If I were Filthy Rich
By Beta_Nerdy+11 If you won A BILLION DOLLARS in the Lottery would you invest the money in the stock market or would you just put in ultra safe Bank Savings Accounts and Money Market Funds?
I was reading an interesting article about the experiences of people who won the Mega Millions or Powerball Lottery. In almost every case they hooked up with Financial Gurus to find ways to invest the money in the stock market to grow their money. Is this really the best thing to do for the average person?
Maybe the best approach just put the money in a number of banks, purchase CDs, put it in Money Market Accounts or US Treasury Bills. Almost no risk. Just live off the interest and dividends. (Current interest rate for money market funds or CDs is about 5%)
Yes, you could come out ahead by putting money in the stock market and the value of your wealth will fall inflation adjusted if you put it only in safe investments but if you won a BILLION why bother with risk? What would you do?
Recent responses
+16 @lintfilms I don't need a financial advisor. I need a Vanguard S&P 500 Index Fund, and a Vanguard Municipal Bond or US Treasuries money market fund. 1.5% dividend on 90% in the S&P fund, and currently between 3 & 5% on the 10% in the money market fund. You can assume on average over 30 years a 10% compounded ROI of capital gains on the S&P 500 index fund. No advisors fees and almost no risk growth and plenty of money to spend from the dividends and interest. As for why? The Vanderbilt's versus the Rockefeller's explains why. If you don't want you family to ever have to work again, you invest in a relatively safe and easy and simple way that beats inflation and keep future generations rich even if it is diluted.
+11 @Youkilledpaula I’d be set for life. I’d just enjoy it.