Where would you go for financial guidance if you win the Megamillions?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
stuffthatpig
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by stuffthatpig » Thu Oct 18, 2018 3:35 am

I'd start by getting my legal name changed to the most common name in my county. Super short, easy, VERY COMMON Asian name here I come. After contacting lawyers and dealing with trusts etc, I'd hire a great hollywood makeup artist to make me look completely different for the publicity photos. After a year or so of disappearing (I'd get a "consulting"contract in Singapore), I'd come to a different county far away from my previous domicile (maybe New York?) with a high number of people with my new common name and change my name back. Hopefully between that and the complete makeup transformation, wig, abnormal clothes and a different name, I'd be able to avoid the tying of this back to me.

I'd put $15 million in TIPS and the rest in my current allocation. I'd live off of dividends from the stocks and the TIPS would always be there is I needed to fall back on something. I'd also fly first class instead of economy. YOLO

Grt2bOutdoors
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Grt2bOutdoors » Thu Oct 18, 2018 6:42 am

1. Keep your mouth shut!
2. If you can’t keep your mouth shut - visit a Top 10 law firm located in the Martindale Press for Estates and Trust. Or, if he practices in your state call BSteiner.
3. 50% in the S&P 500, 50% in a ladder of 0-5 year U.S. Treasuries (unless you can find a provider who will charge less than 1bp in annual expenses). When investing in fixed income every bp counts.
4. You may want to consider establishing a foundation/endowment that funds endeavors near and dear to your heart. Plus, you will have something to do, unless you really think you can go back to your regular “day job”.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Grt2bOutdoors » Thu Oct 18, 2018 6:45 am

Thegame14 wrote:
Wed Oct 17, 2018 4:19 pm
I always wonder where do you put the money if FDIC only insures $250K per account? I assume some kind of brokerage account. I would just invest in tax free muni's and take the interest and safety and then prob give half of that interest away each year to local people in need, shelters, food banks, etc for my local community. Initially I would pay off all my close friends and relatives houses and college funds for all my kids, nieces and nephews, and probably have to move due to issues you said above once people know who you are and how much you won, peace will be hard to come by.

I guess I would google my state and town with lottery lawyers and financial advisors and interview 2-3 and see how they have handled past winners and how are those winners doing today.
One word - CDARS. That is how you get insurance.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Cheyenne
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Cheyenne » Thu Oct 18, 2018 6:48 am

Edward Jones or Morgan Stanley? :D (just kidding)

Murgatroyd
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Murgatroyd » Thu Oct 18, 2018 6:49 am

My dream is to give my beloved university enough endowment to have a building in my name.
Doesn’t Murgatroyd Hall sound intellectual?

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knpstr
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by knpstr » Thu Oct 18, 2018 7:39 am

CULater wrote:
Wed Oct 17, 2018 4:22 pm
bsteiner wrote:
Wed Oct 17, 2018 4:15 pm
You won't actually get $900 million or whatever amount they advertise. They'll discount the annual payments to present value if you take a lump sum. Then you'll pay income taxes (37% Federal plus state and local, if any). They may not withhold the full amount but you'll still have to pay it.

It's up to you if you want any fancy or exotic investments, but you'll do fine investing the way people here do.

You should then think about estate planning. If you want to make any charitable gifts, whether outright or in a charitable foundation or charitable lead trust, you'll want to do it this year so the deduction will offset the income. Trusts and estates lawyers in firms with good trusts and estates practices have seen others with that level of wealth. Most of them obtained their wealth in other ways, though some of them may have had a liquidity event such as the sale of a business.
It seems to me that having that kind of capital to invest might require some good professional advice and guidance. Where would you go to get it? Who would you hire? Goldman Sachs, or some other large firm? I'd probably want to extend into other kinds of investments than index funds. There are a myriad of tax issues, I'm sure. I don't know how to do rich.
Just keep doing what you've been doing. Invest $1,000 the same way you invest $1,000,000,000. Set an asset allocation and forget it. Let the dividends roll in. No reason to get into more "exotic" investments.
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

CULater
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by CULater » Thu Oct 18, 2018 7:57 am

I'd consider forming a financial business of some sort that would handle all my investments, so I could insure my assets via insuring the business. No need to consider bonds or fixed-income assets at all, is there? Just invest like Buffett - unlikely you'd ever go broke.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

seawolf21
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by seawolf21 » Thu Oct 18, 2018 8:16 am

You ask where would I go for guidance? I would go to Vegas and bet it all on black. :D

loslebenrl483
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by loslebenrl483 » Thu Oct 18, 2018 8:23 am

Follow the Boglehead guide for windfalls.

Consult attorneys for tax and other purposes. Try to collect anonymously.

Maybe consult with fee only advisors.

Take the lump sum. Probably put it in a money market at first.

Three fund portfolio.

Give some to family, friends and charities.

Hopefully live happily and healthily thereafter.

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AAA
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by AAA » Thu Oct 18, 2018 8:25 am

Thegame14 wrote:
Wed Oct 17, 2018 4:19 pm
I always wonder where do you put the money if FDIC only insures $250K per account? I assume some kind of brokerage account.
You could buy Treasuries.

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Hyperborea
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Hyperborea » Thu Oct 18, 2018 8:42 am

Murgatroyd wrote:
Thu Oct 18, 2018 6:49 am
My dream is to give my beloved university enough endowment to have a building in my name.
Doesn’t Murgatroyd Hall sound intellectual?
Make it a building for the astronomy department and you could call it "Heavens to Murgatroyd". :P
"Plans are worthless, but planning is everything." - Dwight D. Eisenhower

moehoward
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by moehoward » Thu Oct 18, 2018 9:45 am

DaftInvestor wrote:
Wed Oct 17, 2018 4:05 pm
Sure - this is actionable :)

I would hire security staff to start after reading another thread about kidnapping...but who could I trust.
I basically thought the same thing. Your name is on the internet under "money".

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Raymond
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Raymond » Thu Oct 18, 2018 9:51 am

I've posted this here before, and the original link is from 2009, but here it is again:

(Warning: NSFW language, and the link is to the general discussion forum of a firearms website)

"Austrian's Semi-Annual 'Guide For Recent Lottery Winners (Or Deluded Hopefuls)' Post" - www.ar15.com
"Ritter, Tod und Teufel"

MnD
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by MnD » Thu Oct 18, 2018 10:27 am

Why all the concern about anonymity? My state is full of rich people especially during ski season and unless they are pop culture or sports celebrities no-one bothers them. And family - I guess every family is different but I had a sibling sell a business for an eye-popping sum and no-one in the family asked him for money that I'm aware of. Seems like the people that get in trouble with lottery winnings do it to themselves and come from a hand to mouth existence. I might put a guy on the front porch for a while and would probably move to a home that had more privacy because that would be enjoyable and not solely because I'm scared of the world.

grokzilla
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by grokzilla » Thu Oct 18, 2018 11:24 am

MnD wrote:
Thu Oct 18, 2018 10:27 am
Why all the concern about anonymity? My state is full of rich people especially during ski season and unless they are pop culture or sports celebrities no-one bothers them. And family - I guess every family is different but I had a sibling sell a business for an eye-popping sum and no-one in the family asked him for money that I'm aware of. Seems like the people that get in trouble with lottery winnings do it to themselves and come from a hand to mouth existence. I might put a guy on the front porch for a while and would probably move to a home that had more privacy because that would be enjoyable and not solely because I'm scared of the world.
I suspect it has more to do with the nature of human vultures taking the path of least resistance -- preying on the weak, unprepared, etc. than the nature of poor people coming into money.

They rightly know that wealthy individuals such as celebrities, athletes and the like are more likely to already have in place the accouterments of financial protection and potentially even physical protection thus making them harder targets. Financial neophytes - not so much. Removing their ability to identify you is a pretty effective check against their well-documented behavior.

It would be the very first thing I did. Attempt to accept the cash anonymously. Then set up a trust, LLC, etc. to purchase a new home probably in the same neighborhood and sell the old home.

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wander
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by wander » Thu Oct 18, 2018 11:27 am

I would worry about winning it first before asking for help.

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Ged
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Ged » Thu Oct 18, 2018 11:34 am

CULater wrote:
Wed Oct 17, 2018 4:03 pm
Where would you go for effective, ethical financial advice about how to handle all that money and not end up in a miserable mess? Like to know how people would handle this, just in case I win the $900 Mil on Friday night. :moneybag
The first person I would call is my estate attorney. I have a guy who I think is pretty good, and I think the firm he's with has the resources to handle something like this.

MAJIC9
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by MAJIC9 » Thu Oct 18, 2018 11:41 am

15+ years ago my coworker won large (>100MM)... didn't change the name... probably no one really knows (nor still remembers) they won.. this country moves on quick... (they did not even try to conceal it by claiming anonymously).. seems to have worked out for them but they were smart and down to earth to begin with.

wolf359
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by wolf359 » Thu Oct 18, 2018 12:03 pm

dknightd wrote:
Wed Oct 17, 2018 5:03 pm
I'd see if I could find a way to claim the money and not let my identity be disclosed.
So, once I found I had the winning ticket, I'd be looking for legal advice.
I would not sign the back of the ticket. I'd see if I could set up some kind of legal loophole that would let me stay anonymous.
I assume there are lawyers who have expertise in this area. Hopefully google would find them for me.
You have to do this research BEFORE you buy the ticket. If you buy in the wrong state, you have no options.

It's only if the state you bought the ticket in allows for it that you have to worry about doing it properly.

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VictoriaF
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by VictoriaF » Thu Oct 18, 2018 12:16 pm

Don't bother with small change. Skip this Friday and play for 3 commas next week.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

wrongfunds
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by wrongfunds » Thu Oct 18, 2018 12:49 pm

VictoriaF wrote:
Thu Oct 18, 2018 12:16 pm
Don't bother with small change. Skip this Friday and play for 3 commas next week.

Victoria
What makes you so certain that *I* will not win the jackpot this Friday? I have already planned on how to handle the prize money. Please don't throw monkey wrenches in my plan.

Silver Bullet
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Silver Bullet » Thu Oct 18, 2018 12:58 pm

VictoriaF wrote:
Thu Oct 18, 2018 12:16 pm
Don't bother with small change. Skip this Friday and play for 3 commas next week.

Victoria
My winnings would never make it to 3 commas, so I'm playing now. :D
Ticket would go into a double trust to avoid (not eliminate) identity.
Outside of that, not much would change.
DW has always wanted cows, so we may buy a "gentleman's farm", to get away from the rat race.
She's also had her eye on a nice bobble at Boodle's in Knightsbridge..
And finally, our current charities would see an increase in donations via one of the trusts.
Outside of that, 3 fund portfolio.

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El Greco
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by El Greco » Thu Oct 18, 2018 2:35 pm

900 mil jackpot? Forget about investing. Just buy a very big mattress.

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Earl Lemongrab
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Earl Lemongrab » Thu Oct 18, 2018 3:40 pm

Before you cash the ticket, security and the best tax attorney you can find should be retained. I'd get a top-notch large security firm and 24-hour bodyguards. There is no reason for you to ever be bothered by shirt-tale relations or sob stories. You can set up a charitable foundation and have all of your communications go through people. That's the big thing with that kind of money. You hire professionals to buffer you. Do you think the Walmart kids worry about that? No, they have people.

The investing is much less important. You could buy all Treasuries and be fine. You can figure that out later.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Texanbybirth
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Texanbybirth » Thu Oct 18, 2018 3:48 pm

We would give away 90% of it; money changes people and I don't need or want anywhere near that much. Even 10% of $900MM after taxes is life-changing.

OF COURSE I'd come here to make sure my plan for the 10% was sound, but you can bet I'd have a different username. :beer

sasquatch12
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by sasquatch12 » Thu Oct 18, 2018 5:41 pm

If you have to get a picture taken for the win just hold up the big check covering your face. Then no one can see your face. I think I read it has been done before.

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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Gnirk » Thu Oct 18, 2018 5:50 pm

Have a good attorney create a charitable foundation with 75% of the $$. Part of the remainder to be put into trust for family, and the rest into gifts for close friends who can really use some help. I want to keep enough so that I have a feeling of security, but have never aspired to be personally “rich”.

RobLyons
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by RobLyons » Thu Oct 18, 2018 7:39 pm

First, this will never happen to any of us. The odds, yadda, yadda..
Plus I never play. Waste of money, creates gambling addictions, its a tax on those that can't do math, the poor etc.



But speaking in fantasy terms, there is only 1 person I trust in this world and that is me. The wife is a close 2nd. This may sound crazy but I'm not hiring anyone in that situation. I'm not going to make an investment firm richer doing something that I can do more efficiently, more successfully. I'd rather take the 2-3% they charge in fees and give it to strangers on the street. Just my $0.02

Hug401k
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Hug401k » Thu Oct 18, 2018 8:13 pm

wrongfunds wrote:
Wed Oct 17, 2018 4:22 pm
I guess I would google my state and town with lottery lawyers and financial advisors and interview 2-3 and see how they have handled past winners and how are those winners doing today.
You should do that *now* before the winners are announced. If you wait until you are the winner and *then* start doing the interviews, everybody would *know* that you are the winner and then you will not be able to keep your privacy. I am just helping you.
You should definitely do this. You won't seem crazy at all if you show up in their office declaring you are preparing for when you win the lottery. :shock: :moneybag :D

CULater
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by CULater » Fri Oct 19, 2018 8:57 am

Brent Arends suggests contacting an attorney to set up a trust or LLC to claim the money instead of claiming it yourself, in order to keep yourself anonymous. Also suggests to hire an account, attorney, and financial planner with experience dealing with high-wealth clients. So, I'm off to do that. If I win, I won't be announcing it on the forum and my posts will suddenly end -- especially the ones about my Honda CRV which will be taking a long trip down to the bottom of the Grand Canyon.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

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Re: Where would you go for financial guidance if you win the Megamillions?

Post by deltaneutral83 » Fri Oct 19, 2018 9:24 am

Lump sum of $300M(?) well, I'd probably do $125M VTI, $42M VXUS, and $83M in some sort of tax efficient fixed income from someone more knowledgeable than I. $50M in a checking account for my emergency fund for fun and charitable giving right off the bat. Done, less than 10 minutes. I'd probably visit a few attorneys and tax guys to figure out where and how to hold it.

I always get a chuckle at the folks who paint the picture of a 50% crash in equities as being more horrific for someone with 8/9 figures as opposed to someone who goes from $500k to $250k when discussing safer AA's.

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Sandtrap
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Sandtrap » Fri Oct 19, 2018 9:33 am

Much like athletes, etc, with substantial wealth.

Privacy
Secrecy
Security
Law firm
CPA firm
Establish foundation, trust, etc. (taxes + estate planning)

Regardless of popular thought, after a certain point, life would indeed change in proportion to size of wealth.
Thus, need for discretion and vigilance.

wolf359
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by wolf359 » Fri Oct 19, 2018 10:02 am

RobLyons wrote:
Thu Oct 18, 2018 7:39 pm
First, this will never happen to any of us. The odds, yadda, yadda..
Plus I never play. Waste of money, creates gambling addictions, its a tax on those that can't do math, the poor etc.
$2 is a cheap price for admission if you consider the entertainment value of daydreaming what would happen if you won. Movie tickets cost more for similar escapism fantasy.

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randomizer
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by randomizer » Fri Oct 19, 2018 10:17 am

We have a wiki page for this. :)
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by niceguy7376 » Fri Oct 19, 2018 10:19 am

I was always intruiged by how i can help my family and friends IF i win the lottery. So here are some of the questions I had.

If I have a couple of brothers and sisters here in USA that I want to share the winnings in a % basis (40% to me and remaining split among them), how can we achieve this? This way, everyone can do what they want to do with what they get.

Within the amount that I(my spouse and kids included) win, I want to share some with my close friends. My thought process is labeled as "Give it forward". I discussed this with my friends whenever the prize reaches big numbers. It goes like this. Say we want to give 5 million to my friends and request them that they donate 1 million to the charities of their liking (i dont care ) so that the money trickles and they can get a tax benefit of doing it. my thought is that they get 5 mil as gift (and thus pay no tax) and then they donate 1 mil to a DAF in single year ( can they get 1 mil benefit while filing?). Since most of their incomes from jobs in low 3 digits, can they get to carry forward the credit?

I sort of took the pay it foward approach and applied it here. I am interested in knowing and learning the real world process for this hypothetical question of "If i win the lottery tonight"

wrongfunds
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by wrongfunds » Fri Oct 19, 2018 11:47 am

Honda CRV which will be taking a long trip down to the bottom of the Grand Canyon.
Please do NOT do that. Apart from being highly illegal, you will be harming the environment. Just donate it to your favourite charity and take the tax deduction. With that much income, every dime in deduction will help reduce the humongous tax that you would be paying.

mancich
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by mancich » Fri Oct 19, 2018 12:51 pm

Cheyenne wrote:
Thu Oct 18, 2018 6:48 am
Edward Jones or Morgan Stanley? :D (just kidding)
Ameriprise (also kidding) :D

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Re: Where would you go for financial guidance if you win the Megamillions?

Post by bloom2708 » Fri Oct 19, 2018 1:25 pm

niceguy7376 wrote:
Fri Oct 19, 2018 10:19 am
I was always intruiged by how i can help my family and friends IF i win the lottery. So here are some of the questions I had.

If I have a couple of brothers and sisters here in USA that I want to share the winnings in a % basis (40% to me and remaining split among them), how can we achieve this? This way, everyone can do what they want to do with what they get.

Within the amount that I(my spouse and kids included) win, I want to share some with my close friends. My thought process is labeled as "Give it forward". I discussed this with my friends whenever the prize reaches big numbers. It goes like this. Say we want to give 5 million to my friends and request them that they donate 1 million to the charities of their liking (i dont care ) so that the money trickles and they can get a tax benefit of doing it. my thought is that they get 5 mil as gift (and thus pay no tax) and then they donate 1 mil to a DAF in single year ( can they get 1 mil benefit while filing?). Since most of their incomes from jobs in low 3 digits, can they get to carry forward the credit?

I sort of took the pay it foward approach and applied it here. I am interested in knowing and learning the real world process for this hypothetical question of "If i win the lottery tonight"
This approach could be very tricky. You might find you have more friends than money. How do you pick which friends get money and which ones don't?

What do you do when people start sharing the news that you are doling out $5 million to some and skipping others? Aunts, uncles, cousins, 2nd cousins, co-worker friends.

I would tell absolutely nobody except maybe my parents and my wife's parents. I would put the whole enchilada in our Vanguard taxable account. Probably transfer $250k to a couple of FDIC insured banks. Split the rest around Tax-Managed Balanced fund, Int-Term Treasuries, Total US and Total International.

I wouldn't do any giving for 1 year (except perhaps to immediate family). It would take some very deep thinking to figure out how to give to long-time friends, church, etc. I did buy a couple tickets. Certainly can't win if you don't play. Nobody has a chance to win, but someone usually does win. Everyone that won never thought they would win. :moneybag
"We are not here to please, but to provoke thoughtfulness." --Unknown Boglehead

CULater
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by CULater » Fri Oct 19, 2018 1:56 pm

One in 88 quadrillion odds of winning both mega millions Friday and powerball on Saturday. But I'm going for it!
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

CULater
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by CULater » Fri Oct 19, 2018 2:07 pm

So, if I win all that money will I live long enough to spend it?
researchers analyzed data from US, UK, France, and Japan in the International Database on Longevity, which keeps track of "supercentenarians," people who live to 110 or longer.

In all, they determined the probability that someone will reach age 125 in any given year "is less than 1 in 10,000." Or put another way: A 125-year-old human is a once-in-10,000-year occurrence.
https://www.vox.com/science-and-health/ ... age-limit

If the probability that anyone will live to 125 is 1 in 10,000, what is the probability that a given individual (i.e., me) will live to 125? Is it less than one in 88 quadrillion? Anyone know how to do that calculation? Probably much lower than that, so the chances that I'll live long enough to spend the money are probably lower than the chances of winning it in the first place. :x
Last edited by CULater on Fri Oct 19, 2018 3:02 pm, edited 1 time in total.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

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archbish99
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by archbish99 » Fri Oct 19, 2018 2:08 pm

I remain in the school of thought to buy a single ticket when the expected value is nominally higher than the price of the ticket. (Of course, if you factor in the probability of splitting the jackpot, this never happens.) The change from zero to one ticket is an infinite increase in your odds. The increase from infinitesimal to twice-infinitesimal, not so much.

My general plan for several years has been:
  • 40% to charity
  • 10% in trust for friends/family; distribution mechanism TBD
  • 25% for taxes
  • 1% to pay off the mortgage and fund immediate splurges (wife wants a kitchen remodel, I want a Tesla, and air conditioning upstairs would be lovely)
  • 24% invested in a normal 3-4 fund portfolio, taking 2%/year for the rest of my life.
Will it ever happen? Almost certainly not. I think I won $2 from Powerball once. But it's fun to dream, and I prefer infinitesimal non-zero odds to zero odds.
I'm not a financial advisor, I just play one on the Internet.

miket29
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by miket29 » Fri Oct 19, 2018 2:15 pm

There is a financial planner, Don McNab who has written a number of books on the topic including "Life Lessons from the Lottery" and ""Son of a Son of a Gambler: Winners, Losers, and What to do when you win the Lottery". Fun reading from the local library since I don't expect to ever actually need the advice.

However if I do win I'd hire the teams of lawyers and planners as others have mentioned prior to claiming the prize. There is no rush, I think the ticket is valid for a year (I'll look up the real date if I win). I'd think about gifts to family (you can assign ownership of the ticket in 1% increments), about setting up trusts, etc.

Honestly, though, even though it is fun to play I think winning would on net make my life worse. Given I'm scrounging and saving for retirement a $10 million winning would feel like wealth beyond my dreams, but $900 million less taxes seems like it would bring a lot of problems.

CULater
Posts: 1463
Joined: Sun Nov 13, 2016 10:59 am

Re: Where would you go for financial guidance if you win the Megamillions?

Post by CULater » Fri Oct 19, 2018 2:16 pm

archbish99 wrote:
Fri Oct 19, 2018 2:08 pm
I remain in the school of thought to buy a single ticket when the expected value is nominally higher than the price of the ticket. (Of course, if you factor in the probability of splitting the jackpot, this never happens.) The change from zero to one ticket is an infinite increase in your odds. The increase from infinitesimal to twice-infinitesimal, not so much.

My general plan for several years has been:
  • 40% to charity
  • 10% in trust for friends/family; distribution mechanism TBD
  • 25% for taxes
  • 1% to pay off the mortgage and fund immediate splurges (wife wants a kitchen remodel, I want a Tesla, and air conditioning upstairs would be lovely)
  • 24% invested in a normal 3-4 fund portfolio, taking 2%/year for the rest of my life.
Will it ever happen? Almost certainly not. I think I won $2 from Powerball once. But it's fun to dream, and I prefer infinitesimal non-zero odds to zero odds.
So, the odds of winning are about 1/302,000,000 and the pot is about $1 Bil. So expected value is between $3 and $4. So, maybe go for 2 tickets this time. I gotta go get another one.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

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Cloudy
Posts: 26
Joined: Wed Feb 15, 2017 9:55 am

Re: Where would you go for financial guidance if you win the Megamillions?

Post by Cloudy » Fri Oct 19, 2018 2:24 pm

archbish99 wrote:
Fri Oct 19, 2018 2:08 pm
I think I won $2 from Powerball once.
Braggart! :happy

I'd split the money with my fellow BHs and we'd all be richer than astronauts.

please remember me if you hit it big...

MnD
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Joined: Mon Jan 14, 2008 12:41 pm

Re: Where would you go for financial guidance if you win the Megamillions?

Post by MnD » Fri Oct 19, 2018 2:40 pm

CULater wrote:
Fri Oct 19, 2018 1:56 pm
One in 88 quadrillion odds of winning both mega millions Friday and powerball on Saturday. But I'm going for it!
Rookie mistake!
I bought a few Mega-Millions and a few Lotto's (1 in 5 million odds of $1.7M) so at least I have a decent chance of winning one jackpot. 8-)

CULater
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by CULater » Fri Oct 19, 2018 3:00 pm

MnD wrote:
Fri Oct 19, 2018 2:40 pm
CULater wrote:
Fri Oct 19, 2018 1:56 pm
One in 88 quadrillion odds of winning both mega millions Friday and powerball on Saturday. But I'm going for it!
Rookie mistake!
I bought a few Mega-Millions and a few Lotto's (1 in 5 million odds of $1.7M) so at least I have a decent chance of winning one jackpot. 8-)
Just got back from buying my second ticket, so I'm a little over expected value. Looks like the display at the counter tapped out at $999 Mil because it ran out of digits.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

wrongfunds
Posts: 1873
Joined: Tue Dec 21, 2010 3:55 pm

Re: Where would you go for financial guidance if you win the Megamillions?

Post by wrongfunds » Fri Oct 19, 2018 3:56 pm

Are you sure it has crossed the billion mark yet?

dknightd
Posts: 934
Joined: Wed Mar 07, 2018 11:57 am

Re: Where would you go for financial guidance if you win the Megamillions?

Post by dknightd » Fri Oct 19, 2018 6:36 pm

wrongfunds wrote:
Fri Oct 19, 2018 11:47 am
Honda CRV which will be taking a long trip down to the bottom of the Grand Canyon.
Please do NOT do that. Apart from being highly illegal, you will be harming the environment. Just donate it to your favourite charity and take the tax deduction. With that much income, every dime in deduction will help reduce the humongous tax that you would be paying.
+1

But the real question is, what would you replace the CRV with?

Cruise
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Re: Where would you go for financial guidance if you win the Megamillions?

Post by Cruise » Fri Oct 19, 2018 10:29 pm

I’ve done some for a work for a multi-billionaire and learned that these folks have a “Home Office” staff that not only manage their financial lives, but also their daily needs. Multiple homes? No problem: There are caretakers to maintain them, chefs to select the menu and procure the ingredients. Housekeepers to keep the places nice. Security.

Having such complex lives comes with a cost. There are inevitable HR problems and loss of privacy with your own staff milling around.

One other issue related to lottery winners who are forced to reveal their IDs: Make sure your Google history has no images of you and your family.

madbrain
Posts: 5121
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Where would you go for financial guidance if you win the Megamillions?

Post by madbrain » Sat Oct 20, 2018 4:29 am

Cruise wrote:
Fri Oct 19, 2018 10:29 pm
One other issue related to lottery winners who are forced to reveal their IDs: Make sure your Google history has no images of you and your family.
Your Google personal history can be erased. I think you mean to say "make sure that images of you and your family can't be found in a google search". That part is easier said than done. Europe has "right to be forgotten" regulation, but the US does not.

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