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What to do with $500,000?

Topic closed. 33 replies. Last post 8 years ago by pumpi76.

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United States
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August 17, 2007
313 Posts
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Posted: December 20, 2008, 2:19 am - IP Logged

I just bought a FLorida Raffle ticket and the prize is $1,000,000.  With all the taxes and stuff, I assume the prize would be $500,000 unless I do the annuity where I get the full amount in twenty-years.   

 

What do I do with the $500,000 so I can live off of the interest?  PLease don't say CD's or Stock market.

    s5thomps's avatar - Lottery-033.jpg
    Hard Luck, Ak
    United States
    Member #23472
    October 13, 2005
    275 Posts
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    Posted: December 20, 2008, 3:22 am - IP Logged

    I just bought a FLorida Raffle ticket and the prize is $1,000,000.  With all the taxes and stuff, I assume the prize would be $500,000 unless I do the annuity where I get the full amount in twenty-years.   

     

    What do I do with the $500,000 so I can live off of the interest?  PLease don't say CD's or Stock market.

    Keep working!

      claymore's avatar - basket
      New Member
      College Station, Texas
      United States
      Member #61680
      May 31, 2008
      13 Posts
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      Posted: December 20, 2008, 4:35 am - IP Logged

      I don't think that you can make 500K work for you in the stock market -- especially if you're relying on it as your only source of income.

      Me being 22 (no dependents but housemates to split living costs with), I can live off about 20k/yr (a 4% return - not accounting for the tax man, of course) pretty comfy right now, but it still wouldn't be enough because in a few years...I'd fall behind the inflation trap real quick.

      If it were me, I'd use 400k cash on two 4-bedroom apartments close to the A&M campus...some new ones are almost complete and housing is ALWAYS in demand here.

      I'd collect 3200/month for the pair, pay about 8k/yr in property expenses and net about 30k/yr.

      Then I'd find something clever to do with the remaining 100k to make sure my head stays above water, lol. I'd probably stop dragging my feet and get my MBA.

      Cha-ching!

      =]

      So, if you have good credit and you're not afraid of the potential frustrations associated with being a landlord...I'd suggest you'd take advantage of the insanely low mortgage rates right now.

      Though...I suspect my 500k goes a lot further in Central Texas than your 500k in Florida.

      hah, nevermind then!

      I think you should throw a huge party and live really plush for a couple years, lol~ ...oh, and keep working! 

      claymore

        jackpotismine's avatar - kanji for_peace.jpg
        Kunming
        China
        Member #57910
        January 23, 2008
        3626 Posts
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        Posted: December 20, 2008, 6:41 am - IP Logged

        I don't think that you can make 500K work for you in the stock market -- especially if you're relying on it as your only source of income.

        Me being 22 (no dependents but housemates to split living costs with), I can live off about 20k/yr (a 4% return - not accounting for the tax man, of course) pretty comfy right now, but it still wouldn't be enough because in a few years...I'd fall behind the inflation trap real quick.

        If it were me, I'd use 400k cash on two 4-bedroom apartments close to the A&M campus...some new ones are almost complete and housing is ALWAYS in demand here.

        I'd collect 3200/month for the pair, pay about 8k/yr in property expenses and net about 30k/yr.

        Then I'd find something clever to do with the remaining 100k to make sure my head stays above water, lol. I'd probably stop dragging my feet and get my MBA.

        Cha-ching!

        =]

        So, if you have good credit and you're not afraid of the potential frustrations associated with being a landlord...I'd suggest you'd take advantage of the insanely low mortgage rates right now.

        Though...I suspect my 500k goes a lot further in Central Texas than your 500k in Florida.

        hah, nevermind then!

        I think you should throw a huge party and live really plush for a couple years, lol~ ...oh, and keep working! 

        I would buy gold and silver and propety.

        Play to win!

          rcbbuckeye's avatar - Lottery-043.jpg
          Texas
          United States
          Member #55889
          October 23, 2007
          5611 Posts
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          Posted: December 20, 2008, 8:45 am - IP Logged

          500K is not enough to live off interest, at least for me and my family. We invest in REIT's around the country which are doing very well for us. Only problem is that they are not income investments, but we are not yet retired so it doesn't matter right now, just trying to grow the money.

          Find a good financial advisor to help you achieve your objectives.

          Things in Tx are much much better than in Fl and other parts of the country.

            ThatScaryChick's avatar - x1MqPuM
            Idaho
            United States
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            November 21, 2007
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            Posted: December 20, 2008, 12:03 pm - IP Logged

            I would buy gold and silver and propety.

            I actually think that is a good idea if one doesn't want to invest in cd's or the stock market. Isn't gold andd silver suppose to be a safe bet?

            "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

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              Honduras
              Member #20982
              August 29, 2005
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              Posted: December 21, 2008, 1:32 am - IP Logged

              if it was me i would take 60,000 and start a Greek Lotterypost in Greece or a Portuguese LotteryPost in Portugal or Brazil...There is plenty of languages to go around...But again that's only if it was me...

              All i need is 3,000 members to join and pay 3 dollars/month for membership and i'll be making 9,000 a month...4,000/month goes to mantaining the site and 5,000/month goes to me...And that's just 1 language....Imagine if you get 5,000 members....

              And 5,000/month is like having what 900,000 on a Bank CD at 4% or 5%....

              And you only spent 60,000 out of your 500,000...

              The Forex trades: 1.6 Trillion dollars EVERY day, that´s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases¨


               


               


               

               


                psykomo's avatar - animal shark.jpg

                United States
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                May 30, 2004
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                Posted: December 21, 2008, 2:10 am - IP Logged

                Keep working!

                s5thongs:

                PSYKO

                would ^!^ KEEP ON W@RK'G & PLAY & PLAY>>>>!!!

                JACKPOT^^^^^^^52>>>>>>>WEEK'$$$$ of D YR!!!

                LOL

                PSYKOMO

                  Shawn67's avatar - Lottery-061.jpg

                  United States
                  Member #45970
                  September 1, 2006
                  4763 Posts
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                  Posted: December 21, 2008, 3:01 am - IP Logged

                  I'd have to keep working because as wierd as it sounds, I would get bored without working. However, I would quit my current job and would work doing something I really enjoyed, regardless of the salary, and would have the comfort of knowing that I didn't HAVE to have the job in order to make it. Besides, I don't think $500,000 is enough to completely rely on without another source of income.

                    results4me's avatar - chi
                    fort washington
                    United States
                    Member #59578
                    March 20, 2008
                    40 Posts
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                    Posted: December 21, 2008, 3:27 am - IP Logged

                    Purchase a moving truck, hire about four or more dependable guys and find a few banks who will hire you to do foreclosure move-outs. Then invest in a few bank owned homes for rental property until the market change and you can sell the homes at a profit . Watch your money grow! I hope you get your $500,000Banana

                      psykomo's avatar - animal shark.jpg

                      United States
                      Member #4877
                      May 30, 2004
                      5123 Posts
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                      Posted: December 21, 2008, 3:45 am - IP Logged

                      I'd have to keep working because as wierd as it sounds, I would get bored without working. However, I would quit my current job and would work doing something I really enjoyed, regardless of the salary, and would have the comfort of knowing that I didn't HAVE to have the job in order to make it. Besides, I don't think $500,000 is enough to completely rely on without another source of income.

                      GOD>ALMITY!!!!Shawn67:

                      just>thought U would B on

                      the LIST 2 BUY a SMART>>>CAR>>>by DAMILAZER_

                      _______________________CAR>>>by BENZ<<<<!!

                      GREAT>>CAR''''''''$$$$$<<<if>>>>>UR a <member

                      of CONGRE$$ & BETTER>>>YET<<<U-LIVE-in town

                      where UR CONGRE$$MAN or CONGER$$HORE lives!

                      THEY LUV'$$$$$$$$ FOERIGN BENZ'zzzzzzzzzzzz!

                      THEY ALL JUST>>>>>>>>>VOTED 2-CRU$H!!!!!!!!

                      "ALL" suv's & corvett's MADE IN THE USA!!!!!!!!!!!!!!

                      Let ur congresshoe's KNO

                      DON't crush DON't make>

                      WALK 2 rotten SCHOOL's>

                      enough is enough>f@@l's

                      PSYKOMO


                        justxploring's avatar - villiarna
                        Wandering Aimlessly
                        United States
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                        November 5, 2005
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                        Posted: December 21, 2008, 5:22 am - IP Logged

                        The Florida Raffle is not a jackpot game where you have a choice of an annuity or lump sum and never has been AFAIK.   It is also not parimutuel so, if you do win one of the nine $1M prizes, you will win $1M, no more, no less.  I see nothing that mentions the grand prize has a lump sum or annuity option.  Someone please correct me if I'm wrong.

                        Even if you have no deductions whatsoever in 2009, except for the standard deduction, you would end up paying approximately $319K in Federal Income tax.  You would probably end up with $680,000, more if you have dependents & other deductions.

                        Since you already said "please don't say CDs or the stock market" the choices are limited.  I could live off of the interest, but we all have different lifestyles.  Also, your age, health and family situation makes a huge difference.  Another big factor is knowing what you already own or owe.

                        "unless I do the annuity where I get the full amount in twenty years."

                        As I said, I am almost positive you get the million, not 20 annual payments.   Anyway, taking an annuity makes no sense now.  They payouts for the FL MegaMillions game, which is a 20 year annuity, have been more than 77%, so the payout on a million would be around $775K, less tax = $534K.  If you put the entire amount in a conservative tax deferred investment that earns 6%, your money doubles in 12 years. 

                        Again, you didn't say if you want to own a home or might consider living in a foreign country.  There are many places where you can live very well on $3,000 a month.  However, I would probably spend about $180,000 of it on a house (leaving me with about $500K) and wait for 10 years before I begin drawing off the rest.

                        Oh, by the way, GOOD LUCK!   I finally broke down and bought a Raffle Ticket too.

                          DC81's avatar - batman39
                          MI
                          United States
                          Member #54830
                          August 31, 2007
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                          Posted: December 21, 2008, 10:34 am - IP Logged

                          if it was me i would take 60,000 and start a Greek Lotterypost in Greece or a Portuguese LotteryPost in Portugal or Brazil...There is plenty of languages to go around...But again that's only if it was me...

                          All i need is 3,000 members to join and pay 3 dollars/month for membership and i'll be making 9,000 a month...4,000/month goes to mantaining the site and 5,000/month goes to me...And that's just 1 language....Imagine if you get 5,000 members....

                          And 5,000/month is like having what 900,000 on a Bank CD at 4% or 5%....

                          And you only spent 60,000 out of your 500,000...

                          3,000 paying members? Even for only three dollars a month that's unrealistic even if you forced people to join to view and post you'd still not get anywhere close to 3,000 paying members. Even LP right now seems to have 457 Gold and Platinum members and it would likely dwarf any Greek or Portuguese version that you may make.

                          Anyway, you can do a lot with 500-600K+ but it's nothing more than a nice bump in your possible retirement nest egg. The possible interest might make for a nice supplement income but it's not going to be something you could live off of if you're fairly young. You're still gonna have to work and work a lot.

                          You can't predict random.

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                            Entertaiment Capital
                            United States
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                            April 19, 2006
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                            Posted: December 21, 2008, 12:05 pm - IP Logged

                             Yeah, keep working. 500K doesn't mean anything if you live in So Cal. A decent house costs 800K or more.

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                              United States
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                              August 17, 2007
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                              Posted: December 21, 2008, 12:27 pm - IP Logged

                              Seems like no one knows what to do. Is this common for lottery players?

                               

                              I guess I'll go to the book store and buy a book on how to handle large sums of money.