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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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justxploring's avatar - villiarna
Wandering Aimlessly
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Posted: December 21, 2008, 1:05 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.

I think your answer is very rude.  You asked for advice and then criticized people who made suggestions.  You also assume other people do not already have or "handle" large sums of money.   BTW any responsible financial advisor would sit down with a client for at least an hour and review his/her current financial status, living expenses and current/future needs before even giving advice.  It's called a needs analysis.  You also said you didn't want to invest the money in CDs or the stock market.   Well, it's apparently a waste of time to answer your question.

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    Honduras
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    Posted: December 21, 2008, 1:09 pm - IP Logged

    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.

    How do you know that...Have you lived in a foreign country? I really don't think LP is going to dwarf any portuguese or Greece version....And If LP was to charge each of his member 1 dollar a month it might have 8,000 or 9,000  members...But they don't....And so you know in Greece, they made the big International lotteries Fair/Fare....I am not lying to you LP is bigger than anyone but i don't think it will DWARf nobody...And 3,000 members is a very good estimate...Is not that much....Let's assume you get 1,000 from each country, which i don't think it will happen, i think you will get more, you then get yourself 3 countries and make up 3,000 members...

    Greece they are not Christian so they don't view lottery as a sin, most countries in the world do not have A STOCK MARKET, so they Lotteries are the only HOPE of striking it rich....If you do the right things i think you will get to 3,000 members....And please don't say that more people in the U.S play lottery than anyone else, is not true and that's because in the USA there is more people than anywhere else....That's all...In Panama more people play the lottery than in the USA the only thing is that there is more people in the USA than in Panama who only has 3 million people....And Panama lottery is hard as hell...

    the only problem would be getting someone that speaks greek to work for you who know about programming, and you would have to know about programming...

    is also the way you advertise...

    but remember is only 60,000 dollars, the rest you will have that you can spend on other types of investment...Anyways it was just an idea....

    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¨


     


     


     

     


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      Honduras
      Member #20982
      August 29, 2005
      4715 Posts
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      Posted: December 21, 2008, 1:33 pm - IP Logged

      How do you know that...Have you lived in a foreign country? I really don't think LP is going to dwarf any portuguese or Greece version....And If LP was to charge each of his member 1 dollar a month it might have 8,000 or 9,000  members...But they don't....And so you know in Greece, they made the big International lotteries Fair/Fare....I am not lying to you LP is bigger than anyone but i don't think it will DWARf nobody...And 3,000 members is a very good estimate...Is not that much....Let's assume you get 1,000 from each country, which i don't think it will happen, i think you will get more, you then get yourself 3 countries and make up 3,000 members...

      Greece they are not Christian so they don't view lottery as a sin, most countries in the world do not have A STOCK MARKET, so they Lotteries are the only HOPE of striking it rich....If you do the right things i think you will get to 3,000 members....And please don't say that more people in the U.S play lottery than anyone else, is not true and that's because in the USA there is more people than anywhere else....That's all...In Panama more people play the lottery than in the USA the only thing is that there is more people in the USA than in Panama who only has 3 million people....And Panama lottery is hard as hell...

      the only problem would be getting someone that speaks greek to work for you who know about programming, and you would have to know about programming...

      is also the way you advertise...

      but remember is only 60,000 dollars, the rest you will have that you can spend on other types of investment...Anyways it was just an idea....

      I still don't know what people see in southern LA....

      Something else you could do is start a Dating service but that it is National to the country you want because the dating services currently are too global but you will have to advertise...

      i refuse to let people tell me what to do when they go happily about their life and don't worship the sun....

      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¨


       


       


       

       


        ThatScaryChick's avatar - x1MqPuM
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        Posted: December 21, 2008, 2:31 pm - IP Logged

        I think your answer is very rude.  You asked for advice and then criticized people who made suggestions.  You also assume other people do not already have or "handle" large sums of money.   BTW any responsible financial advisor would sit down with a client for at least an hour and review his/her current financial status, living expenses and current/future needs before even giving advice.  It's called a needs analysis.  You also said you didn't want to invest the money in CDs or the stock market.   Well, it's apparently a waste of time to answer your question.

        Yep, he was rude. He got some answers from people and didn't like what he heard. Maybe he should just go to a book store anytime he needs advice instead of coming here.

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

          justxploring's avatar - villiarna
          Wandering Aimlessly
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          Posted: December 21, 2008, 3:02 pm - IP Logged

          Yep, he was rude. He got some answers from people and didn't like what he heard. Maybe he should just go to a book store anytime he needs advice instead of coming here.

          Yup -  by the way, gold & silver isn't always a safe bet, except for a very long term investment, but you can never rely on living off of the capital gain of any variable product.  For example, if you bought gold in April 2001 when it was at an all time low, in March 2008 you might have earned about 4 times the initial investment.  From Aug 2007 to March 2008 I believe gold soared 40%.   However, if you jumped on the bandwagon & bought in March 2008 when it hit $1,030 an ounce, you would have a 20% loss now, which would really hurt.  But when people invest in stocks or commodities, the word "loss" and "gain" only means something when you cash in.  That's why I said investing depends on your current & future needs.  When people invest, it's usually not with money they need for the next month's rent & groceries.  Just a few years ago everyone in Florida said "buy real estate, you can't lose."  I remember in 2005 an investor told me "You are crazy to rent.  It's such a waste."  Now many homes here are sitting empty because the owners can't afford the taxes & insurance or find renters to occupy them.   Oil is another investment everyone was getting rich on, but even T. Boone Pickens said on 60 Minutes he's lost over $2 billion since oil prices began to fall.  I believe he was talking about BP Capital, not personal losses which are estimate to be around $300 million.  Still, that's a heck of a lot of money to lose.

            ThatScaryChick's avatar - x1MqPuM
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            Posted: December 21, 2008, 3:07 pm - IP Logged

            Yup -  by the way, gold & silver isn't always a safe bet, except for a very long term investment, but you can never rely on living off of the capital gain of any variable product.  For example, if you bought gold in April 2001 when it was at an all time low, in March 2008 you might have earned about 4 times the initial investment.  From Aug 2007 to March 2008 I believe gold soared 40%.   However, if you jumped on the bandwagon & bought in March 2008 when it hit $1,030 an ounce, you would have a 20% loss now, which would really hurt.  But when people invest in stocks or commodities, the word "loss" and "gain" only means something when you cash in.  That's why I said investing depends on your current & future needs.  When people invest, it's usually not with money they need for the next month's rent & groceries.  Just a few years ago everyone in Florida said "buy real estate, you can't lose."  I remember in 2005 an investor told me "You are crazy to rent.  It's such a waste."  Now many homes here are sitting empty because the owners can't afford the taxes & insurance or find renters to occupy them.   Oil is another investment everyone was getting rich on, but even T. Boone Pickens said on 60 Minutes he's lost over $2 billion since oil prices began to fall.  I believe he was talking about BP Capital, not personal losses which are estimate to be around $300 million.  Still, that's a heck of a lot of money to lose.

            I didn't know that. I thought that gold was one of those things that you could see as "dependable" because all countries have a need for gold no matter how the economy is doing. I don't remember were I read that though. I guess I should read up on it more.

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

              GamerMom's avatar - tails

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              Posted: December 21, 2008, 5:32 pm - 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.

              I thought as much, I am wondering where he got the idea that you get an annuity on a raffle??  And the FL Lottery says nothing about a 20 year annuity, just a 30 year. 

               

              Personally I would not quit my job after winning $680,000.  I could not afford the luxury of being without medical insurance and for medical reasons it would be almost impossible for my son or me to get private insurance.  Plus...it's only $680,000!!! I have a house to pay off and kids to put through college.  I would much rather keep working and invest half of the remains and use the other half to travel, but that's just me :)

                justxploring's avatar - villiarna
                Wandering Aimlessly
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                Posted: December 21, 2008, 5:57 pm - IP Logged

                I thought as much, I am wondering where he got the idea that you get an annuity on a raffle??  And the FL Lottery says nothing about a 20 year annuity, just a 30 year. 

                 

                Personally I would not quit my job after winning $680,000.  I could not afford the luxury of being without medical insurance and for medical reasons it would be almost impossible for my son or me to get private insurance.  Plus...it's only $680,000!!! I have a house to pay off and kids to put through college.  I would much rather keep working and invest half of the remains and use the other half to travel, but that's just me :)

                Yes, GamerMom, there is a 20 year annuity, but not on the Raffle.  Some of the scratch-offs in Florida give you the option of a 20 year pay-out or a lump sum like the "For Life" tickets.  Also, the FL MegaMoney game is a 20 year annuity or lump sum but, as I already wrote, at 77% or better (which it's been lately) I'd always take the cash.   Take the money and run....(great Woody Allen movie!)

                RE:  Insurance  -  That's why I said your age is so important.  If someone has Medicare and a social security check and pension, it makes a big difference.  I totally agree with you when it comes to healthcare.  It's not just that you need medical insurance to pay for doctor bills, but you can lose every penny of your savings if you get a critical illness.

                  GamerMom's avatar - tails

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                  Posted: December 21, 2008, 6:00 pm - IP Logged

                  Yes, GamerMom, there is a 20 year annuity, but not on the Raffle.  Some of the scratch-offs in Florida give you the option of a 20 year pay-out or a lump sum like the "For Life" tickets.  Also, the FL MegaMoney game is a 20 year annuity or lump sum but, as I already wrote, at 77% or better (which it's been lately) I'd always take the cash.   Take the money and run....(great Woody Allen movie!)

                  RE:  Insurance  -  That's why I said your age is so important.  If someone has Medicare and a social security check and pension, it makes a big difference.  I totally agree with you when it comes to healthcare.  It's not just that you need medical insurance to pay for doctor bills, but you can lose every penny of your savings if you get a critical illness.

                  AHHH ok I see...I don't play Mega Money or scratch offs anymore so I guess that's why I was in the dark about a 20 year.  Thanks for clearing that up for me :)

                    justxploring's avatar - villiarna
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                    Posted: December 21, 2008, 6:03 pm - IP Logged

                    AHHH ok I see...I don't play Mega Money or scratch offs anymore so I guess that's why I was in the dark about a 20 year.  Thanks for clearing that up for me :)

                    Don't ask why, but I play Florida MM once in a while.  Supposedly, the odds are much better than Lotto, but I've yet to win much.  I guess it's not very popular these days.  I noticed that last time it only increased from $500,000 to $700,000 which is the lowest rollover I've ever seen.  It used roll from $500,000 to $1,000,000 and then it changed from $500,000 to $750,000.   Friday night it only went from $500,000 to $700,000.  Still, I won't complain if I win!  Yes Nod

                      lottocalgal's avatar - Lottery-043.jpg
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                      Posted: December 21, 2008, 6:41 pm - 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.

                      Good luck on the $1,000,000

                      I would put $50,000 away for a yearly salary and not have to worry about finding a job for a year.  Then I'd sell my house, (knowing I would have to take a loss on it and pay off the difference.)  I would put a HUGE chunk down to build my dream house, since construction cost are down due to the real estate decline.  I would give some money to my church and  participate in the building of my home, sort of an upscale habitat for humanity.  Ahhhh lottery fantasies,  Gotta luv em.

                        Grovel's avatar - f800e6a39fbfea795d1dcbb09f2244
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                        Posted: December 21, 2008, 9:19 pm - IP Logged

                        I would pay off any old debt and put the rest in the bank. I don't think 500,000 is enough to quit your job over

                          Avatar
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                          Posted: December 22, 2008, 3:40 am - IP Logged

                          I didn't know that. I thought that gold was one of those things that you could see as "dependable" because all countries have a need for gold no matter how the economy is doing. I don't remember were I read that though. I guess I should read up on it more.

                          As long as you're looking for a long term investment, gold probably is pretty dependable. Then again, so are stocks, bonds, and real estate. Unlike those investments, however, gold is one single item. You have no chance of doing better than the market average, and failing to diversify means you have little protection from loss. The best you can do is buy and sell at the right times. OTOH, other than a few unusually bad days, there will be stocks that go up when almost everything else went down. That gives you the chance to do well by using general condtions to buy and sell at the right times, as well as investing in stocks that perform better than the Dow Jones, S&P, or whatever benchmark you want to use to look at average performance.

                          Long term, if you had bought gold in 1970 your annual return until now would have averaged about 9%. Within that period you could have done far better or far worse. You could potentially have tripled your investment from '79 to '80. You could also have lost about half, from '80 to '85. That's probably the main advantage of gold: there's a chance it will go up quickly, but it probably won't fall very fast. If you think you've got better options, there's probably plenty of time to get out.

                          By comparison, stocks can change dramatically in very short periods of time. GM is a good current example. The high for the past 52 weeks was just over $29, and the low was $1.70. You could potentially have lost 95% of your investment  over 10 months (or almost 90% over 5 months). OTOH, that $1.70 was on 11/20, and now it's back up to $4.49, for a 30 day gain to 264%. Even with that gain, right now may be a very good time to buy GM stock. If it takes 10 years to get back to $29, that would still be an annual return of about 20%. Of course it could also be a bad time.

                          Over the last couple of years gold has gone up significantly. That's probably a good indication that now isn't the right time to buy it as a medium term investment. You might do well over a few months or a couple of years, but it may take a very long time for it to mean a good return over that long period. OTOH, it may stay flat or even come down in the near future.

                          The problem with all investments is that it's easy to see what could have been, but much harder to see what is going to be. Investing long term is almost always a sure thing. Investing short term is always a gamble.  You might win, or you might lose. 

                            mymonthlypicks's avatar - spider
                            Virginia Beach,Va
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                            Posted: December 22, 2008, 9:42 am - IP Logged

                            Pay off Debts, keep Working

                            If OBAMA'S The ANSWER

                            How STUPID was the QUESTION?

                              rcbbuckeye's avatar - Lottery-043.jpg
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                              Posted: December 22, 2008, 9:56 am - 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.

                              That is a little rude, don't you think? If I won $500K, I still would have to keep working and I'm 54.  We have about $400K in REITs right now, and frankly, I think I'll still have to work at least part time when I reach retirement age. But.....if I won even that amount, I would take a trip to see my advisor. That's what he's there for, to advise, which is what my answer was to you.

                              To go on a lottery board and ask for financial advise, and then insult those that answer you makes no sense. If you are sick, see a doctor. If you are in legal trouble, see a lawyer. If you come into a large sum of money, or want to save and invest, see a financial expert. 

                              Just a little common sense.