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?
Have you ever seen the opening credits to Duck Tales?
That.
Just don’t dive into it 💀
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This was actually a plot point in a comic strip. Scrooge was the only one who could swim through cash and won whatever the conflict at hand was because the rival of the week couldn’t.
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Which activity? https://www.dailymotion.com/video/x3azdi0
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.
FWIW, the NFL does actually have financial literacy classes for players. It’s definitely a start
That’s good knowledge, maybe people who are doubtful of financial advisors in their country can visit Norway
I think in the US, a similar title would be a “fiduciary”. Ie. Someone who is supposed to act in your best interest.
No, it’s more like doctor or engineer where it’s a protected profession that’s criminal to imitate.
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.
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?
Fuckin’ A, man.
Those are some expensive chicks
More than once I bet
Ten year lease?
You pay somebody to deal with it.
Mixture of types depending on your goals. CDs, Bonds, Stocks, etc.
You can just open more accounts also. Having it all in cash probably isn’t the smartest idea.
Why the CDs? If I’ve got the cash to go physical with my music, I’d go vinyl.
I think he probably meant laserdiscs
If we’re talking big investments, we’re talking laserdiscs
Child of the 70s-80s. I’d risk it with cassettes and maybe even throw in an 8 track or two.
This! Always smart to diversify.
When you win/exploit/inherit/etc enough capital to live well for multiple lifetimes, it always perpexes me when people fixate on making more.
You won, go enjoy hobbies you can easily fund now, it’s just hoarding at this point. Capital is a means, and it’s kind of pathetic when people warp it into their end goal when it’s no longer the key limiter to their lifestyle.
It’s no different than hoarding newspapers, but at least many of those hoarders often demosntrate the self-awareness and recognition of embarrassment.
For 100 million you are good but for more realistic amounts of money the value of it just goes down with time so it is a good idea to do something with it.
I think the behavior of hoarding is pretty human and there is a broader failure of inequality.
Let’s say you have $100,000,000 dropped in your lap. You now never have to worry about needing money ever again, which in our current society means you don’t need to worry about a LOT of problems.
So it’s natural that most people want to preserve that security, the best way to do that would be to invest the money in a way that it grows equal to, or faster than you will spend it.
You can just get it all in cash and stuff it under your floorboards, but there’s a non zero chance that the money will be physically destroyed or stolen from a disaster.
You can stick it in a bank, but you have very little protection for the bulk of that money from the government insurance.
So the smartest thing to do is to spread that money out to investments that will grow that money in a diverse way to protect your newfound security.
Once that is set up, you create a will (or trust) to handle the money when you are dead. Who gets to benefit from your windfall once you’re gone?
Then you have complete freedom to live your life how you want to.
I completely disagree with you.
If you gain sufficient amount of money (we are talking 100M $ here, but it works even for 1M), you have SO MUCH MONEY that it can generate money by itself within a reasonable timeframe AND you can live really really well with it, enjoy your hobbies and free time, all at the same time. And if you don’t know how to do it, let a professional help you, because you can pay for them, too.
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.
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Only need somewhere around 250k for that, you may as well go big.
Hire a fiduciary to invest it so you can live off the interest and some for the rest of your life. You’ll still have plenty to blow after that so it’s up to you what you want to do with it.
Go to a big city and get a lawyer, finacial advisor, and accountant that have expeirience dealing with that kind of money. Make sure all three are okay with working together. Take their advise. Enjoy life and (for me) do fun things that bring a smile to the not-so-lucky. If i won big money id buy a nice food truck and go around factories around lunch time offering really good food for free. Or go to walmart looking for people with kids and tell them ill buy anything they can fit into 1 cart. Id also hire a professional chef (and team) to cook a great meal for the local homeless shelter. Things like that are good for your soul and will give you a far better feeling than blowing it on toys.
Edit: id do stuff like that as much as my financial team would let me.
It’s incredible how inexpensive are the things that matter
Hell yea. And if i were to win one of those billion dollar lotteries i would have the money to at least help fight climate change in a meaningful way. Pay volunteers, fund scientific research and projects, ect…
with a billion dollars you could probably get much further buying politicians/news outlets unfortunately
fund guerrillas?
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Doing the opposite of the time Coca-Cola hired anti-union assassins in Columbia
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
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I feel like that more a reason you specificity aren’t rich and the rest of the people have very different reasons.
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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.
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)
New roof, solar panels, battery, EV, remodel part of the house, new siding, buy a small house in my neighborhood to function as a guest house, take care of my parents, spend a couple months in Europe.
Oh, you meant the rest of it. Government bonds are always good. You can also use more than one bank to expand the $250k limit (which applies per account type and bank). A trust, for example, is insured separately from your checking account.
Past that, I couldn’t tell you. Your financial advisor would though, just make sure they have a “fiduciary duty” to serve your interests.
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?”.
I’d hire someone who knows what they’re doing with it and follow whatever advice they give.
The trick is to hire SEVERAL groups of people (read: wealth management advisor teams from major financial institutions) and let them each manage a $25M+ chunk of it. You’d want to have 2-3 different groups, and then a simple portfolio you manage yourself that trades in market-tracking ETFs and highly rated government bonds. That gives you the combination of excellent security with minimal personal maintenance. And you get all the perks of being a wealth management client from several large institutions like below-market loan rates and unique investment opportunities. Also, the really big institutions like JP Morgan and Goldman Sachs have lots of resources available for financial education for their wealth management clients.
That’s the best advice for someone who doesn’t really know what they’re doing. Never give one person the keys to your entire net worth, THAT’S how wealthy people end up broke.
In this hypothetical, even if JP Morgan or Goldman Sachs collapsed or embezzled your funds (which is INCREDIBLY unlikely), you’d still have more than enough wealth to live comfortably for several lifetimes in your other accounts. Just make sure your accountant knows where everything is, because you don’t want to go to prison for tax evasion.
This is absolutely the way to go, but be aware that it can lead to concentration/sectoral risk when managers aren’t aware of positions in the other portfolios. For example, Goldman could invest heavily in tech or pharma or whatever, not realising that JPM also have a big investment in that area.
Investors shouldn’t be picking winners. That’s already too much risk and too many fees. Total market index funds and total bond indexes are what you should be investing in.
Great add-on.
that’s how many millionaires (from sport, music and film) end up broke at the end of their life.
By listening to someone who knows how to manage money? Or by letting someone handle it it who fucks them? If you’re talking about a professional who is licensed and bonded and all of that seems like it would be smart…
No, they end up broke because they spend as if they’ll never run out of money without putting it into places that continue to make money for them. They level up their house, car, clothes, flight class, whatever, then end up living paycheck to paycheck with no savings and not being able to keep it up forever.
Are there cases of some wealthy person trusting the wrong guy, whom they hand over their $$ to and that person runs off with it? Sure, but that’s a far cry from getting advice from a professional and following their advice.
there’s a lot of reddit posts (yes. i know, the heresy) and youtube videos on this. tldr: get good lawyers and financial advisors before you tell anyone, and let them help you work it out.
Buy housing for myself, pay off my medical debt and then donate everything else to people in need.
