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If you won a $100 mil MM / PB jackpot, and ended up losing it all...

Topic closed. 45 replies. Last post 2 years ago by mikeintexas.

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Posted: November 18, 2014, 3:28 pm - IP Logged

Smile HI Mike in Texas,  Great to read your advice.   I now have an investment question. Do you know anything about indexes or index funds ?  I just watched the CEO of Calstrs , a $185 billion retirement fund for California teachers, and other State employees. He is 60% invested in Indexes. Like the S&P 500 index. The Dow index ?

I will google this question.  Thanks for the help music*Party

No, I don't, but I believe there's an accountant in here, don't remember her (think it was a female) name.  Stack is pretty sharp on those financial things, he's lined me out on a couple of things, particularly about the gift tax exemption.  My advice would be to research it as much as you can, even now before winning the lottery...doesn't cost anything and it's always cool to gain knowledge, right?

Personally, IF I ever win, I'm getting as much help with it as I can.  (Thanks to CDana, I know of a reputable financial adviser who has helped other Texas lottery winners) I've said it before and still think it's a good plan: I intend on putting the bulk of my money into the safest investments I can.  I'm not worried so much about making as much as I can but rather protecting as much as I can.  I've thought about all the things I would like to buy and even if I bought a dozen each of them, there's no way I could spend a hundred million in what's left of my life...that's why this question is almost incomprehensible to me, like asking me "How do you think you'll feel after your first human sacrifice?". Wink

    mikeintexas's avatar - tx avatar-1.gif
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    Posted: November 18, 2014, 3:38 pm - IP Logged

    Mikeintexas,

    My budget is very simalar to yours, albeit not so detailed LOL

    Most definitely would "lock up a big %

    Not sure how to celebrate it, cause I don't drink champy, cept  a sip or two for a wedding toast.

    Maybe I'd have to see their "beerlist" LOL

    I hear ya.  I honestly doubt I'd buy an entire bottle of champagne just to drink on my own.  I might even buy a bottle of Andre for $7 tops, but I'd probably settle for a diet D.P.  I was just trying to point out how foreign I find the idea of blowing through such a large amt. of money.

    I just can't see blowing a hundred million.  The only way I could lose that all would be to trust a shady financial adviser and I will go mainstream on that, use the firm that has my IRA plus the stocks I inherited.   If my CDs or Treasury bonds go kaput, then I'm sure I'll be glad I invested a few thousand in freeze dried foods.   I would also keep a year's living expenses in cash, locked away in a fireproof safe, heck with losing interest on it.  If the SHTF, money won't man much anyway.

      mikeintexas's avatar - tx avatar-1.gif
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      Posted: November 18, 2014, 4:02 pm - IP Logged

      man much = "mean much"

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        Posted: November 19, 2014, 2:50 am - IP Logged

        "Really, each state should require any large JP winner to take some sort of financial educational/literacy course"

        Are you suggesting that the state spend taxpayer money to help out people who are millionaires, or do you think the state should be telling people what to spend their money on? Anyone who wants to educate themselves is free to do so. If not, life is tougher when you're stupid, but it's a free world.

        "I'm a firm believer in learning from one's mistakes, but even more of a fan of learning from others mistakes "

        Even if the $100 million is really just a $30 million net after taking cash and paying taxes, that's a hell of a lot of money. I'm fairly sure that anybody who can lose that much is incapable of learning from other people's mistakes, and quite possibly too stupid to learn from their own. In some cases there's no such thing as an ounce of prevention until after they need a pound of cure.

        "IF I ever win, I'm getting as much help with it as I can. "

        Most people here seem to think they wouldn't need professional advice, but every time there's a thread about a big jackpot we see plenty of people posting pictures of ridiculously big houses and listing the wildly expensive cars they'd buy. At least a house is usually a decent investment, but even $20 million isn't an enormous amount of money if you buy a million bucks worth of cars the first year.

          mikeintexas's avatar - tx avatar-1.gif
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          Posted: November 19, 2014, 10:28 am - IP Logged

          Sorry, Floyd, I credited Stack when it was you who educated me on the gift tax exemption.  Mea Culpa

          I also agree with you about the 30 million bucks.  You could spend 5 million and unless you lived on Park Avenue or in Beverly Hills,  you could live very comfortably off even the small interest paid on 25 million...at least I could.

            savagegoose's avatar - ProfilePho
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            Posted: November 19, 2014, 10:33 am - IP Logged

            i would call winning lotto a  curse! ja a curse.  because if i had never won i would never ever feel as terribly much like the miserable failure at a being human than i feel now.... a curse

            2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

            keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

              Drenick1's avatar - villiarna
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              Posted: November 19, 2014, 3:07 pm - IP Logged

              My husband and I are too conservative with our spending habits to blow through $30M, $50M or even $100 million. Even though I went to college, I have elected to be a stay at home mom who occasionally helps out her husband at his doctors office.

              Anyone who loses that amount of money will always resort to blaming it as a curse and wishing they never won in the first place.

              Basic financial skills are a pre-requisite when attempting to absorb the intricacies that a huge windfall brings.


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                Posted: November 20, 2014, 9:24 am - IP Logged

                Even if you win $100 million after taxes it's still best to live a middle class lifestyle.

                I'd spend no more than $300,000 on a house & maybe buy a decent pre owned $30,000 car.  Those would be my only "big" purchases.

                  Drenick1's avatar - villiarna
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                  Posted: November 20, 2014, 10:42 am - IP Logged

                  Even if you win $100 million after taxes it's still best to live a middle class lifestyle.

                  I'd spend no more than $300,000 on a house & maybe buy a decent pre owned $30,000 car.  Those would be my only "big" purchases.

                  Having $100 million after taxes and only buying a $300,000 house is a bit frugal. That is the equivalent of someone having $100,000 in savings and buying a $300 house.

                  With that kind of money, you really have to put everything in perspective.

                    lejardin's avatar - Lottery-014.jpg

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                    Posted: November 20, 2014, 11:52 am - IP Logged

                    Having $100 million after taxes and only buying a $300,000 house is a bit frugal. That is the equivalent of someone having $100,000 in savings and buying a $300 house.

                    With that kind of money, you really have to put everything in perspective.

                    I agree.  I would consider a $300,000 house as long as it had the land and location with it.  Then renovate and go off the grid, install solar, etc as much as possible.

                    Its hard to think of losing that kind of money, however, it is also shocking how fast life can throw you a curve. 

                    Certainly wouldnt mind trying to manage a win like that.

                      noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
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                      Posted: November 20, 2014, 3:08 pm - IP Logged

                      Even if you win $100 million after taxes it's still best to live a middle class lifestyle.

                      I'd spend no more than $300,000 on a house & maybe buy a decent pre owned $30,000 car.  Those would be my only "big" purchases.

                      I Agree!...with Doc Dre- that's way too frugal. Just in case you were not made aware of it, there was a $200 mil lottery winner awhile back whose only purchase l believe was a " fleet of bycles" - no kidding. I think he opened up a bycle shop and that was it...

                      Far be it for me to tell people how to spend their lottery winnings, but let's be realistic, you have to step out of your bubble..Prince!

                      People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.


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                        Posted: November 20, 2014, 10:57 pm - IP Logged

                        I Agree!...with Doc Dre- that's way too frugal. Just in case you were not made aware of it, there was a $200 mil lottery winner awhile back whose only purchase l believe was a " fleet of bycles" - no kidding. I think he opened up a bycle shop and that was it...

                        Far be it for me to tell people how to spend their lottery winnings, but let's be realistic, you have to step out of your bubble..Prince!

                        Just couldn't do it! Lol

                        I'm just that frugal.  OK, how about a $500,000 house, that's as high as I'd be willing to go.  Is that better?

                        Any more than that & the government will leave me broke!

                          Goteki54's avatar - Lottery-007.jpg
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                          Posted: November 21, 2014, 12:28 am - IP Logged

                          Since I would have taken the annuity, I wouldn't have lost it thus I would be just fine.LOL

                          Following the trends and patterns means following the money!Banana

                            Teddi's avatar - Lottery-008.jpg

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                            Posted: November 21, 2014, 12:51 am - IP Logged

                            This was an excellent thread.

                            Personally, all I can say is that it would be IMPOSSIBLE  for me to lose that amount of money. Right hand to God, it would be literally not figuratively, impossible. And not because I'd never by anything expensive. I personally don't see the point in playing for big bucks and then not going for my dream house, dream car and dream vacation spots. 

                            But I'm cautious, analytical and always have a contingency plan. If the very first purchase I have to make is a Foodsaver to vacuum seal a large amount of cash and bury it next to Jimmy Hoffa, just so I'll always have a rainy day fund, so be it.

                              Teddi's avatar - Lottery-008.jpg

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                              Posted: November 21, 2014, 1:13 am - IP Logged

                              For: Entertainment Purposes only...* l would like to think that we have a savvy thinking bunch here Smile from time to time..

                              However...

                              ..Would you label it a " curse on your part.?"

                              ..Grant an " interview to enlighten" the wannabe winners on what to do/not to do?

                              ..Be " happy that you right back where you started"... the easy come easy go philosophy?

                               

                              ** Have a Great coming week & stay Healthy People.

                              You know something, I will never understand anyone who views winning millions a curse, even if they lose it all. It seems to me the lottery is the only windfall described as a curse. I've never heard anyone who had a huge salary but lost their jobs, describe their employment as a curse. Even athletes and Hollywood stars who've gone bankrupt have never said it was a curse. Which entrepreneur whose startup ended up netting them millions or billions have ever said it was a curse? Mark Cuban, Jeff Bezos, Michael Dell and Bill Gates all seem really happy with their successes. What is it about lottery money that the winners seem brainwashed into blaming the money rather than themselves where other windfall recipients will blame themselves and not the money