How Lucky Can You Get ?

[supton]

What to do with $1,000,000 lottery win? Take a few deep breaths, pay off your bills and your mortgage, and realize that while that money will make your life easier from now on, you aren't rich. How about if you won $5,000,000? See the plan for $1,000,000.

That would be my plan too. $1M might get me early retirement, $5M might get me instant retirement—but neither would have me living the lifestyles of the rich and famous.

We used to play state lotto, better odds, and reality is, money in the above range is all we “need” in order to be financially set for life. But we found other vices to spend money on (and if I save enough in my 401k, I’ll be a millionaire anyhow).

 

[Warstud]

Gotta wait for the big 1/2 B jackpot BC 100M ain't gonna cut it in the long run!
Someone explain this logic to me.

I was thinking the same thing.

 

[ecotourist]

That would be my plan too. $1M might get me early retirement, $5M might get me instant retirement—but neither would have me living the lifestyles of the rich and famous.

We used to play state lotto, better odds, and reality is, money in the above range is all we “need” in order to be financially set for life. But we found other vices to spend money on (and if I save enough in my 401k, I’ll be a millionaire anyhow).

$5,000,000 should get you a comfortable lifestyle for as long as you live. $1,000,000 will buy a nice house in a lot of nice places. A 4% indexed annual withdrawal has a 95% probability of not exhausting the principle (ie not running out of money) in 35 years. So the remaining $4,000,000 safely invested should produce an indexed income of $160,000 per year, or about $100,000 after taxes. In many places that would pay for a nice lifestyle.

So $5,000,000 should give you a comfortable lifestyle for as long as you live.

But there's no extra money for: divorces, exotic cars, private jets, yachts, or your own tropical island. Or as my (female) boss used to say, for "c0ke and h00kers" either.

 

[Dave Hess]

$5M is a lot of money. $2M is more than enough if spent wisely,

Most everyday folks go crazy when they come across big $$$. Look at the majority of pro athletes being broke after leaving the game.