[speakeasy]

It always blows my mind when I hear about a guy who hit a powerball lottery, had $50 million dumped into his bank account and then says he plans on going back to work at his blue collar factory job. It's one thing if you have a job like being a professor, or heart surgeon or artist of some sort of any job that you feel is making a difference in people's lives and you're passionate about it. But how someone can still be glad to show up at a blue collar job when they've got millions upon million of dollars is beyond me. Some people say they have to work, even if rich just so they feel productive. That's cool. But personally, if I had more money than I'd be able to spend in a lifetime, I'd be perfectly fine never having to work another day in my life, and I'd have enough things to keep me busy to occupy the rest of my natural life. I'd be learning Muay Thai in some traditional training gym in the jungles of Thailand. I'd be partying it up in Rio, I'd be climbing Everest(maybe if I get the balls), I'd be cycling across Europe, I'd be learning to sail a sailboat(around the Greek islands), I'd be doing wildlife treks in Africa, doing archaeological digs in the middle east, learn to play flamenco guitar in Spain, start a non-profit to promote education in poorer countries, etc etc. I'd find a zillion ways to occupy my time than going back to work at some factory punching holes in cheerios.

[Roosh]

If you give an uneducated person money they will still be uneducated. And uneducated people tend to be worse with money.

Even some celebrities prove to be bad with money.

If you give me $500,000 I can make it last 25 years easily.

[speakeasy]

I agree completely. A long time ago, a dude I knew had his mother die in a car accident and he got a 6 figure insurance payout. I'd heard a few years later he was broke. He was into racing and modding out cars, cocaine, blowing money on chics, etc etc. In a few years, he had shit to show for it. I had a large payout as a kid for a lawsuit, and I still have the money over 20 years later.

[broken]

If you google what happens to lottery winners (athletes, actors, singers, inheritance heirs, people who received a legal settlement) after they collect, it's never pretty.

- Money gets squandered, as they try to take care of everyone. "i'm gonna get my mom a house...and granny and aunt...and cousin.."

- Friends and family have their hands out constantly (hell that happened to John D. Rockefeller - his brother always had a scheme, and John kept loaning him cash)

- In an effort to forestall the inevitable, they make investments that turn out to be not so wise.

Imagine if you were that person in New Mexico that won the Powerball on Saturday.

- Given the current economic turmoil, where would you park an estimated 70M? Savings, cd's, stocks, bonds, REIT's, shares of Berkshire Hathaway? Bury it in the backyard?

- If you didn't want to make all of those decisions, what bank or investment house would you *trust* to make those decisions for you?

As we've seen that it is very difficult for even highly paid specialists to manage a lot of money. The people with the best education, with all the information and research, still thought they were smart enough to avoid any pitfalls that would occur.

Even before this current turmoil, the average Mutual Fund Manager didn't beat the S&P 500. And the average Hedge Fund managers, who make more, have historically done worse.

Charities, Government, Big Corporations - typically don't know how to manage their money. Everything is great during the boom, so they don't work on inefficiencies and processes.

When the bust comes and the water recedes, you see the skeletons.

Is this all about Greed? Hubris?

There is this general idea in America, that if you're smart, you'll be okay, you'll make the right decisions, you'll know what to do when
the time is right.

Time and time again, we see that this is not the case.

1) The current administration is surrounded by the best and brightest, we've seen how that turned out.

2) Wall street - most educated and pedigreed.

3) Japan? - Culture dedicated to learning and doing things right from the top down to the smallest detail.

4) China - seen their environment?

5) Europe - Those bankers fell for the same mess that ours did.

Maybe we need to believe that merit means something, because the alternative is horrifying.

[Trotter]

Umm.

[kali]

Everything gets old , even traveling. Not working or have shit to do on a daily basis is a curse. I know several people who are millionaires and are bored as fuck. Cars, jewelry toys only bring soo much activity and joy. Yes money is good to have and brings comfort but a person needs something to keep them mentally active. Why do you think most people pass Way after they retire.

[Kickb]

I would keep my job at my grocery store. I enjoy some of the people I work with

[Aliblahba]

http://www.rotten.com/library/culture/lottery-winners/

This is the best advice I've seen for someone w/ winning numbers.

[Duke Castile]

Speakeasy is on point. I'd also just diversify, a large portion in gold, an index fund, real estate (buying up a ton of cheap property), and a shit load of good ole fashioned cash.

I say this but, it would probably all go to loose women and cheap booze.

[speakeasy]

Funny when you see a post you wrote 2 years ago pop back up and you're like, "wtf was I high on that night?"

[wolf]

I'll probably move to some developing country and spend the rest of my time there.

It's expensive to live in US.

[Entropy4]

There's some stat like 40% of lottery winners waste/lose all of their winnings within 10 years or something. Forget the exact numbers. Just shows how dumb ppl can be.

[Moma]

I'd spend the next five years fcuking lizards like crazy and then the last few years weaning out a wifey.
I'd use the money to start a business.

But yea, there would be a lot of open hands when the cheques start rolling in...

[Rocco81]

I def. would open some non for profit organizations to keep me a little busy and feel like I was giving back to something I believed in. Travel, study, learn a few new languages, live in some rare places etc.

I think some people become greedy and want 2 or 3 mansion's, when really a nicely furnished condo here in the US followed by another in my favorite country to spend time in would be just fine. I never understood why people wanted a house with 10 bedrooms anyways. If you live well but not overly extravagant you can def. make your money last a long long time .

[Moma]

They say a poor man wears his wealth. A lot of people want to show others that they have money...even when they don't.

[Menace]

If you win the lottery the first person you call is a lawyer, not your friends or family. You set up a LLC and use that to claim the prize money (this is cheap to do). In this way no one will know who won the money. You should structure your corporation appropriately for maximum tax advantage.

After you claim it, you should probably consult a wealth management firm. The kind that handle money for rich old families. Your main concern should be wealth preservation and conservative growth, not gambling it away. Also have your investment pay you an annual salary. Set aside some cash to have fun with, and lock the rest away.

There is a show on TV that talks about lottery winners, and most of them lose it all.

[Mrs. Chocolate]

I would keep working (in a lower level) to make more money, turn 6 figures to 10. hahahaha

[Moma]

(01-13-2011 10:23 AM)Menace Wrote:  

If you win the lottery the first person you call is a lawyer, not your friends or family. You set up a LLC and use that to claim the prize money (this is cheap to do). In this way no one will know who won the money. You should structure your corporation appropriately for maximum tax advantage.

After you claim it, you should probably consult a wealth management firm. The kind that handle money for rich old families. Your main concern should be wealth preservation and conservative growth, not gambling it away. Also have your investment pay you an annual salary. Set aside some cash to have fun with, and lock the rest away.

There is a show on TV that talks about lottery winners, and most of them lose it all.

How much would the LLC charge?

[Nonpareil]

If I hit the lotto, I would;

- Get a good lawyer on retainer.
- Get a good accountant on retainer.
- Get a place in my city...nothing crazy, like maybe a 3-bedroom condo, just because I wouldn't want to permanently live where I do, but I have lots of family and friends so I'd like to keep a place here.
- Vanish for 6-12 months until it blew over, set up an overseas account.
- Return and look for a place in a warm city in the US with lots of young people (Austin, Athens (GA), Gainesville).
- Cut checks to my mom, my dad, my sister and her husband, both of my aunts and uncles and my grandmother and tell them that this is it. Set up education funds for my cousins and future nieces and nephews.
- Enroll in the nearest university and set out to get another one or two degrees...if necessary, grease the wheels with a few 'donations'.
- Secure a part-time job at a coffee shop or as a bartender to get me out of the house a few days a week.

I wouldn't be going out buying faberge eggs and shit because I don't need that stuff...and I doubt the guy who lived in a trailer before he hit powerball does either.

[kerouac]

You guys want to help your families? Do so by setting up a ultra-low interest loan system so they take the money seriously. Handing out paychecks to the ones you love doesn't seem like a loving thing to do in my opinion (I believe in tough love). I'm even the type of guy where if I feel the person I loaned the money to used it for a worthy endeavor I would probably not even ask for the money back (if I had a lot of money to start off with at least).

If I had a few million, I would buy a bunch of properties. One in NYC, one in LA, and one somewhere on the Mediterranean. I would go from one to the other on a seasonal basis (except for the NYC one which would serve as my hub). While not using them I would rent out the seasonal ones (I don't like throwing away money).

Since it would be cool to have a boat, I think I would either go in on a share with someone or just rent out a boat whenever I wanted to take my honeys on a sea, sex, and fun personal cruise.

I would probably use the rest of the money to try out some of the entrepreneurial ideas I have, and also invest/trade. I would probably also join a few sailing/golf clubs so that I develop a moneyed network to do business with.

I see money as a door-opener, not a way to close myself out from the rest of the world.

[Menace]

(01-13-2011 01:30 PM)Moma Wrote:  

How much would the LLC charge?

Basic ones can be established for <$300. If you want a more complex one that might do a better job with taxes, it would be a bit more, but certainly under $1000. Pocket change now that you're rich.

[oldnemesis]

(01-13-2011 09:39 AM)Moma Wrote:  

I'd spend the next five years fcuking lizards like crazy and then the last few years weaning out a wifey.

Five years? You'd be surprised how fast it would get you bored.

[playa_with_a_passport]

(01-13-2011 10:23 AM)Menace Wrote:  

You set up a LLC and use that to claim the prize money (this is cheap to do). In this way no one will know who won the money. You should structure your corporation appropriately for maximum tax advantage.

I remember reading in the NYT that lottery winners are required to claim the money in person in a press conference and your real name is given out. They do this for marketing purposes so that the general public knows that it is possible to win the money. My old statistics teacher used to say that the lottery is for poor people who don't know math.

Edit: Here's the article. http://cityroom.blogs.nytimes.com/2009/0...ers&st=cse

Quote:

For transparency’s sake, and publicity’s, too, the New York State Lottery requires its big jackpot winners to step up before the cameras, and flash that giant cardboard check.

[oldnemesis]

(09-28-2008 11:03 PM)Roosh Wrote:  

If you give me $500,000 I can make it last 25 years easily.

BTW, if you can live for $20K a year, you could have invested those $500K into some 5% bonds (tough now, but may be easier in a future), which would provide you with guaranteed $25K/year income.

[Entropy4]

I believe Ben Franklin was the one who said, "The lottery is a tax on stupidity."