Guy wins $450 million on lottery.

[NirK]

he didn't actually win $450million (even before taxes) - it's a misleading figure used for promotion of US lotteries based someone taking the prize over multiple years

he's won more like $280 million as a lump sum and after federal taxes he'll be left with $170 million... so less than half of the amount the press are quoting (not sure if there would be local taxes too)

Damn that must be annoying winning 170 million and not 450 million, must be terrible for him.

 

[jsmoke]

So if you won 450 million, which is MORE than enough to buy everything you want and live off indefinitely, you would then invest it into stocks etc? .... people generally invest in things to get something remotely close to 450 million, but if you already just won it, what is the point lol.

Become a Robin Hood?

 

[EyeDot]

So if you won 450 million, which is MORE than enough to buy everything you want and live off indefinitely, you would then invest it into stocks etc? .... people generally invest in things to get something remotely close to 450 million, but if you already just won it, what is the point lol.

Two reasons,

Lets use the $450m figure here for example.

1) If you dont, you're throwing away ~$2k an hour, every hour of the day in interest, that's money for your children, or grandchildren, or Charities or your Foundation
2) If you just leave it in a bank somewhere, its at huge risk, the FDIC (american bank savings insurance) only covers the first $250k per "ownership category" which means if you leave it all in your savings account, and the bank fails, then you're stuffed!

With these sorts of money, its always about wealth prevention and security as a primary goal, then doing good secondary goal (as you cant do much good if your money runs out!).

Given its nearer £130m that he's won, whilst a lot, its certainly not out of this world that someone could lose that much, Mike Tyson earned and then Spent > $300m before going bankrupt... It's easily done with poor financial planning, some shady advisors and youth on your side!

 

[NirK]

Two reasons,

Lets use the $450m figure here for example.

1) If you dont, you're throwing away ~$2k an hour, every hour of the day in interest, that's money for your children, or grandchildren, or Charities or your Foundation
2) If you just leave it in a bank somewhere, its at huge risk, the FDIC (american bank savings insurance) only covers the first $250k per "ownership category" which means if you leave it all in your savings account, and the bank fails, then you're stuffed!

With these sorts of money, its always about wealth prevention and security as a primary goal, then doing good secondary goal (as you cant do much good if your money runs out!).

Given its nearer £130m that he's won, whilst a lot, its certainly not out of this world that someone could lose that much, Mike Tyson earned and then Spent > $300m before going bankrupt... It's easily done with poor financial planning, some shady advisors and youth on your side!

Hm well you would have to be pretty dumb to either waste 130m or put it all in one account, lol. You would have to be absolutely appealing at managing finances to waste 130m, you could get everything you want and probably still only spend 10% of that.

 

[EyeDot]

Hm well you would have to be pretty dumb to either waste 130m or put it all in one account, lol. You would have to be absolutely appealing at managing finances to waste 130m, you could get everything you want and probably still only spend 10% of that.

All depends on what you want I suppose, £13m doesn't even buy you McLaren F1 and a Big Mac, let alone a 250GTO..

 

[NirK]

All depends on what you want I suppose, £13m doesn't even buy you McLaren F1 and a Big Mac, let alone a 250GTO..

Or you could get la ferrari and porsche 918 and mclaren P1 and about 5 million big macs instead.

 

[EyeDot]

Or you could get la ferrari and porsche 918 and mclaren P1 and about 5 million big macs instead.

where are you finding these half price big-macs?

LaF - £2.2m
918 - £1.1m
P1 - £1.5m

£4.8m, leaving £8.2m / £3.19 (Big Mac Price) = 2.57m Big Macs

 

[Kreeeee]

.

 

[NirK]

where are you finding these half price big-macs?

LaF - £2.2m
918 - £1.1m
P1 - £1.5m

£4.8m, leaving £8.2m / £3.19 (Big Mac Price) = 2.57m Big Macs

Hm yes I was thinking of double cheese burgers for 99p sorry about that lol.

When you have money it's easy to use it to get more, which can then sustain a lifestyle.

Yes I agree, but then 140 million... do you really need more? You could spend 30 million now, then have another 110 million which you could live on 1 million per year for another 70 years + interest + another 40 million spending money! It would be a struggle to live on 1 million a year I know, hard times but just about doable! That would be approx 80k a month to live on.... difficult and you would have to budget very carefully to not spend 80k a month!!

 

[Kreeeee]

.

 

[dowie]

Damn that must be annoying winning 170 million and not 450 million, must be terrible for him.

I think paying that many millions in tax would be a little bit annoying!

So if you won 450 million, which is MORE than enough to buy everything you want and live off indefinitely, you would then invest it into stocks etc? .... people generally invest in things to get something remotely close to 450 million, but if you already just won it, what is the point lol.

What would be the point in not investing it? I don't see why you should be reckless with it just because it is a big amount of money... people have actually managed to end up blowing those sorts of amounts, it actually isn't uncommon for lottery winners to take that sort of attitude towards a jackpot in general, that its "loads o money" and they'll be able to buy anything they ever wanted... yet a surprising number of them end up in quite a bad position. There are some interesting stories out there of how it all went wrong for people... even sometimes when they appeared to be doing things the right way.

I assume that all these people advising those that consider this too bigger sum to win to donate to charity. I for one find donating to charity very difficult these days given the high percentage of any donation that is used for the big remuneration the bosses of charities seem to enjoy these days.

Yeah I can sort of agree, I think your skepticism isn't necessarily unwarranted in the case of some charities... there are plenty of people out there raising money for all sorts of random things which, when you scratch the surface, aren't necessarily an effective use of donations at all (depending on your objective).

There are however people out there who have those sorts of concerns you've shared and actively look at how to donate more effectively... if you want to really make an impact in terms of saving lives then mosquito nets are up there in terms of bang for your bucks re: lives saved.

Take a look at this if you're interested:

https://www.givewell.org

 

[EyeDot]

In 1995, Elon Musk and his brother Kimbal founded Zip2 with $28,000 out of their father's bank account. 4 years later, it was acquired by Compaq for $307 million, with Elon making $22 million. A little under a month later, he put $10 million of that into co-founding X.com, which he envisioned to be the future of online banking. A year after, it merged with Confinity to create PayPal.

In June 2002, Elon Musk founded SpaceX using some of the $12 million he had left over from Zip2. Then in October, PayPal was acquired for $1.5 billion, and, being the company's largest shareholder, he made $165 million. With this large sum of money, Elon later allocated about $90 million to SpaceX, which could have gone to waste had he not taken a crucial investment from Draper Fisher Jurveston in 2008.

In 2006, he became a significant investor who jumpstarted his cousins' company Solar City, that of which he is currently chairman. From 2003-2009, he had spent over $70 million of his own money to ensure the longevity of Tesla Motors. For a time, he was chairman, lead investor, and head designer, but wasn't CEO until 2008, when they nearly spiraled into bankruptcy after missing out on a $100 million investment.

These companies, who each had their fair share of financial crises, are now worth billions of dollars today, and will only continue to flourish. Elon holds about a 20-30% stake in Tesla, Solar City, and SpaceX, all contributing to his estimated net worth of $13.2 billion.

Just shows why you continue to invest with what some people see as forever money, luckily others see it as seed money, and change the very world itself!

 

[subbytna]

If I won even 200 million, I'd keep a 50million fortune for myself and spend the rest of my life giving away 150million to people and charities that I want to help

 

[Housey]

"Everyone has a number, the number that means they have enough and can sail off into the sunset. So come on, what's your number......."











"More"

Wall Street 2'ish

 

[Roar87]

What would be the point in not investing it? I don't see why you should be reckless with it just because it is a big amount of money... people have actually managed to end up blowing those sorts of amounts, it actually isn't uncommon for lottery winners to take that sort of attitude towards a jackpot in general, that its "loads o money" and they'll be able to buy anything they ever wanted... yet a surprising number of them end up in quite a bad position. There are some interesting stories out there of how it all went wrong for people... even sometimes when they appeared to be doing things the right way

It's $140,000,000, we're not talking about a chav receiving £5m and blowing it on drugs and cars in a few years, you would literally struggle to spend the money unless you were buying supercars and yachts every week. You could spend £50,000 a week for 50 years before your money ran out if you earned 0 interest on it, which you wouldn't.

 

[Five.Stars]

where are you finding these half price big-macs?

LaF - £2.2m
918 - £1.1m
P1 - £1.5m

£4.8m, leaving £8.2m / £3.19 (Big Mac Price) = 2.57m Big Macs

Think you would probably get a bulk discount on the Big Mac's TBH.

 

[Housey]

It's $140,000,000, we're not talking about a chav receiving £5m and blowing it on drugs and cars in a few years, you would literally struggle to spend the money unless you were buying supercars and yachts every week. You could spend £50,000 a week for 50 years before your money ran out if you earned 0 interest on it, which you wouldn't.

You have no idea how easy it is to burn through $450M when you start mixing it with the big swinging *****

You simply can't comprehend the things that open to up to you, the 'opportunities' to spend on a level few on this forum would comprehend or understand. I have been exposed to it through friends, not personally I hasten to add. Couple of dream cars and there's $50M gone as just one example.

 

[Raymond Lin]

It's $140,000,000, we're not talking about a chav receiving £5m and blowing it on drugs and cars in a few years, you would literally struggle to spend the money unless you were buying supercars and yachts every week. You could spend £50,000 a week for 50 years before your money ran out if you earned 0 interest on it, which you wouldn't.

Think bigger.

 

[EyeDot]

If I won even 200 million, I'd keep a 50million fortune for myself and spend the rest of my life giving away 150million to people and charities that I want to help

or you could invest that 150million and in 10 years have around half a billion to give away instead

It's $140,000,000, we're not talking about a chav receiving £5m and blowing it on drugs and cars in a few years, you would literally struggle to spend the money unless you were buying supercars and yachts every week. You could spend £50,000 a week for 50 years before your money ran out if you earned 0 interest on it, which you wouldn't.

https://www.earlytorise.com/the-sad-story-of-mike-tyson-a-spending-fool/

There you go!

During the 20-year span of his career, Mike Tyson’s income exceeded $400 million.

Yet, in 2004, before his 39th birthday, this amazing moneymaker was $38 million in debt….

 

[Angilion]

It's $140,000,000, we're not talking about a chav receiving £5m and blowing it on drugs and cars in a few years, you would literally struggle to spend the money unless you were buying supercars and yachts every week. You could spend £50,000 a week for 50 years before your money ran out if you earned 0 interest on it, which you wouldn't.

You could acquire a retinue of hangers-on who would spend your money. You could spend more money on displaying your status, much of it going on other people. You could have money siphoned off by scammers who would be targetting you with "opportunities" for you. You might avoid those things if you constantly tried to do so, but they would definitely be pushed at you.

You would have family obligations...and maybe legal challenges for some of the money.

On top of that, there's simply vastly more scope for spending large amounts of money when you're very rich. You can spend that £50,000 in a second, let alone a week.

There will be a temptation to "keep up with" people around you...which would require spending more than any one of them because you'd be competing against all of them. One of them spends £50,000 on a watch and another one spends £50,000 on a dress...and unless you spend £100,000 on a watch and a dress you have "lost" against one of them.

Even that's far smaller expenditure than is possible. It would be easy to spend £10M merely on art to decorate one of your residences...and then another few million on security to protect that art and then ongoing costs to maintain that security. You wouldn't stay there all the time to guard it yourself, would you? You'd pay other people to do that.

I could blow US$140,000,000 very easily and I'm barely aware of the possibilities for haemorraghing money away. I'm sure I'd be made very much more aware of them if I had that much money.

Of course I think I wouldn't fall for it all and I'd be sensible about it...but I realise that many of the people who did win large amounts and blew it all probably thought the same thing.