So what can you do with $7,500,000?

Reply #19

larry3100 — Sun, 15 Mar 2009 21:31:27 GMT

I remember sometime ago on tv,Suze Orman,the financial guru,was telling people to get a 401(K) plan.Now I hear,a lot of people are losing their shirts with the 401(K)s. My advice to you.Think for yourself before you invest your money.Now,if I ever win a jackpot over $7,500,000 after taxes,I would put the money in municipal bonds,bank CD's and land.That's it. I would never want to be a landlord,it's just wast of time.

Reply #18

DC81 — Sat, 14 Mar 2009 12:24:02 GMT

Yup, read all about that. The only thing I really got mixed up was how the $13,000/$1,000,000 exemption worked. But now that I have that straightened out it's gives me a much better idea of how much I could actually give away if I wanted to. Certainly makes it much wider....

Oh if ONLY I could win this year..... Save a lot on the taxes we're going to be hit with after next year not mention whatever our wonderful politicians have in store for us before then.

Reply #17

grengrad — Sat, 14 Mar 2009 10:10:37 GMT

Hey DC81,

A little more info.

$13,000 per person per year is exempt.

In addition to the $13,000 per year, the first $1,000,000 of non-exempt gifts is also exempt.

For example, if you give say $100,000 in a year to someone, that only eats $87,000 of your $1,000,000 up.

If you are married, you can really milk the system, because you can each give $13,000 to someone, and it is exempt. If you are married and giving money to a brother who is also married, you can give $13,000 to him an... [ More ]

Reply #16

ambelamba — Sat, 14 Mar 2009 00:54:52 GMT

But as a Korean I see real estata as a very viable investment.

I have no wish to touch the initial amount. But I don't want to put all the money is stock and bonds either. And I have absolutely no wish to put the money in plain savings or checking account.

Good thing is that I can add my parents and sisters as co-claimants, or I can set up a trust to claim the prize.

Reply #15

DC81 — Fri, 13 Mar 2009 22:49:12 GMT

The first $1,000,000 you give in life is exempt.

Hmmm? I thought it you were limited to $13,000 per person or whatever the exemption is for that year but the $1,000,000 was included in that accumulated over your life time and factored into it and once you went over that $1,000,000 you would no longer have any sort of exemption. Well, that works better then and yay! I've learned how this is properly done and found myself a little bit more reading. I guess never mind about ambelamba's plan t... [ More ]

Reply #14

CowboysFan — Fri, 13 Mar 2009 15:48:28 GMT

Thank you Grengrad! Everyone thinks that Orman and Cramer are the only two people in the world to listen to when it comes to investment information. I can't stand either of them.

Reply #13

grengrad — Fri, 13 Mar 2009 13:45:44 GMT

DC81 Especially the gift tax in giving away a combined $1,050,000 to your parents and sisters would mean you'd be paying out about $449,100 on that alone thanks to the wonderful 45% gift tax (unless it's lower now and yes I deducted $13,000 exception for each)

The first $1,000,000 you give in life is exempt.

savagegoose even chosing a financial planner is a minefield. there are fee for service finance planners and comission based finance planners, you can imagine the comission on 7... [ More ]

Reply #12

savagegoose — Thu, 12 Mar 2009 14:18:20 GMT

I live in australia and hows prices haven't crashed here yet. Yes pwoplw are still paying $300k for a slum, but our prices dont seem to crash like in america. anyhow; I was just thinking about if i won 1 mill i couldnt even become a slum lord! theres maybe houses cheap enough to get for $200k so that would be 5 house, rent would be nearly $200 a week ea. more like $180 so less than a k a week.

now i would have 5 house to maintain and tennants to keep an eye on. i spose close to 50k a yea... [ More ]

Reply #11

CowboysFan — Mon, 09 Mar 2009 16:46:31 GMT

I live a simple life and would continue to do so. I would just buy a new car that is good on gas mileage and I would also buy a condo. $7.5 million dollars could easily last me the rest of my life and the only thing that would change is that I would go on 2 nice vacations a year.

Reply #10

Elizabeth03 — Sun, 08 Mar 2009 21:46:48 GMT

First, I would get far away from the people trying to mooch money off of me, then I would go somewhere and relax and rejoice in the reality that I acquired all of that money, then I would pay off impending bills, and then travel to places I have wanted to see for years..

Reply #9

edge — Sun, 08 Mar 2009 21:09:13 GMT

allocate 99% in gold and the platinum and burry deep underground (no banks!), as de-flation will soon change to galloping inflation like no tomorrow... (dollar printing machines have already kicked in a second gear

Reply #8

GamerMom — Sun, 08 Mar 2009 21:05:24 GMT

I agree. I can't ever imagine finding a straight financial planner once everyone knows you won millions. They will all know you are nieve and ready to pounce. Suze Orman puts her $25 million in municipal bonds. Since she is the ultimate financial planner I would follow her lead. probably half in munis and half in CDARs. It's not like I would be wanting to make more if I had that much money, just to live off the interest, really.

I guess i'm a pessimest too.

Reply #7

ambelamba — Sun, 08 Mar 2009 20:12:35 GMT

That's not really a problem. Group claim form allows people to share the prize with other people as co-winners.

Reply #6

savagegoose — Sun, 08 Mar 2009 14:29:59 GMT

even chosing a financial planner is a minefield. there are fee for service finance planners and comission based finance planners, you can imagine the comission on 7.5 mill, when shady investment plans have to offer finance planners larger cuts to get them to use/ recomend them.

ideally u wan t a fixed fee financial planner, who rebates any commisions. or one who earns a set rate like 1% of any profit. and also no comissions.

sorry im really agaisnt any advice that gives the adviser a

Reply #5

SmoothJuice — Sun, 08 Mar 2009 12:10:18 GMT

That's why you consult with a financial advisor when you win......

Reply #4

ThatScaryChick — Sun, 08 Mar 2009 12:02:43 GMT

My close family members (mom and sisters) and I could do very well on 7.5 million and have a comfortable life.

Reply #3

time*treat — Sun, 08 Mar 2009 11:24:39 GMT

Depending on how and where you want to live, yes, 7.5 mill can leave you short. People with much more have gone broke.

As for me, having tenants (and all the headache that goes with them) is not on my to-do list.

Reply #2

Pogo — Sun, 08 Mar 2009 10:48:00 GMT

I would stick it all in a money market account, which you can still find floating around earning 4% on 7.5 mil would net you 75,000 in cash quarterly... If you want to get a lil crazy then put some of the money in the brazilian stock exchange which is very stable and would make you a stable income through dividends - either way I wouldn't spend the principal until I get into retirement... Good Luck on the big win, God Bless - Pogo

Reply #1

DC81 — Sun, 08 Mar 2009 08:55:25 GMT

You're missing a lot of other taxes and other costs that likely would make you go broke with this kind of plan. Especially the gift tax in giving away a combined $1,050,000 to your parents and sisters would mean you'd be paying out about $449,100 on that alone thanks to the wonderful 45% gift tax (unless it's lower now and yes I deducted $13,000 exception for each) so that would leave you with $6,000,900, so if you plan this it'd be best to get it in writing and notarized now. I could go on, but... [ More ]

So what can you do with $7,500,000?

ambelamba — Sun, 08 Mar 2009 06:56:44 GMT

I mean...after tax and all the deductions.

It's a lot of money. But as a jackpot prize it's kinda modest. But you are set for life.

People have different opinions but I think the pie is a bit small to share with others. I have parents and two sisters. (and a whole bunch of relatives.) Relatively small jackpots less media spotlight. But some people are obsessed with chasing lottery winners, no matter how small the prize is. Fortunately hundreds of people in LA county share the same first... [ More ]