Current Events > Say you won the powerball tonight, what's your first major purchase?

(+) Yeah! (+)

A security detail

kitten

Xenogears15 posted...

A condo for the wife and I.

I invest the rest.

Legit curious - the Powerball is almost $2 Billion... What's the point in investing all of over $1.7billion? I'm not saying going bananas and(somehow) blowing it all, but that's already basically forever-generational wealth

ai123 posted...

Yep, I could afford my dream car.

Make sure to buy the garage and security first. As soon as the dream car come off the lot, it becomes a security risk.

FolkenRawr posted...

What's the point in investing all of over $1.7billion? I'm not saying going bananas and(somehow) blowing it all, but that's already basically forever-generational wealth

Think of investing as safe banking for obscene amounts of wealth. It is often safer to place that money into investments, rather than spreading it across 381290381290 banks, each of which only cover $200k FDIC insurance. And it is easier to store $1.7 billion in stocks and bonds, rather than in liquid cash.

The services of a financial manager

Probably all the games and Manga on my wishlist...

A house

Land.

lydiaquayle posted...

Think of investing as safe banking for obscene amounts of wealth. It is often safer to place that money into investments, rather than spreading it across 381290381290 banks, each of which only cover $200k FDIC insurance. And it is easier to store $1.7 billion in stocks and bonds, rather than in liquid cash.

That makes a lot of sense. Come to think of it, how do they even actually distribute over a billion dollars?

lawyer, professional financial advice, getting out of america for a while

Oh yea - None of my core group of friends, roommate, or I are are ever working again. My niece's college is paid for and she is getting a very healthy trust.

My best friend and I are likely dead in less than a year due to our unhealthy choices.

FolkenRawr posted...

That makes a lot of sense. Come to think of it, how do they even actually distribute over a billion dollars?

The winnings get wired to your bank account over the course of several weeks. Afterwards, it's up to you to determine how those funds get moved around.

This is why it is often recommended that you get a financial advisor/manager. You DO NOT want to hold $1 billion in one single bank account.

lydiaquayle posted...

This is why it is often recommended that you get a financial advisor/manager. You DO NOT want to hold $1 billion in one single bank account.

You do have to be careful with those folks though - a lot of them are predatory too.

SSj4Wingzero posted...

You do have to be careful with those folks though - a lot of them are predatory too.

Yes.

House on a big enough plot of land that no one can complain when I turn up the volume.

A lot of Berkshire Hathaway.

Like a lot of it.

_Valigarmanda_ posted...

https://youtu.be/A939QRRSNV4?si=0rjJhec6HtQYXDt6

Fuckin' A

lol

Tens of thousands in court fines and fees

In the spirit of the topic Ill say private jet. Although from experience from doing accounting for jet owners, Ill say that owing isnt all its cracked up to be and just chartering/renting flights is good enough for most rich folks.

Owning is really for businesses that use it for tax write-offs or pilots who will just fly themselves.

I'd buy my mom's house from her for twice its worth.

KajeI posted...

I'd buy my mom's house from her for twice its worth.

That makes no sense. You'd be paying unnecessary taxes for it. Let mom sell you the house for $1, or place it into an LLC trust. Do NOT pay her anything. Just buy whatever she wants, and have her use it for free.

lydiaquayle posted...

That makes no sense. You'd be paying unnecessary taxes for it. Let mom sell you the house for $1, or place it into an LLC trust. Do NOT pay her anything. Just buy whatever she wants, and have her use it for free.

Makes more sense to open up a new bank account and give her the debit card.

I would feel obligated to start some kind of nonprofit.

lydiaquayle posted...

That makes no sense. You'd be paying unnecessary taxes for it. Let mom sell you the house for $1, or place it into an LLC trust. Do NOT pay her anything. Just buy whatever she wants, and have her use it for free.

I have personal reasons to do it that way, and with that amount of money the difference does not matter in the slightest.

All of my slow, DIY house renovations would be scaled up and contracted out.

Property/housing. Our current structure has things worked out to where most of us will be paying extortionate rent prices for life. I guess rent wouldnt matter if I had that much money, but putting thousands of dollars into a slumlords pocket really doesnt sit well with me.

Payzmaykr posted...

Property/housing. Our current structure has things worked out to where most of us will be paying extortionate rent prices for life. I guess rent wouldnt matter if I had that much money, but putting thousands of dollars into a slumlords pocket really doesnt sit well with me.

If you're not paying high rent, then you're going to be paying high property taxes, and high HOA/maintenance costs in nice neighborhoods/areas.

The alternative is to build a mansion in the middle of nowhere -- which also has its risks/disadvantages.

Lastly, OWNING a large rental property also sucks. If you're not spending all of your time maintaining the property, then you're hiring a property manager to do it for you. In the end, you're earning 1.5-5% annually on those properties. That is why most billionaires have most of their investments in stocks/bonds, and not rental properties.

The ideal rental properties for investments are 1-3 family homes and townhouses -- which is why you private equity firms buying up a ton of them over the past few years. The problem, again, is that they're going to have to hire hundreds of property managers to maintain all of those places spread out across the country.

Evening_Dragon posted...

I would feel obligated to start some kind of nonprofit.

^this. I promised my late friend if I ever won the lottery I would help our mutual friend with his non profit. Hes a good dude who's teacher that cares about kids. His grandmother was our first employee way back in the sands of time. He also was helping my friend through most of her illness. I feel I owe him. I want to help.

taxes

Not counting paying off debt? Would you consider a mortgage debt? I wouldn't need a Powerball win to live comfortably. There isn't even a major reno I would do for my house. Might move to bigger one. That's about it.

If you have a good mortgage rate, why pay it off? That could be upwards of a million that you can't invest and outpace the interest on your mortgage.

Credit card debts or high-interest loans? Absolutely. Kill that shit on day 1.

A nice house I guess. Would still remodel this one and rent it. Then quit my job and travel around the world while paying someone to teach my kid.

As for some purchase I would like....maybe fancy tv equipment and a high end pc. Upgrade the cars, but nothing super fancy.

Probably a house. I rent an apartment and while it's a nice apartment, the rent is insane.

Starks posted...

If you have a good mortgage rate, why pay it off?

Well, there's always the risk of living in a house that isn't paid off and having to move and get rid of it during a bad market period. Keeping a house with a good mortgage rate is recommended, IF you have a backup place to live, in case of emergency, and you have emergency liquid funds available for other types of events.

A one-way plane ticket the hell out of here.

HighSeraph posted...

Not counting paying off existing debt.
I'd probably remodel the house tbh

My first major purchase would probably to get some kind of 'golden parachute' citizenship in Switzerland, Singapore, and the Bahamas, or whatever is the best Caribbean place right now.

lydiaquayle posted...

Well, there's always the risk of living in a house that isn't paid off and having to move and get rid of it during a bad market period. Keeping a house with a good mortgage rate is recommended, IF you have a backup place to live, in case of emergency, and you have emergency liquid funds available for other types of events.

These don't sound like lottery winner problems, especially if getting a 2nd home is a fair assumption.

A new car. But that's only cause a new home takes more time to shop for.

If money is no object, I would never buy a car -- unless it's a classic that can be used as an investment. If it's a car that I plan to drive, then leasing will always be best-- because, then, I can play around with as many cars that I like, and I never have to worry about maintaining it or agonize about keeping it secure.

I'd share the money with friends and family who I know could use it first. After that, probably a trip to Europe. I'd probably stay for a year or so.

dom316 posted...

A new car. But that's only cause a new home takes more time to shop for.

No it doesn't if you're paying cash.

Tyranthraxus posted...

No it doesn't if you're paying cash.

I've never bought a house in cash, so maybe I'm wrong. But it seems you'd still have to deal with the realtors contacting each other and the buyer and all the time overhead wrapped up in that.

ReturnOfDevsman posted...

I've never bought a house in cash, so maybe I'm wrong. But it seems you'd still have to deal with the realtors contacting each other and the buyer and all the time overhead wrapped up in that.

You might pay more in overhead, but you can buy it fast, at least. If you have enough cash, you can buy a house tomorrow if the urgency is there.

lydiaquayle posted...

You might pay more in overhead, but you can buy it fast, at least. If you have enough cash, you can buy a house tomorrow if the urgency is there.

You can buy a car today, if you have cash.

ReturnOfDevsman posted...

I've never bought a house in cash, so maybe I'm wrong. But it seems you'd still have to deal with the realtors contacting each other and the buyer and all the time overhead wrapped up in that.

It takes more time to complete the transaction because there's more legal work involved, but if you got cash, it's as easy as wiring cash as soon as your offer is accepted.

With jackpot money you can probably skip the inspection / due diligence and just fix any problems yourself.

Or buy the empty land and hire an architect.

ReturnOfDevsman posted...

You can buy a car today, if you have cash.

Yes. So the difference is only a day or so. The point remains, often times, you CAN buy a house AS FAST, OR faster than you can buy a car.