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Investing A Jackpot

Topic closed. 10 replies. Last post 8 years ago by psykomo.

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Bondi Junction
Australia
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December 24, 2007
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Posted: June 18, 2008, 1:10 am - IP Logged

There was a recent jackpot win of $58 million, here in Australia. It was reported in the media that $58 million would earn $40,000 a week in interest. Do winners get advice on dealing with financial institutions? Many people would feel intimidated by big banks and could be easily talked into anything.

    four4me's avatar - gate1
    MD
    United States
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    June 18, 2003
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    Posted: June 18, 2008, 1:27 am - IP Logged

    If you win 58 million you have to put it somewhere... banking institutions will go out of their way to get you to invest with them it's up to the person who wins to consult a financial adviser. Or park the money and take some investing classes or business management classes. 58 million can go a long way into a secure future for you and family.

    If you stuff it in a mattress and the house catches fire what would you have then. Ashes.

    Big John says. You don't hit the number. The number hits you!!!!

                   I'm not Big John, I'm Four4me, Big John's a friend.
      Bondi Junction
      Australia
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      Posted: June 18, 2008, 11:53 pm - IP Logged

      I have heard it said, it you win, don't rush and pay off your mortgage. There are tax benefits to having a mortgage, and depending on your interest rate, you may be better off using the win to buy another property or investing.

        justxploring's avatar - villiarna
        Wandering Aimlessly
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        Posted: June 19, 2008, 12:18 am - IP Logged

        There is an ongoing debate about paying off debts like mortgages and car payments.  Yes, there are always tax advantages (don't know about other countries however) but then you are also paying a lot of interest.  There are law firms that specialize in estate planning.  Still, you can get ripped off if you're not careful and do your own homework.  The best thing is to learn from that old adage "Never put your eggs in one basket."   I've said it before - so much depends on one's personal lifestyle, age and family needs.  Also one's attitude about money and possessions directly impacts how a person should invest.  I would never feel comfortable in a large house and I have no desire to drive a fancy car.  Someone else might need a lot more money to invest for his/her future.     

          DC81's avatar - batman39
          MI
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          August 31, 2007
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          Posted: June 19, 2008, 3:07 am - IP Logged

          I'd think it'd be better off to just pay off the morgage, though it should be easy enough to figure out whether it'd be worth it or not.

           

          I for one would probably buy at a fancy car, but not an entire fleet of them or a single car that cost million dollars or half that, no car that can go 200+ miles per hour for me. I wouldn't buy a million dollar mansion either. I might not even buy or build the home I have had in mind for a long while because I wouldn't exactly need all the space since I'm single and at my age a "dream home" seems kind of silly since I doubt I'd live there the rest of my life anyway. Doesn't mean I don't mind imagining it still though and even in Florida it wouldn't be a place that'd cost a million or maybe even half that to build, there's homes down there now that are kind of a base for what I imagined and they're priced at around $250,000 and lower.. But I can think realisticly too in really if I were to buy a home I might just be better off with a small town house at this point.

           

          As for a investing, only a fool would go "all in" with something even if it's a sure thing. When it comes to stocks I'd stick to what companies and industries I'm familiar in and learn as much as I can. No way in hell would I give control to anyone else to do things for me nor would I take anyone's word on something. I read something awhile ago with someone calling diversifying "stupid" and just remembered all the people who lose almost everything when the dotcom bubble burst and all the people who pretty much invested all they had into companies that they didn't research very well or now with the real estate market that's gone down the crapper. Granted those two things are a bit different from each other but in the end they're also the same in many ways and it's going to happen again eventually with current commodities bubble, anyone who goes all in on it will be a fool, especially if they're thinking long term.

           

          Okay I'll stop rambling now.. I need sleep.

          You can't predict random.

            sirbrad's avatar - Lottery-062.jpg
            PA
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            Posted: June 19, 2008, 3:20 am - IP Logged

            $40,000 a week? I would like to know what investment that is. Probably lots of risk for that price. A 5% CD is good enough for me, and safe. At $50 million that would be like $250,000 a year to start! Imagine the compound interest in several years! I doubt I would spend even $20,000 a year and I would be VERY happy.

              Uff Da!'s avatar - InCelebration 001.jpg
              Washington State
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              Posted: June 19, 2008, 8:20 am - IP Logged

              $40,000 a week? I would like to know what investment that is. Probably lots of risk for that price. A 5% CD is good enough for me, and safe. At $50 million that would be like $250,000 a year to start! Imagine the compound interest in several years! I doubt I would spend even $20,000 a year and I would be VERY happy.

              Sirbrad, I believe you misplaced a decimal.  $50 million at 5% would be $2,500,000 not $250,000, or about $48,000 a week.  $40,000 a week on $58 million would be assuming an interest rate of approximately 3.6%.

                Avatar
                California
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                Posted: June 19, 2008, 3:32 pm - IP Logged

                If you win 58 million you have to put it somewhere... banking institutions will go out of their way to get you to invest with them it's up to the person who wins to consult a financial adviser. Or park the money and take some investing classes or business management classes. 58 million can go a long way into a secure future for you and family.

                If you stuff it in a mattress and the house catches fire what would you have then. Ashes.

                "If you stuff it in a mattress and the house catches fire what would you have then. Ashes."

                All is still not lost.  Ashes can be sent to the Treasury's Bureau of Engraving and Printing.

                I saw that on Discovery years ago.  They were able to examine a pile of ashes and determine the bills that were burnt.  I was really impressed.

                  JAP69's avatar - alas
                  South Carolina
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                  Posted: June 19, 2008, 4:27 pm - IP Logged

                  "If you stuff it in a mattress and the house catches fire what would you have then. Ashes."

                  All is still not lost.  Ashes can be sent to the Treasury's Bureau of Engraving and Printing.

                  I saw that on Discovery years ago.  They were able to examine a pile of ashes and determine the bills that were burnt.  I was really impressed.

                  Do not count on the treasury replacing every dollar.

                  Read Ripsnorters blog about money replacement. He went thru it one time. Did not get back all that he lost.

                  WHATT

                    sirbrad's avatar - Lottery-062.jpg
                    PA
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                    Posted: June 20, 2008, 5:12 am - IP Logged

                    Sirbrad, I believe you misplaced a decimal.  $50 million at 5% would be $2,500,000 not $250,000, or about $48,000 a week.  $40,000 a week on $58 million would be assuming an interest rate of approximately 3.6%.

                    Actually I quoted the original poster at about $50 million but then did the math for $5 million, because that is the example I always use, which would be $250,000. I aim for anything $5 million and up, but would settle for $1 million and up if I had to.

                      psykomo's avatar - animal shark.jpg

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                      Posted: June 20, 2008, 10:20 pm - IP Logged

                      There is an ongoing debate about paying off debts like mortgages and car payments.  Yes, there are always tax advantages (don't know about other countries however) but then you are also paying a lot of interest.  There are law firms that specialize in estate planning.  Still, you can get ripped off if you're not careful and do your own homework.  The best thing is to learn from that old adage "Never put your eggs in one basket."   I've said it before - so much depends on one's personal lifestyle, age and family needs.  Also one's attitude about money and possessions directly impacts how a person should invest.  I would never feel comfortable in a large house and I have no desire to drive a fancy car.  Someone else might need a lot more money to invest for his/her future.     

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