Have you ever been faced with the dilemma of what happens when you win the $1.6 Billion Dollar Jackpot, and you don’t know what you should do with all of that money? Here you go…enjoy! Snap/Insta: GPStephan
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According to math, your chances of winning the lottery are a measly 1/302,000,000. To put that in perspective, you are 4 times more likely to be hit by an asteroid, and 431 times MORE likely to get struck by lightning than win the lottery. But that can’t stop us from dreaming, right?
Now in order to understand what to do with this huge windfall, it’s first important to recognize why so many lottery winners go broke. It’s estimated that a THIRD of all lottery winners declare bankruptcy, and 70% lose all of it within just a few years. I discovered that type of person most likely to play the lottery in the first place had very little financial education and very little savings…hence, why they’re playing the lottery. It’s estimated that 40% of lottery ticket purchasers in California were unemployed.
Then, you combine that with ALL of your friends and family then asking for handouts, risky investments, extravagant purchases, and it’s easy to see how winning the lottery could become so stressful. So what can someone do to potentially AVOID these issues?
FIRST thing you should do IS TELL NO ONE.
SECOND: Get an attorney. Many lottery winners chose to set up a blind trust, within a trust, to remain as anonymous as they can when they claim their prize.
THIRD: Take the lump sum. When you look at the money invested over the long term, you’ll almost ALWAYS come out ahead after 29 years by taking the lump sum and investing it, than by getting the annuity.
FOURTH: How to invest it? Assuming you took the lump sum of $1.6 billion dollars, you should be left with $900,000,000, and $450,000,000 net after taxes. Now if this were ME, here’s how I’d distribute this:
$150,000,000 in a low-fee Total Stock Market Index Fund by Vanguard. Assuming you spend just 3% of this amount annually, that should give you about $375,000 per month in income without ever touching the principle.
$150,000,000 in a low-fee Vanguard Total Bond Market Index Fund with Vanguard. This would give you a very safe, stable investment that you can rely on. It would also give us another $375,000 PER MONTH in stable income.
$50,000,000 and spread that throughout some safe, triple-net commercial real estate in highly dense cities. Lets assume you only spent 3% of this income annually, that gives you another $125,000 PER MONTH in income.
$100,000,000 and spread that throughout some safe RESIDENTIAL real estate, mainly large apartment buildings in densely populated cities. This is another $125,000 PER MONTH in income.
$50,000,000 is the amount you now have over. I’d personally decide to keep $10,000,000 as a cash buffer, and then spend the remaining $40,000,000 on whatever you see fit. At the same time, your investments will also bring in a total of $1,000,000 PER MONTH pretty much indefinitely without ever touching the principle.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
According to math, your chances of winning the lottery are a measly 1/302,000,000. To put that in perspective, you are 4 times more likely to be hit by an asteroid, and 431 times MORE likely to get struck by lightning than win the lottery. But that can’t stop us from dreaming, right?
Now in order to understand what to do with this huge windfall, it’s first important to recognize why so many lottery winners go broke. It’s estimated that a THIRD of all lottery winners declare bankruptcy, and 70% lose all of it within just a few years. I discovered that type of person most likely to play the lottery in the first place had very little financial education and very little savings…hence, why they’re playing the lottery. It’s estimated that 40% of lottery ticket purchasers in California were unemployed.
Then, you combine that with ALL of your friends and family then asking for handouts, risky investments, extravagant purchases, and it’s easy to see how winning the lottery could become so stressful. So what can someone do to potentially AVOID these issues?
FIRST thing you should do IS TELL NO ONE.
SECOND: Get an attorney. Many lottery winners chose to set up a blind trust, within a trust, to remain as anonymous as they can when they claim their prize.
THIRD: Take the lump sum. When you look at the money invested over the long term, you’ll almost ALWAYS come out ahead after 29 years by taking the lump sum and investing it, than by getting the annuity.
FOURTH: How to invest it? Assuming you took the lump sum of $1.6 billion dollars, you should be left with $900,000,000, and $450,000,000 net after taxes. Now if this were ME, here’s how I’d distribute this:
$150,000,000 in a low-fee Total Stock Market Index Fund by Vanguard. Assuming you spend just 3% of this amount annually, that should give you about $375,000 per month in income without ever touching the principle.
$150,000,000 in a low-fee Vanguard Total Bond Market Index Fund with Vanguard. This would give you a very safe, stable investment that you can rely on. It would also give us another $375,000 PER MONTH in stable income.
$50,000,000 and spread that throughout some safe, triple-net commercial real estate in highly dense cities. Lets assume you only spent 3% of this income annually, that gives you another $125,000 PER MONTH in income.
$100,000,000 and spread that throughout some safe RESIDENTIAL real estate, mainly large apartment buildings in densely populated cities. This is another $125,000 PER MONTH in income.
$50,000,000 is the amount you now have over. I’d personally decide to keep $10,000,000 as a cash buffer, and then spend the remaining $40,000,000 on whatever you see fit. At the same time, your investments will also bring in a total of $1,000,000 PER MONTH pretty much indefinitely without ever touching the principle.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
The business commercial real estate suggestion did not wear well. Oops!
Getting a lot of money quickly can destroy your life.
I think my wife and I could handle it but I do not think some of our family member could.
So I have a plan.
We would give money to our 10 family members slowly.
Year1 each would get $1,000 per month
Year2 they would get $2,000 per month
Continue this until they hit a max of $5,000 per month.
There would be a condition that they sign up with a financial advisor who will help teach them how to manage money.
Stay away from real estate mostly commercial. Dont invest in SF either its going to crap, literally. Careful of owni g out of state land, some states charge non residents more in taxes, like NY and California.
Finally, some practical advice
If you take a lump sum, can you arrange a lottery commission to cut you the pot in $250,000 increments since that's the max amount that fdic can insure bank deposits (or balance) of?
Yikes! Your recommendation to invest in CRE did not age well… cannot imagine how much value would have been lost since COVID.
If u have 450 million u don’t need to invest in anything risky. I would buy commercial real estate and I would make sure I’m not spending more then I’m making so my net worth is always going up.
Just take the annuity. Why do u need it all at once?
What's the point in buying an index fund when you have that much money? You can buy the stocks directly.
Would you still recommend the same strategy today with high interest rates, and cash prize less than half of jackpot because of said rates? Are those rates a negative or a positive for investors?
Also, with much migration out of New York and California, would you diversify your property investments to include South Florida or any cities in Texas, or other high growth areas?
Thanks. I consider this the best video I've seen so far on no nonsense investing advice for lottery winners, or in general.
Had the winner listened to your 'expert' advice & locked in long-term on commercial real-estate in places like NY, San Fran to the tune of 50 million..they would be in line for one helluva loss.
Property taxes, property taxes and property taxes. Someone has to manage all that real estate for a fee. Insurance. People don't realize the amount of sleep they would lose over all this new massive responsibility. Take the annual payments and learn as you go.
Great video
No, your odds on being hit a meatiornite is a lot fucking higher. Thats seeing the great wall of China from space stupid.
Just brushed through ur video. One day when i win, i will be back to this video for more info
Graham, update this? I would like to know now what you would do different.
If I won the lottery I would not need this video
Whos watching this is 2023
But the people going bankrupt arent the ones winning hundreds of millions after taxes, its the ones who net 20-70 million usually, but not hundreds and hundreds of millions, Right?
Thanks now I know how to invest my mega millions lottery jackpot money!!!
Thanks for the great advice, if I win I will throw you some money! Boats and Ho's Graham!!
I mean looking at this spending on Commercial Real estate aint the best anymore post corona
Whats the percentage of lottey winners that take the lump sum vs annuity, that go broke?
Watching YouTube I realize how much full of BS— YouTubers are You dig deeper to find out that they don't have any financial background straight cap
I didn't care for what you said about a person saying no, and you called him a-hole. You do not know how they were treated. By a lot of people might have said no to them.
Invest? No. Deposit it and have fun w/ the interest.
Spend a good chunk in commercial land while you can before the "professionals" managing your money lose it all and tell you "sorry". Buy properties that you can squeeze juice out of. Get some millions and buy gold jewelry, gold bars, valuable arts/paintings and things you can convert to cash, buy a mountain property somewhere and bury everything in safely. It is really possible that your money professionals steal your money as they know you wouldn't recognize a T-bone about the financial world. A big time lottery lawyer recently did some stunt like that. Lottery winners lost millions I believe.
The IRS will help themselves to it first.
Had to come back 4yrs later after liking the video years ago. I'm gonna do exactly everything you said in this video. Thanks bro.
I strongly disagree with the lump sum advice. It's not about maths but human nature. There is a large probability that a lottery winner might do something stupid if they suddenly went from $600 in their bank to $1.6 billion.
Besides, we are talking about such a large sum of money that it objectively does not matter. Growing your money from 1.6 billion to 16 billion will objectively bring you nothing other than bragging rights. Even if you are the most outlandish unhinged spender, after blowing around a dozen or so million you will realize there is nothing to buy. What are you going to get? 10 Bugattis? A house the size of an airport terminal? What's the point?
Actually your'e the only one on YouTube who showed me how to save this amount of money, if I had it to invest. Thank you! I always remember…
If you don't buy a ticket you lost your chances of getting struck with cash. Don't let your mind stop you from doubting your choices for bettering yourself in life even if money comes from a different revenues. Buy a ticket and be like Charlie with the golden ticket. Start believing the lifestyle you will be living. See yourself in that car, house, boats, cabin retreat, acres of land, abundance of animals, garden houses, that new kitchen, walking closest, abundance of blessings that you can dream of is not far from your touch of mind. No one can stop your dreams🎉🎉🎉
Invest in yourself always
Very smart idea
Hm, what if it's 70 million Canadian, you can't remain anonymous, and you think investing in property (commercial and residential) is unethical? >_>
My plan:
Split the money with relatives and friends of the family (That way, they won't come to you for handouts because you already gave them money)
buy a house or apartment (NOT a mansion or a penthouse)
Invest in the low risk ventures you were talking about and live off the interest
Live comfortably, but not too extravagantly
What about how much you should give family/kids etc., certain friends, church and charities??? Should that come out of the final $40 million? and or te monthly returns???… Please comment on this or better yet – maybe an amended video on it as well… Thank you.