|Posted: September 22, 2008, 3:03 am - IP Logged|
Whenever the jackpot amount of California Super Lotto gets close to 40 millions, I start having another hope. And it's not good at all.
Even though I try to fully reject any kind of superstitious belief and supernatural worldview, I am still dominated by this hopeless....hope.
Some of you guys might already know why I feel anxious whenever the jackpot reaches to 40 millions, if you guys have read my posts.
You know, being 17.2 million dollars richer is no small thing, even in LA country where a good house is more than 1.5 million bucks.
I always THOUGHT about investing in mutual funds if I won a jackpot. Well, maybe Fortune favored me a lil bit. Turns out that Mutual Funds are losing money like beheaded & bleeding chickens. Annual loss is roughly 12% average. I checked fidelity.com and I was shocked by all the losses of formerly healthy mutual funds.
And I came to realize that Money Market is a goddamn joke. It's no viable investment solution. It's just a glorified checking account, no more, no less. So I came to realize that buying a commercial property is the only viable investment at this point. Unless the US faces another Great Depression, there will be potential tenants and I can have some steady flow of income. Robert Kiyosaki is right only if you have a ton of money to buy a lot of income properties.
With 17.2 millions (the actual winning after tax and everything), what kind of property can I buy? No, I will give about 7% to my parents and 1.5% to each of my two sisters. Then I am left with...uh...15.48millions.
Then let's say I buy a house in Pasadena for 1.3~1.4 millions. Or let's say I pay 1 millions for down payment and use 0.48 millions to buy personal stuff and fill up my saving and checking account. I am left with 14 millions. I am still tempted to invest some of them in mutual funds if the economy recovers...but I dunno. Gotta buy a couple of rental properties with at least 6% annual gain. (not including value appreciation)
I would be set for life, as long as America won't go belly up and I don't make any stupid decision...