How Would You Invest $122 Million?

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gatorman
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How Would You Invest $122 Million?

Post by gatorman » Wed Mar 07, 2012 9:36 am

An elderly Rhode Island woman just won the Powerball Lottery, $336.4 Million. Here is a link:

http://news.yahoo.com/336-4m-powerball- ... 39430.html

She is going to take the lump sum option and will receive $210 Million. Her state tax liability is stated to be $14.7 Million and I estimate federal income tax at roughly $73.5 Million, leaving $121.8 Million investable.

As a thought exercise, assuming it was you who received the $122 million, what would you do? Would you donate any? How would you invest what you decided to keep? In general how should one deal with a large windfall?

gatorman

mptfan
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Re: How Would You Invest $122 Million?

Post by mptfan » Wed Mar 07, 2012 9:45 am

I think that hypothetical thought exercises violate the forum policies. :wink:

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HomerJ
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Re: How Would You Invest $122 Million?

Post by HomerJ » Wed Mar 07, 2012 10:03 am

If it was me, I'd keep $30 million for myself, set aside $10 million for business ideas\loans to family and friends (that I wouldn't expect to get back), create a foundation with $60 million, and give away the remaining $22 million to family and friends (this part would be FUN - I'd find old college friends and pay off their house, etc.)

Money for myself would be invested $10 million in a CD or Treasury Bond ladder, returning about $200,000 a year in guarenteed spending money (likely more later when rates go back up). $20 million would probably be 30/70 stocks/bonds probably using the same 3 funds I use now:

Total Stock Market Index
Total International Stock Market Index
Total Bond Market Index

Maybe I'd add TIPS too. Maybe some real estate. I'd probably pull another 1% out of that pool too each year to spend...

The foundation would be invested the same way.

My life wouldn't change much from my original retirement plan... We'd retire, get a really nice lake house with boats and jet skis, and travel a lot. Flying first-class everywhere is probably the biggest change I would make, due to my new wealth.

I would spend time researching charities for my foundation to give money to.

xerty24
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Re: How Would You Invest $122 Million?

Post by xerty24 » Wed Mar 07, 2012 10:10 am

mptfan wrote:I think that hypothetical thought exercises violate the forum policies. :wink:
Like speculating on which investments will do well in the future? ;)
No excuses, no regrets.

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HomerJ
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Re: How Would You Invest $122 Million?

Post by HomerJ » Wed Mar 07, 2012 10:12 am

mptfan wrote:I think that hypothetical thought exercises violate the forum policies. :wink:
The fun of imagining what I'd do with the money is the only value I place on buying my lottery ticket once or twice a year (I always buy one whenever I have a reason to go inside a gas station, which isn't very often).

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Re: How Would You Invest $122 Million?

Post by nisiprius » Wed Mar 07, 2012 10:16 am

I don't have time to think about that, I'm busy making my plans on where to take Angelina Jolie when she calls me and says she wants a date. So, Angie, there are some terrific classes at the Osher Lifelong Learning Center, but if you'd rather go see The Lorax at the IMAX with my granddaughter I'm up for that, too. Or maybe we could just sit on the couch and I could turn on the gas fireplace and you could read R is for Richochet by Sue Grafton while I finish reading Believing the Lie by Elizabeth George. I have a new sebaceous cyst I could show you! And I could make decaf.
Last edited by nisiprius on Wed Mar 07, 2012 10:23 am, edited 2 times in total.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

FafnerMorell
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Re: How Would You Invest $122 Million?

Post by FafnerMorell » Wed Mar 07, 2012 10:22 am

nisiprius wrote:I don't have time to think about that, I'm busy making my plans on where to take Angelina Jolie when she calls me and says she wants a date. So, Angie, there are some terrific classes at the Osher Lifelong Learning Center, but if you'd rather go see The Lorax at the IMAX I'm up for that, too. Or maybe we could just sit on the couch and I could turn on the gas fireplace and you could read Thinking, Fast and Slow by Daniel Kahneman while I finish reading Believing the Lie by Elizabeth George. Would you like to see my new sebaceous cyst? I could make decaf.
Well, while you're at it, you could imagine she brings along $122 million that she wants you to invest for her. Or would that spoil the moment?

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nisiprius
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Re: How Would You Invest $122 Million?

Post by nisiprius » Wed Mar 07, 2012 10:24 am

FafnerMorell wrote:
nisiprius wrote:I don't have time to think about that, I'm busy making my plans on where to take Angelina Jolie when she calls me and says she wants a date.
Well, while you're at it, you could imagine she brings along $122 million that she wants you to invest for her.
Oh, don't be ridiculous. What are the chances of that happening?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

porcupine
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Re: How Would You Invest $122 Million?

Post by porcupine » Wed Mar 07, 2012 10:25 am

nisiprius wrote:I don't have time to think about that, I'm busy making my plans on where to take Angelina Jolie when she calls me and says she wants a date. So, Angie, there are some terrific classes at the Osher Lifelong Learning Center, but if you'd rather go see The Lorax at the IMAX with my granddaughter I'm up for that, too. Or maybe we could just sit on the couch and I could turn on the gas fireplace and you could read R is for Richochet by Sue Grafton while I finish reading Believing the Lie by Elizabeth George. I have new sebaceous cyst I could show you! And I could make decaf.
I see a lot of marriages breaking with a domino effect, with each broken (and remade) household down the pike getting ...

- 2@30.5 million
- 2@15 million
- 2@7.5 million
- 2@3.75 million
- 2@2 million
- 2@1 million

If you don't get the logic, I will write a treatise :wink:

- Porcupine

dailybagel
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Re: How Would You Invest $122 Million?

Post by dailybagel » Wed Mar 07, 2012 10:30 am

nisiprius wrote:I don't have time to think about that, I'm busy making my plans on where to take Angelina Jolie when she calls me and says she wants a date. So, Angie, there are some terrific classes at the Osher Lifelong Learning Center, but if you'd rather go see The Lorax at the IMAX with my granddaughter I'm up for that, too. Or maybe we could just sit on the couch and I could turn on the gas fireplace and you could read R is for Richochet by Sue Grafton while I finish reading Believing the Lie by Elizabeth George. I have a new sebaceous cyst I could show you! And I could make decaf.
Laughed out loud.

Beantown85
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Re: How Would You Invest $122 Million?

Post by Beantown85 » Wed Mar 07, 2012 11:17 am

You know what I would do if I had a 122 million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...

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Re: How Would You Invest $122 Million?

Post by Grt2bOutdoors » Wed Mar 07, 2012 11:32 am

I've won the game, no need to invest, just SPEND!!!!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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tyrion
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Re: How Would You Invest $122 Million?

Post by tyrion » Wed Mar 07, 2012 11:56 am

Invest?
10% TSM
10% TISM
80% muni bond funds of various duration, also some CA specific


Spend?
Reasonable sized house in the suburbs- 4/5 bedrooms, swimming pool, solar power (this is southern CA).
3/4 bedroom condo at the beach with a master bedroom, guest room, and bunk room for the kids and friends.
A new car or two, nothing too fancy.

Set up a 'Roth IRA encouragement program' for less savvy friends where I would give them the 5k to fund the IRA every year provided they can document it did indeed get invested there.

Then sit back and enjoy life. (not that I don't already)

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Re: How Would You Invest $122 Million?

Post by KyleAAA » Wed Mar 07, 2012 12:02 pm

I don't know. Maybe target retirement income.

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Re: How Would You Invest $122 Million?

Post by tludwig23 » Wed Mar 07, 2012 12:03 pm

I'd spend the first $20 million or so on a time machine. Then I would travel back to Jan 2, 1998, and invest $100 million in AAPL at $13.63/share. Then I would return to the present, and sell.
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Re: How Would You Invest $122 Million?

Post by gravlax » Wed Mar 07, 2012 12:07 pm

I'd put it all in a hedge fund.

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norookie
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Re: How Would You Invest $122 Million?

Post by norookie » Wed Mar 07, 2012 12:12 pm

tludwig23 wrote:I'd spend the first $20 million or so on a time machine. Then I would travel back to Jan 2, 1998, and invest $100 million in AAPL at $13.63/share. Then I would return to the present, and sell.
:sharebeer ME TOO.
" Wealth usually leads to excess " Cicero 55 b.c

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Re: How Would You Invest $122 Million?

Post by hsv_climber » Wed Mar 07, 2012 12:23 pm

nisiprius wrote:
FafnerMorell wrote:
nisiprius wrote:I don't have time to think about that, I'm busy making my plans on where to take Angelina Jolie when she calls me and says she wants a date.
Well, while you're at it, you could imagine she brings along $122 million that she wants you to invest for her.
Oh, don't be ridiculous. What are the chances of that happening?
I am interested to know of what are the chances of Mrs. Nisiprius hitting you on the head with something heavy while you are on the phone with Angie?

555
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Re: How Would You Invest $122 Million?

Post by 555 » Wed Mar 07, 2012 12:28 pm

100% stock
One year's dividends are enough for life.

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Clearly_Irrational
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Re: How Would You Invest $122 Million?

Post by Clearly_Irrational » Wed Mar 07, 2012 2:57 pm

In that unlikely scenario:

1) Get a new phone with an unlisted number
2) Build a team of professionals to help me out (lawyer, accountant, insurance, tax specialist etc. etc.) protecting my new money horde
3) Buy several annuities each paying enough to ensure I'd never have to work again even if I stupidly blew the rest of the money
4) Pay off all my debts and those of my family & friends
5) Divide the money into five buckets (immediate spending, rental properties, financial assets, business ownership, liabilities matching w/tips & annutities)
6) Hire some people to do the things I don't like to do and someone to keep an eye on them
7) Take some of that spending money and buy a new house, car, go on vacation etc.
8) Settle in and enjoy my new life of leisure and privilege
9) Get bored of leisure and try and find some new meaning to my existence

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Re: How Would You Invest $122 Million?

Post by Alex Frakt » Wed Mar 07, 2012 3:01 pm

mptfan wrote:I think that hypothetical thought exercises violate the forum policies. :wink:
Not on the Theory subforum. It just has to be a pure investment issue. I guess this qualifies.

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Re: How Would You Invest $122 Million?

Post by 3CT_Paddler » Wed Mar 07, 2012 3:25 pm

Flush the ticket down the drain and thank my lucky stars I didn't follow through with something that would leave me worse off than if I had not won... :wink:
http://www.thedailybeast.com/articles/2 ... curse.html
But according to a study completed last year at the Paris School of Economics, statistics may be on the side of the superstitious—the results suggest that sudden windfalls can in fact increase one's risk of death.
...
"Of the thousands of lottery winners I knew, a few were happy and a few lived happily ever after," says Ugel. "But you would be blown away to see how many winners wish they'd never won." Abraham Shakespeare was one of these winners—before his death, he reportedly told his mother he wished he'd never bought that winning ticket. Had he not, he'd most likely be alive today.
http://abcnews.go.com/GMA/curse-lottery ... id=2941589
http://www.karemar.com/blog/lottery-win ... s-all-time

PS I probably wouldn't actually flush the ticket down the drain, but that would probably be the best course of action.

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Re: How Would You Invest $122 Million?

Post by Agentwilder » Wed Mar 07, 2012 3:33 pm

My favorite daydream!

1. Hop the first flight out of Afghanistan
2. Change phone number and cancel facebook page
3. Hire Lawyer/CPA/etc
4. Change home of record to no tax state
5. Collect my $$
6. 60 mil to long term investments
7. 25 million to charity/scholarships for veterans
8. 15 million set aside in short term investments until I finish with #10
9. 12 million to family and friends (paying off debt, gifts)
10. 10 million to blow, just to get it out of my system

Spend the rest of my days procreating, learning and complaining about how much I should have won if it weren't for taxes.

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Re: How Would You Invest $122 Million?

Post by j920 » Wed Mar 07, 2012 3:42 pm

Clearly_Irrational wrote:In that unlikely scenario:

1) Get a new phone with an unlisted number
2) Build a team of professionals to help me out (lawyer, accountant, insurance, tax specialist etc. etc.) protecting my new money horde
3) Buy several annuities each paying enough to ensure I'd never have to work again even if I stupidly blew the rest of the money
4) Pay off all my debts and those of my family & friends
5) Divide the money into five buckets (immediate spending, rental properties, financial assets, business ownership, liabilities matching w/tips & annutities)
6) Hire some people to do the things I don't like to do and someone to keep an eye on them
7) Take some of that spending money and buy a new house, car, go on vacation etc.
8) Settle in and enjoy my new life of leisure and privilege
9) Get bored of leisure and try and find some new meaning to my existence
This is pretty similar to my answer.

Except I love cars and watches so I'd have a nice collection of each.

Jfet
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Re: How Would You Invest $122 Million?

Post by Jfet » Wed Mar 07, 2012 4:39 pm

How would I invest $122 million?

When I got back from the ISS, I would probably take the $102 million and look into some managed bond funds and maybe a little (20%) into the stock market for kicks.

Dr. Gaius Baltar
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Re: How Would You Invest $122 Million?

Post by Dr. Gaius Baltar » Wed Mar 07, 2012 6:11 pm

Holy crap, $122 million? Think of all the lottery tickets you could buy with that money! You could easily wind up rich!

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Re: How Would You Invest $122 Million?

Post by trico » Wed Mar 07, 2012 6:24 pm

I would make sure I purchased the best health care policy avalible. Because I would probably would have a heart attack.

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Re: How Would You Invest $122 Million?

Post by madbrain » Wed Mar 07, 2012 7:17 pm

trico wrote:I would make sure I purchased the best health care policy avalible. Because I would probably would have a heart attack.
You might be able to self-insure if you have $122M ...

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LH
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Re: How Would You Invest $122 Million?

Post by LH » Wed Mar 07, 2012 8:31 pm

Red 32.

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Re: How Would You Invest $122 Million?

Post by fareastwarriors » Wed Mar 07, 2012 8:46 pm

The same way as I would with $122. :beer

am
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Re: How Would You Invest $122 Million?

Post by am » Wed Mar 07, 2012 8:57 pm

Would not putting in 122 mil into mutual funds on one day be disruptive and cause a massive rally? Wonder how Vanguard would handle such an inflow. Dollar cost average the money in?

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Re: How Would You Invest $122 Million?

Post by cb474 » Wed Mar 07, 2012 10:10 pm

The Federal tax on lottery winnings in Rhode Island (and most states, I believe) is actually 25%. So the woman in question will actually end up with $142.8 million. You all are going to have to figure out what to do with another $20.8 million.

Apparently it is true, that most people (the great majority) who win the lottery eventually blow it all and end up in debt, sad as that is. I wonder if bogleheads, with their knowledge not just of how to invest, but of the various psychological challenges (sticking to one's plan, etc.) would do any better? After all, the actual super rich people who have that kind of money and understand money/investment better, I believe do not end up in such dire straights, so regularly. Or would a $100 millionaire, who suddenly got a $1 billion windfall make the same mistakes?

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Clearly_Irrational
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Re: How Would You Invest $122 Million?

Post by Clearly_Irrational » Wed Mar 07, 2012 10:33 pm

cb474 wrote:Or would a $100 millionaire, who suddenly got a $1 billion windfall make the same mistakes?
I think that would depend on whether they earned it or it was inherited. Someone like Carlos Slim would have no problem if he suddenly won a huge sum, Paris Hilton on the other hand perhaps not so well.

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Re: How Would You Invest $122 Million?

Post by Userdc » Wed Mar 07, 2012 10:45 pm

cb474 wrote:The Federal tax on lottery winnings in Rhode Island (and most states, I believe) is actually 25%. So the woman in question will actually end up with $142.8 million. You all are going to have to figure out what to do with another $20.8 million.
Even if RI withholds less than her actual federal tax liability, she will have to pay full freight on the taxes. And sooner rather than later if she wants to avoid a hefty underpayment penalty.

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Re: How Would You Invest $122 Million?

Post by cb474 » Wed Mar 07, 2012 10:55 pm

Clearly_Irrational wrote:
cb474 wrote:Or would a $100 millionaire, who suddenly got a $1 billion windfall make the same mistakes?
I think that would depend on whether they earned it or it was inherited. Someone like Carlos Slim would have no problem if he suddenly won a huge sum, Paris Hilton on the other hand perhaps not so well.
In my scenario Carlos Slim would have to have a sudden windfall of $1 trillion dollars or something like that. It would have to be in complete disproportion to the amount of money he's used to operating with. It has to open possibilities the person never even considered. I think even Carlo Slim might go crazy in that scenario. It would give him an incredible amount of power. We all know power has a corrupting influence on people.

So it's about proportionality, not the specific amount of money.

I see no reason to not assume Paris Hilton can't handle her money. People like that who grow up rich and always know they have the money coming Ithink are prepared for it, by their families, advisors, etc. I have a hard time thinking of people from truly mega-wealth families, who eventually inherit the weatlh and the blow all the money. They often have other issues (Paris Hilton obviously has plenty), but blowing all the wealth and ending up poor and in debt I don't think is one of them, not like with lottery winners.

Again, for me it would have to be a question of something happening monetarily that Hilton didn't expect. No inheriting the money she knows her family has, but something totally out of proporition.

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Re: How Would You Invest $122 Million?

Post by Clearly_Irrational » Wed Mar 07, 2012 10:58 pm

cb474 wrote:Again, for me it would have to be a question of something happening monetarily that Hilton didn't expect. No inheriting the money she knows her family has, but something totally out of proporition.
At the very least it would generate some really nice fees for her wealth management firm.

Obviously I can't speak from experience but I would guess that after the first billion you're really just keeping score, it's not like it's going to effect your lifestyle in any measurable way.

cb474
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Re: How Would You Invest $122 Million?

Post by cb474 » Wed Mar 07, 2012 11:01 pm

Userdc wrote:
cb474 wrote:The Federal tax on lottery winnings in Rhode Island (and most states, I believe) is actually 25%. So the woman in question will actually end up with $142.8 million. You all are going to have to figure out what to do with another $20.8 million.
Even if RI withholds less than her actual federal tax liability, she will have to pay full freight on the taxes. And sooner rather than later if she wants to avoid a hefty underpayment penalty.
That doesn't make sense to me. Her "actual federal tax liability" on lottery winnings is 25%. That's the actual law. So the question was simply how much does she get to begin with, after opting for the lump sum and taxes being withdraw. And the answer to that is $142.8 million, not $120 million.

Of course, after that she'll have to pay regular federal taxes on any future earnings derived from how she invests her winnings. But we all know that this could be even lower (like Romney's less than 15% tax liability), assuming she's savvy enough or has advisors are savvy enough to invest appropriately (which I admit probably won't be the case).
Last edited by cb474 on Wed Mar 07, 2012 11:05 pm, edited 1 time in total.

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Re: How Would You Invest $122 Million?

Post by cb474 » Wed Mar 07, 2012 11:04 pm

Clearly_Irrational wrote:Obviously I can't speak from experience but I would guess that after the first billion you're really just keeping score, it's not like it's going to effect your lifestyle in any measurable way.
Yet strangely people with billions, like Carlos Slim, seem to want to accumlate more. I think at some point it stops being about wealth (lifestyle, etc.) and becomes about power. Once you have enough money (for a handful of people) you start to end up in a position where you can really shape the society you live it. The difference between a billion and a trillion may not matter for the material conditions of your day to day life, but it could totally change the kind of influence you have in the world.

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Re: How Would You Invest $122 Million?

Post by Clearly_Irrational » Wed Mar 07, 2012 11:06 pm

cb474 wrote:Yet strangely people with billions, like Carlos Slim, seem to want to accumulate more. I think at some point it stops being about wealth (lifestyle, etc.) and becomes about power.
Completely agree.

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Re: How Would You Invest $122 Million?

Post by TheEternalVortex » Thu Mar 08, 2012 2:10 am

And sooner rather than later if she wants to avoid a hefty underpayment penalty.
She should be easily covered under safe harbor.

I probably wouldn't want to have that much money. It would be too much hassle. I'd rather have more like $5-10 million. So maybe I'd give away most of it right away.

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Re: How Would You Invest $122 Million?

Post by SunDevil » Thu Mar 08, 2012 8:41 am

cb474 wrote: That doesn't make sense to me. Her "actual federal tax liability" on lottery winnings is 25%. That's the actual law. So the question was simply how much does she get to begin with, after opting for the lump sum and taxes being withdraw. And the answer to that is $142.8 million, not $120 million.
Speaking from experience, gambling winnings will be taxed as regular income, so almost entirely at the 35% bracket. States will withhold 25% for federal tax at the time of claiming, but you ARE responsible for the remainder by year end. When claiming a recent lottery win, the check was handed over by an IRS agent. They keep tabs on you.

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Re: How Would You Invest $122 Million?

Post by Taylor Larimore » Thu Mar 08, 2012 9:09 am

Bogleheads:

After investigating the safety of the annuity, I would take the annuity option to minimize risk of loss, fend off pleas for money, minimize portfolio management, minimize taxes, and eliminate longivity risk.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: How Would You Invest $122 Million?

Post by staythecourse » Thu Mar 08, 2012 9:52 am

My usual answer is it doesn't matter I think applies. She is 81 with a life expectancy ending in the next 20 years (likely much sooner) and has 120+ million to spend. She isn't going to be running out of her money unless her kids and family swindle her. The material wants I don't think apply to a 81 year old.

The one thing at 81 I'm sure she would want she won't be able to buy and that is a longevity of life. Can't buy that.

The only question is let the fighting from the family start with how much each is going to inherit when this winner passes away.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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Re: How Would You Invest $122 Million?

Post by 3CT_Paddler » Thu Mar 08, 2012 10:07 am

cb474 wrote: I have a hard time thinking of people from truly mega-wealth families, who eventually inherit the weatlh and the blow all the money. They often have other issues (Paris Hilton obviously has plenty), but blowing all the wealth and ending up poor and in debt I don't think is one of them, not like with lottery winners.
Actually that is their biggest problem... if first generation wealthy Michael Jackson can blow through the untold sums he aquired, anybody can lose it. That is why many of these families use trusts to limit their heirs' spending abilities.
So widespread is the problem, that 6 out of 10 affluent families will lose the family fortune by the end of the second generation, Zeeb says. And 9 out of 10 will have depleted the family wealth by the end of the third generation.
http://www.csmonitor.com/2006/0313/p12s01-wmgn.html

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Re: How Would You Invest $122 Million?

Post by jebmke » Thu Mar 08, 2012 10:13 am

SunDevil wrote:
cb474 wrote: That doesn't make sense to me. Her "actual federal tax liability" on lottery winnings is 25%. That's the actual law. So the question was simply how much does she get to begin with, after opting for the lump sum and taxes being withdraw. And the answer to that is $142.8 million, not $120 million.
Speaking from experience, gambling winnings will be taxed as regular income, so almost entirely at the 35% bracket. States will withhold 25% for federal tax at the time of claiming, but you ARE responsible for the remainder by year end. When claiming a recent lottery win, the check was handed over by an IRS agent. They keep tabs on you.
Yup, line 21. and if you don't put "Gambling Winnings" on the line, your e-file might reject.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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kenyan
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Re: How Would You Invest $122 Million?

Post by kenyan » Thu Mar 08, 2012 10:20 am

Beantown85 wrote:You know what I would do if I had a 122 million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...
No, no, Beantown, you're missing the point of the exercise. The point is, what would you do if you could do anything you wanted...PC Load Letter? What the **** does that mean?
Retirement investing is a marathon.

KyleAAA
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Re: How Would You Invest $122 Million?

Post by KyleAAA » Thu Mar 08, 2012 10:35 am

kenyan wrote:
Beantown85 wrote:You know what I would do if I had a 122 million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...
No, no, Beantown, you're missing the point of the exercise. The point is, what would you do if you could do anything you wanted...PC Load Letter? What the **** does that mean?
This is one of the rare movies that demands a sequel. Spaceballs is another.

RenoJay
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Re: How Would You Invest $122 Million?

Post by RenoJay » Thu Mar 08, 2012 10:36 am

Beantown85 wrote:You know what I would do if I had a 122 million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...
Yeah, um, I'm gonna need you to come in on Saturday.

FredPeterson
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Re: How Would You Invest $122 Million?

Post by FredPeterson » Thu Mar 08, 2012 10:39 am

gatorman wrote:An elderly Rhode Island woman just won the Powerball Lottery, $336.4 Million. Here is a link:

http://news.yahoo.com/336-4m-powerball- ... 39430.html

She is going to take the lump sum option and will receive $210 Million. Her state tax liability is stated to be $14.7 Million and I estimate federal income tax at roughly $73.5 Million, leaving $121.8 Million investable.

As a thought exercise, assuming it was you who received the $122 million, what would you do? Would you donate any? How would you invest what you decided to keep? In general how should one deal with a large windfall?

gatorman
How would I invest it?

I practically wouldn't. Even the .1% from a savings account would supply *me* with more then enough yearly income.

As my lifestyle choices require more income, then I'd shift some to Vanguard Balanced.

maroon
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Re: How Would You Invest $122 Million?

Post by maroon » Thu Mar 08, 2012 10:51 am

Sidebar to RenoJay: ha, good one!

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