Suppose you win 100 million. What do you actually do with it? Banks only guarantee 250,000. Do you have to invest it? Is there anywhere you can just let it sit and draw interest?
Here in Norway you are legally required to attend a few sessions with financial advisors(a protected title here, so they will actually be qualified), before you are able to recieve your winnings.
The rough thoughts I have had about being in such a situation is to allocate maybe 10%-20% as “fuck you money” to have fun with, and the rest to follow all their advice with
That’s a really great idea! More places should do that. Maybe then there’d be a lot fewer people losing all their money within years.
In addition to major prize winners, it should also apply to people who have just started earning a massive income. Eg, professional athletes.
France does that too. It’s not a legal obligation, just something the local lottery does, presumably to avoid bad publicity of winners going on a tasteless spending rampage.
That’s good knowledge, maybe people who are doubtful of financial advisors in their country can visit Norway
you invest it in (foreign) right wing radical organizations bent on overthrowing their democratically elected government. that way, when these groups eventually succeed due to your generous contributions they will allow you to swoop in and buy up their country’s previously nationalized natural monopolies at bargain bin prices through local intermediaries at which point you can cut costs and inflate prices for the citizens of the entire country and receive many orders of magnitude ROI
it’s win-win so long as you propagandize enough people about how this specific thing that you’re doing is actually defined as democracy, they’ll be totally ok with it and won’t suspect a thing
This plan only costs you your humanity. You probably weren’t using it anyway.
Good old Vulture Capitalism. The answer to “fucking up tens of thousands of employees and maybe only hundreds of thousands of customers isn’t going far enough for me, what else can I do?”.
The real answeris, get in contact with the accountants of other people who have 100mil and have them take care of it. I’d probably squirrel away some in precious metals just in case. Also, I would not post a single thing on the Internet about the fact that I’m rich.
So, you’re rich?
I’m not definitely not saying I might probably not be somewhat endowed with money in a non-rich way.
I wish
That’s not a no
It’s better that you know what you’re doing with your money rather than giving it to wealthy people, as they will likely end up stealing it. This is often the reason why they are rich and you are not.
I feel like that more a reason you specificity aren’t rich and the rest of the people have very different reasons.
I don’t know people that has 100 millions, but I know rich people close to me, they basically have properties and get money from it, they don’t need to work, and they get more money incoming than me working and getting a salary… much more, and more than what they need too (counting that they have many homes to live in), I still say, if you have so many money, people will try to get your money. You need to know what investment you’re going to do to and learn some basic economy, or just go to the easy way and buy proprieties and make people work to pay their rent.
Absolutely this is why. And owning stuff isn’t a job - only workers contribute to society.
Unfortunately, having bourgeoisie rulers and landlords is the central underpinning to capitalism.
What makes you think owning property means you don’t know economics? I’m willing to bet those people also have a lot invested in stocks/bonds/business… feels like your just mad because they have an a you have not.
Well, firstly, what I said at first is that you will need to know economics before giving your money to others to invest to know at least what are they doing with your money, don’t let others manage your money because you can get surprised by going to bankrupt for not knowing what they did or doing, so learn some economics or how those things works.
About the people close to me… I envy them yeah, but I’m not mad… makes no sense for me to be mad at my friends/family/neighbors… we are all friendly and friends. Some of them have investments, other only proprieties and nothing more, they don’t even need to with the incoming they already have… maybe buying a new property but not everyone is interested of investments.
Depends what you want to do with it. If you want to keep it liquid, you can just keep it in bank accounts in major banks. Split it across several major banks. If they all go under, your problems will be far bigger than money. You can also have multiple savings accounts with each bank to garuntee 250k in each one and earn maximum interest. I have 6 savings accounts with my bank each with ~200k in it. If the balance exceeds 250k, the interest rate dtops down from 4.25 to somethink like 1.15.
If you dont need to keep it liquid, you buy a stable asset like land. You might choose to buy a bumch of houses and apartments in the city, but that comes with strata fees and property management etc. Plus, being a landlord investing in residential property makes you a shitcunt. In my case, I purchased rural land. I purchased land adjacent to nature reserves, with about 450ha of arable land, 110ha of forested land, and 85ha of salt damaged land. Im remediating the 85ha of salt land, and strategically planting out about 10 trees/year/ha on boundaries of my arable land to reduce soil erosion and degradation. I lease the land to a couple of organic grain growers who work the land. At any given year about 1/3rd of my arable land is fallow. (Note tgat im not a farmer by trade, I just think its a good, sustainable asset that I can use to directly improve the environment)
I would buy me an American senator. Always wanted to have one.
For 100 million, you can get a majority in both Houses.
If you buy a senator you’ll get 20% off a supreme Court Justice!
From what I’ve heard they often make a mess, and ruin your stuff.
Only need somewhere around 250k for that, you may as well go big.
Two chick’s at the same time.
That’s it? That’s the only thing you’d do if you had a million dollars?
Damn straight. I always wanted to do that, man. And I think if I were a millionaire, I could hook that up too.
100 mil, who want those cheap 1 mil girls?
So… 3 then?
Those are some expensive chicks
More than once I bet
Ten year lease?
Fuckin’ A, man.
Speaking generally: investments.
Diversifying stocks and bonds mainly, and each asset should be diversified from the others of the same type (eg; tech stocks counter balanced with things like agriculture or energy or something that’s also stocks but not in tech - Rinse and repeat for bonds, etc). Mainly long standing assets should be prioritized, stuff that has historically paid well in dividends and will hopefully continue to pay well.
The majority of your assets should be stored in this manner… This will help the long term value of your money. Above and beyond that, the assets will counter balance eachother if they’re properly diversified, as one sector under-performs, another should be performing better and make up the difference, so payouts should be fairly steady.
At the end of the day, those investments will make up your passive income, which any sufficiently rich person has in spades. I wouldn’t pretend to put numbers on any of this, whether to say what percentage of winnings should go to what or in what volume, and certainly nothing fixed, if you’re not sure how to get any of this finance stuff handled yourself, there are plenty of investment firms and personal wealth management companies that will gladly take your money so you can make more (so you can continue to pay for their services), and who will be more than happy to get you started.
Moving away from stocks, bonds, and passive income, you’ll want to focus on fixed assets. Having your money invested into things. What those things are is up to you, but I would advise to focus on getting a good property instead of other assets, since real estate tends to be one of the few things that continually increases in price over time with few exceptions. Compared to other investments (eg, stocks and bonds) unless the property is a specific “income property” aka, something you’re renting/leasing out, it’s not the best investment for growth, but having a home that you own and being able to live more or less rent free, helps you hold onto your money, rather than blow it on a place to live. A house will be a rather large one time investment that will at least hold its value, and you’ll get a place to live out of it. Cars tend to lose all value in a matter of years to decades, and there’s a high likelihood that they could be destroyed through use. So cars are generally expenses, not investments with few exceptions. So buy vehicles with the understanding that you may not get your money back at the end of the life of the vehicle; IMO, that applies for almost any vehicle including planes, boats/yachts, etc. So spend wisely in regards to transportation.
For everything else, out of your passive income create a salary for yourself, and set aside some “in case of shit” money from your year over year dividends. Reinvest/grow your funds with whatever you’re not paying yourself in salary. The amount is up to you, but I’d say if you can afford to live on less than half of the payout, and reinvent the other half or more, do it. The in case of shit funds would be for incidentals like your car getting totaled, or needing to replace the water heater/HVAC on the house, or something unexpected you just need instant cash for.
Up front, you should be paying off debts and living within the salary you set for yourself… Doing everything in your power to keep your investments intact and growing for your own future. It’s fine to go on vacations or cruises or whatever you want, as long as you stay within your self defined salary, and you’re not just blowing through the capital of your investments. Long term, you’re going to be able to live very comfortably without needing to worry about money which, honestly, is the only outcome that should be worth anything… That safety and security is extremely valuable. Do not throw it away on a few years of indulgence.
Rich people have their own special financial advisors. The ones who know how to avoid taxes.
Just invest enough to draw on to cover your basic needs for life and be secure, and spend the rest on things people you know need. Improve the place you live. Fix something small. Build some parks with low income housing nearby. Don’t be a dick and buy shit just to buy shit for yourself.
Buy 100m of S&P 500, live off dividends with stealth wealth and no work.
I’d give most of it away or start some kind of foundation. Having that much money, amongst all the poverty here in South Africa, it would just feel immoral.
The money I’d spend on myself would be to own an average middle class home, a normal car, and maybe a project car if I could get some utility from it. And on paying off medical debt and spending it on medical treatments to minimise my chronic back pain. And to set up a fund that pays me enough every month so I never have to worry about hunger or not having enough money by the end of the month to do stuff.
Buy a house. There isn’t any more land being made. (Except in Hawaii, what with the volcanos out there)
Lend some to Uncle Sam by buying Treasury bills. He’s been good for the interest payments. They tend to earn a bit more than bank CDs anyway.
If you’re really risk-averse, go for those bank CDs. Brokerage houses like Schwab can buy those on your behalf, and track which banks hold them, so you don’t exceed the deposit threshold at any one institution. Good luck finding 400 banks through a brokerage’s finder, though.
Buy stock in publicly traded companies. Or buy mutual funds. It’s good to get some growth in the portfolio, which fixed income alone can’t do.
Donate some to a nonprofit when you need a tax write-off.
Start your own company. Go back to school. Invest in yourself.
fund guerrillas?
Doing the opposite of the time Coca-Cola hired anti-union assassins in Columbia
You could fund both!
Considering that quality of life won’t improve much beyond a net worth of 5-10 million dollars (heavily depends on the cost of living in your area, as well as stuff like cost of healthcare), there is no point keeping that much money.
If I got 100 million dollars, I would donate 95 million do various causes, pay whatever tax I owe for the other 5 million, and retire with the 2.something millions I have left.
As for where to keep it… First I would pay off my mortgage, and then I would invest in index funds and bonds.
Two million is hardly anything for retirement. If you’re in your 50s then that’s only 66k a year until you’re 80. Unless you’re about to die that’s an absolute pittance. If you’re younger then that’s even less per year. You can’t think of retirement as “oh I only need this much money”, you have to think of it as paying yourself your yearly salary until you die. Life expectancy has massively gone up, so has inflation. If you live to 65 in the USA you have an average extra expected years of 15-20, so up to 85 years life expectancy in certain states. If you’re retiring at 30 you’ll be looking at 55 years of paying yourself. If you want a decent “salary” you’re looking at at least 5.5 million.
You would not just store it in a bank account collecting no interest.
You would invest it and could easily live off the dividends.
That really isn’t how stuff works. I don’t understand how you’re getting upvoted at all. Do you have a financial advisor? Do you actually have investments and accounts for retirement? Investing two million and trying to live off the dividends would give you pretty much nothing each year, from a cost of living perspective.
First, I am not from the US, and I did explicitly mention that it highly depends on the cost of living where you live.
I live in a place with a solid transit system, so I don’t own a car. I live in a place with universal healthcare, so I don’t need to worry about massive medical expenses later in life.
By investing 2.5 million dollars, using the 4% rule would give me 100k a year which is really high and I would never get anywhere near that.
What? $66K in the USA is more than most. It can be a really great life. How the fuck can $66K be a pittance?
Editing to add: Real median household income was $70,784 in 2021
That’s like one ambulance trip
Also, 66k with no rent or car payments.
Who ever said you wouldn’t have rent or car payments?
If you started with $100M, you definitely could buy yourself a house and car before donating the rest. Hell, you could buy it out of the $2M and still be better off than most folks.
They clearly said what they were going to do with their money. That was not in the list. If you want to start going outside of the list then that’s fine, but don’t pretend that that’s what OP said.
Omg this is the most redditor argument I’ve seen off reddit. No one likes a pedant.
Also, they do state they would pay off their mortgage, so not only are you a pedant but also a wrong one at that.
only 66k a year until you’re 80
motherfucker i make like 12k a year
How old are you and where do you live? That completely matters.
Buy housing for myself, pay off my medical debt and then donate everything else to people in need.
