Just one Powerball!

[bigfella966]

The inlaws came down for the weekend, and as per usual the father inlaw was telling us what he was going to do and what we were "allowed" with his Saturday Lotto winnings (sad isn't it), anyway hence to say, he didn't win , he was a bit devo'ed but bounced back with "well it's a $3 million jackpot for Tuesday night's Oz Lotto"

I started to wonder, what would other SS members do, put it all in property, diversify investments, holidays, luxury yacht or donate it all to a cats home?

So, the question, what would you do with 3 million dollars??

(or for those that have won, what "did" you do with 3 mil )

BF

 

[Sultan of Swing]

Ok, i'll give it a go.

I'd certainly invest the majority in property and shares I think. I'm happy in our PPOR and would stay here. A nice holiday would be good but nothing extravagant. I'd probably go to the North Island on the Spirit of Tasmania and drive around Victoria and the south coast of NSW for a look.

Some would go to charity but I'm the type that would give it anonomously as I hate it when you see people giving donations and telling the world about it. I ask myself what their motive really is. (Is even saying I'd give money to charity contradicting myself? )

I'd also want to keep my win quiet. In a small town like this, word would get around in 2 days and then, I kid you not, they'd print it in the local papers and name you. That would make life very difficult. You all know Tasmanians are inbred and all related. Can you imagine the line of relatives I'd have at my door looking for a loan??

To keep it quiet, I'd have to get a new accountant in Victoria (Dale GG I'd say) so that not even my accountant would know, as I'm sure the news would get around. And I'd have to open a bank account in a bank I haven't dealt with before so that the local tellers wouldn't see it. Once again, I'd have to do it out of state.

Cheers

 

[kero]

mmmmm $3m... $200 000 pay off my mortgage.... $1.5m in various investment fund and properties reserved for retirement.... $100 000 gift to parents .... $50 000 each as gift to two brothers ... about $300 000 to various non-profit organisations .... $500 000 active trading or investing in the ASX ... $70 000 spend it on my first car either a WRX or a Lexus sports.... $50 000 for friends in financial need... balance should be $180 000 for a rainy day.

oh, will still keep my job.

 

[Glebe]

$1 million - new house (PPOR)

$500k - Aussie shares

$500k - Intl shares

$450k - new investment property

$150k - 2 new cars for wife and I

$200k - gift to parents

$200k - gift to inlaws

 

[keithj]

So, the question, what would you do with 3 million dollars??

I'd give it to a trust - and I'd honestly be able to tell people I gave it all away. The trust would buy $6M of income producing assets - IPs, managed businesses, blue chip shares, LPTs, etc - anything that was good value.
And the income from those assets would allow me to spend on cars, holidays, mortgages, charity, family, friends, etc.

 

[Muz]

Winning the Powerful Ball

I'd give it to a trust - and I'd honestly be able to tell people I gave it all away. The trust would buy $6M of income producing assets - IPs, managed businesses, blue chip shares, LPTs, etc - anything that was good value.
And the income from those assets would allow me to spend on cars, holidays, mortgages, charity, family, friends, etc.

I like the way you think keithj

 

[Mr. Fabulous]

With regards to charity, I'd be more inclined to put some money away into an investment that produced an income, with the money going to a charity each year. To me that seems like a better option than giving them one lump sum.

The rest? Well, I'd put it into carefully selected investments using leverage which will then create an income for my own lifestyle with regular 'donations' to family.

Mark

 

[Merovingian]

I'd give it to a trust - and I'd honestly be able to tell people I gave it all away. The trust would buy $6M of income producing assets - IPs, managed businesses, blue chip shares, LPTs, etc - anything that was good value.
And the income from those assets would allow me to spend on cars, holidays, mortgages, charity, family, friends, etc.

Yep, this is what I would do. Use the winnings as leverage for new investments.

 

[bigfella966]

With all the responses so far using most part of the winnings to create more wealth/income, I wonder what % of the average layman would do the same, eg; the father inlaw can recite down to almost the last cent what would happen to the winnings, and none of it is channelled into income producing/wealth creation.

Hmmm,

BF

 

[quiggles]

With all the responses so far using most part of the winnings to create more wealth/income, I wonder what % of the average layman would do the same, eg; the father inlaw can recite down to almost the last cent what would happen to the winnings, and none of it is channelled into income producing/wealth creation.

Dr Quiggles ran this test a while ago (only asked about $1 million) and most of her colleagues and acquaintances couldn't say what they'd do with it - a car here, a holiday there, that sort of thing, but most were really threatened by the thought of that much money.

 

[Monopoly]

Dr Quiggles ran this test a while ago (only asked about $1 million) and most of her colleagues and acquaintances couldn't say what they'd do with it - a car here, a holiday there, that sort of thing, but most were really threatened by the thought of that much money.

Hmmm.....now that kind of reaction makes for far more interesting research/reading than would learning what people would do with the money. It's all relative I suppose...and probably helps to explain the difference between those that actually "make it" and those that only ever "dream of making it".

 

[Rixter]

I'd pay cash for all my Non-Tax deductable lifestyle expenses like PPOR, cars, boat, holiday, a portion for gifts to family etc, then give a portion to charity & Id invest the rest across the three aset classes for growth & income purposes.

p.s. or I could invest it all on power ball tickets in the Mega $32M Super drop

 

[kero]

hey, anyone getting into the 32million new year's eve tatts? i'm getting in thru two syndicates.

 

[Dazz]

My choice would involve two steps.

1. Purchase a nice vacant $ 3 MM residential block of land on the waterfront somewhere in a swisho position on the banks of your favourite river close to the CBD. Pay cash and get the title deed in my hot little hand.

2. Walk into the bank and slap the title deed down on the counter as a deposit for a long, fully tenanted $ 7 MM office block in the middle of the CBD leasing at 10% nett. Borrow the lot plus costs.

My situation would then be ;

Capital
10 MM worth of dirt appreciating at .... pick a figure. Buku p.a.

Income
Loan costs of 7.25% * 7.3 = 530K p.a.
Outgoings on office = nil, paid by tenants
Outgoings on block = 25K p.a.

Free cashflow = 700 - 530 - 25 = 145 K p.a.


On the other hand, I could go down to the corner store and buy a really big bag of Fruit Tingles and Jaffas....I'm undecided.

 

[kissfan]

Hi all.

Along the lines of others.

I.e, keep on investing for more capital growth via I/P's and a good managed fund/s, help out family/friends etc, but definately use some to buy a few luxuries like holidays, update cars etc.

Regards
Marty

 

[lizzie]

Dr Quiggles ran this test a while ago (only asked about $1 million) and most of her colleagues and acquaintances couldn't say what they'd do with it - a car here, a holiday there, that sort of thing, but most were really threatened by the thought of that much money.

don't the stats go something like "within 5 years, 95% of winners of big payouts (over 1mil) are in a worse financial situation than before they won".

i agree similar with the others - 6 months in europe, paint the house (long overdue but i keep spending the money on new ip's), maybe a bit of new furniture as the 15 year old lounges are looking a bit ratty, then the rest straight into ip's and small developments to hold.

 

[Simon]

don't the stats go something like "within 5 years, winners of big payouts (over 1mil) are in a worse financial situation than before they won".

The quote that came to my mind was something like:

"Give a rich man's wealth to a poor man and in a short time both will be back to where they started."

Is all about attitude to money which I think is more important to focus on than the nuts and bolts of investing for the new investor.

Cheers,

 

[topcropper]

Youse are all going to say BULL to this, but I'll say it anyway.

I really wouldn't want to win Lotto/powerball.

I am addicted to investing. Every spare minute I'm not working, or with family, I'm at the least thinking about property/shares. It's exciting. I like waking up in the morning because I can't wait to check the world markets on the web. I don't want to die as I wouldn't know what the all ords would do tomorrow.

I think if I won a heap, I would loose the excitement and motivation.



OK, I'll admit it, that is probably all Bull.


If I won that much money, I wouldn't stop work, so I wouldn't need the income.

I think a lot would be invested in high growth, high land content property with low yields that I normally couldn't justify owning as there is stuff all income. Maybe lifestyle farms on the coast around northern NSW, and Goldcoast and sunshine Coast hinterland. Little places 10 minutes from the beach, with a view, a patch of rainforest, and a little creek running through. Preferably with subdivision potential. That sort of land has been a great investment for the last 20 years, and I think it will continue to be.

See ya's.

 

[Rixter]

The quote that came to my mind was something like:

"Give a rich man's wealth to a poor man and in a short time both will be back to where they started."

Is all about attitude to money which I think is more important to focus on than the nuts and bolts of investing for the new investor.

Cheers,

Simon, I agree with you 1000% on that one

 

[Rixter]

Youse are all going to say BULL to this, but I'll say it anyway.

I really wouldn't want to win Lotto/powerball.

I am addicted to investing. Every spare minute I'm not working, or with family, I'm at the least thinking about property/shares. It's exciting. I get up an hour early, to check the world markets on the web.

I think if I won a heap, I would loose the excitement and motivation.



OK, I'll admit it, that is probably all Bull.


If I won that much money, I wouldn't stop work, so I wouldn't need the income.

I think a lot would be invested in high growth, high land content property with low yields that I normally couldn't justify owning as there is stuff all income. Maybe lifestyle farms on the coast around northern NSW, and Goldcoast and sunshine Coast hinterland. Little places 10 minutes from the beach, with a view, a patch of rainforest, and a little creek running through. Preferably with subdivision potential. That sort of land has been a great investment for the last 20 years, and I think it will continue to be.

See ya's.

Bull!

sorry tpc, I couldnt resist that open invitation

Cheers. I like your ideas