Land. Lots of land
You won the lotto, what now?
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Last: 8 mo ago by Big Baccala
Yeah, the $200MM is split between purchasing and upkeep. Renting is also a strong option, especially overseas. You would need a full time staff for cleaning and maintaining the properties.
A year or so ago, singer Dan Fogelberg's wife released a serialized book about their life together. Fogelberg owned a beautiful, secluded ranch in Colorado and a home in Maine.Caliber said:
For those talking about buying a bunch of houses, What is the upkeep plan? How do you manage having the houses ready to go to just come in? What kind of team really handles that?
The ranch upkeep was not only super expensive, but it was a challenge to find people who could maintain the property when DF was on tour or in Maine. He basically toured to earn money to maintain his properties. Things would happen like pipe leaks and his ranch managers were often useless.
When he died, the ranch became a giant financial drain on his wife (she had a lot of trouble selling it).
Anyway, that's why I don't win the lottery. Sounds like a big hassle!
This was posted about 5-6 years ago here the last time we had a billion dollar powerball. This is the right answer.
Once this step is done, you literally do whatever the f you want. You have more cash and leverage than all but about 5,000 people in the whole world. Insulate yourself from the general public and keep your circle tight. Buy whatever you want, go wherever you want, see whatever you want with whomever you want.
Me personally? A place in Amalfi, a place in the Caribbean, a place in Napa, a share of a private jet or NefJets sub, and my family and I would hop between the 3. We'd selectively invest between s&p, private equity, VC, anything else that interests us.
Monthly meetings with my on-staff attorney, cpa, and financial planner. Even with the toys, you'd still have $500MM easily, which should throw off between $50-$100MM each year in earnings. That's $1MM per week to spend without touching principal. I can't spend that much money, and neither can my wife, despite her best efforts.
Quote:
Regarding identity. One of the rules of the Texas Lottery is that you have to go public. They have the right to use you likeness and identity for publicity. I think the use of a trust in something new and one can still find the identity. Sorry.
A good friend of mine is a financial planner and advisor and has had a number of lottery winners, He has become the " lottery winner" expert with his large national firm..
His team has the estate lawyers, CPA's etc all on staff that will help with his "plan"
Basically what he does is set up a meeting where he has a complete checklist of what your desires are..ie..charities, gifts , tithes, families, bills, a few toys ( THAT car or THAT boat...) he then via his lawyers sets up all the powers of attorneys for the transactions his firm will do. He finds out where your dream 2 week to 2 month vacation spot is and then takes you to Austin via limo to turn in the ticket. Form the office he takes you to the airport and you are GONE for a month or 2. While you are away his folks set up all you accounts, funds your charities, gifts etc, babysits your house, finds you new private digs and new phones etc. Contacts your family and other to give them their share.....all that stuff.
When yo get home you go home, pack, move and enjoy your new life. YOU decide who to contact or WHO to see. IF you like he will arrange for his firm to provide a buffer with the outside world including relatives.
Once this step is done, you literally do whatever the f you want. You have more cash and leverage than all but about 5,000 people in the whole world. Insulate yourself from the general public and keep your circle tight. Buy whatever you want, go wherever you want, see whatever you want with whomever you want.
Me personally? A place in Amalfi, a place in the Caribbean, a place in Napa, a share of a private jet or NefJets sub, and my family and I would hop between the 3. We'd selectively invest between s&p, private equity, VC, anything else that interests us.
Monthly meetings with my on-staff attorney, cpa, and financial planner. Even with the toys, you'd still have $500MM easily, which should throw off between $50-$100MM each year in earnings. That's $1MM per week to spend without touching principal. I can't spend that much money, and neither can my wife, despite her best efforts.
If you won recently and took the $740M lump sum, you'd be taxed at 37%, so you're real "take home" is $466M. Still an unfathomable amount of money, but not 3/4 $billion like keeps getting used in this hypothetical.
Agreed on this. Seems like the best possible solution I've heard.752bro4 said:
This was posted about 5-6 years ago here the last time we had a billion dollar powerball. This is the right answer.Quote:
Regarding identity. One of the rules of the Texas Lottery is that you have to go public. They have the right to use you likeness and identity for publicity. I think the use of a trust in something new and one can still find the identity. Sorry.
A good friend of mine is a financial planner and advisor and has had a number of lottery winners, He has become the " lottery winner" expert with his large national firm..
His team has the estate lawyers, CPA's etc all on staff that will help with his "plan"
Basically what he does is set up a meeting where he has a complete checklist of what your desires are..ie..charities, gifts , tithes, families, bills, a few toys ( THAT car or THAT boat...) he then via his lawyers sets up all the powers of attorneys for the transactions his firm will do. He finds out where your dream 2 week to 2 month vacation spot is and then takes you to Austin via limo to turn in the ticket. Form the office he takes you to the airport and you are GONE for a month or 2. While you are away his folks set up all you accounts, funds your charities, gifts etc, babysits your house, finds you new private digs and new phones etc. Contacts your family and other to give them their share.....all that stuff.
When yo get home you go home, pack, move and enjoy your new life. YOU decide who to contact or WHO to see. IF you like he will arrange for his firm to provide a buffer with the outside world including relatives.
$466mil?! How in the hell am i supposed to live on that?!Spaceship said:
If you won recently and took the $740M lump sum, you'd be taxed at 37%, so you're real "take home" is $466M. Still an unfathomable amount of money, but not 3/4 $billion like keeps getting used in this hypothetical.
Something I've thought about before is having my attorney immediately go to whatever convenience store and get the owner and clerk to sign an NDA and get the security camera footage in exchange for $20k or something.
As stated above, in Texas it doesn't matter, the State releases the name of the winner.ChipFTAC01 said:
Something I've thought about before is having my attorney immediately go to whatever convenience store and get the owner and clerk to sign an NDA and get the security camera footage in exchange for $20k or something.
ChipFTAC01 said:
Something I've thought about before is having my attorney immediately go to whatever convenience store and get the owner and clerk to sign an NDA and get the security camera footage in exchange for $20k or something.
or just have them offed for half that
That law was changed a little while back.
That is good!
austinAG90 said:
No hookers and blow takers??
TxTarpon said:austinAG90 said:
No hookers and blow takers??
Half on hookers and blow, and just squander the rest.
SidetrackAg said:$466mil?! How in the hell am i supposed to live on that?!Spaceship said:
If you won recently and took the $740M lump sum, you'd be taxed at 37%, so you're real "take home" is $466M. Still an unfathomable amount of money, but not 3/4 $billion like keeps getting used in this hypothetical.
You probably need a modest 3/2 and you can refi to 15 year note.
ea1060 said:Do those things really matter when you are worth $750MM? You can hire someone to handle all of that stuff for you.MAS444 said:
Owning multiple high end homes sounds great in theory but I don't think it would work great in practice. How much time are you really gonna spend at places 4, 5 and 6 (vs the cost and upkeep, maintenance, etc)? Just have a couple of great places and then you can rent super high end joints wherever else you want to go. Alas, it matters not...
I sat next to a billionaire at a group dinner a few weeks ago. Dude has a place in the most expensive part of Houston where he bought all the homes on his cut-de-sac over decades, so he literally owns like 5 acres in the middle of this neighborhood.
He said he stays one night there when in houston, which is like one per month. And his wife hasn't been there in 2 years. She stays at their place in flagstaff, because it's closer to his son and she likes the dry air. He spends most of his time between their place Aspen and their place in Southern California.
Honestly it sort of sounded ridiculous to me. He wasn't really enjoying them - they were purely trophies gathering dust.
I think I'd have a beach house in the Caymans, which I love visiting and would love to share with others. Then I'd upgrade my farm as a primary residence, and I'd keep a 1-2 bedroom townhouse or penthouse sweet in the city nearest where my kids live so I could visit often. The idea of multiple mansions just seems silly to me.
Those homes are probably a tax deferred investment strategy that he also gets a little use out of. Probably sit in a trust for his heirs and he pays just enough rent for the depreciation to offset.
I'm about as pro- capitalist as it gets, but the billionaires who simply won the lucky sperm club are an unfortunate byproduct that has to be accepted to get all the benefits.
It is absolutely not how most wealth is accumulated, but then it does happen it's generally pretty gross when you see it up close.
It is absolutely not how most wealth is accumulated, but then it does happen it's generally pretty gross when you see it up close.
FrioAg 00 said:
I'm about as pro- capitalist as it gets, but the billionaires who simply won the lucky sperm club are an unfortunate byproduct that has to be accepted to get all the benefits.
It is absolutely not how most wealth is accumulated, but then it does happen it's generally pretty gross when you see it up close.
Can you expand on this? Are you talking about the ones who just inherited money?
Yes. The good news is it's mostly rare and the ones who inherit more than we think they can squander usually do their best to prove that wrong.
There is just a point where accumulated excess becomes sort of gross, IMO. But it's necessary in a system that rewards efficient ownership of capital, so the good outweighs the bad.
My job includes kissing some ass of the super rich, and I certainly do not mind. But I will say the close up view makes me realize I wouldn't want to actually be that wealthy.
There is just a point where accumulated excess becomes sort of gross, IMO. But it's necessary in a system that rewards efficient ownership of capital, so the good outweighs the bad.
My job includes kissing some ass of the super rich, and I certainly do not mind. But I will say the close up view makes me realize I wouldn't want to actually be that wealthy.
From a pure business POV, I put the 250M into the S&P DCA over 6-12 months. 250M into multi family homes/cash flowing assets and build up a support team that should be able to cash flow 10-15M/yr.
Live off 2-5M/yr, gift the other 10M yearly to family/charity allowing the 500M assets to grow forever.
Live off 2-5M/yr, gift the other 10M yearly to family/charity allowing the 500M assets to grow forever.
If I told my wife I didn't think she could spend all of it:752bro4 said:
This was posted about 5-6 years ago here the last time we had a billion dollar powerball. This is the right answer.Quote:
Regarding identity. One of the rules of the Texas Lottery is that you have to go public. They have the right to use you likeness and identity for publicity. I think the use of a trust in something new and one can still find the identity. Sorry.
A good friend of mine is a financial planner and advisor and has had a number of lottery winners, He has become the " lottery winner" expert with his large national firm..
His team has the estate lawyers, CPA's etc all on staff that will help with his "plan"
Basically what he does is set up a meeting where he has a complete checklist of what your desires are..ie..charities, gifts , tithes, families, bills, a few toys ( THAT car or THAT boat...) he then via his lawyers sets up all the powers of attorneys for the transactions his firm will do. He finds out where your dream 2 week to 2 month vacation spot is and then takes you to Austin via limo to turn in the ticket. Form the office he takes you to the airport and you are GONE for a month or 2. While you are away his folks set up all you accounts, funds your charities, gifts etc, babysits your house, finds you new private digs and new phones etc. Contacts your family and other to give them their share.....all that stuff.
When yo get home you go home, pack, move and enjoy your new life. YOU decide who to contact or WHO to see. IF you like he will arrange for his firm to provide a buffer with the outside world including relatives.
Once this step is done, you literally do whatever the f you want. You have more cash and leverage than all but about 5,000 people in the whole world. Insulate yourself from the general public and keep your circle tight. Buy whatever you want, go wherever you want, see whatever you want with whomever you want.
Me personally? A place in Amalfi, a place in the Caribbean, a place in Napa, a share of a private jet or NefJets sub, and my family and I would hop between the 3. We'd selectively invest between s&p, private equity, VC, anything else that interests us.
Monthly meetings with my on-staff attorney, cpa, and financial planner. Even with the toys, you'd still have $500MM easily, which should throw off between $50-$100MM each year in earnings. That's $1MM per week to spend without touching principal. I can't spend that much money, and neither can my wife, despite her best efforts.
That's a pretty awesome process by that attorney. It's effectively a witness protection program for the wealthy.
I think one thing I would do if I won that kind of money is to set up some kind of F57 Investment Challenge where I would deposit, say $1M, into an account and then the regulars on here would all get one stock pick to track for 12 months. Whoever has the best performance at the end of 12 months, gets the whole pot. It's just my way of giving back since I'm such a generous person.
Things I would do:
- Keep our existing home.
- Mountain home.
- City condo. Not sure which city...
- Buy all the watches on my Watch wish list.
- Pay Brandon to shut down the Covid board.
- Upgrade my shot gun to something kick ass.
- My dream car is an AstonMartin so I would get either the new V12 Vantage or the Valhalla. I realize they probably unreliable but who cares when you are this rich.
- Pay for whatever bleeding edge eye surgery/treatment that might be happening somewhere else on the globe to help my mother's eyesight. She has macular degeneration and it's a maddening affliction.
- Get a second and maybe third, fourth, and fifth Boston Terrier.
- Fund the campaigns of anyone running against vulnerable Democrats at the national level.
- Fund and develop a wine bar to be near our home; wouldn't care if it lost money. Just want one the way I want it nearby.
That's probably about it for myself. I don't really covet anything else.
Dad's always wanted a '57 Chevy so that might be my first purchase.
My frivolous purchases would be spending a few days on Ebay buying every high end Luka Doncic and Dirk Nowitzki card I could find.
My frivolous purchases would be spending a few days on Ebay buying every high end Luka Doncic and Dirk Nowitzki card I could find.
Let's go, Brandon!
750M is cash value, then you get taxed on that around 40%? So is much less but still way more than anyone really needs even if you want to blow it. Say $450M net. At 2% you are making $9M/yr. You could do that in Treasurys easily. So me being 58, I could spend easily $15M a year and never get close to running out of money. So that is spending $45,100 every day.
Most endowment spin-off rates professional planners use are around 4%.
I think you'd be pretty safe spending $50k per day and not actually decreasing your available spending power.
I think you'd be pretty safe spending $50k per day and not actually decreasing your available spending power.
I would take cash option but that's a lot of money to forfeit. Could I get more money back by just taking the annuity and selling those cash flows off to a big bank and get a larger upfront payment from the bank vs cash option from the state?
The cash value is determined on prevailing rates at the time. You would almost certainly get less lump-sum from a third party at the time. However if rates decline enough, subsequently it could be sold and theoretically provide more net lump-sum.
However, if you had a rate view/concern, it would be more efficient to take lump sum and simply buy some interest rate options and/or explore swaps.
More practical would be taking the lump-sum and then seeing the private income stream it could purchase. That would have room to be larger than the state offered version frequently, I suspect.
However, if you had a rate view/concern, it would be more efficient to take lump sum and simply buy some interest rate options and/or explore swaps.
More practical would be taking the lump-sum and then seeing the private income stream it could purchase. That would have room to be larger than the state offered version frequently, I suspect.
Yeah, They'd find my body face down in a pile of cocaine in some dank Eastern Europe village within 48 hours. I have never even done cocaine but just seems like the thing to do.
That would definitely maximize the amount of $ you could spend per day for the rest of your life without running out.
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It is not wrong to wonder if having unlimited resources like that would change you and/or loved ones for the worse.
I buy the tickets now and again so I can play the "What if" game. And I'm sure I'd take the money if I won.
I'm old enough now to not get completely ruined by it. But for the balance of money I didn't give away to good causes, I would set up some sort of system where generations behind me would not ever just receive a wall of money, especially early in their lives.
Maybe some sort of trust where any of my descendents for x generations would receive from the trust one or two times any monies earned by them (legally) as a match.
And I'd travel like a mofo. Many times with guests.
I don't think I'd have a bunch of houses because that requires staff. I don't want staff other than the pros handling the money.
I buy the tickets now and again so I can play the "What if" game. And I'm sure I'd take the money if I won.
I'm old enough now to not get completely ruined by it. But for the balance of money I didn't give away to good causes, I would set up some sort of system where generations behind me would not ever just receive a wall of money, especially early in their lives.
Maybe some sort of trust where any of my descendents for x generations would receive from the trust one or two times any monies earned by them (legally) as a match.
And I'd travel like a mofo. Many times with guests.
I don't think I'd have a bunch of houses because that requires staff. I don't want staff other than the pros handling the money.
I actually felt that way when it hit a billion this go around - at that point, I can't even imagine what type of life you live. I would feel like I had a target on my back anytime I went into public and would become a recluse, or only travel to places with controlled environments.
It sounds weird, but I think I'd rather win $50 million than a billion.
It sounds weird, but I think I'd rather win $50 million than a billion.
Would you take the cash option or the annuity?
A friend of my dad's has his son's trust fund setup to where he get's a match of the previous year's W-2. So if he makes 200k he gets 200k, if he makes 25K he only get's 25K. Pretty good idea to keep them from getting spoiled living off your hard work. I would setup something like that.
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