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Link Posted: 3/14/2008 10:07:32 PM EDT
[#1]
I would be tempted to buy this house:

Belvedere



Main house, guest house, boathouse.  In Marin County, CA, just over the bridge from SF.  Yes, full of libtards, but one of the most beautiful places in the world, and filled with sexy, friendly wimmins.

Of course, I would also buy a huge spread in a place like Montana or Wyoming, which would feature:

-1000-yard shooting range
-Private baseball field, hockey rink and golf driving range
-Private lake
-Horse and hiking trails
-Music studio
-Home theater

Since you'd pocket about $95 million, you'd be able to spend $30 million and still have a whopping $65 million to invest.  At a modest 3% after tax investment income, that would be $2 million a year net income.

Someone's gonna be smiling soon, probably tomorrow night.
Link Posted: 3/14/2008 10:09:35 PM EDT
[#2]
Start an ammo factory.
Link Posted: 3/14/2008 10:14:09 PM EDT
[#3]
I would take a photo of my cock and balls, post it on ARFCom, get banned and then buy the site and redirect the following url to ARFcom:

www.racer934showshiscockandballs.com

I think for that kind of money, I could hook that up.
Link Posted: 3/14/2008 10:14:45 PM EDT
[#4]
I like the missile silo idea too.
Build a semi-isolated fortified mansion somewhere in Louisiana or Texas.
Buy a few cars, a motorcycle and a few ATVs.
Invest most, then live off dividends.


Hookers and blow and travel for the first few weeks though.
Link Posted: 3/14/2008 10:16:59 PM EDT
[#5]

Quoted:
Start an ammo factory.


And a gun company. We can never have enough gun plumbers.
Link Posted: 3/14/2008 10:18:55 PM EDT
[#6]

Quoted:
Start an ammo factory.



Perhaps look into manufacturing 922r compliance parts and aquiring foriegn rifle kits too?  You would have a built in customer base here.
Link Posted: 3/14/2008 10:23:04 PM EDT
[#7]
Make my mom and dad retire, build them a new house...  Whatever they wanted.  I'd keep working (I like my job) and probably get a new toy.  Dillion mini-gun!!
Link Posted: 3/14/2008 10:26:43 PM EDT
[#8]
Pills, escorts, beer....
Link Posted: 3/14/2008 10:27:35 PM EDT
[#9]
As best as I know, you can own an M1 Abrams in my state.  I'd get right on that.
Link Posted: 3/14/2008 10:28:24 PM EDT
[#10]
Link Posted: 3/14/2008 10:28:31 PM EDT
[#11]
I'd pump 100K into ARFCOM... renew my Team Membership.

I'd pump another 100K into ARFCOM to allow all the mods, to permit all the good shit to come back.
Naked babes, real life stuff... you know... like it was " in the good old days " .

Maybe pump another 100K into FREEBEE'S to pass around here.

ETA: Oh yeah.. I'd have to foot the bill for all the Team Memberships for all the VETS.
Link Posted: 3/14/2008 10:46:37 PM EDT
[#12]
I'd start a serious gun company manufacturing 3 guns that never should have died.

The Colt Woodsman

The BRNO ZKM - 611A.

The Winchester Model 70 in PURE pre-64 style....

All done with the most current CNC manfacturing and Q.C. processes

The nice thing is, that with Winston Wolf's help I could pull it off!  Is QCMGR still a member?


I have access to a great labor pool, engineers, QC folks, etc.

I'd start with the Woodsman in order to setup and perfect the receiving, metrology, records and manufacturing.  Once those skills are set then I'd move to the next project.

Link Posted: 3/14/2008 10:55:41 PM EDT
[#13]
Buy a couple hundred acres in the mountains and build a HUGE cabin.
Get a penthouse condo in Vegas.
A new Corvette zo6 would do nicely along with a new GMC HD2500, 4x4  Duramax diesel w/6 spd allison tranny.
Buy a place on a lake or maybe on the east coast, newport RI is pretty nice.
A private jet would be cool and I think I would need a bigger boat than I have now.
Lots of vacations, Europe, Hawaii, Italy, Greece, Germany, Russia, Venice, Monte Carlo...

So many ideas and not enough time.
Link Posted: 3/14/2008 10:57:16 PM EDT
[#14]
MGs and ammo!
Link Posted: 3/14/2008 11:00:11 PM EDT
[#15]

Quoted:
Buy all the farmground around me, and farm it for the rest of my life.

And collect and fly antique airplanes.

And have an above average gun collection.

But mostly farm, and try not to turn into a psycho drug addict depressed lotto winner, like most people you hear about.






I'm gonna +1 the above statement and add "clear all of my debts" to it. I would also invest in some real estate in various college towns and lease out apartments to qualified college kids and let my properties pay for themselves. Despite the potential hurricane problems, I would still buy a nice beach home or condo somewhere on Florida's gulf coast (probably somewhere around the destin/panama city area).
Link Posted: 3/14/2008 11:05:12 PM EDT
[#16]
id buy 2 chili and cheese dogs from sheetz and a case on Natural light
Link Posted: 3/14/2008 11:05:18 PM EDT
[#17]
Give it to someone else and wait for the divorce to be over. Then rub it in her fucking face.    
Link Posted: 3/14/2008 11:09:00 PM EDT
[#18]
well , seeing as I've already done 2 chicks at the same time (cought hell as it was my gf's best friend but it was WAY worth it) . and I own NFA stuff (I am a dealer) .

pay off my house and my family's houses . a short vactaion .newer car (I drive an 88 cherokee) .

most importanly . contribute to the cause. file a form 1 for an M16 , full auto. when it gets denied , sue and use the US vs. Miller as precedent for allowing my form to go through. I figure if I had that kind of cash it "may" be possible. I figure that would at least be a foot in the door . it would only be good for arms the mill is using (and mabey has used?) . but thats a hell of a lot better than where were at now.
Link Posted: 3/14/2008 11:09:10 PM EDT
[#19]

Quoted:

Quoted:
Start an ammo factory.


And a gun company. We can never have enough gun plumbers.



+1 on both ideas.
Link Posted: 3/14/2008 11:11:27 PM EDT
[#20]
man.. 275 million...

I would put all of it in the trusty hands of the swiss. let it earn a fuck ton of interest for 6 month(say the interest is a fantastic 6%) ya'll can do the math

I would then take 75 million and not touch any of it and just let it earn interest.

As for the rest.....

I would hire Ex SEAL and Green Beret's to train the hell out of me(if this happened to me as of right now..i am enlisted into the airborne ranger program..if this were to happen in a few years lets say I might not need the vigorous training)

THEN I would build my self a fortress embedded in the wilderness of the wind river range that would be self powered by a custom built hydro-electric power plant.

I would have 5 levels(a secret 6th level with a secret exit to a secret escape)

two levels above ground.

Top most two levels would be would be a living room/bed area/outdoor area/nature area/weight lifting area with a 20 foot solid granite statue of William Tecumseh Sherman  The top most level will also have murder holes with mounted M2 .50 cals and mounted mine launchers that when triggered will launch 1000's of anti personal mines all over the area if the perimeter is breached by hostels. Mines will be custom and will be able to be detonated via remote.

The underground levels(all sound proof and ventilated):

1: Movie Theater/entertainment zone(self explanatory)

2: Green House room for all my agriculture needs

3: Supply level(tools, food, water, everything stockpiled and temperature controlled)

4: Rave/Party level(embedded speakers, subs, lights, fog, bar, the works)

5: War Level(guns guns guns..and MORE guns. Reloading Ammo stockpile, NFA, Destructive devises etc.)

6: The secret level with secret escape

Vehicles: Motorcycle, H1 Humvee with armored glass/plating with mount for M2 .50, Old School 66 GTO with a 502 650 HP with armored glass




Link Posted: 3/14/2008 11:11:48 PM EDT
[#21]
If I were to ever come across a large sum of money, I would do the following:

- Get a damn good lawyer
- Get a even better financial planner
- Blow ~20% of the winnings on whatever (guns, hookers, and blow )
- Put the rest of the money to work, ensuring that myself, my family and future generations of my family will not have to worry much about money.

ETA:

I would still maintain my current employment. However, I would ensure that I owned a large share of stock in my current company (enough to get on the board at least).
Link Posted: 3/14/2008 11:13:16 PM EDT
[#22]
donate it to find a cure for cancer






(and coke and hookers and guns)
Link Posted: 3/14/2008 11:22:38 PM EDT
[#23]
I would buy a 40 acre plot of land and build a building. This building would have dirt floors and would be completely climate controlled.

Then I would hire someone and pay them a generous salary to do a job. Their job would be to dig holes with a shovel inside the building. Nonstop for 8 hours, with a 30 minute lunchbreak each day. Each hole would be at least 4 feet deep and that would be his job, to simply dig holes all day.

I would then hire a second person whose job it would be to go around and fill in each hole that the first person dug. He too would receive a generous salary and that would be his job, to simply fill in the holes.

I would have control of the climate control system of the building. If the workers get too productive, I turn the heat up. If they complain and threaten to quit, I give them raises. They would be absolutely miserable and frustrated, but would live in mansions and drive expensive cars to work each day pissed off and complaining about their job. And this is how I would keep myself amused...

After I got bored of this entire situation, I dunno what i'd do... I guess i'd just fire them or something...
Link Posted: 3/14/2008 11:24:17 PM EDT
[#24]
Buy a slightly larger house and get a new truck. I have everything else i really need or want.
Link Posted: 3/14/2008 11:27:27 PM EDT
[#25]
Take some serious sailing courses.

Get my captains license.

Buy a huge ass sailboat and hire a crew of peeps to help me sail it around the world.

Link Posted: 3/14/2008 11:29:05 PM EDT
[#26]

Quoted:
If you survived the shock of winning, what next? After all the glimmer and lights go away and your all alone back at your computer knowing you will never have to worry about $$$ again where do you focus, what would give you purpose?

Personally I would setup the fortress.  All my friends would be on my payroll no more 9-5 for them, my family would be setup and my hobbies would increase. Hobbies like my Class 3 collection, My long Range 50 cal club,

Might build the fortress out of one of these properties. www.missilebases.com/properties/index.html

It's fun to dream


1) Buy a few guns, sell my airplane project & buy a Diamond or Cirrus... A jet would be nice, but I'm not going to kill myself trying to go from Cessna 172s to a turbine bird....

2) Sell my house & move closer to Ft Lewis... Roy or Dupont...

3) Live life as usual... DO NOT tell anyone in the Army I have THAT MUCH money....

4) Give some to various organizations... My old church in WI, for one...
Link Posted: 3/14/2008 11:32:33 PM EDT
[#27]
Well, I certainly wouldn't need the roofies anymore.
Link Posted: 3/14/2008 11:35:42 PM EDT
[#28]
The question should be "what wouldn't you do."  
Link Posted: 3/14/2008 11:36:59 PM EDT
[#29]
^^I'd hunt Dave down, kidnap him (rent dog the bounty hunter?) and force him to live with my kind in the backwoods of kaintuck for a few months so he learns to appreciate individualism more and gains some faith in humanity....and has to eat my shitty cooking...NUCLEAR HAM & mushrooms with BOURBON FTW!!!

But seriously, after taking care of my clan and extended clan....I'd like to build a castle where my double wide sits now....get into developing video games.....buy some porno companies....maybe go into firearm design and production....set mom up so she never has to lift a finger again......take dad to alaska to hunt.....take my boyz to someplace they'd enjoy (probably something NASA or disney) buy the wife a diamond studded dildo to replace me with....donate some to the NRA GOA and JFPO.....get REALLY F'N DRUNK!!!!

Build a memorial to Gary Gygax maybe?

Mostly waste it I guess, hell, you better keep it...

Minus buying up some party liquor!!! Hawt Damn!!!

Yeah....buy out Jim Beam and die of liver failure!!!
Link Posted: 3/14/2008 11:39:12 PM EDT
[#30]
I would fuck hot women from every country on earth.  EVERY country.  I might even be the first guy in history to tag a citizen of every nation in the world.  I'd make them all take STD tests first though.

Houses all over the world.

Private jet.

Nice car collection.

Trust funds for all future children.

Invest in successful companies.

etc. etc. etc.

Seriously, with that much money and all the stuff I could do with it, guns would be pretty low on the priority list.  Shooting isn't nearly as much fun as the shit I could do with 300 million bucks.  
Link Posted: 3/14/2008 11:40:50 PM EDT
[#31]

I would fuck hot women from every country on earth. EVERY country. I might even be the first guy in history to tag a citizen of every nation in the world. I'd make them all take STD tests first though.


pfft, ametuer, a real man would GIVE them all stds's...LoL!!!
Link Posted: 3/14/2008 11:41:00 PM EDT
[#32]
I always said that if I win anything huge that before I do anyting for me I will go out an either donate a lot or find some people to help out. Then later I can take care of me.

For me just pay off everything. FInally get my Delorean and be happy
Link Posted: 3/14/2008 11:41:44 PM EDT
[#33]
mmmm brown party liquor
Link Posted: 3/14/2008 11:42:59 PM EDT
[#34]
^^gawtdamn right! woohoo! chug at sumbitch!!!
Link Posted: 3/14/2008 11:47:20 PM EDT
[#35]

Quoted:
^^gawtdamn right! woohoo! chug at sumbitch!!!


hell yeah while cruzins in my Truck boat Truck  


DO NOT TOUCH THE TRIM
Link Posted: 3/14/2008 11:50:24 PM EDT
[#36]
If i won the jackpot i could afford to buy THIS!



(not RR)
Link Posted: 3/14/2008 11:57:40 PM EDT
[#37]
I do luvs me a good truck boat truck!


ETA now settle down Rusty......
Link Posted: 3/15/2008 12:04:30 AM EDT
[#38]

Quoted:
<snip>

Seriously, with that much money and all the stuff I could do with it, guns would be pretty low on the priority list.  Shooting isn't nearly as much fun as the shit I could do with 300 million bucks.  


For 300M, I bet you could find some guns worth shooting. Hell with that kind of money you probably could pay the Ruskies, take a trip into space, and do some REAL space shuttle door gunning.
Link Posted: 3/15/2008 12:15:13 AM EDT
[#39]

Quoted:

Quoted:
<snip>

Seriously, with that much money and all the stuff I could do with it, guns would be pretty low on the priority list.  Shooting isn't nearly as much fun as the shit I could do with 300 million bucks.  


For 300M, I bet you could find some guns worth shooting. Hell with that kind of money you probably could pay the Ruskies, take a trip into space, and do some REAL space shuttle door gunning.


Well I'd definitely have a helo with a minigun equipped... but even that could only be fun for so long.
Link Posted: 3/15/2008 12:15:36 AM EDT
[#40]
Buy an island in Dubai. Party with "Kristen".Pay all debt.set up funds for all in my life that were their for me before I had money.Travel and see the world.Not care that gas is 3.30 a gal.
Link Posted: 3/15/2008 12:16:11 AM EDT
[#41]
You can't win if you don't play.  I don't pay the stupid tax.  
Link Posted: 3/15/2008 12:16:24 AM EDT
[#42]
One can never have too many beach houses.
Link Posted: 3/15/2008 12:39:39 AM EDT
[#43]
did someone already say two chix at the same time?
Link Posted: 3/15/2008 4:13:34 AM EDT
[#44]
There are some alarming statistics about large jackpot lottery winners.  They face double digit multiples of probability versus the general population for:

Homicide (something like 20x more likely)
Drug overdose
Bankruptcy (how's that for irony?)
Kidnapping

And triple digit multiples of probability for the general population rate of:

Drunk Driving Conviction
Homicide by family member (120x more likely)
Subject of civil lawsuit
Subject of felony criminal proceedings

etc. etc.

Your biggest enemy if you suddenly become possessed of large sums of money is... you.

There are any number of willing participants ready to help you start your downward spiral.  Mind you, many of these will be "friends," "neighbors," or "family."  Often, they won't even have evil intentions.  But, as I'm sure you know, that makes little difference in the end.  They aren't evil.  They aren't malicious.  They aren't good for you.

Jack Whittaker is the poster boy for the dangers of a lump sum award.

So, what to do?

DO NOT DECLARE YOURSELF THE WINNER yet.  Do NOT tell anyone.  The urge is going to be nearly irresistible.  Resist it.  Trust me.

1.  IMMEDIATELY retain an attorney.  Get a partner from a larger, NATIONAL firm.  Don't let them pawn off junior partners or associates on you.  They might try, all law firms might, but insist that your lead be a partner who has been with the firm for awhile.  Do NOT use your local attorney.  Your long-standing family attorney who did your mother's will.  Do not use the guy who fought your dry-cleaner bill.  Do not use the guy you have trusted your entire life because of his long and faithful service to your family.  In fact, do not use any firm that has any connection to family or friends or community.  TRUST me.  This is bad.  You want someone who has never heard of you, any of your friends, or any member of your family.  Go the the closest big city and walk into one of the national firms asking for one of the "Trust and Estates" partners you have previously looked up on martindale.com from one of the largest 50 firms in the United States which has an office near you.  You can look attornies by practice area and firm on Martindale.  The top 50 firms by size are:

Baker & McKenzie
DLA Piper Rudnick Gray Cary
Jones Day
White & Case
Latham & Watkins
Skadden, Arps, Slate, Meagher & Flom
Sidley Austin Brown & Wood
Greenberg Traurig
Mayer Brown, Rowe & Maw
Morgan, Lewis & Bockius
Holland & Knight
Wilmer Cutler Pickering Hale and Dorr
Weil, Gotshal & Manges
Kirkland & Ellis
Morrison & Foerster
McDermott, Will & Emery
Shearman & Sterling
Hogan & Hartson
Kirkpatrick & Lockhart Nicholson Graham
Reed Smith
O’Melveny & Myers
Akin Gump Strauss Hauer & Feld
Paul, Hastings, Janofsky & Walker
Foley & Lardner
Fulbright & Jaworski
Cleary Gottlieb Steen & Hamilton
Pillsbury Winthrop Shaw Pittman
Dechert
King & Spalding
Bingham McCutchen
Wilson, Elser Moskowitz, Edelman & Dicker
Winston & Strawn
Squire, Sanders & Dempsey
Hunton & Williams
Gibson, Dunn & Crutcher
Orrick, Herrington & Sutcliffe
Bryan Cave
Vinson & Elkins
Ropes & Gray
Proskauer Rose
Heller Ehrman
Alston & Bird
McGuireWoods
Simpson Thacher & Bartlett
Baker Botts
Sonnenschein Nath & Rosenthal
Debevoise & Plimpton
Nixon Peabody
Paul, Weiss, Rifkind, Wharton & Garrison
LeBoeuf, Lamb, Greene & MacRae

2.  Decide to take the lump sum.  Most lotteries pay a really pathetic rate for the annuity.  It usually hovers around 4.5% or less, depending.  It doesn't take much to do better than this, and if you have the money already, you can pull from the capital whenever you like.  If you need an allowance managed by the state, it is because you didn't listen to point #1 above.  Many state lotteries just buy U.S. treasuries (damn safe) and fund the payments to you that way for the annuity option.  You will not be beating inflation by much, if at all.  You should expect to get about half of the jackpot if you elect a lump sum (maybe better, it depends).  After that, you should expect to lose around 40% to state and federal taxes.  That leaves around $82.5 million after tax for $275 million in jackpot.  (Your mileage may vary).

3.  Decide right now, how much you plan to give to family and friends.  This really shouldn't be more than 20% or so.  Figure it out right now.  Pick your number.  Tell your lawyer.  That's it.  Don't change it.  20% of $82.5 million is $16.5 million.  That leaves you with $66 million.  Do NOT give anyone cash.  Ever.  Period.  Just don't.  Do not buy them houses.  Do not buy them cars.  Tell your attorney that you want to provide for your family, and that you want to set up a series of trusts for them that will total 20% of your after tax winnings.  Tell him you want the trust empowered to fund higher education, some help (not a total) purchase of their first home, some provision for weddings, and the like, whatever.  Do NOT put yourself in the position of handing out cash.  Once you do, if you stop, you will be accused of being a heartless bastard (or bitch).  Trust me.  It won't go well.  Setting up an education trust, a managed fund for your family that is in the double digit millions is AMAZINGLY generous.  You need never have trouble sleeping because you didn't lend Uncle Jerry $20,000 in unmarked bills to start his chain of boiled pancake restaurants.  Your attorney will have a number of good ideas how to parse this wealth out without turning your siblings/spouse/children/grandchildren/cousins/waitresses into the latest Paris Hilton.

4.  You will be encouraged to hire an investment manager.  Don't.  Investment managers charge fees, usually a percentage of assets.  Consider this: If they charge 1% (which is low) they have to beat the market by 1% every year just to break even with a general market index fund.  It's not worth it, and you don't need the extra return or the extra risk.  Go for the index fund instead.  They will sound smart.  They will have lots of cool acronyms.  They will have nice PowerPoint presentations.  Smile, thank them for their time, and then tell them you will get back to them next week.  Don't sign ANYTHING.  Never call them back.  Trust me.  You will thank me later.

Get all this figured out BEFORE you claim your winnings.  They aren't going anywhere.  Just relax.

5.  Use between 20.00% and 33.00% of what you have not decided to commit to a family fund IMMEDIATELY to purchase a combination of longer term U.S. treasuries (5 or 10 year are a good idea) and another G7 treasury instrument.  This is your safety net.  You are going to be really tempted to starting being a big investor.  You are going to be convinced that you can double your money in Vegas with your awesome Roulette system/by funding your friend's amazing idea to sell Lemming dung/buying land for oil drilling/by shorting the North Pole Ice market (global warming, you know).  You're not going to double your money, so cool it.  Right now, you'll get around 3.5% on the 10 year U.S. treasury.  With $13.2 million (20%) invested in those you will pull down $462,000 per year.  If everything else blows up, you still have that, and you will be in the top 1% of income in the United States.  So how about you not fuck with it.  Eh?  And that's income that is damn safe.  If we get to the point where the United States defaults on those instruments, we are in far worse shape than worrying about money.  Still, if you are really paranoid, you might consider picking another G7 or otherwise mainstream country other than the U.S. according to where you want to live if the United States dissolves into anarchy or some similar absurdity.  Putting some fraction in something like Swiss Government Bonds at 3%.  If the Swiss stop paying on their government debt, well, then you know money really means nothing anywhere on the globe anymore.

6.  That leaves, say, 80% of $66 million or $52 million.  Here is where things start to get less clear.  Personally, I think you should dump half of this, or $26 million, into a boring S&P 500 index fund.  Find something with low fees.  You are going to be constantly tempted to retain "sophisticated" advisers who charge "nominal fees."  Don't.  Period.  Even if you lose every other dime, you have $462,000 per year you didn't have before that will keep coming in until the United States falls into chaos.  Fuck advisers and their fees.  Instead, drop your $26 million in the market in a low fee vehicle.  Unless we have an unprecedented downturn the likes of which the United States has never seen, should return around 7.00% or so over the next 10 years or so.  You should expect to touch not even a dime of this money for 10 or 15 or even 20 years.  In 20 years $26 million could easily become $95 million.

7.  So you have put a safety net in place.  You have provided for your family beyond your wildest dreams.  And you still have $26 million in "cash."  You know you will be getting $462,000 per year unless the capital building is burning, you don't ever need to give anyone you care about cash, since they are provided for generously and responsibly (and can't blow it in Vegas) and you have a HUGE nest egg that is growing at market rates.  (Given the recent dip, you'll be buying in at great prices for the market).  What now?  Whatever you want.  Go ahead and burn through $26 million in hookers and blow if you want.  You've got more security than 99% of the country.  A lot of it is in trusts so even if you are sued your family will live well, and progress across generations.  If your lawyer is worth his salt (I bet he is) then you will be insulated from most suits anyhow.  Buy a nice house or two, make sure they aren't stupid investments though.  Go ahead and be an angel investor and fund some startups, but REFUSE to do it for anyone you know.  (Friends and money, oil and water  - Michael Corleone)  Play.  Have fun.  You earned it by putting together the shoe sizes of your whole family on one ticket and winning the jackpot.

You 'da Man (Woman).
Link Posted: 3/15/2008 4:27:17 AM EDT
[#45]
Buy a yacht
http://www.searay.com/2008_sea_ray_yachts_60_sundancer.asp

Docking fees for said yacht paid off for life, a ton of ammo and guns, and throw the rest into a trust fund/money market that will pay for gas on the boat and boat the Caribbean for the rest of my life.
Link Posted: 3/15/2008 4:30:55 AM EDT
[#46]

Quoted:
There are some alarming statistics about large jackpot lottery winners.  They face double digit multiples of probability versus the general population for:

Homicide (something like 20x more likely)
Drug overdose
Bankruptcy (how's that for irony?)
Kidnapping

And triple digit multiples of probability for the general population rate of:

Drunk Driving Conviction
Homicide by family member (120x more likely)
Subject of civil lawsuit
Subject of felony criminal proceedings

etc. etc.

Your biggest enemy if you suddenly become possessed of large sums of money is... you.

There are any number of willing participants ready to help you start your downward spiral.  Mind you, many of these will be "friends," "neighbors," or "family."  Often, they won't even have evil intentions.  But, as I'm sure you know, that makes little difference in the end.  They aren't evil.  They aren't malicious.  They aren't good for you.

Jack Whittaker is the poster boy for the dangers of a lump sum award.

So, what to do?

DO NOT DECLARE YOURSELF THE WINNER yet.  Do NOT tell anyone.  The urge is going to be nearly irresistible.  Resist it.  Trust me.

1.  IMMEDIATELY retain an attorney.  Get a partner from a larger, NATIONAL firm.  Don't let them pawn off junior partners or associates on you.  They might try, all law firms might, but insist that your lead be a partner who has been with the firm for awhile.  Do NOT use your local attorney.  Your long-standing family attorney who did your mother's will.  Do not use the guy who fought your dry-cleaner bill.  Do not use the guy you have trusted your entire life because of his long and faithful service to your family.  In fact, do not use any firm that has any connection to family or friends or community.  TRUST me.  This is bad.  You want someone who has never heard of you, any of your friends, or any member of your family.  Go the the closest big city and walk into one of the national firms asking for one of the "Trust and Estates" partners you have previously looked up on martindale.com from one of the largest 50 firms in the United States which has an office near you.  You can look attornies by practice area and firm on Martindale.  The top 50 firms by size are:

Baker & McKenzie
DLA Piper Rudnick Gray Cary
Jones Day
White & Case
Latham & Watkins
Skadden, Arps, Slate, Meagher & Flom
Sidley Austin Brown & Wood
Greenberg Traurig
Mayer Brown, Rowe & Maw
Morgan, Lewis & Bockius
Holland & Knight
Wilmer Cutler Pickering Hale and Dorr
Weil, Gotshal & Manges
Kirkland & Ellis
Morrison & Foerster
McDermott, Will & Emery
Shearman & Sterling
Hogan & Hartson
Kirkpatrick & Lockhart Nicholson Graham
Reed Smith
O’Melveny & Myers
Akin Gump Strauss Hauer & Feld
Paul, Hastings, Janofsky & Walker
Foley & Lardner
Fulbright & Jaworski
Cleary Gottlieb Steen & Hamilton
Pillsbury Winthrop Shaw Pittman
Dechert
King & Spalding
Bingham McCutchen
Wilson, Elser Moskowitz, Edelman & Dicker
Winston & Strawn
Squire, Sanders & Dempsey
Hunton & Williams
Gibson, Dunn & Crutcher
Orrick, Herrington & Sutcliffe
Bryan Cave
Vinson & Elkins
Ropes & Gray
Proskauer Rose
Heller Ehrman
Alston & Bird
McGuireWoods
Simpson Thacher & Bartlett
Baker Botts
Sonnenschein Nath & Rosenthal
Debevoise & Plimpton
Nixon Peabody
Paul, Weiss, Rifkind, Wharton & Garrison
LeBoeuf, Lamb, Greene & MacRae

2.  Decide to take the lump sum.  Most lotteries pay a really pathetic rate for the annuity.  It usually hovers around 4.5% or less, depending.  It doesn't take much to do better than this, and if you have the money already, you can pull from the capital whenever you like.  If you need an allowance managed by the state, it is because you didn't listen to point #1 above.  Many state lotteries just buy U.S. treasuries (damn safe) and fund the payments to you that way for the annuity option.  You will not be beating inflation by much, if at all.  You should expect to get about half of the jackpot if you elect a lump sum (maybe better, it depends).  After that, you should expect to lose around 40% to state and federal taxes.  That leaves around $82.5 million after tax for $275 million in jackpot.  (Your mileage may vary).

3.  Decide right now, how much you plan to give to family and friends.  This really shouldn't be more than 20% or so.  Figure it out right now.  Pick your number.  Tell your lawyer.  That's it.  Don't change it.  20% of $82.5 million is $16.5 million.  That leaves you with $66 million.  Do NOT give anyone cash.  Ever.  Period.  Just don't.  Do not buy them houses.  Do not buy them cars.  Tell your attorney that you want to provide for your family, and that you want to set up a series of trusts for them that will total 20% of your after tax winnings.  Tell him you want the trust empowered to fund higher education, some help (not a total) purchase of their first home, some provision for weddings, and the like, whatever.  Do NOT put yourself in the position of handing out cash.  Once you do, if you stop, you will be accused of being a heartless bastard (or bitch).  Trust me.  It won't go well.  Setting up an education trust, a managed fund for your family that is in the double digit millions is AMAZINGLY generous.  You need never have trouble sleeping because you didn't lend Uncle Jerry $20,000 in unmarked bills to start his chain of boiled pancake restaurants.  Your attorney will have a number of good ideas how to parse this wealth out without turning your siblings/spouse/children/grandchildren/cousins/waitresses into the latest Paris Hilton.

4.  You will be encouraged to hire an investment manager.  Don't.  Investment managers charge fees, usually a percentage of assets.  Consider this: If they charge 1% (which is low) they have to beat the market by 1% every year just to break even with a general market index fund.  It's not worth it, and you don't need the extra return or the extra risk.  Go for the index fund instead.  They will sound smart.  They will have lots of cool acronyms.  They will have nice PowerPoint presentations.  Smile, thank them for their time, and then tell them you will get back to them next week.  Don't sign ANYTHING.  Never call them back.  Trust me.  You will thank me later.

Get all this figured out BEFORE you claim your winnings.  They aren't going anywhere.  Just relax.

5.  Use between 20.00% and 33.00% of what you have not decided to commit to a family fund IMMEDIATELY to purchase a combination of longer term U.S. treasuries (5 or 10 year are a good idea) and another G7 treasury instrument.  This is your safety net.  You are going to be really tempted to starting being a big investor.  You are going to be convinced that you can double your money in Vegas with your awesome Roulette system/by funding your friend's amazing idea to sell Lemming dung/buying land for oil drilling/by shorting the North Pole Ice market (global warming, you know).  You're not going to double your money, so cool it.  Right now, you'll get around 3.5% on the 10 year U.S. treasury.  With $13.2 million (20%) invested in those you will pull down $462,000 per year.  If everything else blows up, you still have that, and you will be in the top 1% of income in the United States.  So how about you not fuck with it.  Eh?  And that's income that is damn safe.  If we get to the point where the United States defaults on those instruments, we are in far worse shape than worrying about money.  Still, if you are really paranoid, you might consider picking another G7 or otherwise mainstream country other than the U.S. according to where you want to live if the United States dissolves into anarchy or some similar absurdity.  Putting some fraction in something like Swiss Government Bonds at 3%.  If the Swiss stop paying on their government debt, well, then you know money really means nothing anywhere on the globe anymore.

6.  That leaves, say, 80% of $66 million or $52 million.  Here is where things start to get less clear.  Personally, I think you should dump half of this, or $26 million, into a boring S&P 500 index fund.  Find something with low fees.  You are going to be constantly tempted to retain "sophisticated" advisers who charge "nominal fees."  Don't.  Period.  Even if you lose every other dime, you have $462,000 per year you didn't have before that will keep coming in until the United States falls into chaos.  Fuck advisers and their fees.  Instead, drop your $26 million in the market in a low fee vehicle.  Unless we have an unprecedented downturn the likes of which the United States has never seen, should return around 7.00% or so over the next 10 years or so.  You should expect to touch not even a dime of this money for 10 or 15 or even 20 years.  In 20 years $26 million could easily become $95 million.

7.  So you have put a safety net in place.  You have provided for your family beyond your wildest dreams.  And you still have $26 million in "cash."  You know you will be getting $462,000 per year unless the capital building is burning, you don't ever need to give anyone you care about cash, since they are provided for generously and responsibly (and can't blow it in Vegas) and you have a HUGE nest egg that is growing at market rates.  (Given the recent dip, you'll be buying in at great prices for the market).  What now?  Whatever you want.  Go ahead and burn through $26 million in hookers and blow if you want.  You've got more security than 99% of the country.  A lot of it is in trusts so even if you are sued your family will live well, and progress across generations.  If your lawyer is worth his salt (I bet he is) then you will be insulated from most suits anyhow.  Buy a nice house or two, make sure they aren't stupid investments though.  Go ahead and be an angel investor and fund some startups, but REFUSE to do it for anyone you know.  (Friends and money, oil and water  - Michael Corleone)  Play.  Have fun.  You earned it by putting together the shoe sizes of your whole family on one ticket and winning the jackpot.

You 'da Man (Woman).




Outstanding investment advice.

I read here a couple of years ago that someone who sounded like they knew what they were talking about said to make copies of the ticket and after putting the ticket in a safe place, to go to a firm to have a trust fund created and that fund would claim the prize to keep your name out of public.

What is the procedure for that?

John
Link Posted: 3/15/2008 4:43:29 AM EDT
[#47]

Move to the US and buy a huge property in Alaska. I would collect guns and not have to worry about ammo prices.
I would also get all the hookers and blow I will ever need.
Link Posted: 3/15/2008 4:48:23 AM EDT
[#48]
You'd all know me better as Client #10
Link Posted: 3/15/2008 4:52:17 AM EDT
[#49]
Bank some and invest the rest. Wouldn't tell anyone about it (except taxes of course). I'm a simple man, so I wouldn't be buying much with the money. Just saving it for later, but I would do the "two girls at the same time" thing every once in awhile. I'd be happy knowing that I didn't have to worry about money.
Link Posted: 3/15/2008 4:55:11 AM EDT
[#50]

Quoted:
What would you do if you won the 275million power-ball drawing?  


I'd hire a tax attorney.

I'd hire an investment counselor.

Then I'd go to work just like every other day.

When a year had passed..........then I'd reassess my future.

My lovely wife and I would retire!!!!

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