Hypothetical Question - What Is Your 'If I Won The Lottery' Plan

LJsmith8987 on 29/04/2019 - 00:44
Last edited 29/04/2019 - 00:45

Hi all,

I am going to ask the only type of financial advice I would feel comfortable asking random internet strangers - one whose answer has a very high proportion of never being put into practice! So, imagine you have come unexpectedly into a large sum of money. Given the median house price in capital cities hovers around $1 million, let's assume we are talking about something in the 10s of millions - enough to mean you would never have to work a day of your life again.

What would you do? I am not asking about showy stuff you would buy to tell the world of your newfound wealth (and potentially make yourself a target for blackmail/extortion/etc), but financially how would you structure things? What would you do to ensure you could control the wealth but keep it far enough from you to avoid risking loss to others (the taxman, family, lawsuits, etc)? Also, would you keep performing your current job, or something else entirely?

I'm not sure if the headache of such a windfall would ever be worth it, but I do wonder if people have ever thought through this sort of scenario to actually have a plan.

Financial

Comments

  • Wystri Warrick on 29/04/2019 - 01:10
    +2

    First I'd erect a huge statue of scotty in his honour and all the mods, with me in the centre hugging scotty.
    Then I'd buy Ozbargain and rename it WystriBargain, I can really picture myself being supreme leader of Ozbargain.
    Then I'd cancel everyone's Ozbargain Premium memberships and give scotty and OP lifetime WystriBargain Platinum memberships to show how much I love them.
    And I'd also release Scab from the sin bin, then spank him really really hard for being a naughty boy (yes I'd definitely enjoy that).

  • Findo on 29/04/2019 - 01:31
    -1

    I’d buy a house, set aside 3/4 of the remainder to be invested in managed funds and play the pokies all day every day with the rest

  • Zachary on 29/04/2019 - 01:41

    ….I would make my own country of independence, neutral to all……and setup some military defenses just in case I do get hostiles come in to try and take ownership from me…..like an anti-nuke shield able to defend against even the most powerful-est of the nuke drop, some air defense in case they decide to do a bombing run on my island or send parachute troops to apprehend me and anti-navel defenses in case they bring in the big guns from their battleships and such…..

    • Wystri Warrick on 29/04/2019 - 01:57
      +1

      That you Kim?

      • Zachary on 29/04/2019 - 22:44

        But isn't north korea in some sort of heat against america? Because america decided to do something to north korea's allies?

  • [Deactivated] on 29/04/2019 - 01:49

    I would probably obsess about health and plastic in the food chain and go nuts trying to live to one thousand like the twitter founder wackjob.

  • Diji1 on 29/04/2019 - 02:06

    Move to a tax haven,
    ~35% into some index funds where the investors own the fund in several countries,
    ~35% into real estate in some fashion,
    ~20% into precious metals mostly gold
    ~10% into coins

    • [Deactivated] on 01/05/2019 - 22:02

      ~20% into precious metals mostly gold

      Can comfortably split investment in that part of your portfolio -
      https://youtu.be/EQb48nj4Ys8

  • AdosHouse on 29/04/2019 - 02:34
    +12

    Buy a large rural property. Erect very secure 8 foot fence around property. Adopt about 300 rescue dogs. Spend rest of days enjoying life with dogs.

    • Wystri Warrick on 29/04/2019 - 14:01

      I like this idea. We should be friends.

    • pjetson on 29/04/2019 - 14:18

      Many dogs will dig under fences. Better allow for 8 foot of fence above ground and two feet below ground.

  • Cheeper on 29/04/2019 - 03:05
    +8

    Pay off some of my credit card.

  • josetann on 29/04/2019 - 05:18
    +2
    1. Contact a good lawyer.
    2. Do best to ensure no one found out I won the lottery. No, I don't mean hiding from ATO, I just mean making sure friends/family (other than spouse) don't find out.
    3. Crunch numbers, decide if investing entire amount then paying mortgage with the 4% I (can) withdraw each year makes better financial sense, or pay house with cash and invest rest.
    4. Throw caution to the wind and buy a sailboat instead.
    • EightImmortals on 29/04/2019 - 07:33

      I like the cut of the your jib!

      Except for the mortgage bit, as you can;t claim anything back on your PPOR you'd be better off paying it out and NOT paying all that interest to the banksters.

      • josetann on 29/04/2019 - 08:23

        You're assuming I'd limit my housing options to this country.

    • anastasiastarz on 03/05/2019 - 22:08

      Don't forget to change your number ;)

  • Quantumcat on 29/04/2019 - 06:27
    +4

    I would not tell anyone except partner and parents. I'd pay off my mortgage, rent it out, and buy a nice mini mansion closer to work. I'd buy an apartment in Sydney to stay at when I want to see a theatre show and let it on AirBnB the rest of the time. And maybe one down at the snow and one at the coast. I'd pay off my parents' mortgage but not my sisters' (they make too much money). Invest any remainder in something very safe and let it compound, occasionally take some out for spending money or to pay my now much higher rates bill. Then go on living as I have been (I love my work).

  • Donaldhump on 29/04/2019 - 06:50
    +5

    Walk into work with a fur coat, gold pimp Cain incrusted in diamonds, with a Rottweiler in each hand,

    Sit down, light up a huge cigar, and then proceed to let one specific lady know what I think of her, before eating caviar and other expensive foods, off hired nude models bodies.

    Pack up and leave

    • altomic on 29/04/2019 - 08:35
      +3

      I've always wanted to walk into my bosses office and say "simon says - hands up who works at this company" pause for 60 seconds whilst maintaining eye contact and then walk out for ever

      • Donaldhump on 29/04/2019 - 10:06
        +2

        yeh that would be a good one

        well i said the above to a nasty hr lady above when it came up in convo, and she said i would get fired if i smoked in the office. i said i dont really think i need the job and thats the whole point of doing it, but if i had enough money id buy the company and then fire her.

      • ESEMCE on 29/04/2019 - 10:24
        +1

        For a moment there I thought you were going to secretively buy the company, then walk into your boss's office and say "simon says - hands up who works at this company" pause for 60 seconds whilst maintaining eye contact and then fire his/her ass!

    • pjetson on 29/04/2019 - 14:23
      +1

      I must be naive, when you said "let one specific lady know what I think of her" I thought you meant you'd be telling her that you like her. But later, you mention the "nasty HR lady", so I'm now guessing that you mean her, and what you're going to say won't be nice.

  • Ryanek on 29/04/2019 - 08:06

    Get a Trust and Estate lawyer ASAP.

  • SnowDragon on 29/04/2019 - 08:28
    +2

    I often think about the advice offered by some random Reddit user

    But basically if I won the lottery right now I would

    • Finish the work day and hand in my two weeks
    • Give just enough to immediate family so they can live comfortably and not bother me for more money (say $2 mil each)
    • Buy a few properties to rent out while I travel the world
    • Spend my time between ski resorts and tropical beaches
    • Find some model to marry
    • Donaldhump on 29/04/2019 - 10:07
      +3

      why get married, just have a string of girlfriends

    • Love a bargain on 29/04/2019 - 15:10

      I hope you don't come from a large family

      • SnowDragon on 29/04/2019 - 15:13

        Just two others.

        Take what you can. Give nothing back!

  • altomic on 29/04/2019 - 08:33
    +11

    pay off my HECS and with the remainder I'd buy a dominos value range pizza

  • Bid Sniper on 29/04/2019 - 09:13

    Timely horrific ends to all my enemies. Then live the Dr. NO lifestyle with a Shark pool.

  • GG57 on 29/04/2019 - 09:14

    Duplicate post? https://www.ozbargain.com.au/node/395488

  • Seraphin7 on 29/04/2019 - 09:29
    +2
    1. Disappear.
    2. Lawyer/accountant up.
    3. Structure to minimise tax and protect my children and their future offspring from legal liabilities including as a result of divorce.
    4. I'd likely then purchase my principal residence in Sydney, live in it for 4-6 months a year and the rest somewhere else (likely to include northern Queensland, regional Italy and regional France).
    5. Sit back and enjoy the good life.
  • Some Human on 29/04/2019 - 09:33
    +1

    I wanna own a decommissioned lighthouse. And I wanna live at the top. And nobody knows I live there. And there’s a button that I can press and launch that lighthouse into space.

    • Michael1983 on 29/04/2019 - 11:30
      +1

      Dreaming of being an Aquaman father? :)

  • CyberMurning on 29/04/2019 - 09:46

    Quit the job
    40% Buy couple more properties
    40% goes to long term investments
    10% for day share trading
    10% to enjoy….

  • 87percent on 29/04/2019 - 10:17

    stay working, stick balance of mortage into offset, don't tell anyone but family, get my financial planner on the phone

  • olivecheese on 29/04/2019 - 10:26
    +4

    See lawyer and accountant firstly - and if their advice is in line with our plans we would:

    • Tell only my parents - giving them 25% of the winnings
    • Donate 5% to beyond blue - we currently donate 5% of our income to charity
    • We would give notice of taking a one year break at our jobs
    • Invest 60% in diversified ETFs
    • Chuck one million on our spendings card
    • Lock the remaining $$ away in some kind of easily accessed term deposit
    • Design and begin construction on my dream home in my home town - somewhere by the water with A LOT of privacy
      and security. Getting the architect to administer so that it could continue without us.
    • Go on a luxury one year world trip starting in Italy.
    • Move into our dream home
    • and make a baby, because the only reason we haven't is due to the ways it would restrict our lifestyle,
      all which would be negated by bulk cash.
    • Return to work for 6 months to allow the win to sink in without all the excitement and re evaluate once bub is
      born. Probably both leave our jobs and be full time excellent parents with a lot of travel mixed in.

    I had a lot of fun writing that - sorry to anyone who suffered through reading it.

  • barbarella on 29/04/2019 - 10:29
    +2

    hire a house cleaner

  • Love a bargain on 29/04/2019 - 15:30
    1. Don't tell anyone about the win
    2. Quit the job
    3. Buy a fully paid off "forever home" as PPOR and perhaps a few holiday houses that I can rent out on AirBnB when I'm not staying there.
    4. Pay off the mortgage for a few close friends and family
    5. Hire a cleaner and a gardener
    6. Travel the world
    7. Learn to fly a plane and sail a boat (probably a motor boat rather than a sailing boat though)
    8. Spending more time working out and looking after myself
    9. Take on a pet project or two (e.g. starting a social enterprise/business that helps the community) that I'm prevented from doing as I still need the security of a full-time pay
      10.But most importantly, continue living a modest life

    Okay… time to stop dreaming and return to reality

  • altomic on 29/04/2019 - 17:50
    +3

    I have a friend with a terminal illness and a 12 year kid.

    I'd give him a CC with $100,000 to make some memories.

  • welcomeUniverseWorld on 30/04/2019 - 14:52
    +1

    I would have a heart attack. When I wake up in the hospital (hope I do), I will pinch myself because my luck is the worst in the world usually.

  • Some Guy on 02/05/2019 - 12:39

    I would go a years holiday with a budget of $1000 per day. Then by a high yield investment car and some eneloops. Then purchase as much Sydney property as the remainder of the winnings will allow.

  • Poolprouk on 03/05/2019 - 10:09

    Buy a small island, enslave the local population and rule them with an iron fist.

  • Trying2SaveABuck on 03/05/2019 - 14:40

    If we are assuming a value >20million i'd help my CLOSE family a little ie pay off debt, help mum down size to a nice place etc

    Then i'd put at least 5 million in to a high interest savings which lets say at 3% would give about 150k in interest take away Tax thats is at least 115k clean (that is my live the rest of my life money if i lose it all and i'd set it up so i cant ever spend it or touch it) - also 10% of that interest would go back into the account..

    I'd put 5 million in the Low cost Index EFTs (Vanguard etc) in which i'd set 50% DRP to re-invest dividends for more shares the the other 50% paid out feeding into the high interest saver account… - It would probably be slight over 5 different funds 1 million$ each probably 2 Australian based, One Asian based, 1 European Based and 1 US based - keeping strong diversity so if one country has issue money in the others would hopefully be unaffected)

    I'd buy a nice house across the road from the beach for about ~$3 million (including Stamp duty) buy all new top notch furniture and a nice new car for me looking at around 500k - nothing crazy with the car but something nice probably a A series AMG Merc and a Range Rover for the wife

    id would then travel with a million budget for fun go to every country i've never been too perhaps buy a property in Europe perhaps in the south of france or one of the islands in Croatia like Hvar…. - non-of this economy crap ever again… business class or better for long haul flights to Europe and the US but domestic or short flights i'd stick with cattle class. So every Melbourne Winter i could escape to a European summer (oh gosh that would be nice)

    With whats left i'd buy at least 2 commercial properties lease them for 7-12% return and beef up my super to the max $25k a year contribution until it hits the threshold (i think it is around 1.4million) to try pay as little tax as possible.

    Then after all that i'd probably go back to Uni probably do a MBA or a law/business degree - i certainly would quit my job….Lets get this straight i dont mind what i do but if money wasnt an issue i would be doing other things with my time - i spend 46 hours a week working plus another ~5 hours traveling to and from work…I could focus on my fitness/gym, guitar/music, family, travel etc

  • snoopdogg on 05/05/2019 - 02:33

    i'd speak to a financial advisor and go from there. I could come up with some bs plan from top of my head but it probably aint the best.. leave it to a pro i reckon!!!!!!!!!!!!!!!!!!!!!!!!!!

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