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

[Hallmark]

Originally Posted By: Patman
Note I said GUARANTEED investments...


With that caveat, you have absolutely eliminated any reply except this one.

Thread closed.

 

[ddean]

The real estate market is Canada is about to collapse because it is a bubble far worse than the US had and prices have not begun to taper off until now. Little or no savings in the big Canadian housing markets because people have pulled every cent that they can from their RRSP accounts to "invest" in their homes.

So invest in something other then the real estate market and anything that does well when the economy and real estate market tanks.

 

[Patman]

Originally Posted By: Warstud
Repost


http://www.bobistheoilguy.com/forums/ubbthreads.php?ubb=showflat&Number=2357686#Post2357686


With all due respect, it's not a repost at all. That topic is about investing a small amount of money. My question is about how to invest a huge sum of money into something guaranteed, with the goal being to have a solid flow of income generated, and avoiding the use of anything risky like the stock market. Two completely different topics.

 

[Patman]

Originally Posted By: LT4 Vette


Patman,
If my lucky numbers come through, what color Grand Sport Vette do you want ?




Crystal Red, with a 6 speed manual and the 4LT interior in dark titanium/ebony

 

[Patman]

Originally Posted By: hattaresguy


Oh and no you cannot run out and buy a new car and house, save that for latter.


Given my current living situation, I would want to buy a house IMMEDIATELY! After splitting with my wife last year I've been renting a townhouse with my father, and it's not the lifestyle I want at the age of 41, I want to be out on my own ASAP and so if I was sitting on $20 million there is no way I wouldn't buy my own house right away!

 

[Patman]

Originally Posted By: Hallmark
Originally Posted By: Patman
Note I said GUARANTEED investments...


With that caveat, you have absolutely eliminated any reply except this one.

Thread closed.


But there are guaranteed investments out there, like high interest savings accounts, bonds, GICs, etc. They might not make 10% a year, but they will make guaranteed money and you don't have to lose sleep at night wondering if the stock market is going to crash the next day.

That's how I would end up being different than most lottery winners. Instead of putting my money into risky investments and losing it all, I want to invest most of the money into completely safe things and that way I NEVER lose the principal amount.

That's why, no matter how tempting it might be to put the money into the stock market and wait it out and potentially see gains in 5-10 years, I'd rather take the safe road and know I'm not going to get burned ever.

 

[Artem]

I'd buy a few small businesses that could thrive in this poor economy. That would start a nice flow of cash.

Then look into using the rest of the money to make more money... Slowly. Never a good idea to rush.

 

[Pablo]

Dude.

$20Meg?

Seeing how you aren't the crack type or a pro athlete, you would have it made. IF you are smart.

Yes buy a good house. Unless you can control yourself and know how to run a business, I would avoid that at first. It's a great suggestion, but it's also a good way to make end up with $10meg starting with $20meg.

I'm not going to suggest anything right now, (it cuts down on the PM's) - but rather I'm asking you - what do you KNOW? What do you know about? What do you know about from the inside out? What do you have an inside inkling, that you are almost always correct about?

Start there. This isn't about a job, a business, an investment, a way to get rich right away.....because I can tell you from my life experience the most money I made is with stuff I KNOW about.

 

[Patman]

Originally Posted By: Pablo


I'm not going to suggest anything right now, (it cuts down on the PM's) - but rather I'm asking you - what do you KNOW? What do you know about? What do you know about from the inside out? What do you have an inside inkling, that you are almost always correct about?

Start there. This isn't about a job, a business, an investment, a way to get rich right away.....because I can tell you from my life experience the most money I made is with stuff I KNOW about.



I wouldn't want to start my own business either, with that kind of money I want my money to work for me! Then I can just relax and enjoy life and not stress out. Trying to start my own business would be the opposite of that! A lot of people that start their own business doing something they know and love (such as working with cars) end up HATING that afterwards.

Maybe I'm naive, but I just kinda figured that if I had $20 million and I walked into my bank and asked them for a high interest savings account that paid me 3% interest right now, they'd do it. I could live very nicely on $600,000 a year! (and now that I think about it, I could then take a portion of that money and re-invest it in more risky things, but as long as the principal sum is still invested in something guaranteed that's cool)

I know it's a small chance that I'd ever win, but it never hurts to dream. Someone's gonna win the jackpot eventually! So it's not like there is ZERO chance.

 

[Pete591]

100% guarantee requires a "crystal ball". Nobody has one.

Why do many who are extremely familiar in stock options make their livings on teaching seminars and selling computer trading programs?

Why do stock brokers work more than 5-10 yrs?

Why do Forex traders in the know make their money by creating trading tools and platforms?

Why do many in Real Estate become teachers?


The reason is because the "washout" rate in many of these professions is over 80% and even the best of the best loose $ and want something with a "steady income" that is safe.

Investing = some degree of risk.

 

[Pablo]

3% from a bank right now? Hmm....

How does your bank insurance work in Canada? Like USA FDIC? I think there may be a max insured amount in Canada as well.

So you told me a few things you sorta know. Call your bank.

 

[Pete591]

Originally Posted By: Patman
Originally Posted By: Pablo


I'm not going to suggest anything right now, (it cuts down on the PM's) - but rather I'm asking you - what do you KNOW? What do you know about? What do you know about from the inside out? What do you have an inside inkling, that you are almost always correct about?

Start there. This isn't about a job, a business, an investment, a way to get rich right away.....because I can tell you from my life experience the most money I made is with stuff I KNOW about.



I wouldn't want to start my own business either, with that kind of money I want my money to work for me! Then I can just relax and enjoy life and not stress out. Trying to start my own business would be the opposite of that! A lot of people that start their own business doing something they know and love (such as working with cars) end up HATING that afterwards.

Maybe I'm naive, but I just kinda figured that if I had $20 million and I walked into my bank and asked them for a high interest savings account that paid me 3% interest right now, they'd do it. I could live very nicely on $600,000 a year! (and now that I think about it, I could then take a portion of that money and re-invest it in more risky things, but as long as the principal sum is still invested in something guaranteed that's cool)

I know it's a small chance that I'd ever win, but it never hurts to dream. Someone's gonna win the jackpot eventually! So it's not like there is ZERO chance.



I agree. I do know people who do what I dream of and they hate it. Human nature leads us to want to work when we are off and to be off when we work. Go figure.

 

[Pete591]

When I was a kid they had "sleeper cars". You know like a Ford Pinto some guys would drop a 454 in?

If I won the lottery I would want to be a "sleeper millionaire". Easier said than done. A Black Shelby Mustang WITHOUT any stripes. Forget winning the lottery. I have relatives ask me for money I don't have even now. I hate to be pressured. I would want to be a "sleeper".

 

[PandaBear]

Originally Posted By: Pablo


I'm not going to suggest anything right now, (it cuts down on the PM's) - but rather I'm asking you - what do you KNOW? What do you know about? What do you know about from the inside out? What do you have an inside inkling, that you are almost always correct about?

Start there. This isn't about a job, a business, an investment, a way to get rich right away.....because I can tell you from my life experience the most money I made is with stuff I KNOW about.



very true.

 

[doitmyself]

Who guarantees all of these investments? The Federal Government? Hmmmmm.

I would look for modest, generally safe areas to stash the money that would provide a modest return. Establish a modest, comfortable lifestyle. Then, to fulfill my need to work, I would find something to do that would help others help themselves. Not sure what that is, but it wouldn't be just handouts to charities or whatever. Probably something dealing with food/water, or shelter, or, maybe trees!

So many here seem so intent on "growing" the money. How selfish. Well, you can't take it with you, and my kids can fend for themselves like I always have (within reason, of course).


Goodnight, all.

 

[dwendt44]

First, take the yearly payout of you have that option.
Most of those that got into trouble or went bankrupt after winning took the cash instead.
Get an un-listed phone number.

Contact a reputable CPA or financial adviser.

Consider 'tax free municipal bonds'. OR a conservative mutual fund from one of the three best fund managers. Vanguard, R.Rowe Price, and I can't recall the third.

Don't disclose that you won until after the money starts flowing.

Stick to a budget; as in pay yourself first. Allow yourself so much a month/week in spending. Capital expenditures, like building a house comes off the top.

Get a lawyer you can trust.

 

[bdcardinal]

If I won it the first thing I would do would be to tell all my friends and family that had nothing to do with me for years where to head in. I already don't answer my personal phone, so that is good. After paying off any standing debt I would contact a trusted financial advisor and give him a partial amount of monry to manage. There is a bank here that offers a large sum investment account that you can put up to US$50million in and it gets spread over something like 500 banks and is covered under FDIC, something like a guaranteed 2%. Any interest would be dumped into municipal bonds.

I have always wanted to own car dealers. That way I could have a business that had benefits and would have something to do all day. Preferably Ford dealers, but I would consider the other big 3 or some German, maybe British makes. This would also allow me to have my own realm which I could run with my usual obsessive compulsive micromanaging nature in a dictatorial but yet somewhat kind leadership style.

Ideally I would buy a nice house with no neighbors for at least 5 miles in either direction so that I can screw around all I want on my land without annoying someone or having someone annoy me.

 

[jaj]

So, here's some real advice from one Canadian to another. Note that I've been a pension fund fiduciary for a while, so I actually know what I'm talking about.

If you win $20MM in the lottery and you don't have any investment skills of your own, call one of the big life insurance companies, like Great West or one of their competitors, directly (not an agent or a broker) and get them to set you up. You'll be a big enough client to get their attention and you'll get a package that provides reliable income and maintains an inheritance for your kids.

All other strategies are designed to make other people rich at your expense.

 

[Trajan]

I would consult a financial planner first.

Probably put it in something safe. Treasuries and such. If the gov't collapses money is worthless anyway. (I think.)

 

[Shannow]

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

His chances are still infinitely higher than the person who doesn't buy a ticket.