Wins $41 million and plans to keep working

wabmester · 01-09-2007, 11:20 PM

My BIL works with this guy:

lottery winner

Sitting in a booth overlooking the harbor, the couple mulled over their wealth. Both will keep working. They'll buy homes for their close family and take a honeymoon. They'll set aside funds for their daughter's education. They're hoping for another child.

Seems pretty level-headed except for the "keep working" bit. I sent BIL an URL to the forum, so he can forward an invite. It'd be fun if he shows up here. Hopefully before the FA's descend upon them....

Brat · 01-10-2007, 12:10 AM

Also, suggest that your BIL hand him a Vanguard account application. The quicker he gets their $ to work the better. If the couple needs hand holding BIL could take them to the nearest Fidelity Customer Service center.

After the money is in a Vanguard or Fidelity account a good tax accountant would be handy. Parking it in a Vanguard/Fidelity/Oakmark/Dodge& Cox balanced fund until they have a plan would be my suggestion.

$41M is a lot for any of us but it is not earthshaking for the likes of Vanguard or Fidelity.

Leonidas · 01-10-2007, 12:15 AM

The description in the article makes him sound like a down to earth kind of guy. Well grounded except for that $40 a week lotto habit he had for the last decade - but that actually worked out for him. I cross my fingers and offer a prayer for him, that he is a lotto winner whose life is not ruined by the money. And, if he ever takes up the invite and reads this - quit your job dude, your life has changed in ways you can't comprehend yet and working at your old job is going to bring on issues you don't want to deal with.

Alex · 01-10-2007, 12:21 AM

If he is like the majority of the lottery winners, he'll be broke in a few years. Maybe keeping his job is a good idea after all!

Seriously, I wish him good luck!

I wish it were me, but I rarely buy lotto tickets.

FinanceDude · 01-10-2007, 12:38 AM

Quote:

Originally Posted by Brat

Also, suggest that your BIL hand him a Vanguard account application. The quicker he gets their $ to work the better. If the couple needs hand holding BIL could take them to the nearest Fidelity Customer Service center.

After the money is in a Vanguard or Fidelity account a good tax accountant would be handy. Parking it in a Vanguard/Fidelity/Oakmark/Dodge& Cox balanced fund until they have a plan would be my suggestion.

$41M is a lot for any of us but it is not earthshaking for the likes of Vanguard or Fidelity.

You want him to invest $41 million with no advice from anyone? This is not like DCA'ing into index funds.............

Brat · 01-10-2007, 01:04 AM

The balanced funds I recommended are managed, basically 50/50 bonds/stocks the Oakmark Fund has done very well even in down markets. I don't propose that the money should stay that way forever, just for now.

Me, I would add Vanguard Indx Intl and maybe a foreign bond fund, but is more fine tuning than I thought appropriate.

What they need to do is to identify their goals and set a budget. Because couples tend to blow lottery winnings they might be wise to purchase a Vanguard inflation indexed immediate annuity with a significant piece of their winnings.

Vulture protection is very important.

Nords · 01-10-2007, 01:47 AM

Yeah, we'll give him about three weeks back in the ol' cubicle before the shrinking BS bucket overflows from all the attention of his new friends.

I bet they're still too much in shock to think of anything else to do but keep their day jobs, although they'll certainly have a lot of thoughts come their way.

Quote:

Originally Posted by wab

I sent BIL an URL to the forum, so he can forward an invite. It'd be fun if he shows up here. Hopefully before the FA's descend upon them....

Hey, tell him that if they play their cards right we'll set 'em up to be moderators!

Quote:

Originally Posted by FinanceDude

You want him to invest $41 million with no advice from anyone? This is not like DCA'ing into index funds.............

Well, he used to spend $40/week on lottery tickets, his net worth went up by a factor of about 1000x, so now he can spend $40K/week on lottery tickets.

In another decade he'll be a billionaire because the first million is always the hardest, right? How difficult could it be to multiply all your spending by three zeroes?

Peaceful_Warrior · 01-10-2007, 05:42 AM

When I win the lottery, I'm going to invest every single penny of the winnings and then just live off the interest. I'll also set aside a significant chunk of that money to a charitable trust that will also give less interest than it makes so that it can progressively give more and more indefinitely.

Quote:

Originally Posted by Alex

If he is like the majority of the lottery winners, he'll be broke in a few years. Maybe keeping his job is a good idea after all!

Seriously, I wish him good luck!

I wish it were me, but I rarely buy lotto tickets.

Dawg54 · 01-10-2007, 06:04 AM

I bet their view on work will change over time. With FI comes less tolerency for the less desireable tasks in ones job. I think I would direct whatever desire I have to work towards volunteer projects. OTOH, I would probably travel the world playing golf. 8)

clifp · 01-10-2007, 07:21 AM

Ah the working lotto winner myth.

Several years ago I read a study of a couple of hundred Megamillion lotto winners. In their initial press interview 75% said they planned to continued working at there existing job.

One year latter the researcher wented back an interviewed them. After only 1 year a full 75% had quit their jobs and weren't working. My guess is the number would higher in a couple more years, although I read the abstract of the study that suggested that people with fullfilling jobs were less likely to quite.

I have told the story to many who have asked if you liked your job why did you retired early.

retire@40 · 01-10-2007, 07:58 AM

Quote:

Originally Posted by FinanceDude

You want him to invest $41 million with no advice from anyone? This is not like DCA'ing into index funds.............

When you have $41 million, do you really need to worry about investing advice from a FP?

Muni bonds and money market accounts would be all I would have. Simple and effective.

Should generate 4 to 5 percent, or about $1.8 million a year in income for me.

CCdaCE · 01-10-2007, 08:02 AM

Quote:

After 10 years of spending $40 a week on lottery tickets, his confidence paid off.

Assuming thats correct, which I doubt, that's almost $21,000. Quite a chunk of change, to me.

-CC

Outtahere · 01-10-2007, 08:08 AM

He really didn't get 41 million, he took the cash option and from the what article says only gets half, that would be a mere 20.5 million.

justin · 01-10-2007, 08:27 AM

Quote:

Originally Posted by Outtahere

He really didn't get 41 million, he took the cash option and from the what article says only gets half, that would be a mere 20.5 million.

I thought the same thing. Then of course his two uncles, Sam and Arnold, want their $9 million share of his winnings. Then he's only got $11.5 million.

At a conservative 3% SWR, that is "only" $344,000 per year to spend. Not sure how the investments can be invested, but taxes may take a chunk out of the $344k.

In any event, I could live pretty well on $344000/yr, but it isn't as if I would have an unlimited amount of money.

Robert the Red · 01-10-2007, 08:30 AM

Quote:

Originally Posted by Alex

If he is like the majority of the lottery winners, he'll be broke in a few years.

People like to think this, since (a) there are a lot of articles in the press about such riches-to-rags stories, and (b) it makes us feel superior in our non-lottery-winning-but-smart status. However, it is not true that a majority of big lottery winners do stupid things and ruin their (financial) lives. A significant number are that stupid -- maybe a third -- but a majority are not. See, for example:
http://www.answers.google.com/answer...view&id=141224

bbuzzard · 01-10-2007, 08:32 AM

Quote:

Originally Posted by Outtahere

He really didn't get 41 million, he took the cash option and from the what article says only gets half, that would be a mere 20.5 million.

Which means about 14M after taxes. Still a large amount of money.

Leonidas · 01-10-2007, 08:41 AM

Quote:

Originally Posted by Robert the Red

People like to think this, since (a) there are a lot of articles in the press about such riches-to-rags stories, and (b) it makes us feel superior in our non-lottery-winning-but-smart status. However, it is not true that a majority of big lottery winners do stupid things and ruin their (financial) lives. A significant number are that stupid -- maybe a third -- but a majority are not. See, for example:
http://www.answers.google.com/answer...view&id=141224

I read what you linked to, and it seems that the smaller-medium prize winners don't have a lot of problems, a large percentage of the really big winners have major problems. It's one thing to get $80,000 a year for 20-25 years, the lotto people handing you a check for $20 million seems something altogether different.

Zathras · 01-10-2007, 08:51 AM

I think the people who blow the money mainly were not ready.
When they win more money than they ever would have seen, it seems like an infinate amount. With no planning and little concept of what they really have, it disappears when it seems like it never would.

It would probably do future lotto winners a lot of good to come visit these forums before they win. Or, don't allow themselves to touch any of the money until they read a few finance books and make a plan.

Those that do, are probably the ones that hold onto their riches.

HFWR · 01-10-2007, 08:57 AM

Yeah, I'd keep working...

Bwahahahahahahahahahahahahahahahahahahahahahahahah ahahahahahaha...

01-09-2007, 11:20 PM	#1
wabmester Thinks s/he gets paid by the post Join Date: Dec 2003 Posts: 4,461	Wins $41 million and plans to keep working My BIL works with this guy: lottery winner Sitting in a booth overlooking the harbor, the couple mulled over their wealth. Both will keep working. They'll buy homes for their close family and take a honeymoon. They'll set aside funds for their daughter's education. They're hoping for another child. Seems pretty level-headed except for the "keep working" bit. I sent BIL an URL to the forum, so he can forward an invite. It'd be fun if he shows up here. Hopefully before the FA's descend upon them....

01-10-2007, 12:10 AM	#2
Brat Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,867	Re: Wins $41 million and plans to keep working Also, suggest that your BIL hand him a Vanguard account application. The quicker he gets their $ to work the better. If the couple needs hand holding BIL could take them to the nearest Fidelity Customer Service center. After the money is in a Vanguard or Fidelity account a good tax accountant would be handy. Parking it in a Vanguard/Fidelity/Oakmark/Dodge& Cox balanced fund until they have a plan would be my suggestion. $41M is a lot for any of us but it is not earthshaking for the likes of Vanguard or Fidelity. __________________ Duck bjorn.

01-10-2007, 12:15 AM	#3
Leonidas Thinks s/he gets paid by the post Join Date: May 2006 Posts: 1,306	Re: Wins $41 million and plans to keep working The description in the article makes him sound like a down to earth kind of guy. Well grounded except for that $40 a week lotto habit he had for the last decade - but that actually worked out for him. I cross my fingers and offer a prayer for him, that he is a lotto winner whose life is not ruined by the money. And, if he ever takes up the invite and reads this - quit your job dude, your life has changed in ways you can't comprehend yet and working at your old job is going to bring on issues you don't want to deal with. __________________ "If everything is under control, you are going too slow." - Mario Andretti

01-10-2007, 12:21 AM	#4
Alex Full time employment: Posting here. Join Date: May 2006 Posts: 696	Re: Wins $41 million and plans to keep working If he is like the majority of the lottery winners, he'll be broke in a few years. Maybe keeping his job is a good idea after all! Seriously, I wish him good luck! I wish it were me, but I rarely buy lotto tickets. __________________ Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.--Drew Carey

01-10-2007, 01:04 AM	#6
Brat Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,867	Re: Wins $41 million and plans to keep working The balanced funds I recommended are managed, basically 50/50 bonds/stocks the Oakmark Fund has done very well even in down markets. I don't propose that the money should stay that way forever, just for now. Me, I would add Vanguard Indx Intl and maybe a foreign bond fund, but is more fine tuning than I thought appropriate. What they need to do is to identify their goals and set a budget. Because couples tend to blow lottery winnings they might be wise to purchase a Vanguard inflation indexed immediate annuity with a significant piece of their winnings. Vulture protection is very important. __________________ Duck bjorn.

01-10-2007, 06:04 AM	#9
Dawg54 Thinks s/he gets paid by the post Join Date: Feb 2005 Location: Mississippi Posts: 3,335	Re: Wins $41 million and plans to keep working I bet their view on work will change over time. With FI comes less tolerency for the less desireable tasks in ones job. I think I would direct whatever desire I have to work towards volunteer projects. OTOH, I would probably travel the world playing golf. 8) __________________ Full time golf bum.......

01-10-2007, 07:21 AM	#10
clifp Thinks s/he gets paid by the post Join Date: Oct 2006 Posts: 2,338	Re: Wins $41 million and plans to keep working Ah the working lotto winner myth. Several years ago I read a study of a couple of hundred Megamillion lotto winners. In their initial press interview 75% said they planned to continued working at there existing job. One year latter the researcher wented back an interviewed them. After only 1 year a full 75% had quit their jobs and weren't working. My guess is the number would higher in a couple more years, although I read the abstract of the study that suggested that people with fullfilling jobs were less likely to quite. I have told the story to many who have asked if you liked your job why did you retired early.

01-10-2007, 08:08 AM	#13
Outtahere Thinks s/he gets paid by the post Join Date: Sep 2005 Posts: 1,677	Re: Wins $41 million and plans to keep working He really didn't get 41 million, he took the cash option and from the what article says only gets half, that would be a mere 20.5 million. __________________ Dogs aren't our whole lives, but they make our lives whole. - Roger Caras

01-10-2007, 08:51 AM	#18
Zathras Full time employment: Posting here. Join Date: Jun 2006 Posts: 665	Re: Wins $41 million and plans to keep working I think the people who blow the money mainly were not ready. When they win more money than they ever would have seen, it seems like an infinate amount. With no planning and little concept of what they really have, it disappears when it seems like it never would. It would probably do future lotto winners a lot of good to come visit these forums before they win. Or, don't allow themselves to touch any of the money until they read a few finance books and make a plan. Those that do, are probably the ones that hold onto their riches. __________________ "We do not inherit the earth from our ancestors, we borrow it from our children. (Ancient Indian Proverb)"

01-10-2007, 08:57 AM	#19
HFWR Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: May 2005 Posts: 5,486	Re: Wins $41 million and plans to keep working Yeah, I'd keep working... Bwahahahahahahahahahahahahahahahahahahahahahahahah ahahahahahaha...