Residence" on Etihad.

Singapore Airlines lad, that is what you want.  Trust me.....Crossed the Pacific 4 times with them, Tokyo, Taiwan, Singapore and Singapore again. Finest outfit I know.


I've seen pics, and it definitely looks awesome.

/Flown first on British Airways and Emirates in the past.
 
2018-01-02 09:25:15 PM  

The_Sponge: Lt. Cheese Weasel: The_Sponge: blastoh: eurotrader: Spending $10 for the highly unlikely chance to be able to fly private everywhere I want to go is less than the cost of the drinks needed to fly commercial.

i am glad i am not the only one who specifically thinks like that.  When I think monster jackpots, i don't think about mansions or cars or toys.  I think, "I can just about take a god damn private jet anywhere any time I want."


Besides the occasional private jet, I would try to fly first class on as many foreign airlines as possible.

/Especially "The Residence" on Etihad.

Singapore Airlines lad, that is what you want.  Trust me.....Crossed the Pacific 4 times with them, Tokyo, Taiwan, Singapore and Singapore again. Finest outfit I know.

I've seen pics, and it definitely looks awesome.

/Flown first on British Airways and Emirates in the past.


The women on Sing are perfect.
img.fark.netView Full Size
 
2018-01-02 09:30:39 PM  
600 bucks a week? You some sort of railroad tycoon or something?
 
2018-01-02 09:40:28 PM  
Your money is going to go away and never come back, so blow it on whatever gives you the better fantasy.
 
2018-01-02 09:41:27 PM  
You can lose for free.
 
2018-01-02 10:30:17 PM  
See? All this mess is why you should just invest in weed.

Just sayin'...
 
2018-01-02 10:49:41 PM  

NewportBarGuy: I've diversified in scratch tickets and Amibo dolls.


I'm set for retirement thanks to my stash of beanie babies and Death of Superman comics.
 
2018-01-02 11:03:19 PM  
I can see picking a bunch of numbers and trying to win, but if you're buying a ticket with computer generated picks, and you're supposed to win, there's no need to buy more than one.
 
2018-01-02 11:04:22 PM  
Buy one ticket for each, then if you win both, you'll win bigly! Odds are only about 86 quintillion to one!
 
2018-01-02 11:32:46 PM  
Do you ever think you will get two identical quick picks for one drawing? Because that's essentially what it takes to win...
 
2018-01-03 12:29:57 AM  
What's wrong with SPY? It's had a healthy 6.95% appreciation for the last decade. Better ROI.

If we're restricting ourselves to lotteries, setting fire to the lottery tickets would provide some warmth, so I'd go with the lottery that had the biggest physical tickets.
 
2018-01-03 01:09:24 AM  
I'm amazed that someone making $600 a week would ask Farkers for financial advice. Couldn't you just ask one of your stock brokers or financial planners? Seriously though, if you have any money left after, you know, keeping yourself alive, save it. Don't buy lottery tickets with it.
 
2018-01-03 02:14:30 AM  
I would buy one powerball, pay my rent and buy some weed.
 
2018-01-03 02:47:14 AM  
People that have money and win the powerball only have the lives they have that are hard and compicated for one reason. Old money hates new money. That's it.
 
2018-01-03 03:27:30 AM  
Meh...I bought one Powerball ticket and one Mega Millions ticket tonight.  Is it foolish?  Yes, to a very small degree...but it's less foolish than any money I have lost at the tables in Vegas.
 
2018-01-03 06:41:18 AM  
I spend $4 a week getting one of each tickets
Last week I checked my tickets and won $10
Yesterday I checked and won $4.

Meh. $4 a week won't break me
 
2018-01-03 08:29:01 AM  
Shorter version of the Great Wall of Text:

Accept ANONYMOUSLY after setting up with a reputable financial firm, let them handle it and let them pay you as an annuity.

Tell everybody you got a nice job that is not out of the realm of possibility that allows for a lot of travel.

MOVE. Word will get out if you stay in your old location. Stay in your state, but find a new town. You are about to find out what kind of bastard-filled bastards people are.

Pay your damn taxes and quietly enjoy the rest of your life. Don't get greedy, just be happy with the good fortune currently blessing you.

Lastly, DON'T BE A DICK. Karma will find you.

/also send me some money for my sound advice.
 
2018-01-03 10:20:02 AM  
Research the newest and least expensive cyrptocurrency and put all your lottery money into that.  If i knew how to invest in this currency that barely appears anywhere, i would totes do it.
 
2018-01-03 10:29:27 AM  
I know a guy that says the 5th at Gulfstream goes 4, 2, 6, 1
 
2018-01-03 11:53:20 AM  
If you slowly build wealth with your own money, you end up training yourself how to live with your larger wealth. You feel the little chunks of money you're saving and investing as they leave your hands. You make mistakes early, and those mistakes prevent you from making bigger mistakes later. You know what it's like to buy a shiny thing and feel the rush of that, and you know that it doesn't last that long.

Bad events occurred in 1987, 1990, 2000 and 2008 for everyone. (The real estate crash in 1990 may have been southern California-specific.) Each one hurt, but relatively less so with each successive event. In 2008, I lost some money, but had two years of net earnings saved up.

A foreclosed condo in 2001 and earlier losses were lessons, and those losses were the tuition I paid to learn about my personal finances. Winning the lottery, you have no idea how to react to all that money. But if you cultivate your money from little seeds to mighty oaks, you know how to deal which wealth at a visceral level.

From the outside, some of my acquaintances think I've been patient, frugal and wise, but from the inside, I know I spent three decades making gradually less stupid decisions, and I certainly have bought my share of shiny things, most of them tinged with regret, but even these shiny purchases have become less stupid over the years

I hope I don't sound like I'm bragging (I've edited out most of that); I'm trying to advise you to become less stupid. The first step in not being stupid: don't buy lottery tickets. Even if you win (which you won't), it's a false way to obtain wealth and you'll fool yourself about the worth of that money.
 
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