What's the safest way to invest huge lottery win?

Status
Not open for further replies.
Patman

Patman

Staff member
Joined
May 27, 2002
Messages
22,222
Location
Guelph, Ontario
I've been playing the lottery here every week since I was 16 and I've always had a plan of what I would do if I won, and that would be to first buy a house, buy a new Corvette, give some money to close friends/family and then invest the rest of the money and live off the interest. I always figured I'd just choose a good diversified mutual fund, as those tended to average 8-10% growth every year, at least until the last 5 years where that's definitely not the safe way to go.

So it got me thinking, if I won $20 million in tomorrow's Lotto Max draw, where should I put the money? If I want something that is 100% guaranteed to make me money to pay me a monthly salary to live on, what's the best interest rate I can expect to get nowadays? 2%? 3%? More? And where would the best place to put that be, a high interest savings account, or a GIC?

I know that a good investment broker could probably get me more interest in the long run, but the way the economy is going, I'd much rather know for sure that I'd have a steady amount coming in every month, and with such a huge sum of money why risk it? I'd probably still make more money than I'd know what to do with!
smile.gif
 
Keep dreaming, I work with lottery and see their sale to win ratio everyday. Your chance to win is much less than a chance that your car will fall on you during oil change
smile.gif
 
Give to charity.

You never know who will turn out out real well given half a chance.

Keep enough for yourself to retire comfortably.
 
Originally Posted By: zyxelenator
Keep dreaming, I work with lottery and see their sale to win ratio everyday. Your chance to win is much less than a chance that your car will fall on you during oil change
smile.gif



I realize that, but I don't smoke and I don't spend a lot of money on alcohol, so I figure I can spare a few bucks a week on the very slight chance it might pay off
smile.gif
Besides, our odds of winning are a lot better up here with our two biggest lotteries than you guys have with the big Powerball lottery. Our jackpots are lower, they never go above $50 million, but they are also 100% tax free and paid in full all at once, not over 25 years.
 
Originally Posted By: zyxelenator
But if you win, invest in Google and alternative fuel companies.


Note I said GUARANTEED investments, so I wouldn't invest it in any kind of stocks. I don't want anything where there is any chance of my investment decreasing in value. Like I said, why gamble with that found money?
 
Even if you only win a million dollars you can't tell any body.

I have a good friend that recently got almost $500,000 due to a very serious forklift accident and was wanting to buy some condos and rent them out. I told him he would be better having that cold hard cash in the bank earning 2% than being a landlord with tons of headaches.

Patman,
If my lucky numbers come through, what color Grand Sport Vette do you want ?
 
Originally Posted By: Patman
Originally Posted By: zyxelenator
But if you win, invest in Google and alternative fuel companies.


Note I said GUARANTEED investments, so I wouldn't invest it in any kind of stocks. I don't want anything where there is any chance of my investment decreasing in value. Like I said, why gamble with that found money?

Well, there is no company or bank that has 0% to go bankrupt.But there are FDIC members, not sure how it works in Canada.
I've heard many bad predictions from older folks, that predict big inflation, again it's about US, not sure about Canada. In that case it is smart to invest in material thing, like real estate,gold,cars,production of food and cloth, you name it, since money will become just a paper.
 
Last edited:
The only investment where the principal is 100% safe is US Treasury bonds, but the current interest rate is pitiful. I would suggest you put 70% into a well balanced ladder of bonds consisting of treasuries, investment grade corporates, and developed foreign. The rest can go into blue chip high dividend stocks and gold. And don't forget the 10% commission for my advice!
grin.gif


Tom NJ
 
Just think, all those friends/relatives you haven't seen for decades showing up at your door.
 
Last edited:
Youre in Canada. Id buy units in a few diversified Limited Trusts or Master Limited Partnerships, that yield 8-10%. Should be a good setup.
 
Problem is most people don't know how to handle it.

First thing to do would be to disappear for 6 months because all your "friends" and "family" will be looking for money. Let them know you are not a bank and they can go pound sand.

Next would come all the investment "advisers" trying to be your friends.

It can be done but the mentality is so different that you would essentially have to learn overnight, that's why most lotto winners are broke in a few years.

First thing would be to seek out a good investment adviser, with the help of someone who has a lot of money. For the time being your probably better off putting most of it in T bills and sitting until you know what to do with it.

Oh and no you cannot run out and buy a new car and house, save that for latter. Pay yourself a salary, say $300k a year and that's all you get for awhile.

On the plus side $20m is a decent chunk, you should be able to get a solid 10%-15% ROI on that once you know what your doing.
 
Last edited:
Take Warren Buffett (multi-billionaire form carefully choosing stocks that were bargains).

Last week he sunk several billion into Bank of America which is "failing" as we speak. Their share price was once $80.00/share and now all that separates it from bankruptcy is $6.00/share.

He knows that the Fed will step in because BOA can not collapse even if it means a merger with Chase which has been rumored.

That's how he will be richer in 6 years. He is patient and he buys "calculated risks" and never invests money he can't afford to loose completely. He is very well know for going against the herd on his stock purchases and business dealings.

He also is not one to buy companies that are "oversold" like IBM; Google and Apple. He would jump into companies right now like AT&T/GE/BOA/Microsoft/Ford etc. All bargains when this wonderful economy turns around which is not likely until the economy improves significantly.

Right now the US realizes that the upturn in the economy from 2009 until late 2010 was due to "cash for clunkers" and "stimulus checks". Unfortunately these programs "masked our continued recession. Increased our national debt. Add it all up before you invest. You will make money but it will take a few years.
 
Originally Posted By: hattaresguy
Problem is most people don't know how to handle it.

First thing to do would be to disappear for 6 months because all your "friends" and "family" will be looking for money. Let them know you are not a bank and they can go pound sand.

Next would come all the investment "advisers" trying to be your friends.

It can be done but the mentality is so different that you would essentially have to learn overnight, that's why most lotto winners are broke in a few years.

First thing would be to seek out a good investment adviser, with the help of someone who has a lot of money. For the time being your probably better off putting most of it in T bills and sitting until you know what to do with it.

Oh and no you cannot run out and buy a new car and house, save that for latter. Pay yourself a salary, say $300k a year and that's all you get for awhile.

On the plus side $20m is a decent chunk, you should be able to get a solid 10%-15% ROI on that once you know what your doing.



My brother knew a guy who won the lotto 25 years ago when 4 million was a lot.

-Everybody knew his business. Phone never stopped ringing. Everybody wanted his money because they felt "entitlement".

-Then he went on a spending spree. $200,000 for a Cigarette boat and the lifestyle. Untold cars and too much for a home. Lost the rest in bad investments. Now in significant debt.

Winning the lottery is instant fame. Look what happens to movie stars who can't handle fame and fortune.

A guy like Warren Buffett who is a multi-billionaire drives a 1970 Lincoln and lives in a $60,000 home he bought in the 1960's. He does not buy a lot of "new stuff" because he said they cause him problems. He likes to dine out and has lots of friends and he selects his charities well. He does not buy friends and nobody suckers him. Could "we" do this?

If it were me and I won 300 million I think my second wish would be to join the Federal Witness Protection Program for me and my family. The world is too transparent now with the internet.
 
Last edited:
Give it to me and I can double it in about 3.5 minutes.....at the track. Seriously, I'd hire a fee based investment adviser or two, and then follow the advice that you like best.
 
Originally Posted By: 2cool
Give it to me and I can double it in about 3.5 minutes.....at the track. Seriously, I'd hire a fee based investment adviser or two, and then follow the advice that you like best.


I once had a great fee based adviser. Once he gained my confidence with a few good trades he churned me out of it all. Kept calling on and off over 20 yrs. Then I read in the newspaper he hanged himself.

I would research and invest myself.
 
Status
Not open for further replies.

Similar threads

walterjay
If you won the Lottery how much would satisfy you
5 6 7
Replies
130
Views
3K
Slow Car Sport Mode
dogememe
Where do you grocery shop?
2 3 4
Replies
77
Views
1K
GSCJR
GON
Outstanding video on home values now and the future
2 3
Replies
56
Views
1K
SC Maintenance
E
Learning the Value of Money
2
Replies
30
Views
761
KrisZ
Warstud
How Lucky Can You Get ?
2 3
Replies
43
Views
2K
Dave Hess
Back
Top