If You Win the Lottery

[retire@40]

Many people say they would retire immediately if they were to win millions in the lottery.  However, some people that win big jackpots continue to work.

What would you do?

 

[justin]

I've thought about this a lot. Five million might do it for me. I'd take a lump sum probably. I figure I'd lose close to half of the winnings to taxes, and close to half of the remainder due to taking a lump sum instead of an annuity. I figure I might have 1.5 million or so left after that. That amount just might do the trick for me. If I won 10 million, that would definitely make my mind up.

 

[azanon]

I answered 2-3 mil, but i just realized that was an error. I'd want to have a net of 2-3 million after taxes, so i'd need more like 4-6 million in actual prize money.

I'd want to be able to produce at least 80K a year for living expenses so using intercst's guidance, i need 2 million.

 

[justin]

...so i'd need more like 4-6 million in actual prize money.

Which means an $8-12 million jackpot that is an annuity.

A $100,000,000 jackpot would be the most I'd really care for. That amount should generate a half-million a year in after-tax income. I don't know how I could spend more than that.

 

[laurence]

I made the same mistake, I put 2-3 million, meaning after tax lump sum, so that would be an $8 million jackpot.

 

[Mountain_Mike]

I'm on the low end....I said $500K to $1M. This is because I have already been saving for my own retirement. The winnings would be the supplement that it would take to make me bail today.

 

[Texas Proud]

I put it in as how much money to ME, not the total jackpot...

It they said I "won" $20 million and only $5 mill showed up in my bank... I say I only won $5.... so I stick with my voite.

 

[lets-retire]

2-3 for me. I have low standards and my house would be nothing but a memory. I would move to a much lower cost of living area. I would move form this place where I can hear my neighbor burp and go live with the animals near family.

 

[SteveR]

$5M for me...not greedy just have a high standard of living I would like to create and support. Also, this would allow a lot of individual stocks to be left in the pot to grow for my kids and grandkids someday instead of selling off and giving a ton of it in cap. gains tax to the gov.

That much would be more than enough with my other IRAs to live very well anywhere without worring about the 4% withdrawl rate. It also would allow a lot of help for my kids and their families, my mother and for charity work.

You gotta have some dreams you know!

 

[Andre1969]

I put in the $500K-$1M range, with the assumption that it would be the NET amount, after taxes and so forth. Now, if it was just $500K, I might continue to work a bit longer, but if it were closer to $1M, I'd definitely retire!

 

[bow-tie]

If I could clear 1.5M after uncle Sam has his way with me, it would be "See ya when I see ya".... I'm outee.

I've been too vigilant with my money for too long to become a spendthrift, and 4% off that kind of pot would be way more than adequate. Ah, dare to dream...

 

[Jay_Gatsby]

The whole lottery fantasy is great, but since it's never going to happen to any of us, what's the point in dreaming about it? For some of us, it would help us expand our current standards of living, while for others it would mean an immediate ER.

I prefer to look at FIRE as winning the lottery, albeit a lottery where you have the chance to fix the odds 100% in your favor. Unfortunately, the vast majority of the world would equate FIRE with winning the lottery -- you have to be "lucky" to win either. The same rule applies to FIRE as lotteries, namely, "you can't win if you don't play." I don't know about you, but I'd rather play the FIRE lottery, where my chances of winning are much better.

P.S. An old boss of mine once characterized lotteries as a "tax on the stupid."

 

[TromboneAl]

So many big lottery winners say that they will continue to work, but I'd be interested in a study that followed up and saw if that was really true.

 

[REWahoo]

So many big lottery winners say that they will continue to work, but I'd be interested in a study that followed up and saw if that was really true.

I suspect it's true. Once they blow through their winnings, they have to go back.

REW

 

[MJ]

The whole lottery fantasy is great, but since it's never going to happen to any of us, what's the point in dreaming about it?

I won! I won! I won!
.
.
.
.
Oh, only 2 bucks.

 

[cute fuzzy bunny]

Several decent studies show that the vast majority of high dollar winners from lotteries or gambling end up broke and/or filing bankruptcy within a decade.

I think the basic tenet is that if you dont know how to handle money and are gambling/playing the lottery, winning wont fix the problem of not knowing how to handle money.

Remember your last trip to mexico or some other fairly poor region? All the people that would all but run up to you whenever you left the hotel offering timeshares, cheap jewelry or other delights, including bits of gum? Now imagine that they all KNOW you have 5 million bucks...

 

[MJ]

Right now the mega lottery is up to $111mil, so the take home would be about $30mil. My biggest concern would be security. Although I don't have a family, I'd be concern about being kidnapped. In my fantasy, when I take home an amount over $25mil, I see myself legally changing my name, but in today's world of accessable information, I'm not sure that would work.

Hey, you never know.

 

[retire@40]

Right now the mega lottery is up to $111mil, so the take home would be about $30mil. My biggest concern would be security. Although I don't have a family, I'd be concern about being kidnapped. In my fantasy, when I take home an amount over $25mil, I see myself legally changing my name, but in today's world of accessable information, I'm not sure that would work.

What's worse is that the lottery wants to show your face to the public when you win. I don't know if you even have the option of opting out of that kind of public appearance when they give you the symbolic large check. It's almost like telling the world, here I am with lots of money, now come and get me.

 

[MJ]

What's worse is that the lottery wants to show your face to the public when you win. I don't know if you even have the option of opting out of that kind of public appearance when they give you the symbolic large check. It's almost like telling the world, here I am with lots of money, now come and get me.

I guess you could always lie and tell the world that you're giving 90% of the money to charity. That would be some whopper.

 

[justin]

What's worse is that the lottery wants to show your face to the public when you win. I don't know if you even have the option of opting out of that kind of public appearance when they give you the symbolic large check. It's almost like telling the world, here I am with lots of money, now come and get me.

Wear a disguise. Bleach/color your hair. Do this when you go on tv.

 

[retire@40]

Wear a disguise.  Bleach/color your hair.  Do this when you go on tv.

I was considering wearing a full burqa, disguising my voice as an old Afgan woman, and stating the obvious; that I would be moving back to my homeland and giving all my winnings to the elder tribesmen.

I would then make sure the winnings get direct deposited to a virtual bank, and continue living my secret "Leave it to Beaver" lifestyle in the suburbs.

 

[BunsGettingFirm]

You mean I'm suppose to do something else besides two girls at the same time?