u sir win right thinkin award!
even mega rich who get richer ever year live by that rule
yes the filthy RICH spend millions folks, but they have "millions" more coming in then going out via investments
lottery winners who go broke/poorer ever year
#1 Don't invest will
#2 always spend more then they have coming in
i think they should limit spending to 4% of total wealth per year, if your muti-millioner that is
how u would go broke then i love to see!
to show u the math
take 100 million cash jackpot
after 39.6% full fed tax rate -60,400,000 million
save 1.4m for whatever u need first year
so say 59 million invested at 7% "not even trying to beat the market rates , just match near it for safe returns"
so 59m earning at 7%= 4,130,000 before tax income , so that be "dividend income tax" at max rate of 23.8% for 2013 would be 3,147,060
again, only spending 4% total spending of 59m would be 2,360,000 , far below the 3.1m , so jsut reinvest the rest
that's why i say only spend 4% of total wealth u have"total wealth being investments u have", not homes/car whatever values
4% rule is good, if your earning 7% a year atfer tax's
that's how someone could be total moron , waste millions a year"2.3m" in this math and sure be safe
if any lottery winner spending far above 4% ya there is good chance of risking the wealth LONG term
i seen people get away with spending 5% and be okay long term! , but them are folks who have brain cells, any layman off the streets, 4% spending should be limit ,leaves room for error!
and let a great investment firm who handle millions aready help you grow it
btw they must be fee only, not % of your money investment people, the people who charge in % are ripoffs for the lazy folks
not to bad, must only charge 1%, but its far to much compared to fee only folks who help u do same thing!
i don't see how any decent size jackpot winner could go broke. or poorer ever year, the income form millions worth of investments should cover the ever desire, onless u want to own a sports team or something big
follow your dreams by all means, live the good life , just plz remb math has laws, never spend MORE then u earn ever year, or you be poorer ever year
onless investments have u covered, your draining the wealth by spending larger amounts then u have coming in