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Old 11-11-2008, 12:37 PM   #41
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I'd invest in an RV, a boat, an airplane, a Harley, beer, dancing girls....

And oh, yeah, put a couple million in the bank for hard times.
I suspect you'd have to put half away for the divorce.

I'd keep $2M for fun, and invest the rest in my standard AA. I'm pretty happy now, and well aware that too much fun can kill me. I gave it a good try in my earlier life, and only my limited funds kept me alive then.

I think I'd hang out with Brewer. That sounds safe.
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Old 11-11-2008, 12:53 PM   #42
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I'd bet it all on the pass line at the crap table in Vegas or Atlantic city. 10 Million just isn't enough to scrape buy you need $20 mil
Why not bet the hard 8?
Isn't 100 Million even better?
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Old 11-11-2008, 02:21 PM   #43
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Why not bet the hard 8?
Isn't 100 Million even better?
The house advantage on the pass/no pass line on craps is pretty low 1.4%. (less if you take odds) The house advantage for Hard 8 is 9%. You'd be better off letting your pass bet ride 3 times. Still your instincts are good, even if the execution isn't the best.

Of course winning the lotto requires making a particularly stupid bet, worse than Hard 8. As a sophisticated gambler, I am a firm believer in doing foolish things, in an intelligent fashion.

As my brokerage statements would prove.
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Old 11-11-2008, 02:38 PM   #44
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A Person at our local Senior Center won a Lotto for $4 million, netted about $2.5 million after taxes

There are several Investment Volunteers , including myself that work there
1. Recommended to put The Money in a Money Market Account for at least 6 mos.. and don't touch it..
2. Start Going to see at least 3 different Advisors/Firms
3. Including having an Estate law firm & a CPA Firm for consultation

First priority? Paying off current , if any bills
2nd-Preservation of Capital
3rd- Earn Inflation Rtns to retain buying power
4th- via thru Lowest Tax implicatiions
5th- making a list of Priorities , Wants, Desires..it can buy
6th- Relocate. With No forwarding Address, nor phone # to be botherd by the Thousands that will be bothering you, both in writting and in Person for Money..

The Man and his Wife did all this and are doing fine today.. It's been 3 yrs and they have everything all laid out, spent about 25% of it and invested the rest...

Last I heard about 2 yrs ago, they had about a 20/80 portfolio of variouos types of Bonds, Muni's and Some Balanced Funds..
and I think about 40% in a Charitible Trust..

Hope this helps
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Old 11-11-2008, 03:17 PM   #45
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The house advantage on the pass/no pass line on craps is pretty low 1.4%. (less if you take odds) The house advantage for Hard 8 is 9%. You'd be better off letting your pass bet ride 3 times. Still your instincts are good, even if the execution isn't the best.

Of course winning the lotto requires making a particularly stupid bet, worse than Hard 8. As a sophisticated gambler, I am a firm believer in doing foolish things, in an intelligent fashion.

As my brokerage statements would prove.
Ah but house odds only come into play as your number of bets increases.

If the goal was to reach around 100 million as quicklyas possible your odds are much better with my strategy.

There's a 9.09% chance of winning a hard 8 bet.
Betting the line you'd have to win 4 times in a row for 80 million the odds of which doing is 6.03% or 5 time in a row for 160 million which has a 3.01% chance.

The longer you play the more likely the house is going to win.
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Old 11-11-2008, 04:06 PM   #46
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Is that $10M before or after taxes?
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Old 11-11-2008, 05:03 PM   #47
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Ah but house odds only come into play as your number of bets increases.

If the goal was to reach around 100 million as quicklyas possible your odds are much better with my strategy.

There's a 9.09% chance of winning a hard 8 bet.
Betting the line you'd have to win 4 times in a row for 80 million the odds of which doing is 6.03% or 5 time in a row for 160 million which has a 3.01% chance.

The longer you play the more likely the house is going to win.
True that is the secret to casinos making money. However, your calculations are wrong you only need double up three times to hit 80 million or roughly 12% chance to get 160 million is the 6% chance. After hitting the 80 million mark you could keeping gambling 20 million to exactly hit the 100 million mark. (There is some long forgotten formula for figuring that out) Or you could elect to economize on the life style and scrap by on only 80 million
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Old 11-11-2008, 07:12 PM   #48
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True that is the secret to casinos making money. However, your calculations are wrong you only need double up three times to hit 80 million or roughly 12% chance to get 160 million is the 6% chance. After hitting the 80 million mark you could keeping gambling 20 million to exactly hit the 100 million mark. (There is some long forgotten formula for figuring that out) Or you could elect to economize on the life style and scrap by on only 80 million
Ouch!

That's what I get for just doing the math in my head instead of writing it down. I must have counted just winning the lottery as one of the gambles. But if you did hit the 80 and then just gamble once more with a 20 to hit 10,000,000 your total odds would still be 6% as it only matters how many times you bet, not the amount.

You could decide to live with 80 million(if you can call that living) then you would indeed have the better odds.
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Old 11-11-2008, 09:55 PM   #49
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You mean besides two girls at the same time? If I ever get on the board of the CFAI, I would make that one of the answers to a CFA portfolio management question.
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Old 11-12-2008, 02:02 PM   #50
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I'd invest in a well diversified portfolio of stocks, bonds, and cash funds just as I do my current portfolio...although admittedly I'd probably take the risk down a notch or two just to sleep better when the market moves.
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Old 11-12-2008, 10:13 PM   #51
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I think I'd be in mostly CD's and such.... 4% wouldnt be half bad to live on.... Although with the DOW at 8k...I might throw a mil into equities to see what can happen

To keep busy, I'd likely buy an apartment building or 2 as well.
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Old 11-12-2008, 11:21 PM   #52
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Well Id give 1/2 to my Mom and Dad and brothers and sister who aren't as fortunate as I am
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