Dude, let's party with the Goddesses at Sober Valley retreat!!!
Dude, let's party with the Goddesses at Sober Valley retreat!!!
Send an email to someone in Nigeria asking them to help you relocate your funds to their country. Make sure they provide you with their routing number, so the money can be transferred efficiently.
Give me $1Mil and I'll give it back to you in 5 years when you show up broke. At least you'll still have something.
Flagpole wrote:
1) I would NOT hire an attorney unless you really don't know anything about anything. That's just a good way to make some of your money go away.
2) Let's assume you end up with $3.2 million after taxes. If you put that in a mutual fund made up of 50% bonds and 50% stocks (you should be conservative) and take just 4% of that total, that is $128,000 annually. I'd do that and then over the next year use that extra income to get rid of the credit card bills.
3) Now you're left with student loans and the mortgage. I'm ok with it if you want to pay them both off quickly, but the rate on the house isn't bad, so if you want to keep that for a while (perhaps until the student loans are gone), then fine.
IF you both loved your jobs, I'd tell you to pay the house off and all of your debts and bank what was left, work for a few more years and then retire. BUT, you hate your jobs.
One thing you could do now though is quit those jobs you hate and find fun jobs to do for a while.
Now, me, I'd retire for good, but that's me.
What you shouldn't do is go buy some big honkin' house with huge taxes and nice cars and other crap...$3 million can go quickly.
Congrats, and have fun.
Although this is good advice, I would do it differently if I won the lottery.
I would become debt free the day I got the lump sum. I would NOT quit my job, but my wife would, immediately. Gotta have the health insurance. I would NOT invest all of the rest in the market. I would buy land. Land is not going to lose its true value like cash, stocks, etc will. In the event of a collapse of the economy, I would have less of my remaining dollars going to pay for stuff I bought years ago and I would have land to live off of. I would keep my funds liquid and in conservative investments like you mentioned.
If you mean he should go buy stuff he was seriously considering before, then you're right, he could likely do that. Must be VERY careful though, especially if they quit their jobs. If putting it away and living off the interest, it's not THAT much more than they were bringing in before. They keep working for maybe 3 years and pay off all their debts including the house...THEN that income from their investments goes a LONG way.
X-Runner wrote:
Flagpole wrote:Bad advice. That's how many lottery winners end up broke in a few short years.
You assume that he will want to spend it recklessly.
I don't.
I am just saying now he doesn't have to think twice about any purchases he was mulling over.
I am assuming that doing the things he wants to do will still leave him with a few million.
Hmm. Can't quite get on board with the land thing. I want my investments to immediately return income...land doesn't do that...though I realize you're keeping it to live on and perhaps sell down the road for profit...not what I would want to do.Do remember that the advice I gave this guy was for HIM in his situation. If I won $6.2 million, I would do things differently. First of all, I WOULD pay off my only remaining debt...my mortgage. It's only got just under $100,000 left, so that's not a big portion. I would then quit working immediately. With absolutely no debt, the money I already have invested and this new pile, I'd have more than enough. I can buy health insurance...no need to work to have it.
Racehorse wrote:
Flagpole wrote:1) I would NOT hire an attorney unless you really don't know anything about anything. That's just a good way to make some of your money go away.
2) Let's assume you end up with $3.2 million after taxes. If you put that in a mutual fund made up of 50% bonds and 50% stocks (you should be conservative) and take just 4% of that total, that is $128,000 annually. I'd do that and then over the next year use that extra income to get rid of the credit card bills.
3) Now you're left with student loans and the mortgage. I'm ok with it if you want to pay them both off quickly, but the rate on the house isn't bad, so if you want to keep that for a while (perhaps until the student loans are gone), then fine.
IF you both loved your jobs, I'd tell you to pay the house off and all of your debts and bank what was left, work for a few more years and then retire. BUT, you hate your jobs.
One thing you could do now though is quit those jobs you hate and find fun jobs to do for a while.
Now, me, I'd retire for good, but that's me.
What you shouldn't do is go buy some big honkin' house with huge taxes and nice cars and other crap...$3 million can go quickly.
Congrats, and have fun.
Although this is good advice, I would do it differently if I won the lottery.
I would become debt free the day I got the lump sum. I would NOT quit my job, but my wife would, immediately. Gotta have the health insurance. I would NOT invest all of the rest in the market. I would buy land. Land is not going to lose its true value like cash, stocks, etc will. In the event of a collapse of the economy, I would have less of my remaining dollars going to pay for stuff I bought years ago and I would have land to live off of. I would keep my funds liquid and in conservative investments like you mentioned.
your financial guy will probably tell you all this but you can live off the interest of $4 mil for the rest of your life, especially if you don't have any debt or a very high amount of living expenses. I would suggest investing it into someone you love. $4 mil could give you pretty much anything you want as long as it has a decent profit margin.
UsedToBeKnowItAll wrote:
Give me $1Mil and I'll give it back to you in 5 years when you show up broke. At least you'll still have something.
Sound advice for the majority of lottery winners. Wonder how many of them would follow this advice to only wind up being broke twice?
I made about 4 million in a start up about 10 years ago. After taxes I had about 2 million left (give or take). I put the money in the bank in an interest bearing account and took a big deep breath. Interest rates were low but not as low as in the present.
I left the money there for almost a year, kept working and talked to various finance people for advice. Then after a year I quit work and made my investment decisions. Bonds, T-Bills, money markets and some just in cash.
No one managed my money for me. I managed it.
Flagpole wrote:
it's not THAT much more than they were bringing in before.
It's quadruple what they were bringing in before.
They make $96K a year.
I will be generous and say they take home $75K after 401k match or whatever to make it round.
Let's say they have 20 working years left.
So they would bring in $1.5 M over time vs $6 M after taxes right now.
1/4
They could triple what they are spending for the next 20 years and still have $1.5 M plus a nice chunk of interest which could easily be another $1.5 M.
Not suggesting this. Just throwing the numbers out there.
Spending begets newer spending habits and $225K spending a year just won't cut after a bit.
Mo' money mo' problems.
I guess that's why I have never played the lottery.
The payout for the risk is terrible and I want to earn my money.
(I'm just jelous OP)
yelfev wrote:
"I just won 6.4 million dollars. I am moving to New Jersey."
God creates all different kinds of people in this world.
As a NJ resident, I laughed. Not sure why anyone would want to come back, but power to you. Buy a nice shore house on a quiet beach.
Why is anybody giving this jerk off of a troll advice?
Are you really this gullible!
If he wasn't fake there is even less reason
ukathleticscoach wrote:
Why is anybody giving this jerk off of a troll advice?
Are you really this gullible!
If he wasn't fake there is even less reason
^^^ Once again proving that your ability to get angry far exceeds your ability to think clearly.
Here is something else wrote:
[quote]ukathleticscoach wrote:
Why is anybody giving this jerk off of a troll advice?
Are you really this gullible!
If he wasn't fake there is even less reason[quote]
^^^ Once again proving that your ability to get angry far exceeds your ability to think clearly.
It's just an internet discussion. Join in. Real or trolled up, the proposition is a conversation starter, and an interesting one at that. It doesn't matter whether a thread is based in fact (i.e. 0Bama was not born in the US) or imaginary (i.e. Rodney King is a hero). It's just one more thing to bat around for a bit.
Coming from the land of wizard Harry Potter, you ought to have something creative to add.
Economic Freedom wrote:
Boy gold or have it all wiped out by inflation.
if you are that crazy buy land that you can grow food on, gold is not that tasty
Keep your job
Keep your house
Don't tell ANYONE you've won
Don't change anything in your life for ONE YEAR
(that will be hard, I know) other than paying off bad debt
(bad debt = anything OTHER than a mortgage)
Set up a family trust
Have your attorney show up at Lottery HQ
Don't go on TV
Remain anonymous
Set up a Healthcare Proxy and update your will, if you have one. If you DON'T...GO GET ONE NOW!!!
Be disciplined and bury the first years' remaining income into a low risk annuity
Take a year to get your head straight...THEN make plans
I am from NJ, and think it is a great place in many areas. The problem with it in this situation is cost of living.If you work a certain job in different parts of the country, you may expect different salaries, proportional to cost of living. But with the lottery, $6.4M is $6.4M regardless of where you live.Your money will go a lot further in places other than NJ. But if that is the place that makes you happy, it will be worth the decreased value of your winnings.
SJer wrote:
yelfev wrote:"I just won 6.4 million dollars. I am moving to New Jersey."
God creates all different kinds of people in this world.
As a NJ resident, I laughed. Not sure why anyone would want to come back, but power to you. Buy a nice shore house on a quiet beach.
Hello my friend, it is such a fortunate thing that you have posted now. I too have won the Nigerian lottery and won 12.7 million us dollars! unfortunately i cant collect the money because i am not a full citizen yet. if you would wire me the money........
CPA Joe wrote:
You people realize that the current max tax rate is 35%, right? Don't understand why people think taxes would be half the income.
No, they don't. Most people on here don't know anything about anything, they just spout off as if they do and then feel stupid later when they get corrected.
The anonymity part makes HUGE sense, if you can pull it off. You might want to check the Lottery website to see if they post the names of winners, some do.
The family trust and will/healthcare proxy ideas are valid.
ME: I'd pay my furnace and septic loans off.
I'd get new gutters and have the house painted, maybe upgrade my car (from a Civic to maybe a CRV or a Hybrid hatchback model so I can transport my mower for service and when taking the dog to the Vet)...then bury the rest of the money into something with NO risk...not LOW risk, NO risk.
Oh, maybe I'd take a 4-day vacation in New England this summer. Either that or the Rockies. Then I'd go back to work and laugh a lot when given my workday assignments; for another year anyway. I like the idea of locking away the 1st years' winnings.
Good luck OP, be safe.