If I were Filthy Rich
By itsarace1+35 How many friends, if any, would you give money to or offer other support to?
Would you give them money directly? All at once or released in stages? Would you perhaps instead offer to pay their rent/mortgage/bills, wholly or in part? Or maybe just pay for occasional splurges like vacations, fancy restaurants, etc?
This is assuming you won it really big - a solid eight figures after tax.
I have two close friends I'd take care of fully. Not sure how I feel about giving them a large sum up front so I'd probably give them a portion and if they use that up in a reasonable timeframe they'd get the next installment.
Recent responses
+34 @FREE-AOL-CDS At least 10. It’s hard to do fun stuff with your boys when they all have to go to work. What’s the point of getting all that money if you can’t help out others?
+19 @Esqulax All of them. At this stage of my life, I know who the 'Real' friends are. If I'm giving them a really big amount, I'd also have a wealth counsellor on retainer for them to talk to, and will insist that they have a meeting hit him/her before the money is released.
+14 @SummonedShenanigans Straight up cash is a bad idea. Instead, set up a trust that distributes funds to friends and family for very specific defined reasons. Examples: First home purchase = $25k First wedding = $25k Their kid is going to college = $20k a year for four years, paid directly to the student's school account You can set up milestone cash gifts for their birthdays and anniversaries. You can provide primary or secondary health insurance with no out of pocket costs. The key is clearly defining how beneficiaries of the trust qualify for these benefits. There may be tax concerns for the beneficiaries as well that need to be accounted for. Attorneys will be a necessary evil in setting up and administering this type of trust. Beyond this, never give cash. Pay for dinner. Take your friends on epic vacations. But never give cash. Warren Buffett said about his family that he would give them "enough so that they can do anything but not enough that they can do nothing."
+12 @The_GreenKnight I know exactly which friends (about ten total) that I’d help and how I’d give to them. Most of them, it amounts to paying off their houses and cars. I know who my close friends are and if I won a huge amount of wealth (say $40m after taxes), I would want to be able to enjoy my time with the people I care about without them having to worry about some of the day-to-day stresses they have now. Where’s the fun in being rich if you don’t have your friends?
+11 @HaroldBAZ None. I would give half to my family but nothing to friends. Giving to friends is too much of a slippery slope. Giving money to friends is the main reason most lottery winners go broke.