Powerball: What would you do with $1.5 Billion

[Gator Hazard]

The estimated payout for the Jan 13/2016 Powerball is 1.5 Billion dollars.  If you take the lump sum option depending on what state you live in you will end up with anywhere from $620-700 Million in cold hard cash after it is all said and done.

We have all heard the regular things of what people would do if they won the lottery (pay off debts, give to charity, take care of family and friends, buy a house, a boat, etc.), but what I want to know is with this kind of money, and the fact that you can blow a mega massive amount of cash and it won't make a dent, what is the craziest thing you would do with the money just because you could?

I have seen financial advisors say that lottery winners should take 5% of their win and just go crazy with it, to get it out of their system.  5% of 700 million is $35 million.  List the ways you would blow $35 million so that you could learn to live responsibly with the rest of it:

Edited January 12, 2016 by Gator Hazard

[nevets88]

I just couldn't. I can't even imagine it. I want every possible cent to go to those who are truly in need of money, in dire circumstances.

[saevel25]

7 minutes ago, Gator Hazard said:

The estimated payout for the Jan 13/2016 Powerball is 1.5 Billion dollars.  If you take the lump sum option depending on what state you live in you will end up with anywhere from $620-700 Million in cold hard cash after it is all said and done.

Here is what I would do. I've thought of this many of times when ever the lotto stuff comes up. In reality I couldn't dream of living a luxury type lifestyle. I would decide what I wanted to live off of. Maybe I wanted to decide on some business ventures to keep my self entertained. Though I could probably just golf the rest of my life. 

Let say you just invest 2.5 million of it at 5% you can get a yearly salary of 125,000 with out touching the principle. 

I would probably get a few membership at some exclusive clubs around the country and set up a fund to pay that with interest. I might have a home in some warmer climates that I could vacation to in the off season. 

I would probably donate a lot of it to certain things. I would probably set some capital aside for business ventures, probably golf related or something. 

Other than that I rather keep it simple. Live of a moderate interest return.  Probably on the same lake they live on.  

*note this post is not a legally binding contract stating where the money is going and who it might go to. This is all hypothetical. 

 

[Gator Hazard]

17 minutes ago, nevets88 said:

I just couldn't. I can't even imagine it. I want every possible cent to go to those who are truly in need of money, in dire circumstances.

OT @nevets88  There is plenty of that to go around.  If you keep 65 million for yourself and you invest the remaining 600 Million at a conservative 2% a year that is $12 Million in interest a year.  You could set up charitable foudations that pay out in perpetuity based on that.  You can do it.  Go ahead and blow $35 million.  Here's an idea:

Buy about 10 Rolls Royce and 10 Bentley's. Put lift kits and monster tires on them and have a demolition derby at AT&T stadium with free entry with a ticket (given away in a raffle) and free beer and food for all in attendance.  

7 minutes ago, saevel25 said:

Here is what I would do. I've thought of this many of times when ever the lotto stuff comes up. In reality I couldn't dream of living a luxury type lifestyle. I would decide what I wanted to live off of. Maybe I wanted to decide on some business ventures to keep my self entertained. Though I could probably just golf the rest of my life. 

Let say you just invest 2.5 million of it at 5% you can get a yearly salary of 125,000 with out touching the principle. 

I would probably get a few membership at some exclusive clubs around the country and set up a fund to pay that with interest. I might have a home in some warmer climates that I could vacation to in the off season. 

I would probably donate a lot of it to certain things. I would probably set some capital aside for business ventures, probably golf related or something. 

Other than that I rather keep it simple. Live of a moderate interest return.  Probably on the same lake they live on.  

*note this post is not a legally binding contract stating where the money is going and who it might go to. This is all hypothetical. 

 

OT @saevel25 this is how you blow that 5% you have too to get it out of your system.  This post is far too responsible (but I like it)!  Better yet, why not just purchase some golf clubs and put the right people in charge and make the right investments into them.  Then you can play for "free" at the golf clubs you own.

 

I am having fun with this so please dont take the OT mention seriously

Edited January 12, 2016 by Gator Hazard

[Lihu]

750M tickets sold with 350M Americans. Every American combined has a roughly 1:2 chance of winning it, not great odds of one of us winning. If someone does, here, invite us all to a victory round at a nice club!

Edited January 12, 2016 by Lihu
Again with the bad grammar.

[saevel25]

4 minutes ago, Gator Hazard said:

OT @saevel25 this is how you blow that 5% you have too to get it out of your system.  This post is far too responsible (but I like it)!  Better yet, why not just purchase some golf clubs and put the right people in charge and make the right investments into them.  Then you can play for "free" at the golf clubs you own

I could still waste 35 million pretty easily even with that scenario :) 

[Gator Hazard]

10 minutes ago, Lihu said:

750M tickets sold with 350M Americans. Every American has a roughly 1:2 chance of winning it, not great odds of one of us winning. If someone does, here, invite us all to a victory round!

OT @Lihu  And representing team finance profession here I am going to have to disagree with our respected engineers statistical math.  The odds of winning are 1 in 292 million roughly per each ticket you buy (assuming you don't purchase two or more tickets with the same number).  In order to have a 1:2 chance of winning you would have to purchase a minimum of 146 Million tickets each with a unique combination of numbers. 

Edited January 12, 2016 by Gator Hazard

[Lihu]

7 minutes ago, Gator Hazard said:

OT @Lihu  And representing team finance profession here I am going to have to disagree with our respected engineers statistical math.  The odds of winning are 1 in 292 million roughly per each ticket you buy (assuming you don't purchase two or more tickets with the same number).  In order to have a 1:2 chance of winning you would have to purchase a minimum of 146 Million tickets each with a unique combination of numbers. 

Sure, that's the correct calculation. I was just doing a back of the hand statement that no one won in 750M tries.

 

[phillyk]

I would donate a good bunch to science foundations and energy projects.  But, I'd buy a golf course.  One that is struggling but has potential without the finances (not in the middle of nowhere).  Turn it around with updated machinery and a new clubhouse or something.  Then I'd get a saleen s7 or lambo diablo s7, dream cars.  Buy a yacht and put it out in the Puget sound, and a couple wave runners for local lakes.  I don't need a fancy house.  All I need is a big and secure garage and a good place to fit an expensive launch monitor and simulator.  Then pay off student loans for my close friends, pay off my direct family's homes, and have a bunch of vacations.

[Gator Hazard]

13 minutes ago, phillyk said:

I would donate a good bunch to science foundations and energy projects.  But, I'd buy a golf course.  One that is struggling but has potential without the finances (not in the middle of nowhere).  Turn it around with updated machinery and a new clubhouse or something.  Then I'd get a saleen s7 or lambo diablo s7, dream cars.  Buy a yacht and put it out in the Puget sound, and a couple wave runners for local lakes.  I don't need a fancy house.  All I need is a big and secure garage and a good place to fit an expensive launch monitor and simulator.  Then pay off student loans for my close friends, pay off my direct family's homes, and have a bunch of vacations.

Semi OT @phillyk but we are getting closer with this post.  Good job, now take it further.  Let's do something really irresponsible with our $35 million budget just to get it out of the way.

How about "Pay Rebecca Romijn $2 Million dollars to squeeze the juice out of grapes into a golden chalice using only her breasts".

Guarantee to pay any Trump employee $1 Million per year of incarceration plus all legal expenses to kick Donald trump in the nuts when he is about to tee off with a guarantee of $3 Million pay out if get it on film.

As George Carlin used to say "These are the thoughts that kept me out of the really good schools"

Edited January 12, 2016 by Gator Hazard

[Shindig]

Buzzkill Shindig here:  there are many reasons I don't bother with the lotto, and one of them is I don't want that kind of money.  I certainly don't want my name attached to it.

Anything that's really above about $2.5M in today's dollars would be immaterial to me.

[rolopolo]

I would use some of it to build the most beautiful golf course ever. It would be 5 times prettier than Augusta.

I would hold a tournament there every year that is on neither of the major tours. Field of 200 hand selected golfers would get an invitation every year, a mix of women, men, amateurs, etc.

The course would be short - 5600 yards for my tournament, par 72, but would require precision ball striking and masterful short game skills. Men and women will have a chance to win.

The prize pot would be $20million with $4million going to the winner.

Since many holes will be very short, I will have amphitheatre style stands everywhere.

My course would be located in a beautfil mountaineous valley, something like this:

[Gator Hazard]

2 minutes ago, Shindig said:

Buzzkill Shindig here:  there are many reasons I don't bother with the lotto, and one of them is I don't want that kind of money.  I certainly don't want my name attached to it.

Anything that's really above about $2.5M in today's dollars would be immaterial to me.

Totally buzzkill and completely OT.  Now have a few drinks and spend that $35 million in the worst ways you can think.

4 minutes ago, rolopolo said:

I would use some of it to build the most beautiful golf course ever. It would be 5 times prettier than Augusta.

I would hold a tournament there every year that is on neither of the major tours. Field of 200 hand selected golfers would get an invitation every year, a mix of women, men, amateurs, etc.

The course would be short - 5600 yards for my tournament, par 72, but would require precision ball striking and masterful short game skills. Men and women will have a chance to win.

The prize pot would be $20million with $4million going to the winner.

Since many holes will be very short, I will have amphitheatre style stands everywhere.

My course would be located in a beautfil mountaineous valley, something like this:

You have me if you make the dress code so that it is nude only.  Otherwise this is bordering on not only responsible but also respectable.  Try again.

[Pretzel]

If I were to win the lotto, the first thing I'd do is immediately set aside about $150,000-200,000 of it for my continued education through the rest of college, set up in CD's that release enough money for each semester as the semester rolls around to pay for it (with a little extra spending money from the interest).

I would also make a decently sized (~$5,000,000-10,000,000) contribution to my previous robotics team such that they wouldn't need want for funds into the future with smart investment by the team, and it would allow for them to pursue whatever direction they wanted the team to move towards without fear of financial repercussions. 

I'd purchase a car, (a new Mustang GT350 would be nice) for around $100,000 and then purchase a house that I could rent out while I attended college (and live in afterwords), but beyond that I forsee no other immediate spending besides new wedges, new grips, and an annual pass to a golf course for both me and my grandpa.

Honestly I don't know what I would need that kind of money for. My computer is new enough that I wouldn't need a new one, and it's not like I feel the need to go out and buy some absurd Bugatti or a crazy mansion. Both would be completely impractical, especially in Colorado due to the maintenance and upkeep they would both require. Something like a Rolex would just leave me worried that I was going to damage it somehow or be robbed, and I don't have time for vacation with my college classes right now.

Investing the money would be the prudent choice, allowing me to live off only a fraction of the interest with a seven figure salary and to ensure the prosperity of my family for generations to come. Considering that you would end up with nearly $700 million dollars after taxes, even a 1% return on investment means that I would earn $7,000,000 a year. If I allowed myself "only" $1,000,000 of spending money a year I think I might be able to just scrape by and get what I want out of life without needing to worry about finances too much.

It's a nice scenario to think about, but the reality is that my life wouldn't change a whole lot as a result of it. I'd drive a nicer car and I'd have a home waiting for me upon graduation, but I would still continue in college to completion since it's something I enjoy doing. It just means I wouldn't have to worry about student loans or other stresses of trying to pay for my education (I could even spring for a single dorm room with a private bathroom!).

 

[Patch]

First thing I would do is call my financial advisor, and tell him to get his butt on a plane to Vegas. Once we worked all the financial stuff out, which would include taking care of my immediate family, I'd buy bigger RV. Something in the million dollar bracket.

My wife has charity thing going that involves youngsters in need of medical services. We' fund that a little better.

After that I  would travel, golf, fish, and anything else I'd want to do for the next 10 years. Non stop.

[Gator Hazard]

3 minutes ago, Pretzel said:

If I were to win the lotto, the first thing I'd do is immediately set aside about $150,000-200,000 of it for my continued education through the rest of college, set up in CD's that release enough money for each semester as the semester rolls around to pay for it (with a little extra spending money from the interest).

I would also make a decently sized (~$5,000,000-10,000,000) contribution to my previous robotics team such that they wouldn't need want for funds into the future with smart investment by the team, and it would allow for them to pursue whatever direction they wanted the team to move towards without fear of financial repercussions. 

I'd purchase a car, (a new Mustang GT350 would be nice) for around $100,000 and then purchase a house that I could rent out while I attended college (and live in afterwords), but beyond that I forsee no other immediate spending besides new wedges, new grips, and an annual pass to a golf course for both me and my grandpa.

Honestly I don't know what I would need that kind of money for. My computer is new enough that I wouldn't need a new one, and it's not like I feel the need to go out and buy some absurd Bugatti or a crazy mansion. Both would be completely impractical, especially in Colorado due to the maintenance and upkeep they would both require. Something like a Rolex would just leave me worried that I was going to damage it somehow or be robbed, and I don't have time for vacation with my college classes right now.

Investing the money would be the prudent choice, allowing me to live off only a fraction of the interest with a seven figure salary and to ensure the prosperity of my family for generations to come. Considering that you would end up with nearly $700 million dollars after taxes, even a 1% return on investment means that I would earn $7,000,000 a year. If I allowed myself "only" $1,000,000 of spending money a year I think I might be able to just scrape by and get what I want out of life without needing to worry about finances too much.

It's a nice scenario to think about, but the reality is that my life wouldn't change a whole lot as a result of it. I'd drive a nicer car and I'd have a home waiting for me upon graduation, but I would still continue in college to completion since it's something I enjoy doing. It just means I wouldn't have to worry about student loans or other stresses of trying to pay for my education (I could even spring for a single dorm room with a private bathroom!).

 

OT @Pretzel

You guys are way, way too responsible to have that kind of disposable income at your, uhh, disposal!  :)

Original post asked how you would blow 5% of the winnings as your financial advisor recommended so that you would learn from it and be sure to do all the responsible and wise things you should do with the rest.  :)

[jusanothajoe]

Make a lot of people happy. That's what I would do.

[Gator Hazard]

9 minutes ago, Patch said:

First thing I would do is call my financial advisor, and tell him to get his butt on a plane to Vegas. Once we worked all the financial stuff out, which would include taking care of my immediate family, I'd buy bigger RV. Something in the million dollar bracket.

My wife has charity thing going that involves youngsters in need of medical services. We' fund that a little better.

After that I  would travel, golf, fish, and anything else I'd want to do for the next 10 years. Non stop.

OT @Patch same reasons as the rest.  I do like the ideas.  I know I could do a lot of good with that type of money and would do so.  

Golfers are too responsible apparently.  Where is @vangator at?  Something tells me he would know how to blow a large wad of cash in bad fashion while having a load of fun.

Here is one way to blow at least a million or five:  Take all the active members of TST in good standing with more than 500 posts on a 10 day golfing trip to Ireland and Scotland, with everyone getting a 10K allowance that they have to blow on things that cant be taken back home.  All hotel, travel and greens fees paid of course.  

Edited January 12, 2016 by Gator Hazard