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re: Mega Millions Financial Advisors
Posted on 10/23/18 at 4:13 pm to Mingo Was His NameO
Posted on 10/23/18 at 4:13 pm to Mingo Was His NameO
quote:
And, again, less than the annuity. If all youre going to do is buy a bunch of T Bonds you'd be better off not taking the lump sum at all.
I agree with Mingo and it makes me feel cheap and tawdry.
I built a spreadsheet (because I am a weapons grade nerd) figuring out annual payouts, weekly spend, weekly ROI, capital gains tax, etc., compounding week by week over 30 years and until you start making about 6% yearly on your lump sum, you end up with more money at the end with the annuity.
Also, with this kind of money, even spending $100k a week won't break you.
This post was edited on 10/23/18 at 4:24 pm
2
Posted on 10/23/18 at 4:16 pm to EA6B
I have no idea why you're getting downvoted for this comment. You're exactly right.
Posted on 10/23/18 at 4:19 pm to baldona
quote:ha splittting it up is a horrible approach. The money works better together. Plus, their family office will have a team of lawyers, estate specialists, accountants, etc., so go play golf and don't worry about hiring any lawyers yourself.
You don’t give all your money to one person. It would be well worth your time to split it between 2-4 people. More the better. You will get the same help from someone with $100 mil of your money as $500 mil.
I’d hire 2 lawyers too.
Small mistakes cost you $10 mil. A couple extra hours of billable time is worth it.
Posted on 10/23/18 at 4:21 pm to slackster
quote:
. They're going to go from a basic job to a near billionaire overnight. That's not exactly the typical client at the firms that cater to that kind of money. In practice it would be an interesting relationship.
It is not that unusual, this is what happens when many college athletes turn pro.
Posted on 10/23/18 at 4:26 pm to EA6B
quote:
It is not that unusual, this is what happens when many college athletes turn pro.
x10 but I get your point
Posted on 10/23/18 at 4:26 pm to EA6B
quote:
It is not that unusual, this is what happens when many college athletes turn pro.
My professor of Estate/Gift tax in the UF tax program used to help the athletes who signed big contracts. He would be my first call, and then I would call a financial advisor he recommended to me
Posted on 10/23/18 at 4:35 pm to MagnoliaStateTiger
Wife works with KPMG and knows some partners in Houston who only work with high net worth clients. I'd ask them who their clients use and retain their services as my tax accountants.
Posted on 10/23/18 at 4:39 pm to lion
quote:
ha splittting it up is a horrible approach. The money works better together. Plus, their family office will have a team of lawyers, estate specialists, accountants, etc., so go play golf and don't worry about hiring any lawyers yourself.
The time to start worrying is when someone else is managing your money.
Posted on 10/23/18 at 4:43 pm to TigerstuckinMS
quote:
I agree with Mingo and it makes me feel cheap and tawdry.
I built a spreadsheet (because I am a weapons grade nerd) figuring out annual payouts, weekly spend, weekly ROI, capital gains tax, etc., compounding week by week over 30 years and until you start making about 6% yearly on your lump sum, you end up with more money at the end with the annuity.
Also, with this kind of money, even spending $100k a week won't break you.
It all depends on how you invest if you take the annuity too though. I would expect more people to spend more money because the checks keep coming for 30 years so you aren't then looking to invest vs if you invest X amount up front, you are allowing the sum to earn compound interest. Both have their pros and cons. At 30, I can see earning $30M every year for the next 30 years as a great way to go and I can see taking the lump, investing X amount and living off that return.
Posted on 10/23/18 at 4:47 pm to rowbear1922
quote:
I would expect more people to spend more money because the checks keep coming for 30 years so you aren't then looking to invest vs if you invest X amount up front, you are allowing the sum to earn compound interest. Both have their pros and cons
You have it backwards, most will spend more with the lump sum. However, just about every time the lump sum is going to outpace the annuity in total dollars earned holding all other constants equal. It's pretty much as simple as if you are good with money on which option to take.
Posted on 10/23/18 at 4:50 pm to Mingo Was His NameO
I would hire me. I don't have to pay me and I am going to look out for my own best interests.
This post was edited on 10/23/18 at 4:51 pm
Posted on 10/23/18 at 4:56 pm to Mingo Was His NameO
The reason you hire professionals though is to not blow all of it. Like I said if take the lump, it’s about $550M after taxes. You can invest $400M which still allows you to blow $150M. If you get the same 5% return and take out half of it for yearly living, you end up with $800+M after 30 years invested and $200+M after tax to live on over that time. So it’s over a billion dollars post tax.
The annuity each year even with the 5% return ends up being $960M post tax.
The annuity each year even with the 5% return ends up being $960M post tax.
Posted on 10/23/18 at 4:57 pm to Mingo Was His NameO
quote:
You don't hire some cat working at Edward Jones
I'll give yo a tip: Don't ever call anyone at Edward Jones. Ever. They make all moves for their own benefit and take ridiculous percentages of everything you invest and everything you make.
Second tip: If you have anything invested with Edward Jones, move it immediately.
Posted on 10/23/18 at 4:58 pm to rowbear1922
quote:
It all depends on how you invest if you take the annuity too though.
I assumed you would invest the proceeds from the annuity at the same target ROI as you invest the proceeds from the lump sum.
Posted on 10/23/18 at 5:49 pm to MagnoliaStateTiger
I'm buying 50MM in treasuries and 950MM in timber land.
Live off the interest from treasuries and clear cutting
Live off the interest from treasuries and clear cutting
Posted on 10/23/18 at 5:53 pm to MagnoliaStateTiger
I would use the same guy I have used my adult life. My dad used him for 30+ years and his son is taking over for his dad. He handles some very large estates, so he has an idea of what “big money” is. Plus, I have a close enough relationship to trust him, but we aren’t buddies. Plus, I would give away 90% of my winnings, if I played, so it wouldn’t be his largest account.
This post was edited on 10/23/18 at 5:57 pm
Posted on 10/23/18 at 5:54 pm to EA6B
quote:
It is not that unusual, this is what happens when many college athletes turn pro.
A few million at a time, not $550 million at once.
The past month would have seen most typical portfolios fall 25-50 million. Those are numbers that would make even savvy investors sick in their stomach, much less the typical lottery winner.
Like it or not, not all 5-10 percent swings are created equal from a psychological standpoint.
This post was edited on 10/23/18 at 5:56 pm
Posted on 10/23/18 at 5:55 pm to Mr.Perfect
quote:
I'm buying 50MM in treasuries and 950MM in timber land.
Seems diversified.
Posted on 10/23/18 at 5:56 pm to slackster
Well if the Federal government defaults we are all fricked anyway.
And the land would provide income and appreciate
And the land would provide income and appreciate
Posted on 10/23/18 at 5:57 pm to TBoy
quote:
I'll give yo a tip: Don't ever call anyone at Edward Jones. Ever. They make all moves for their own benefit and take ridiculous percentages of everything you invest and everything you make.
Second tip: If you have anything invested with Edward Jones, move it immediately.
Where should I move it that looks out for me?
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