Let's say you win a gigantic windfall...

[evan price]

Let's all assume that you've just won the Powerball ($500 million). Or something else.

What would be your best strategy for keeping the most of the money? Take the cash in a suitcase and jump on a boat? Send it to Switzerland? Hire a team of lawyers and found a trust? Put it in a plain envelope and put it in the collection plate at your church?

How do I keep my ill-gotten gains and filthy lucre from being redistributed?

[HTRN]

Short answer: you can't - they take their cut right off the top.

What would I do? First, KEEP MY MOUTH SHUT. Tell no one.

Second - move to South Dakota. Of the six or so states where you can use a trust to claim a lottery prize, South Dakota has the lowest tax rates. Trust me, you don't want your name anywhere connected with big piles of money - the murder rate for 9 figure lottery winners is something like 120 times the national average. People who are connected to you through the vaguest of means will come out of the woodwork looking to get money from you, either by begging, or SUING.

Second, when I buy my nice big, 1000 acre estate, I will also buy a cheap 3 bedroom - the cheap 3 bedroom becomes my official residence, but nobody lives there. Good luck finding me moochers!

There's a guy on GD that gave some very good financial advice - basically the way he had the money tied and structured, it would generate wealth for generations. I think one of his suggestions was to invest into a S&P 500 index fund, something with low fees. Also to invest a chunk in Treasury instruments(very low return, but it's a mainly a hedge against financial disaster)

[Erik]

Yeah, what he said.

There's a guy on GD that gave some very good financial advice - basically the way he had the money tied and structured, it would generate wealth for generations. I think one of his suggestions was to invest into a S&P 500 index fund, something with low fees. Also to invest a chunk in Treasury instruments(very low return, but it's a mainly a hedge against financial disaster)

Haven't read it, but it sounds like good advice. Generally if you have lots of money and want to live on the returns you want to go with investments like that. Another good investment is companies with good dividends, rather than trying to pick the "winners" on the stock market. Companies with high dividends are generally not as big of a risk, and at least here dividends are taxed less than the selling of the stocks are. Most people that have built up some capital in stocks here turn to those companies, it provides a steady income.

Also, I wouldn't put all of my eggs in one basket. I'd put some in other countries, some in property, some in precious metals, and so on. I've seen the political climate change fast and suddenly what you thought was a safe investment is no longer safe. I prefer to hedge my bets.

But most important, I'd try to keep a low profile. I don't know about the US, but the papers here regularly publish the names of the wealthiest people in the country, as well as in each county, and I wouldn't want to be on the top of any of those lists.

[HTRN]

Here's an article on anonymity and lottery winnings.

[Yogimus]

Honestly? it would all be blown on a 5 year flareout consisting of women, alcohol, and childhood wants that will all get tossed down the same empty hole which is my life. With any luck, my body wil self destruct before the collectors come a knockin.

[Greg]

Honestly? it would all be blown on a 5 year flareout consisting of women, alcohol, and childhood wants that will all get tossed down the same empty hole which is my life. With any luck, my body wil self destruct before the collectors come a knockin.

Tell me you'd have an entourage.

[HTRN]

Invest 25% of that in appreciating real assets and passive income generating assets (average 100% increase in real dollar value over 30 years), the income off of which you will live.

Assuming bank financing, and 20% down of that 25% of 190ish mil, that works out to roughly 250 million in property. That's either one helluva large industrial park, or half dozen medium size ones. Figuring on anywhere from two thirds to 3/4s going to the bank and taxes, that still leaves a fairly large(5-10 million a year wouldn't surprise me) amount to the owner. The other thing I thought to invest in was parking lots/garages, and rental storage.

Honestly? it would all be blown on a 5 year flareout consisting of women, alcohol, and childhood wants that will all get tossed down the same empty hole which is my life. With any luck, my body wil self destruct before the collectors come a knockin.

Your ideas are intriguing to me, and I wish to subscribe to your newsletter.

[MarkD]

I'd spend half on cigars and alcohol, and waste the other half.

Actually, my biggest problem would be keeping my wife from giving it all away, she's got a very good heart and would probably pay off the mortgage of every person we know, maybe ours too if there's enough left.

And no, if we win you can't have my wife's name and phone number.

[Termite]

We've got 10 tickets, one each for every living being in the household.
What the hell, I've got some back luck due me right?

With your "luck" history, I regret to inform you that I would have to bet "contrarian" on you, dude. No offense intended.



As for what I would do with that kind of windfall, I assure you that I wouldn't keep it all in the USA. I would have another passport/citizenship, in another name(or alternate spelling of my real name). Sort of "5 flags".
As for going into extreme details......well, this is an interesting mental exercise, but that's all it is.

[Rich]

Big enough windfall, and the need for a security team comes into the picture, as the lottery people are only too willing to publicise your good fortune.