I Want Money—Do You?
I am so tired of worrying about money. Where is it going to come from? How am I going to pay that bill or cover this check? Sometimes it just ruins my day to have to start thinking about this garbage as soon as I open my eyes. However, I can’t help but wonder what I would worry about if I had no money concerns.
Let’s pretend that I won the lottery. Now in my opinion winning more than 4 or 5 million dollars would be a big pain. You would have to hire somebody to manage your money for you (investing, donations, etc.). But, with a manageable amount like 4 or 5 million—well, I could work with THAT!
I would donate money, spend money, save money and just plain ol’ give my money away. My money concerns would be gone, temporarily. I say that because after all is said and done I don’t think I would like having so much money. My whole lifestyle would change—think about it. Nothing in the world would be beyond my reach. There would be nothing material to want or save for or even need.
Where I would get the most satisfaction is from giving it away to people who have helped me in the past or are in need or people who have just been nice to me.
All of this is just a big pipedream. However, it was fun to think about while it lasted.
JOY Said,
June 29, 2006 @ 2:39 am
share your money with the homeless
LessIsMore Said,
June 29, 2006 @ 11:51 am
When considering lottery jackpots, always keep the “RULE OF FOUR” in mind. Take whatever jackpot amount you see advertised, divide it by four, and that’s what you’ll end up with. I never play a lotto game unless the jackpot is at least $8,000,000. Here’s the math.
First, I’d take the “instant cash” option - half the jackpot amount immediately in one lump sum - since certified financial planners suggest that half the jackpot, invested even conservatively, will get you more actual cash in hand than any annuity plan.
So, the $8,000,000 quickly becomes $4,000,000.
Then, there’s taxes. Getting that much money all at once puts you in the highest Federal and state tax brackets - 39.6% Federal, 9.4% state (Oregon, anyway). So, I’d round these percentages up to the next highest full percentage - and have lottery officials withhold 40% for Federal taxes and 10% for state taxes (total, 50%). The good news is that with such withholdings, you’re guaranteed to get something back (not much, but “something”).
So, the $4,000,000 quickly becomes $2,000,000.
I figure that by investing $2,000,000 wisely, even conservatively, I could have a very comfortable and permanent retirement. BTW, almost every lottery agency will recommend that jackpot winners see a Certified Financial Planner with ALL POSSIBLE SPEED after winning - BEFORE you start spending money or divying it up to friends, relatives and charities. I think that is very very sound advice and would follow it myself … to a point. I’d have the CFP set up a “skeleton” of an estate plan … then enroll in Boston University’s online CFP course. It can be completed quickly and allow you to become your OWN financial planner.
P.S. BTW, if you’ve not seen it, here’s my own blog article on winning the lottery:
http://lessismore.yesdebtfree.org/2006/05/16/it-could-happen-to-you/