OT: Powerball rolled, up to 1.3 Billion

Submitted by MikeCohodes on
So none of us are filthy rich, yet, but no one else is either. Wednesday's drawing is estimated at $1.3 billion, though I'm sure that will climb even higher. I wonder how much you have to donate to get a building named after you on campus?
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I wanna be a billionaire so friggin bad

Wendyk5

January 10th, 2016 at 9:48 AM ^

I don't think it's bad luck. People who play the lottery aren't usually the ones with a lot of dough to begin with, so they have no experience dealing with large sums of money. I think it's more stupid decisions and greed than luck. 

 

This size payout is pretty irresponsible imho. That's a lot of money to blow. If we're lucky, the winner will see that you don't need a billion dollars to feel happy and secure. $25 million after taxes is plenty. The rest should go to worthy causes. 

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a different Jason

January 10th, 2016 at 7:59 AM ^

1.3 billion dollars. I honestly don't think a sound financial advisor would help a lot. These are people who deal with folks that have a few million, at most. Think how few people have 10 million dollars. And you would be a lot further up the pyramid. You are kind of on your own.

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LKLIII

January 10th, 2016 at 8:27 AM ^

I already posted in detail what I'd do, but basically if you don't want to blow it you go to the nearest large metro area and go to the most reputable law firm and they'd point you in the right direction. Probably get a personal banker who would definitely help you spread the money out among 3-6 reputable financial advisors. Trust me, there are advisors in NY, Chicago, and CA that have clients that park $50M+ with them. You spread it around a bit though so you don't get Bernie Madoff'ed. At this level though, you're given direct access to hedge funds, IPOs, etc. But if you directed your people to do so, you park at least $200M in low risk bonds yielding like 3%-4%. Keeps up with inflation and maybe gets you 1-2% in addition. Blow your first $200M or whatever after taxes and park the other $200M in those super safe funds and you're still making a few million per year after inflation without touching the $200M principle cushion.



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VinegarStrokes

January 10th, 2016 at 12:56 PM ^

Investing in 30 yr Treasuries in a rising rate regime would blow your principal up. Even if inflation remains in the historical crawl for the next several years, any investment in a fixed income product at a duration greater than "intermediate" is a cash burn. I don't consider that relatively safe, especially when the yield curve has been flattening for the last 6 years.



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LSAClassOf2000

January 10th, 2016 at 9:03 AM ^

I suppose this means I will have to buy another ticket before Wednesday - the idea here is that, if I win, I will first set aside some capital to create the First National Bank Of MGoBlog, but also pay off my house with the express intent of then gutting it and renovating it, complete with a proper MGoDen (rather than a repurposed room that I will need to abandon in the next year or so). 

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JamieH

January 10th, 2016 at 6:43 PM ^

Why are you paying off your house?  Your home loan is probably at what?  3.5-4%?  Why would you be in a rush to pay that off? 

Hell, just use your massive windfall as collateral to take out another low-interest loan for your renovation.  The biggest secret of having a lot of money is that people will give you even MORE cheap money when you are already rich. 

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EricSV85

January 10th, 2016 at 9:06 AM ^

I guess I just don't see the point in a financial advisor and all the investing with this amount of money. With $800 million after taxes I'm not really worried about keeping up with inflation. All the people in the world can ask me for money if they want to, all I have to do is say no, and I would. Throw 20 million or so into some sort of annually limited withdraw account, maybe buy a few million in gold bricks to keep in a safe in case the US economy collapses, and then just park the rest across standard checking accounts across a few institutions and live a modest and comfortable life.

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alum96

January 10th, 2016 at 9:29 AM ^

You would need a lot more than a "few institutions" to spread it across due to limitations of FDIC insurance.  That said you could put it all in Citi, JPMorgan, or Wells because they are too big to fail.  So in theory I guess you are correct.... you just have to pick the most politically powerful banks.

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lilpenny1316

January 10th, 2016 at 10:21 AM ^

or in a state that withholds the winnes information by request.  I think it takes the pressure off a if no one knows you just came into millions of $$$.  I'm more concerned about that than I am about blowing the cash.  Me and my wife don't do strip clubs, drugs, drink very little and have four kids, all under 9 years old.  So we are always in the mindset of spending money wisely.  

But I wouldn't want that complicated by friends, family or even local organizations that think we should give them some cash just because we can afford it.  That would be annoying at the least.

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