If I were Filthy Rich
By revengeneer+43 Do you have a breakdown of where your theoretical lottery winnings would go?
As I have it figured, of the total winnings: About 50% gets taken out of the lump sum 25% would go to a foundation to give away (and avoid upfront taxes) Uncle Sam would take about 10%. About 3.5% would go to my family. 1.5% for upfront costs like buying anew house.
Of the total, I'd be left with 'just' 10% for myself, which I'd just invest and live off the interest. I could take out 3-4%/year while letting the principal grow with inflation.
With the current $1.3B jackpot, I'd have a $330m foundation that would give away a minimum of $16m/year and about $5m/year to spend on myself.
What would you do?
Recent responses
+40 @Lanky_Possession_244 Hire a team of professionals and talk to them about what's best and what will actually work.
+12 @Rude-Manufacturer-86 I'm lazy and use the https://www.omnicalculator.com/finance/lottery-tax link to get prize estimates after tax. Treasury Bond 30yr capped at $10mil principal HYSA with 7 figure FDIC coverage Private banking BND HYMB JEPQ SCHD VGT VOO BLK Give myself a (secure) salary Give myself a large investment fund Open several investment trusts: Parent, Significant Other, Friends, Family (health+education costs); basically high end dividend yields that can pay each of the 4 categories annually. From what I've read, $12.6 million is the lifetime max before a gift tax takes place.
+12 @rickybobysf Race cars until I'm broke again.