What if you won the lottery? What would you do?
By FrugalTrader
@FrugalTrader (32)
Canada
January 6, 2007 5:19pm CST
Driving home from work today I passed by a billboard with the Super 7 Jackpot advertised. $30 million dollars it displayed.. and the image repeated over and over again in my head until I arrived home. I remember seeing somewhere that nearly 1/3rd of all big lottery winners go bankrupt within 5 years. I guess it’s not that hard to believe, not everyone is financially literate. What would I do if I won $30 Million? Here is my hypothetical plan in order:
1. Change our home phone number then have our new number unlisted.
2. Donate 10% to various charites ($3 million).
3. Give away another 10% to family and friends ($3 million).
4. Start a diversified dividend investment fund with 10% ($3 million) and donate the proceeds of the quarterly dividends to charity. This would work out to around $3 million * 4% annually = $120k / year (increasing annually).
5. Pay off all my debts ~$200k.
6. Buy a new house $400k.
7. Buy a couple new cars $90k. Why not right? ;)
8. Quit my job.
9. Keep $300k in a regular chequing account for other toys, luxuries and travel.
10. Perhaps take $5 million and invest in venture cap, franchise restaurants, and/or real estate.
11. Take the remaining, which is approximately $15 million, spread it among various investment accounts (to account for the limited CIPF) and purchase strong dividend paying stocks among other income instruments. This would pay approximately $600k / year in dividends assuming an average 4% payout. This would be our yearly salary.
12. Continue blogging, but change the domain name to 100MillionDollarJourney.com. :)
There you go! That’s my plan! What would you do?
FrugalTrader
http://www.MillionDollarJourney.com
1 person likes this
4 responses
@catcai (1056)
• Philippines
3 Mar 07
Hmmm... ive always dreamed about winning the lottery- but i really dont have a detailed plan of what im going to do with the money like you have but at the moment- i think if i won the lottery i would: save some for the future like around 30% of the money put it all on the bank for time deposit, give half of whats left to my mom and my brother, they can do whatever they want with it, save some 10% for my daughters future- schools and colleges and stuff, buy myself a nice fully furnished house and a car, save another like 5% for hospital emergencies, look for a profitable business and invest some money in it or have my own business or if not franchise a fast food like mc donalds or something, if the money is still big enough i would like to donate or make a public school with vocational training for their parents so that children wont have to roam around the streets all day and their parents will have opportunities to learn how to earn at least in my little way poverty can be decreased. And if theres still something left- give to foundations and churches who needs funding.
@sundaecone (191)
• Canada
17 Jan 07
i will donate to the chusrch and charity this will be my first step if i won. and the rest of money i will just gave it to my family and put it in bussines.
@villageanne (8553)
• United States
17 Jan 07
I dont believe in purchaseing lottery tickets but if I did and I won. I could do so much good for my community.
first i would pay tithing on it
second I would pay off all our bils and buy my husband a new truck, ours is a 1986 model and it is shot.
Third I would donate the rest to help build a community center for the youth in my community. They have nowere to hang out.
