Etiquette Hell

A Civil World. Off-topic discussions on a variety of topics. Guests, register for forum membership to see all the boards. => Time For a Coffee Break! => Topic started by: Venus193 on January 08, 2013, 08:51:52 AM

Title: S/O of Giving your Old One: If you won the lottery....
Post by: Venus193 on January 08, 2013, 08:51:52 AM
...what would you do with all that money and how would you protect it?

If I got less than $10MM I'd probably not change my life that much.  I might buy a condo if the price was right, but no cars or other major stuff beyond upgrading my season tickets at the opera and taking a good vacation every year.

If it were more than that I'd get a large condo, give some $$$ to a few deserving friends, get four more cats, and give some money to my causes, which would get everything I have in my will.

Since I already have Caller ID I don't answer the phone if I don't know the number and all junk mail begging for money goes into the circular file.  I have no greedy relatives that I know of and the ones I haven't seen for years and years would get nothing.  I am not easy to guilt-trip.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: BabylonSister on January 08, 2013, 08:59:55 AM
Smallish amount: I'd go to college.


Medium amount: college plus moving out of here and buying a condo somewhere in California.


Huge amount: still buy a condo in California, make generous donations to my loved ones, put the rest in a trust fund.  I have no taste for luxury, big cars, diamonds and huge villas in Bel-Air.  I might do a fair amount of traveling, however.  In first class.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: siamesecat2965 on January 08, 2013, 09:03:10 AM
Smallish amount - pay off my debt and buy a new car.  If there was enough left over, maybe buy a condo or townhouse.

large amount - I know this is selfish, but I'd take care of ME first. I'd get all my ducks in a row, figure out how much I wanted/needed to live on annually, and invest enough to get me to that point. I'd also pay off my mom's house, and do whatever else for her.  I've seen too many stories of people who either blow all they have, or are scammed out of it, or simply give it away, and then have nothing left to show for it.  My first move would be to call my mom's financial advisor, who we both trust, and find a good attorney. once all that was done, THEN I'd come forward to c laim my winnings, and do what I said above.

I'd then help friends and family, and give a lot of it away.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Sophia on January 08, 2013, 09:06:20 AM
We live pretty simple lives, so we won't need much to be able to 'retire'. I'd probably become a scholar of Ancient Rome.  We have a daughter, so we would stay planted in the area.  But, we'd probably go explore someplace else for a month or two at a time about once a year.   We'd stay in the same house, and would definitely be the "Millionaire Next Door" because we wouldn't look rich.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Lorelei_Evil on January 08, 2013, 09:09:12 AM
I'd pay off my debt, save the rest, and continue working.

Nobody else gets a dingdangity penny until I'm taken care of first.  Full stop.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: MindsEye on January 08, 2013, 09:12:00 AM
Smallish amount: Savings and pay down mortgage

Medium amount: Savings and pay off mortgage completely

Large amount: Savings, sell current house, move cross-country (closer to family)

Crazy huge amount: Get financial adviser, sell current house, move cross-country, investments/savings/IRAs/secret Swiss bank accounts, semi-retire (i.e. no longer need to work full time+ and worry about bills), travel, work free-lance for the National Geographic magazine.  Maybe set up educational accounts for niece/nephews.

None of which will ever happen as I don't play the lottery.   ;D  But it is so much fun to dream!
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: learningtofly on January 08, 2013, 09:35:33 AM
Pay off my house.  Pay off my brother's house and student loans.  Set-up education fun for DD and niece.  Wanted to send my parents on a nice vacation, but they've now been almost everywhere they want to go.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Snooks on January 08, 2013, 09:36:19 AM
I'd pay off the mortgage and book some first class tickets and start travelling.  I honestly don't know whether I'd share with family or not.  I'd like to see my brother secure with a house but I'd resent giving any to DH's family.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Outdoor Girl on January 08, 2013, 09:44:41 AM
Adding each sucessive step:
$100,000 or less:  Pay down/off mortgage
$100,000 to $500,000:  Buy a new car; help my brother with his divorce
$500,000 to $1,000,000:  Buy each of my nephews a new car (sensible - four door, not a luxery model) and pay their insurance on it until they are 25.  They would be responsible for the deductible and any increase in insurance if they have an accident, help my brother pay down his mortgage, visit friends in far flung places, flying 1st class, help my brother pay for my nephews' education
$1,000,000 to $5,000,000:  Retire and pick up a part time job doing something I'd like to do, making enough money to fund my gardening and yarn addictions, travel a little, flying 1st class, set up education funds for my friends' kids
>$5,000,000:  Build my dream home, preferably on a small lake, with room for a large garden, a hen house and some goats.  But I'd travel across Canada first, either driving and staying in B&B's along the way or hopping on and off the train.  I would spend more time in little out of the way spots than in the cities.

And before I do any of this, I would talk to my financial advisor on how to set up investments that would pay me regular dividends but wouldn't be accessible otherwise so if my spine weakens, it is still easy to say 'No'.  And at each sucessive step, I'd still donate to charity, just in increasing amounts.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Garden Goblin on January 08, 2013, 09:56:04 AM
Under 10K

Go through our current list of 'we should buy/do/pay off X' until money is spent.

Any amount over 10K

50% into a savings/trust account for my husband and I, 25% into a savings/trust account for the kid to be his when he turns 25 or graduates college, whichever comes first.  Take the remainder, cover the same list as the under 10K.  And then have some fun with whatever is left over.

Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Hmmmmm on January 08, 2013, 09:59:33 AM
Less than $5 mill, send the kids through college debt free, travel more, including paying for  annual vacations with alternating families (one summer rent a villa in Italy and pay for DH's sis, mother, brother and his family to join us, next winter rent a yacht and cruise the Carribean with my sisters and their families), retire earlier.

$5-15Mil, we'd probably sell our existing home once the kids are both at college, buy a townhouse in the city for the weekends and then buy a place in the country to live in during the week (both DH and I work from home so can work from anywhere). Set up college funds for DH's niece and nephew and the offspring of my nieces and nephews. Increase existing charitable donations plus all the above.

More than $15mil... not do anything for the next 2 years till my youngest if off to college.  Then quit our jobs, sell the house, by a large condo in city as a home base for us and our kids, then spend the next 2 years traveling for fun, coming home every 2-3 months to visit the kids and celebrate holidays. Then 2-3 years helping fund and doing volunteer work in areas needing to improve fresh water supply.  Come back to the US and start up some type of small shop to keep me busy and out of my kid's hair.   ;) 

Nope, I've never spent anytime daydreaming about this.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: RebeccainGA on January 08, 2013, 10:16:24 AM
Easy - under $5MM, pay off mortgages, loans, etc. for us, and replace my aging car. Other than a few gadgety things, and some new clothes, we really wouldn't have a lot of things to spend big $$ on - but it'd be nice to eat out or go on a trip when we wanted. I'd still work, although I'd commute in a much nicer car (my '97 Camry is workable, but showing its age more each day).

Over $5MM but under $100MM, still keep my job but maybe go part time, to keep insurance (DP's medical would have been $2MM+ in the last two years. I'm not giving up medical insurance until we could pay cash for ANYTHING). Buy DD a new car, pay for her to complete college wherever she wants (not just in home state). Buy parents a new place, and maybe sister - DP's sister's house is paid for, but we might move DP's mom up to live with us in this case, with some help so it wouldn't be too much a burden on any one). Travel a lot - first class, maybe even charter jet so taking the pup wouldn't be an issue - or even better (dream here) a chauffeured custom bus/RV so that we can stop whenever we want.

Over $100MM - I think I'd finally quit my job.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Yarnspinner on January 08, 2013, 10:46:19 AM
Oh Venus, I was just fantasizing about this the other day.

Small amount ($10000) I'd use to pay off my credit card debt and buy a new refrigerator.

Medium amount ($150000) pay off the debt, pay off my mortgage and fix the place up moderately well so I could find someone as naive as I was when I bought the place and sell it to them. 

And I am just going to the whole "crazy wild out of my dreams" amount of money:

Everything above, PLUS, I would consult with a lawyer and a financial advisor...but among my many plans (after I paid everything off, set up a trust for my niece and paid off the homes of a few friends) would be to give each of my coworkers at least a million so that we can accomplish one of our darker dreams:  to attend a library board meeting where we each hand in our resignations effectively immediately.  (It's in our contract that we can give immediate notice and wave goodbye.)  But first, we would build it up so that they (and Stonecold) would think we were giving them money.  ("We have given sums of $xxxxxx to library Y and to library Z.  And now we have something for you as well.....something you appear to have wanted for some time....").  I know it's childish, but it would likely brighten things up for a while.

Then I would rent a house near the Cliffs of Mohr and write for a year just to see if I could finish and get published. 

Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: cicero on January 08, 2013, 11:35:44 AM
no matter what amount: i would donate a certain percentage to charity

up to 100k$: take about 5000$ and use that however i want in some frivolous way. the rest as down payment on a house, and continue working.

100-500$k : a little more in a "do whatever you want" fund, buy a home, use money to help DS privately instead of public as we are doing now. continue working.

500-1m$: would buy a home for myself and buy some kind of housing for DS.

Over that - i would figure out if i could stop working, at least for a while, and go back to college up to a doctorate. I would set up trust funds for each of my nieces and nephews and i would set up a family emergency fund for my siblings and me in case any of us ever need. i would also start a college scholarship fund in my mother's memory.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: LazyDaisy on January 08, 2013, 11:47:15 AM
Small amount < $50,000 pay off my old car and buy a new car in the range of a Ford Fusion. Any left over would go to bills and taxes. Any more and I would definitely hire a financial planner immediately.

The thing about large lottery wins though is that you don't actually get to take home the full amount that you win. In California, for instance, win 1 million -- if you opt for the lump sum payment instead of over time, you actually take home about half of that, so $500,000 and that's before the taxes, so taxes would usually take another (estimated) 30% of that leaving only $350,000. I could buy a rather modest 2 bedroom house for that amount in my area. I think the winners go bankrupt so quickly because they don't factor in things like that. They heard 1 million and hold on to that number in their head.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: ica171 on January 08, 2013, 12:04:42 PM
I call this "the lottery game" and I play it so often I've pretty much got what I would do down pat. For a small amount, say less than $5 million, I don't even know that we'd tell many people. We'd pay off our debt and build a reasonably nice house, put aside money for the kids' college and then put enough away so we could live off the interest. We might gift small amounts to our families, but that depends. I'd hire a housekeeper to come in once a week.

For a medium amount, it'd probably be about the same as a small amount except we'd be able to give some or more money to our families. DH would buy a fancy car.

For a large amount, we'd build our absolute splash-out dream house and hire a few people to take care of it, like a gardener and a housekeeper. Nothing live-in, but just so that I don't have to pull weeds or wash baseboards. We'd give money to our families and start trust funds for all our nieces and nephews. I would buy and rehab old houses that had been subdivided into apartments, then sell them to people who would appreciate them. I would give lots of money to local charities and autism research. (I would do this with every amount, but it would be significantly more at this stage.) We'd probably travel a bit, but I'm a homebody and don't like being away for too long.

I don't think our lifestyles would change too significantly if we won even $500 million. I don't want to live some crazy jet set lifestyle with other people always around; I just want to live my life very very comfortably.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: siamesecat2965 on January 08, 2013, 12:13:12 PM
Small amount < $50,000 pay off my old car and buy a new car in the range of a Ford Fusion. Any left over would go to bills and taxes. Any more and I would definitely hire a financial planner immediately.

The thing about large lottery wins though is that you don't actually get to take home the full amount that you win. In California, for instance, win 1 million -- if you opt for the lump sum payment instead of over time, you actually take home about half of that, so $500,000 and that's before the taxes, so taxes would usually take another (estimated) 30% of that leaving only $350,000. I could buy a rather modest 2 bedroom house for that amount in my area. I think the winners go bankrupt so quickly because they don't factor in things like that. They heard 1 million and hold on to that number in their head.

I agree. I always joke I would be happy with A million, after all taxes etc. are taken out. so my net would be that. I could live comfortably on that, i think, if I spent it and planned wisely.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Harriet Jones on January 08, 2013, 12:27:28 PM
I'd definitely pay down/off the mortgage first.  I like where we live, so I might add on to the house we're in now, or possibly build new.

I hope I'd be able to put a lot into some kind of savings, so that we could live comfortably for the rest of our lives and take care of expenses like the kids' college tuitions.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Sophia on January 08, 2013, 12:31:16 PM
Reading this thread, I keep thinking of the eHell member that did win a small lottery, and had a child that was going to need some long-term assistance.  Yet the eHell's sibling thought the money should go toward her adult son. 

I also am amused by the idea of 5 million being a small amount. 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: heartmug on January 08, 2013, 12:58:08 PM
Pay off my home.

Buy a small home or a condo near a relative in another state.

Give all of our kids down payments for homes.

Generous donations to charities.

See if my DH will part with his old car  ;)
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Reika on January 08, 2013, 01:25:33 PM
I also am amused by the idea of 5 million being a small amount.

Have to agree on that. $2 mil would let me quit working at my current age of 36 and live fairly comfortably for the rest of my life. :)

I have figured out that if I won at least $300k after taxes, it'd let me go back to college full time without having to work, plus give me a cushion in case I didn't find a job right away after school.

Anything more than $2 mil would let me give some help to friends. If I got more than $5 mil, I'd get my CDL so I could get a spiffy toy-hauler RV and go traveling in style.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: CakeBeret on January 08, 2013, 01:29:39 PM
Small amount: pay off debts, take a modest vacation

Medium amount: same as above plus sell our house and move to Colorado. Go to grad school. Hire a housekeeper.

Large amount: All of the above, plus buy 20+ acres. Custom build a nice house with my dream kitchen. Build houses elsewhere on the property for DH's best friend and my best friend. Create a multi-family cooperative self-sustaining farm. Put away enough money to fund our retirement, lots of nice vacations, and DS's college education. If there was any left over after that, put money into a trust for my niece, and buy my dad a pickup truck.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Lynnv on January 08, 2013, 01:41:30 PM
The lottery game-always a favorite.   ;D

Small amount: set a small percentage aside for some pure fun, then do sensible things like pay off debt, increase savings, consider replacing my old car.

Medium amount: add more to the pure fun account, definitely replace my car and maybe DH's as well, replace motorcycles and (if funds are enough) either remodel our house or move into something better suited to our lifestyle. 

Large amount: I can quit looking for a job, plus all of the above.  Except we would almost certainly move.  Put aside some funds to help the assorted nieces and nephews get established (school-either trade or college funds, first car, etc), pay off mom's house so she can quit worrying.   Lots and lots of travel.   Get some fun vintage motorcycles to go with our day to day riders.   More travel.  Be those people who leave a $100 tip on a $15 bill just because we got great service.  (But be out the door before the wait person sees it because this is about us imagining how this might make their day, not about actually getting fawned over or something like that). 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Lorelei_Evil on January 08, 2013, 02:02:14 PM
Oh, well, if it's a game....

I'm changing my identity and moving to the Caymans.   ;)
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Sophia on January 08, 2013, 02:10:48 PM
I remember reading about a normal woman that had an interesting retirement.  She didn't have a home.  She had a storage unit near where her kids lived.  No furniture, just all her personal possessions.  At the time of the article, she was living in an apartment in Rome on a 6-month lease.  She relaxed and traveled in the immediate area for that time period.  Then, she would go home and rent an extended stay hotel room for a month and visit her Grandkids.  Then she'd go someplace else for another 6 or so months.  So, if she would be spending the winter in a skiing area, she would pack the appropriate supplies from her storage area.  I would like to do that one day, and would if I won the lottery after DD was grown. 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: MrTango on January 08, 2013, 02:14:15 PM
Over about $250k, the amount wouldn't affect my strategy, it would just determine how far down my priority list I could go:

1) Pay off all debt (CC's, student loans)
2) Down payment on a house (I'd probably want to put at least 50% down)
3) Replace my wife's 11-year-old car
4) Replace my car
5) Invest what's left.
6) If there's enough money invested in step 5 to support me and my wife for the rest of our lives, then I'd quit my job and either go to seminary or find some other volunteer work.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: zyrs on January 08, 2013, 02:21:47 PM
We would talk to a financial adviser about the feasibility of trusts and stuff depending on the amount we won.

Over a certain amount we would buy a specific house that we both fell in love with and fix it up.  It sits there unloved and makes us sad every time we pass it.

Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: magicdomino on January 08, 2013, 02:30:16 PM
One must keep in mind taxes, annual payments, and the like.  Lots of people go bankrupt after winning the lottery because they think One Million Dollars! when in fact it is more like $35,000 per year for 20 years.  However, we are discussing imaginary money here, so we will imagine that taxes and whatnot have already been paid.   ;) 

Less than $50,000:  Home repairs

Between $50,000 and $500,000:  More home repairs.  This place is expensive.   :)  But I should be able to have an annual vacation as well finally completing the To Do list.

Over $500,000:  I have simple tastes, so aside from that annual vacation, my life wouldn't change much.  I like my house when it works, the cats would be unhappy if I was gone too long, and I'm too close to qualifying for my retirement to quit now. 

I would like to stash something away as a kind of college scholarship fund for my great-nieces and nephews.  However, certain financially irresponsible relatives would be standing on my doorstep begging if they got a hint that money was being given away, so I'd have to set up the scholarship in such a way as to obscure the source.  Also, I'm not paying for someone to party for four years. 

Leaving someone a $100 tip does sound like fun, though, doesn't it?   :)
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Outdoor Girl on January 08, 2013, 02:38:29 PM
Move to Canada.   ;D  At least for now, lottery winnings aren't taxed.  We are, of course, taxed on any income from the investment of those winnings but if we win $1,000,000, we actually get $1,000,000.

I wouldn't flat out give my nephews any money.  I'd definitely help pay for their schooling and give them a reasonable car but I'd like them to learn a little bit about what the world is about before having lots of money.  They are my heirs so I'd probably change my will so that they wouldn't get any money until they're at least 30, other than what is needed for schooling.

And I forgot one group of people:  My Dad is 78, still living in the big house my brother and I grew up in.  It is in a rural area but he has one set of neighbours who live quite close.  They are fantastic and really help my Dad out.  My brother and I feel so much better knowing they live next door.  They have a piece of property that they want to build on and move to once their kids are out of high school - youngest will be in Grade 9 next year, I think.  So I would pay for them to build their house.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Harriet Jones on January 08, 2013, 02:39:56 PM
One must keep in mind taxes, annual payments, and the like.  Lots of people go bankrupt after winning the lottery because they think One Million Dollars! when in fact it is more like $35,000 per year for 20 years.  However, we are discussing imaginary money here, so we will imagine that taxes and whatnot have already been paid.   ;) 
 

The lotteries where we are also have the option of a lump sum payment instead of the annual payments.
 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Venus193 on January 08, 2013, 03:36:14 PM
Quote
Leaving someone a $100 tip does sound like fun, though, doesn't it?

I actually did once, but the bill was $400.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Winterlight on January 08, 2013, 03:48:13 PM
Small amount- buy a car, save for retirement.

Medium amount- buy a car, save for retirement, set some fun money aside, give a chunk to my dad's foundation.

Big amount- QUIT MY JOB!!! Do the above. Pay for my brother to go to grad school. Set up a trust for my cousin's kid. Make sure my parents were taken care of. Buy an apartment in NYC to use when I visit. Travel a lot. Become a bellydancing SAR expert.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: nuit93 on January 08, 2013, 03:49:22 PM
Under 10k: nothing.  That woudn't even cover my car loan anyways, so it would go into savings.

10-50k: pay off my car loan, pad the personal savings account.  Start looking into home ownership since that would be enough for a proper down payment (20%, yes houses are expensive here).

50-100k: all of the above, but with possibly a 15 year mortgage instead of 30 year (they're REALLY expensive here).

Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: ladyknight1 on January 08, 2013, 03:55:15 PM
DH and I daydream about a possible windfall and this is what we would do:

No matter the amount, we would donate 10% to charities we support, with some going to our church.
With more than $500K, we would buy at least 10 acres of old citrus groves, and build a home on it.
More than $1M, we would buy a condo at the beach and land in North Georgia to build a home/cabin on. I would buy a small condo in my home town for when we visit. We would buy a share of a small private plane and I would learn to fly.
More than $2M, we would buy several (closed) dilapidated motels and turn them into homeless shelters/ job-training and counseling centers. These would be operated as a part of a trust. We would also open community centers with before/after school programs and summer camps for low income families and children. DH would have his own business.

I would absolutely love to have acreage and a small hobby farm/ranch. That is in the long-range plans regardless of winning the lottery.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: chigrrl1 on January 08, 2013, 04:22:45 PM
I'm going to be the materialistic one here who will end up on "How the Lottery Ruined my Life."  I should probably post to this site if that ever happens because y'all are so practical. 

Amounts are POST government taxing the daylights out of me.

50K:
      Tag Heuer Watch in White Ceramic 2K$
      New Car 25K$
      Remainder: Bills/Investments/Treats for Family


100K--500K
      Chanel J12 Watch in White Ceramic 10-12K$  (I've been dreaming about this watch my whole adult life and I KNOW it's a ridiculous waste of money, it's just so beautiful.)
      New Car 25K
      Bills, blah blah blah

500K--2M
      Ditto above, but with really killer vacation/party with friends and and installation of deluxo bathroom in existing modest condo.

2M-5M
      Ditto above.
      Quit Job, volunteer for a good charity organization where I get to play with puppies.
      Write book
      Birth or adopt baby.
      Buy lovely Victorian house with a huge footed bathtub and MASSIVE library.
      Probably get a white and a black Chanel J12....and maybe a platinum one...
      Set up trusts for my friends' kids educations.
      Spoil my immediate family.
      Liposuction or daily private ballet lessons with a very strict Russian dancer who would keep me in line.
     
     

Anymore than 5M and I'd start feeling obligated to make a "real" difference in the world and probably freak out about all the responsibility.  I think I would find that more stressful than being poor, but hopefully my beautiful watch collection would be a comfort. >:D
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Just Lori on January 08, 2013, 04:25:40 PM
I would buy my mother a home that is on one level, so that I never again have to see her sitting on her steps because she's exhausted and can go neither up nor down. :(

Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Thipu1 on January 08, 2013, 04:34:59 PM
We'd get in touch with our financial advisor and hire a good lawyer to settle things  before we let anyone know that we'd won a big prize.
 
We'd put as much of our winnings into legal tax shelters as possible and find the most secure investments we could for the rest. 

Our life-style wouldn't change much but we'd probably do a bit more travel and have lobster a few more times a year.

Yes, we're very boring people.

 



Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: katycoo on January 08, 2013, 04:52:57 PM
1. Tell no one (well, I might let DH in on it).
2. Pay out mortgage.
3. See a financial adviser and securely invest 90% of it so I could comfortably live off the interest - taking into consideration market risk.  There could be no way to lose it ALL.
4. Finish driveway. carport and landscaping on my home - no more DIY.
5. Start planning next year's holiday.

That's about it.  Neither mine or DH's immediate family require any financial assistance right now, and I'm not inclined to share the wealth just because - simply because I prefer to keep these kinds of things private.  Should their situations change I would likely do something to help.  Also I wouldn't want them to know how much I had.  They are not greedy people per se but they'd treat us differently in terms of expectation about our willingness to pay certain things, plus word spreads and there are certainly some extended family members who I am less confident of.

I'd also probably increase my regular charitable donations, but that would be worked out with the financial planner.

ETA: I would not quit my job, unless I had won over $10M, or enough to give me a secure wage off interest for the rest of my life, which might enable me to work in an unpaid capacity for a charity instead.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Bluenomi on January 08, 2013, 05:45:34 PM
DH and I have many lottery win fantasies  ;D

First we'd pay off the cars and have a holiday. Next would be the mortage. If we have enough to pay off the mortage I can quite my job, yay!

More than that and we'd give some to both our parents for their mortages. Then BIL would get some for his mortage and we'd put money in trust for my under age sister and ask responsible sister if she wanted money now or if she wants us to stick it in a high interest account until she needs it. Other sister I'm not sure, I'd be dingdangity tempted to either give her money on the conditions she never complains she wants more or whines about what other sister did with hers or only give her money when she's mature enough to use it wisely  ;)

If we still had more DH could quit his job and we'd have a nice long holiday and relaxing year or so until DD needs to go to school at which point DH would get a nice, stress free job to keep him busy.

We'd also stick a big chunk in the bank to provide interest to live off, probably get an investment property or 2, donate some to charity and set DD up a very nice trust fund
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Ceallach on January 08, 2013, 06:01:03 PM
< $1m.   Pay off the mortgage, put the rest in savings for some fancy vacations etc down the track and just general financial stability / options in life.    No change to our lifestyle (although if I do decide to be a SAHM for awhile further down the track it would make that choice easier!)

$1m - $5mish - Probably a new house, new car, a few little luxuries.  The bulk into savings.  One of us would probably quit work and become a stay at home parent, but it would be a coin toss as to who.   

$5M +  As above, but then put some of it in a long term savings / investment where I couldn't touch it, or donate some to charity. Probably disburse an even amount to each member of our immediate families to do with as they please (no strings attached).     We would definitely pay off our parent's mortgages. 

In terms of telling people, if it was under $1M we wouldn't.  If it was a huge amount we would wait awhile and then say we'd come into "some money" but not say how much.   Our immediate families are not moochers or scammers so they wouldn't bludge, however if the sum was significant we would give them each a chunk.   If it was less than $5M we wouldn't, because in all honesty it wouldn't go very far spread that thin.   We're already the well off ones in our family so we'd continue to do nice things for family as we could.  We'd just be in a position to do more.     There might be some extended family who would come out of the woodwork begging if news got out, but I'd be comfortable telling them no.   I have a huge family, I can't give handouts to everybody.   
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Venus193 on January 08, 2013, 06:23:12 PM
For me, lobster every weekend and always with champagne.

Parties, especially for Carneval and Halloween.

Facelift.

And -- as was once said in a commercial -- I'd go to Paris and take only my wallet.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: MrsJWine on January 08, 2013, 06:25:59 PM
Depending on how large a sum it was, some of these obviously wouldn't happen, so in order:

1. Pay off all debt.
2. Hire a financial adviser and invest wisely enough to make it last and/or live off it; if it's possible, I would like to make it so we only got, say, a set amount per month from some kind of fund. I like to say I wouldn't be one of those people who goes bankrupt after winning the lottery, but it happens to so many people that I'm thinking the money can do things to your brain that people do things they would never have expected.
3. College funds for kids.
4. Do something nice for each sibling and parent (pay off a debt, for example).
5. Buy a house that won't cost us more in maintenance and taxes than we could afford.
6. Buy well-built, fuel-efficient cars.
7. Hire a nanny/housekeeper. I like a lot of housework, but I hate dusting, scrubbing tubs, and a lot of the other little jobs that are just tedious (cleaning baseboards, for example). One thing I dream of fervently is the day I can leave the house without strapping kids into car seats in the middle of winter or a rainstorm.

If there's enough money left after that, we'd do some more frivolous things, like take vacations and go out to eat once a week.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: dietcokeofevil on January 08, 2013, 08:37:42 PM
Under $50,000 - Blow it all on stuff.  I figure it's not enough to make a lasting change to my life style - it wouldn't pay my mortgage off or anything.  Instead I'd just be able to get some stuff that I've been saving for: new carpets, new countertops, etc.  Plus we'd take a really nice vacation.

Under $1 Million - Pay off the mortgage, take care of my house wishlist, or maybe just sell this house and build a new one.  Put most of the rest into savings. I wouldn't quit work, but I'd consider going part time.

$10 Million or higher - Same as above.  Pay off MIL and FIL's debt (which is more than our mortgage).  I'd want to give a similar amount of money for my side of the family, but since my Dad would never accept it, I'd probably just end up paying for my nephew's college.

I'm not sure that I'd ever stop working, but I could definitely see working part time.



Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: afbluebelle on January 08, 2013, 08:38:45 PM
I'd want to pay off my debt and put a good amount in savings.

If it were a groovy amount ($2-5 million), I would also like to open my own business.

Supergroovy amount (5-10 million) I'd debate going Reservist and leaving Active Duty.

$100 million or more? I'd pay off my bills, give a million to the one person I promised I would if I ever won over $100 million, and I'd change my name to avoid any mooching relatives. I'd then go back to school or work for a non-profit/volunteer full time.



And I'd buy a monkey.


Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Venus193 on January 08, 2013, 08:54:14 PM
$100MM?  I'd have an estate and a couple of these to guard it:

(http://www.zoo.org/view.image?Id=5000)
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Sophia on January 08, 2013, 10:19:48 PM
Under $50,000 - Blow it all on stuff.  I figure it's not enough to make a lasting change to my life style - it wouldn't pay my mortgage off or anything.  Instead I'd just be able to get some stuff that I've been saving for: new carpets, new countertops, etc.  Plus we'd take a really nice vacation...

You might reconsider applying it to your mortgage.  You could use excel to see how much say 40K towards your mortgage would save you in total on the loan.  I know you haven't really gotten a windfall, but the if you do, remember to run the numbers. 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Amanita on January 08, 2013, 11:03:38 PM
I'd go back to school, take fashion design.
I'd buy my own large place- some of my hobbies eat serious space, so a large condo or house would be a must.
Oh yeah, I would move out of this town- I've always wanted to be an NY'er, and with that kind of money I could afford it.

I'd travel more- there's some places I really want to visit, Dubai topping the list.

And lest anyone think I'm a selfish thing, I'd help my family out- give my sister something to help pay off student loans and have some left over afterward, and set up a trust fund for a cousin of mine who has special needs.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: HoneyBee42 on January 08, 2013, 11:09:02 PM
Post taxes:

50k -- retire my debts and start on some of the major projects that need doing around the house (it's my grandparents' house, so I'm staying put, but it's pre-WWII and needs quite a bit of work)

any amount up to 2m--same as above + setting up some funds for the children's college.  I'd probably get all the major projects accomplished.

over 2m--as above + starting my own business (sans debt) + investments

The food bank in the county would get a proportional amount based on how much the winnings were, as would my church.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: CrochetFanatic on January 08, 2013, 11:54:53 PM
Huge Amount:  Move out of my parents' house, pay off what needs to be paid off, share some with family, and help out a couple friends who aren't doing too well right now.  Probably have my teeth bonded.  Then I would bank the rest and withdraw from society.  Someone once mentioned moving away and changing their name if they ever won, and I would seriously be considering that.  I have a few family members who aren't great with money, and who would either spend it all and come back for more, or complain that what they're given isn't enough.  It's probably best that I don't win!  :-\
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: atirial on January 09, 2013, 04:37:50 AM
There are a few charities and local causes I support who would get a share. Otherwise any amount under 1m - pay off the house, do some much needed DIY projects, invest the rest for income, and keep going as we currently are. Larger amounts? That's trickier. For the really large amounts, it's going to change your lifestyle no mater how much you don't want it to.

In any case, the relatives wouldn't find out if I had anything to do with it. Setting up trust funds for a regular income/care costs for older members is one thing, but certain people would blow any funds they were given almost instantly.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Snooks on January 09, 2013, 04:52:13 AM
We got to play this game this morning during the approximately three minutes it took DH to log into his lottery account after he got the email to say there was "exciting news about his ticket".  So what are we doing with our winnings?  Buying a ticket for the next draw because that's pretty much all our winnings covered!
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Winterlight on January 09, 2013, 08:32:10 AM
And -- as was once said in a commercial -- I'd go to Paris and take only my wallet.

Substitute NYC for Paris and I'm there. Actually, I'd do both!
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: magicdomino on January 09, 2013, 09:21:49 AM

And I'd buy a monkey.

"Haven't you always wanted a monkey?"  (I'm assuming you are quoting Bare Naked Ladies.   :) )

7. Hire a nanny/housekeeper. I like a lot of housework, but I hate dusting, scrubbing tubs, and a lot of the other little jobs that are just tedious (cleaning baseboards, for example).

This, this, this!  I'll skimp on getting the basement gutted and refinished if I have to, but I'm getting someone in to sandblast this place.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: chigrrl1 on January 09, 2013, 09:51:46 AM
I love the idea of lavishly tipping waitstaff if one had the means to do so.  I think that's such a nice immediate way to make a difference in someone's day.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: MissRose on January 09, 2013, 10:26:19 AM
I would first of all pay off my credit card and car first.  Then I would buy a modest size home as I do not need a huge mansion but something similar in size to my parents' home would be sufficient (1.5 acres and a 1500 square foot 1 story home). I would of course want to do some traveling to places I've dreamt of like Rome, Australia, and Israel.

I would ensure some of my winnings were invested properly so I could live comfortably.  I would also make a few charitable contributions.

If the sum was very substantial, I would also set aside some money in a trust for my nephew and niece for college.  If they did not choose to attend college, then they could get a small amount monthly so they could not blow the entire sum at once and only after they turned 21 as long as they were either working full time or in the military.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Virg on January 09, 2013, 12:36:41 PM
There are several things that I always find when playing this game with others.  The first is that many people have the impression that a large fraction of lottery winners go bankrupt, and that's not really accurate.  It does happen, but it's almost never a case of people not knowing where the money went, it's a matter of making bad investments like starting a  business that doesn't work or buying into some scheme.  Virtually everyone who hits it big and then goes bankrupt loses the money in one or a few big losses.

The second is a misunderstanding of debt pattern.  Virtually everyone I know who talks about winning more than $1M says they'd pay off their mortgage, but most people I know pay lower than average portfolio rate for their mortgage so they'd be better off setting up a fund to pay down the mortgage as normal and investing their winnings.  Because of the first paragraph and stuff like this, I tell everyone that the first step to winning a big pile of money is to figure out which financial professional you'd talk to right after you hang up with the lottery commission.

The third is that once you get over a million dollars, most people lose perspective.  There are many I've seen who think that  a million dollars isn't life-changing, and that $5M is on the edge of life-changing, until I point out that investing $1M at a rate of return around four percent (which is way below an average portfolio), you earn a yearly income of $40,000 with absolutely no penetration of capital (meaning your $1M stake never gets smaller if you take out 40K or less).  With this, $5M would net you $200,000 a year.  Since most of us don't earn anywhere near that kind of money, it would be very easy to make changes like a maid or a new house or quitting your job or whatever at that income level.  Getting paid $40,000 a year just for the effort of getting out of bed in the morning would certainly change my life.  The best example I figured out for this is to show that you could live exactly the same life you live right now, but take a first class trip around the world for two weeks every single year without eating up half of the money you'd earn without shrinking your stake, if you had a million dollars.

So, how does that perspective change things?

Virg
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: RebeccainGA on January 09, 2013, 12:41:59 PM
So, how does that perspective change things?

Virg

My only change is that I might not pay off my mortgages immediately - but then, combined, my mortgages and student loans (my only real debts) are under $200K, so the difference may be small enough (savings in interest paid vs. interest earned) that it wouldn't make sense not to just go ahead and do it.

I'm still very risk averse about quitting my job - the extra money would be nice (and being able to take unpaid time if I wanted to take a month's vacation or something) but the health insurance would be priceless - DP is uninsurable at this point thanks to her cancer and related issues, and that won't change for a little while.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: nuit93 on January 09, 2013, 12:46:38 PM
There are several things that I always find when playing this game with others.  The first is that many people have the impression that a large fraction of lottery winners go bankrupt, and that's not really accurate.  It does happen, but it's almost never a case of people not knowing where the money went, it's a matter of making bad investments like starting a  business that doesn't work or buying into some scheme.  Virtually everyone who hits it big and then goes bankrupt loses the money in one or a few big losses.

The second is a misunderstanding of debt pattern.  Virtually everyone I know who talks about winning more than $1M says they'd pay off their mortgage, but most people I know pay lower than average portfolio rate for their mortgage so they'd be better off setting up a fund to pay down the mortgage as normal and investing their winnings.  Because of the first paragraph and stuff like this, I tell everyone that the first step to winning a big pile of money is to figure out which financial professional you'd talk to right after you hang up with the lottery commission.

The third is that once you get over a million dollars, most people lose perspective.  There are many I've seen who think that  a million dollars isn't life-changing, and that $5M is on the edge of life-changing, until I point out that investing $1M at a rate of return around four percent (which is way below an average portfolio), you earn a yearly income of $40,000 with absolutely no penetration of capital (meaning your $1M stake never gets smaller if you take out 40K or less).  With this, $5M would net you $200,000 a year.  Since most of us don't earn anywhere near that kind of money, it would be very easy to make changes like a maid or a new house or quitting your job or whatever at that income level.  Getting paid $40,000 a year just for the effort of getting out of bed in the morning would certainly change my life.  The best example I figured out for this is to show that you could live exactly the same life you live right now, but take a first class trip around the world for two weeks every single year without eating up half of the money you'd earn without shrinking your stake, if you had a million dollars.

So, how does that perspective change things?

Virg

Well, frankly I would have to have at least 10-20 million won before I'd even consider quitting my job. 

Why?

Because one serious illness could wipe out all that money.  I'd keep working for the benefits alone, but having an extra, say, 40k a year would make things a heck of a lot more comfortable.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Lorelei_Evil on January 09, 2013, 12:47:13 PM
There are several things that I always find when playing this game with others.  The first is that many people have the impression that a large fraction of lottery winners go bankrupt, and that's not really accurate.  It does happen, but it's almost never a case of people not knowing where the money went, it's a matter of making bad investments like starting a  business that doesn't work or buying into some scheme.  Virtually everyone who hits it big and then goes bankrupt loses the money in one or a few big losses.

The second is a misunderstanding of debt pattern.  Virtually everyone I know who talks about winning more than $1M says they'd pay off their mortgage, but most people I know pay lower than average portfolio rate for their mortgage so they'd be better off setting up a fund to pay down the mortgage as normal and investing their winnings.  Because of the first paragraph and stuff like this, I tell everyone that the first step to winning a big pile of money is to figure out which financial professional you'd talk to right after you hang up with the lottery commission.

The third is that once you get over a million dollars, most people lose perspective.  There are many I've seen who think that  a million dollars isn't life-changing, and that $5M is on the edge of life-changing, until I point out that investing $1M at a rate of return around four percent (which is way below an average portfolio), you earn a yearly income of $40,000 with absolutely no penetration of capital (meaning your $1M stake never gets smaller if you take out 40K or less).  With this, $5M would net you $200,000 a year.  Since most of us don't earn anywhere near that kind of money, it would be very easy to make changes like a maid or a new house or quitting your job or whatever at that income level.  Getting paid $40,000 a year just for the effort of getting out of bed in the morning would certainly change my life.  The best example I figured out for this is to show that you could live exactly the same life you live right now, but take a first class trip around the world for two weeks every single year without eating up half of the money you'd earn without shrinking your stake, if you had a million dollars.

So, how does that perspective change things?

Virg

Just wanted to quote for posterity.  Great post.


I would do something very similar and donate the balance to charities when I croak, just to infuriate my evil relatives.  :)
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Hmmmmm on January 09, 2013, 12:51:05 PM
So, how does that perspective change things?

Virg

My only change is that I might not pay off my mortgages immediately - but then, combined, my mortgages and student loans (my only real debts) are under $200K, so the difference may be small enough (savings in interest paid vs. interest earned) that it wouldn't make sense not to just go ahead and do it.

I'm still very risk averse about quitting my job - the extra money would be nice (and being able to take unpaid time if I wanted to take a month's vacation or something) but the health insurance would be priceless - DP is uninsurable at this point thanks to her cancer and related issues, and that won't change for a little while.

It doesn't change much for me because I had said that less than $5mil would allow the kids to go to college debt free, I'd be able to travel more, and retire earlier.  Since I'm about to have 2 in college, $40k won't even cover their annual expenses. 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Girlie on January 09, 2013, 01:00:46 PM
I don't busy tickets unless the jackpot is over $300 million (and usually not then), so I don't guess I'll ever actually win anything...

Having said that, if I did win in the range or higher, I'd pay off my car, buy a house outright (though not a mansion or anything. Just a nice, charming little place with a good foundation and room for future children and current and future cats), and give my mom money to travel.

I don't know that I'd quit my job - I like having something to do. But I might drop to part-time.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Outdoor Girl on January 09, 2013, 01:10:37 PM
I would definitely retire on $1M.  I'll be getting a pension, too, and you can purchase supplemental health insurance in a group plan here in Ontario that would be similar to the benefits I get from work.  I may even be able to pay to maintain my work benefits - I haven't looked into it yet since I'm 12 years from retiring with a full pension.  I would potentially pick up a small part time job at the yarn shop or in cake decorating, just for some extra pin money.  I would definitely volunteer with Meals on Wheels or Hospital Auxillary or something.  I have a cousin who volunteers with the Red Cross and she responds to disasters - I'm not sure I could do that, just because I need my sleep and they often end up on cots in the school gym or something.

I'd probably only invest $800K and use $200K for some sorta fun stuff - new car, pay off the house, trip or two, cars for my nephews, help out my brother, etc.

I really like other people's ideas about paying for a small meal with a $100 bill and walking out.  That would be a lot of fun, especially if I could look in the window and see the server's face when s/he picked up the folder and looked inside.  I might have to do this just once, even if I don't win the lottery.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Virg on January 09, 2013, 02:17:39 PM
nuit93 wrote:

"Well, frankly I would have to have at least 10-20 million won before I'd even consider quitting my job.  Why?  Because one serious illness could wipe out all that money.  I'd keep working for the benefits alone, but having an extra, say, 40k a year would make things a heck of a lot more comfortable."

This is a good example of the perspective issue I mentioned before.  You're running under the assumption that if you don't get health benefits from an employer, that you can't have health benefits.  You can buy personal health insurance like the kind that self-employed people buy all the time, and on a "salary" of $100K (that's $2M earning five percent, which is 10-20% of your declared minimum) you could afford quite a package even assuming you're paying double what you're currently having deducted from your paycheck for it.  Millionaires don't normally pay for that sort of stuff out of pocket any more than the rank and file do.

Hmmmmm wrote:

"Since I'm about to have 2 in college, $40k won't even cover their annual expenses."

It's not $40K, it's $40K more.  You're going to pay for it on what you have now by some means, so think about how having and extra forty thousand would change that debt load, and whether that wouldn't change your lifestyle in a significant way (also remembering that in our example, your kids are going to be in college for around five years each and then they'll presumably be self-sufficient, and the income boost we're discussing is perpetual).  Sure, $40K alone isn't likely to change everything about your life, but it's still likely to be life-changing at a reasonable level for the term.  And this all assumes no capital penetration and four percent ROI.  If you double your income from winnings to $80K a year, the money will still last decades, and if you get a better rate on your investment (7% is reasonable) you're talking nearly double the money there too.  All told, unless you're earning into six figures already a million dollar pot can easily reach into "quit your job" levels of lifestyle change.

Girlie wrote:

"I don't know that I'd quit my job - I like having something to do. But I might drop to part-time."

If you didn't need your job for the money, would you do it for free?  Can you not think of anything you'd rather do with your time if money wasn't any issue?  I know that I love my job, but if I suddenly had several millions in the bank, I'd quit in a heartbeat because I can think of many things I'd rather do for volunteer work than my job, most of which would be much more fulfilling but usually don't pay nearly as well.

Virg
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: LazyDaisy on January 09, 2013, 02:34:57 PM
Virg I'm not sure if you're assuming that cost of living is rather the same for everyone. $40K a year is less than I make now working as a graphic designer at a non-profit (notoriously underpaid), and where I live in SoCal it wouldn't get me very far; I drive a 6-year-old car and live in a 700sqft apartment in a blue-collar type neighborhood.  Sure an annual "salary" of 200k a year would be great but would probably put me up into the upper middle class tier not the super rich! I imagine it's the same for other major metropolitan areas like NY or Chicago.

If anyone won 1 million (after taxes etc) in SoCal, just buying a regular ranch-style house in a subdivision would eat half of it. For those talking about paying for college: living as a student at a University of California (UCLA for example) is estimated at $31,902 per year (that does include tuition, books, housing, estimated transportation costs, and a modest budget of $1300 for personal expenses). If someone wants to live the "rich" lifestyle of the mansion and fancy car, and world travel, they'd need to have an income above $1 million per year.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: nuit93 on January 09, 2013, 02:38:54 PM
nuit93 wrote:

"Well, frankly I would have to have at least 10-20 million won before I'd even consider quitting my job.  Why?  Because one serious illness could wipe out all that money.  I'd keep working for the benefits alone, but having an extra, say, 40k a year would make things a heck of a lot more comfortable."

This is a good example of the perspective issue I mentioned before.  You're running under the assumption that if you don't get health benefits from an employer, that you can't have health benefits.  You can buy personal health insurance like the kind that self-employed people buy all the time, and on a "salary" of $100K (that's $2M earning five percent, which is 10-20% of your declared minimum) you could afford quite a package even assuming you're paying double what you're currently having deducted from your paycheck for it.  Millionaires don't normally pay for that sort of stuff out of pocket any more than the rank and file do.


I also live in a rather expensive part of the country, so even if I were able to make 100k/year off of interest alone I'd prefer to continue to work.  That's largely a personal preference, and also because not all insurance plans will cover all the expenses that can be incurred with, say, cancer.  Heck, we're still paying off the $8k out of pocket costs associated with my SO's gallbladder surgery, and that was after insurance paid their portion.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: nuit93 on January 09, 2013, 02:39:44 PM
Virg I'm not sure if you're assuming that cost of living is rather the same for everyone. $40K a year is less than I make now working as a graphic designer at a non-profit (notoriously underpaid), and where I live in SoCal it wouldn't get me very far; I drive a 6-year-old car and live in a 700sqft apartment in a blue-collar type neighborhood.  Sure an annual "salary" of 200k a year would be great but would probably put me up into the upper middle class tier not the super rich! I imagine it's the same for other major metropolitan areas like NY or Chicago.

If anyone won 1 million (after taxes etc) in SoCal, just buying a regular ranch-style house in a subdivision would eat half of it. For those talking about paying for college: living as a student at a University of California (UCLA for example) is estimated at $31,902 per year (that does include tuition, books, housing, estimated transportation costs, and a modest budget of $1300 for personal expenses). If someone wants to live the "rich" lifestyle of the mansion and fancy car, and world travel, they'd need to have an income above $1 million per year.

I was gonna say...me and my SO make nearly 90k/year, but that's not enough to be able to afford a house near where we live.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Girlie on January 09, 2013, 02:47:36 PM
nuit93 wrote:

Girlie wrote:

"I don't know that I'd quit my job - I like having something to do. But I might drop to part-time."

If you didn't need your job for the money, would you do it for free?  Can you not think of anything you'd rather do with your time if money wasn't any issue?  I know that I love my job, but if I suddenly had several millions in the bank, I'd quit in a heartbeat because I can think of many things I'd rather do for volunteer work than my job, most of which would be much more fulfilling but usually don't pay nearly as well.

Virg

I work in a small-ish community, and I know a lot of the customers and my co-workers pretty well. I enjoy what I do. I might quit - I won't say that I definitely wouldn't - but I wouldn't start off planning to.
Yes, there are volunteer activities I can participate in - but I already do what I'm mentally and emotionally prepared to do as far as that goes. I don't think suddenly having a lot more money would change me in that aspect very much.

Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Hmmmmm on January 09, 2013, 02:49:06 PM
snip
Hmmmmm wrote:

"Since I'm about to have 2 in college, $40k won't even cover their annual expenses."

It's not $40K, it's $40K more.  You're going to pay for it on what you have now by some means, so think about how having and extra forty thousand would change that debt load, and whether that wouldn't change your lifestyle in a significant way (also remembering that in our example, your kids are going to be in college for around five years each and then they'll presumably be self-sufficient, and the income boost we're discussing is perpetual).  Sure, $40K alone isn't likely to change everything about your life, but it's still likely to be life-changing at a reasonable level for the term.  And this all assumes no capital penetration and four percent ROI.  If you double your income from winnings to $80K a year, the money will still last decades, and if you get a better rate on your investment (7% is reasonable) you're talking nearly double the money there too.  All told, unless you're earning into six figures already a million dollar pot can easily reach into "quit your job" levels of lifestyle change.
snip
Virg

Virg you make good points, but just believe me when I say that me, my DH, and our financial planner are well aware of the amount of capitol we need to have in our savings and 401K's before we retire to live the lifestyle we want and a $1mil pot isn't it.   
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: gorplady on January 09, 2013, 02:51:48 PM
After taking care of bills, helping out family, and building my dream house, I've always wanted to start a non-profit that would focus on a few separate issues.

1. Buying blighted properties and turning them into either greenspace if they're beyond rehabilition, or rehabbing them for homeless families/people or non-violent crime parolees who need a place to land to get back on their feet after doing time.
2. Buying empty land in cities and converting it to public gardens, both flower, orchard, and vegetable (ideally, the folks living in the blighted properties would work to maintain these spaces in lieu of rent)
3. Protecting indigenous people and the rights of uncontacted races (if you're interested, you can read more at http://www.survivalinternational.org)
4. Working to make the Pine River Indian Reservation a green energy-reliant community so that they can survive the winters.
5. Offer grants to homeowners to improve their home through geothermal, solar, or wind power improvements
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Slartibartfast on January 09, 2013, 02:57:22 PM
I think I can honestly say there are only a few things I would change about my life if I had the money:

1) take more frequent vacations (especially to see family)

2) have someone clean my house twice a month or so

Other than that, I'm pretty happy with what I have  :)  If we won a ton of money I think DH would quit his job and start his own company, but I think he's probably happier with his current job than he would be running a business.  He doesn't like people stuff and management as much as he thinks he does :-P
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: magicdomino on January 09, 2013, 03:15:51 PM
I currently net over $40,000 a year, have no mortgage, and can barely cover costs.  Property taxes alone are about $4,000 a year, and last year the house had three major repairs at over $2,000 each.  I suppose I could sell the house and move to a cheaper area if I didn't have to worry about commuting to a job, but my father built this house, I grew up in this area, and don't want to leave.  So, anything less than a couple of million, and I'll still show up in the office on a regular basis. No life changes more significant than vacationing every year instead of every two or three years.  Oh yeah, and that maid.

Having said that, a post-tax $40,000 extra per year would make a very nice supplement to the income.  Sadly, it would require actually buying a lottery ticket, and I have more faith in statistics than luck.   ;)
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Virg on January 09, 2013, 03:32:37 PM
LazyDaisy wrote:

"If anyone won 1 million (after taxes etc) in SoCal, just buying a regular ranch-style house in a subdivision would eat half of it. For those talking about paying for college: living as a student at a University of California (UCLA for example) is estimated at $31,902 per year (that does include tuition, books, housing, estimated transportation costs, and a modest budget of $1300 for personal expenses). If someone wants to live the "rich" lifestyle of the mansion and fancy car, and world travel, they'd need to have an income above $1 million per year."

Again, it's a matter of perspective.  Sure, buying that house eats half of your money, but you have a mortgage payment of a back-breaking $0 a month to keep up with coupled with the fact that you've still got $500K in cash after the purchase and you're no longer paying any kind of rent or other mortgage.  At $32K a year for college, you could attend college nonstop for three decades on one million dollars, not counting any interest earned in that time.  And one doesn't need to live the "ultra-rich" lifestyle to change one's life.  Earning a living wage without having to go to work is a significant life change for the vast majority of people out there.

Hmmmmm wrote:

"Virg you make good points, but just believe me when I say that me, my DH, and our financial planner are well aware of the amount of capitol we need to have in our savings and 401K's before we retire to live the lifestyle we want and a $1mil pot isn't it."

Add a million dollars today to what you already have, and I bet it's a lot closer to what you're aiming at.  There are few people who wouldn't consider cutting years or possibly decades off their retirement savings efforts (or being able to retire years or decades earlier) to be life-changing.  And again, we're talking about adding forty thousand dollars a year in earnings with no loss of the starting million dollars, and that's a very conservative earnings number to boot.  As above, I'm not talking about jet-setting, but getting Robin Leach to take notice isn't necessary to change your life.

magicdomino wrote:

"Having said that, a post-tax $40,000 extra per year would make a very nice supplement to the income.  Sadly, it would require actually buying a lottery ticket, and I have more faith in statistics than luck."

Then here's a little factoid that will allow you to dare to dream.  If you look at any lottery, they'll tell you the odds of winning the grand prize.  For Powerball, the odds of hitting the big number is 1 in 180 million ( it's less, but this is comfortably rounded and compensates for multiple winners in the statistics).  Add in the lesser prizes and the fact that the ticket costs two bucks, and when the Powerball jackpot rises above about 220 million, the risk-versus-earnings ratio says that a Powerball ticket becomes an investment-grade security!  OK, it's not exactly accurate, but it's a fun concept and it's inexactly accurate, so it might convince you to buy a ticket when the pot gets huge.

Virg
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Sophia on January 09, 2013, 03:35:12 PM
...Sadly, it would require actually buying a lottery ticket, and I have more faith in statistics than luck.   ;)

Same here. 

Although, I have to say that the flat 30K I inherited from my Evil Grandmother has already made a large change for us.  With that and some other money, we paid cash for a house in a small town and will be renting out our suburban home in a desirable area.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: onyonryngs on January 09, 2013, 04:13:19 PM
I'm not sure I want to share my plan lest I be told that my math is faulty and/or my plan isn't nearly exciting enough.  If someone wants to work at their job part time if they win, there's nothing wrong with that. 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: LazyDaisy on January 09, 2013, 04:22:27 PM
LazyDaisy wrote:

"If anyone won 1 million (after taxes etc) in SoCal, just buying a regular ranch-style house in a subdivision would eat half of it. For those talking about paying for college: living as a student at a University of California (UCLA for example) is estimated at $31,902 per year (that does include tuition, books, housing, estimated transportation costs, and a modest budget of $1300 for personal expenses). If someone wants to live the "rich" lifestyle of the mansion and fancy car, and world travel, they'd need to have an income above $1 million per year."

Again, it's a matter of perspective.  Sure, buying that house eats half of your money, but you have a mortgage payment of a back-breaking $0 a month to keep up with coupled with the fact that you've still got $500K in cash after the purchase and you're no longer paying any kind of rent or other mortgage.  At $32K a year for college, you could attend college nonstop for three decades on one million dollars, not counting any interest earned in that time.  And one doesn't need to live the "ultra-rich" lifestyle to change one's life.  Earning a living wage without having to go to work is a significant life change for the vast majority of people out there.

(snip the long quote)

I agree to that, it is a matter of perspective. A million dollars might change one person's life significantly and another not at all. For me, if would make me less concerned about bills in general -- but not even close to carefree and able to quit my job and travel the world. It's also be a matter of age; I wouldn't be set for life with a million -- I'd far outlive it.

The remaining $500,000 would go quickly after the purchase of a home. I may not have a mortgage or rent, but I would still have the utilities, property tax, insurance, upkeep on the house etc. Bills would grow proportionally with the house. My $15 a month renters insurance now morphs to a home owners policy (I'm afraid I have little knowledge on how much that would be, but I'm guessing more than $100 a month so more than 6 times what I now pay). I can't find a static for the size of the average single family home in my city, so I'll use my parents home as a sample 2,500 sq feet. The utilities (water/gas/electric) on my 700 sq ft apartment is roughly $200 a month. Upgrade to a house and that would probably only cover the electric bill, if that. As a renter I don't have property taxes -- as a home owner, I would now pay about $4,000 a year in property taxes according to city data for my area. That remaining $500,000 is going fast and I haven't even purchased furniture to fill it yet or had to repair the roof, two expenses I don't have now.

So if I won a million dollars, my perspective is that I would change very little in my life over the long run. I'd still need to work. I wouldn't buy a house although I'd probably move to a nicer apartment. Condos are a bad investment over time in my opinion. I'd still need to save for retirement and emergencies. I wouldn't have to sacrifice buying a new car to take a vacation but I wouldn't go on a month-long tour of Europe. Everyday expenses around me are just too high for me to think that a million will last more than 10 years, leaving me out of money still 15 years short of retirement age.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: CharlieBraun on January 09, 2013, 05:17:23 PM
Everyone has such great ideas!  I found myself going "yeah!  And that too!  Yeah!  Forgot that!"

I'm going to put in my wishes in no particular order, and thinking of what would really make us happy:

1.  Full time help for my parents - at least three people: one health care professional for medications and physical therapy (think Daphne from 'Frasier',)
one dedicated housekeeper (cleaning and meals,) and a handyman-type who can drive my parents around and take care of the grounds;
2. Buy the beach house where we vacation;
3. Full time help for my in-laws, same scenario as for my own parents;
4.  Renovate and endow the school where my husband taught - top to bottom upgrade of HVAC, windows, hallways, classroom configurations, teacher lounges (non existent now), library overhaul, textbooks, plus immediate bonuses for all of the teachers.  Declare a tuition holiday for four years for all students but reduce the number of students to no more than 15 per class.  Renovate the former convent that was literally embedded in the school and is now vacant as teacher housing for new teachers (single/married) to help them get their start.
5.  Buy and renovate an industrial building located near the current county animal shelter, into a new animal shelter, allowing the county to close down that older one and sell the now-valuable land after we donate the new animal shelter to the county.

What I won't need to do is worry about un-known relatives staking a claim; I have so thoroughly done my family tree that no one could say that they are X or Y relation without me being able to verify it!
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Emmy on January 09, 2013, 07:20:05 PM
I'd give it away to any greedy relative and former 'friend' who shows up at my doors asking for it.   ::)

A small amount (under $50,000), we'd buy a new car for me, my 12 year old 2-door isn't going to cut it when baby #2 comes.  We'd put the rest of it away.

A moderate amount ($500,000), we'd still buy the car and put most in savings.  The rest we would help out any deserving people we know and have a little fun too like take a vacation.  We'd also start a few household projects like building a deck and finishing the basement.  We'd also visit far away family more or pay for them to come see us.

A large amount ($2,000,000).  I'd get the car, still nothing overly fancy.  We'd put a good portion in college saving funds and retirement funds for us.  Of course we'd have fun like take vacations.  DH may want to consider changing jobs even if it means a pay cut.  If we invest the majority of the principal, the interest can make up the difference without a change in lifestyle.

An obscene amount ($10 mil +).  OK this is where I would go a bit crazy.  First I'd hire a financial planner and lawyer.  A lot of the money would be invested.  I like the idea of getting paid over time as opposed to a lump sum.  DH enjoys working, but this would give us the freedom to pick his job even for less pay.  We'd consider buying a new house, not a mega mansion, but a large house with some ground and 2 spare bedrooms so family and friends can be comfortable when they visit.  Put away college tuition for our own children (who are very far from college age) and also help out DH's nephews who are college age or very close to it.

No matter how much I would win, ridiculously expensive cars, over the top mansions, or purses and shoes in the thousands of dollars just don't appeal to me and not to many others from the posts I've read.  So many lottery winners seem to go crazy with these things.  I would want to enjoy the money and celebrate the win by spending a little of it, but also make sure it lasts for the future.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Nox on January 09, 2013, 08:21:38 PM
Anything less than a couple of million is just going to go into savings, kid college accounts, investments, paying bills, etc. I'd probably also try to help my brothers pay off student loans or cars, or maybe contribute to my niece and nephew's college accounts. I wouldn't stop working or pursuing further education (for the better job I'm planning to get when I'm done) unless I could really support us on the interest and dividends from investing the after tax winnings.

Over a couple of million and I'd start getting into splurge territory. Family trips to awesome locations, cars and houses for myself, family and some friends, working part time or volunteering in fields that I really like, hefty contributions to charities. I doubt it'll ever happen, but it's fun to dream. 
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Minmom3 on January 09, 2013, 10:00:18 PM
Fun money dreaming....   ;D

<$10,000 - Put it toward the mortgage.
$50,000 - Give DH a chunk to play with.  Pay off bills.  Put toward mortgage (in reverse order!).
>$1,000,000 - pay off mortgage, and fix all the stupid things about this house.  Buy me a new car, get DH's all fixed up (he doesn't WANT new).  Set up funds for the girls, both for school, and for living.  Set aside a big chunk to take care of my mother. Get another kitten!
>$10,000,000 - buy a better house on bigger land.  Make sure I get one big room for a library that my husband isn't allowed to move or import ONE THING into.  Must have enough sun for roses and veggies and fruit trees.  And still be in or close to the trees I have now.  Set up serious accounts for the girls that would trickle interest to them, no lump sums.  Make some money management courses mandatory.
Title: Re: S/O of Giving your Old One: If you won the lottery....
Post by: Ceallach on January 10, 2013, 12:33:09 AM
I guess that age and current economic position impact upon people's perspectives significantly.   If I were near retirement, a small "boost" of $1M or so would probably be enough to make me fasttrack my plans, it would make a big difference.   

I'm only in my late 20s.   My career is taking off (I'm in management) and I absolutely LOVE my job.  We're financially stable and enjoy a comfy lifestyle that we enjoy, and which takes a good 6 figures per year to maintain (although that includes our mortgage payments too!).   While a spare $1M would certainly set us up for life (no more mortgage, a bit of money to save & invest), it wouldn't make a difference long-term for us unless we also kept working- otherwise we wouldn't have the lifestyle we enjoy at all, so our quality of life would go down, not up.    Later in life, or if the mortgage was already paid off, the situation might be different.