Tuesday, February 23, 2010

What If I Win the Lottery Tonight?

I occasionally buy a lottery ticket, even though I subscribe to the idea that the lottery is "a tax on stupidity", I like to play once in a while when the number is VERY high.

$83 Million is a nice number

The most fun thing about buying a lottery ticket is the fantasizing about what to do with the money. So here is what I would do.

(1) Pay the taxes on it = about $37 Million

(2) Split the balance with Andrea, so we don't argue about how each one of us spends it = about $23 Million.

(3) Set up an annuity that pays me $10K a month until I'm 70 years old and on a full pension = about $1.6MM. Why only $10,000 a month? Well, I have lived on as little as $250 a month, so $10,000 tax free seems like a lot.

(4) Set up an annuity that pays my 5 children each $3,000 a month from ages 21 to 65 = about $4.2 Million. Mostly so they always have food and shelter and also leave me alone often.

(5) Set up a fund for educating my children and grandchildren through university = about $3 Million.

(6) Establish a university scholarship fund for needy kids from my high school = $750,000

(7) Establish a university scholarship fund for needy kids from my dad's high school = $750,000.

(8) Buy my dream homes in New Mexico and on the French Riviera = $1,000,000.

After all of this, some awesome traveling, buying a few modest toys (mostly motor cycles, books, music and robots) - this still leaves over $10 Million left.

Anybody want $10 Million Dollars if I win? I won't be needing it. Maybe I'd raffle off $500K to 20 people..... huh??