Three guys walk into a financial planner’s office with a Powerball ticket – MarketWatch http://ow.ly/X7iDL
– Most of the article is a bit sarcastic but the last part makes a lot of sense. I have saved it in case I ever win the lottery.
For all the groups, his first two pieces of advice are “don’t tell anyone” and don’t change your lifestyle for six months. Let the shock fade, and the blur of every idle want or desire you ever had flashing in front of your eyes slow down. The six months will let you figure out which desires are real and which are just bad ideas, too indulgent for the real you.Indeed, the striking thing about his advice (and similar thoughts published by Charles Schwab) is how little of it has to do with money. The key is being true to yourself. That’s especially true if the winner is young and susceptible to having their heads turned, he said.
“Remember this: Most financial advice is actually rather boring,” he said. “Put it away for a rainy day, some into safe investments, some into growth investments and, above all, understand that you did not all of a sudden become more intelligent. Do not take advice from people who you feel aren’t well-grounded.”
True on all counts, and pretty easy.
Say, I won the $1.2B in Powerball drawn last night. What do I do??
Here’s my plan: Take one year. Put the whole pile into triple tax-free municipal bonds. Keep working. If you take the lump sum of about $560 million after federal taxes (buy a house in a no-income-tax state before claiming the prize), and get 3% interest, it will turn into $16.8 million by this time in 2023.
Then pay off all the mortgages in your family. Pay everybody’s student loans. Set up trusts for relatives with special needs. Ask your church or house of worship what they need. Clean out the PTA’s entire bake sale. And you’ll still have maybe $13 million left, with another $17 million coming in a year, and no increase in sight in the number of meals per day or cars you can drive at once.