Suppose you win 100 million. What do you actually do with it? Banks only guarantee 250,000. Do you have to invest it? Is there anywhere you can just let it sit and draw interest?
you invest it in (foreign) right wing radical organizations bent on overthrowing their democratically elected government. that way, when these groups eventually succeed due to your generous contributions they will allow you to swoop in and buy up their country’s previously nationalized natural monopolies at bargain bin prices through local intermediaries at which point you can cut costs and inflate prices for the citizens of the entire country and receive many orders of magnitude ROI
it’s win-win so long as you propagandize enough people about how this specific thing that you’re doing is actually defined as democracy, they’ll be totally ok with it and won’t suspect a thing
This plan only costs you your humanity. You probably weren’t using it anyway.
Good old Vulture Capitalism. The answer to “fucking up tens of thousands of employees and maybe only hundreds of thousands of customers isn’t going far enough for me, what else can I do?”.
Here in Norway you are legally required to attend a few sessions with financial advisors(a protected title here, so they will actually be qualified), before you are able to recieve your winnings.
The rough thoughts I have had about being in such a situation is to allocate maybe 10%-20% as “fuck you money” to have fun with, and the rest to follow all their advice with
That’s a really great idea! More places should do that. Maybe then there’d be a lot fewer people losing all their money within years.
In addition to major prize winners, it should also apply to people who have just started earning a massive income. Eg, professional athletes.
That’s good knowledge, maybe people who are doubtful of financial advisors in their country can visit Norway
Two chick’s at the same time.
That’s it? That’s the only thing you’d do if you had a million dollars?
Damn straight. I always wanted to do that, man. And I think if I were a millionaire, I could hook that up too.
100 mil, who want those cheap 1 mil girls?
So… 3 then?
Fuckin’ A, man.
Those are some expensive chicks
More than once I bet
Buy a house. There isn’t any more land being made. (Except in Hawaii, what with the volcanos out there)
Lend some to Uncle Sam by buying Treasury bills. He’s been good for the interest payments. They tend to earn a bit more than bank CDs anyway.
If you’re really risk-averse, go for those bank CDs. Brokerage houses like Schwab can buy those on your behalf, and track which banks hold them, so you don’t exceed the deposit threshold at any one institution. Good luck finding 400 banks through a brokerage’s finder, though.
Buy stock in publicly traded companies. Or buy mutual funds. It’s good to get some growth in the portfolio, which fixed income alone can’t do.
Donate some to a nonprofit when you need a tax write-off.
Start your own company. Go back to school. Invest in yourself.
I would buy me an American senator. Always wanted to have one.
For 100 million, you can get a majority in both Houses.
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Only need somewhere around 250k for that, you may as well go big.
Depends what you want to do with it. If you want to keep it liquid, you can just keep it in bank accounts in major banks. Split it across several major banks. If they all go under, your problems will be far bigger than money. You can also have multiple savings accounts with each bank to garuntee 250k in each one and earn maximum interest. I have 6 savings accounts with my bank each with ~200k in it. If the balance exceeds 250k, the interest rate dtops down from 4.25 to somethink like 1.15.
If you dont need to keep it liquid, you buy a stable asset like land. You might choose to buy a bumch of houses and apartments in the city, but that comes with strata fees and property management etc. Plus, being a landlord investing in residential property makes you a shitcunt. In my case, I purchased rural land. I purchased land adjacent to nature reserves, with about 450ha of arable land, 110ha of forested land, and 85ha of salt damaged land. Im remediating the 85ha of salt land, and strategically planting out about 10 trees/year/ha on boundaries of my arable land to reduce soil erosion and degradation. I lease the land to a couple of organic grain growers who work the land. At any given year about 1/3rd of my arable land is fallow. (Note tgat im not a farmer by trade, I just think its a good, sustainable asset that I can use to directly improve the environment)
fund guerrillas?
Doing the opposite of the time Coca-Cola hired anti-union assassins in Columbia
You could fund both!
Buy housing for myself, pay off my medical debt and then donate everything else to people in need.
I’d hire someone who knows what they’re doing with it and follow whatever advice they give.
The trick is to hire SEVERAL groups of people (read: wealth management advisor teams from major financial institutions) and let them each manage a $25M+ chunk of it. You’d want to have 2-3 different groups, and then a simple portfolio you manage yourself that trades in market-tracking ETFs and highly rated government bonds. That gives you the combination of excellent security with minimal personal maintenance. And you get all the perks of being a wealth management client from several large institutions like below-market loan rates and unique investment opportunities. Also, the really big institutions like JP Morgan and Goldman Sachs have lots of resources available for financial education for their wealth management clients.
That’s the best advice for someone who doesn’t really know what they’re doing. Never give one person the keys to your entire net worth, THAT’S how wealthy people end up broke.
In this hypothetical, even if JP Morgan or Goldman Sachs collapsed or embezzled your funds (which is INCREDIBLY unlikely), you’d still have more than enough wealth to live comfortably for several lifetimes in your other accounts. Just make sure your accountant knows where everything is, because you don’t want to go to prison for tax evasion.
This is absolutely the way to go, but be aware that it can lead to concentration/sectoral risk when managers aren’t aware of positions in the other portfolios. For example, Goldman could invest heavily in tech or pharma or whatever, not realising that JPM also have a big investment in that area.
Great add-on.
that’s how many millionaires (from sport, music and film) end up broke at the end of their life.
No, they end up broke because they spend as if they’ll never run out of money without putting it into places that continue to make money for them. They level up their house, car, clothes, flight class, whatever, then end up living paycheck to paycheck with no savings and not being able to keep it up forever.
Are there cases of some wealthy person trusting the wrong guy, whom they hand over their $$ to and that person runs off with it? Sure, but that’s a far cry from getting advice from a professional and following their advice.
Speaking generally: investments.
Diversifying stocks and bonds mainly, and each asset should be diversified from the others of the same type (eg; tech stocks counter balanced with things like agriculture or energy or something that’s also stocks but not in tech - Rinse and repeat for bonds, etc). Mainly long standing assets should be prioritized, stuff that has historically paid well in dividends and will hopefully continue to pay well.
The majority of your assets should be stored in this manner… This will help the long term value of your money. Above and beyond that, the assets will counter balance eachother if they’re properly diversified, as one sector under-performs, another should be performing better and make up the difference, so payouts should be fairly steady.
At the end of the day, those investments will make up your passive income, which any sufficiently rich person has in spades. I wouldn’t pretend to put numbers on any of this, whether to say what percentage of winnings should go to what or in what volume, and certainly nothing fixed, if you’re not sure how to get any of this finance stuff handled yourself, there are plenty of investment firms and personal wealth management companies that will gladly take your money so you can make more (so you can continue to pay for their services), and who will be more than happy to get you started.
Moving away from stocks, bonds, and passive income, you’ll want to focus on fixed assets. Having your money invested into things. What those things are is up to you, but I would advise to focus on getting a good property instead of other assets, since real estate tends to be one of the few things that continually increases in price over time with few exceptions. Compared to other investments (eg, stocks and bonds) unless the property is a specific “income property” aka, something you’re renting/leasing out, it’s not the best investment for growth, but having a home that you own and being able to live more or less rent free, helps you hold onto your money, rather than blow it on a place to live. A house will be a rather large one time investment that will at least hold its value, and you’ll get a place to live out of it. Cars tend to lose all value in a matter of years to decades, and there’s a high likelihood that they could be destroyed through use. So cars are generally expenses, not investments with few exceptions. So buy vehicles with the understanding that you may not get your money back at the end of the life of the vehicle; IMO, that applies for almost any vehicle including planes, boats/yachts, etc. So spend wisely in regards to transportation.
For everything else, out of your passive income create a salary for yourself, and set aside some “in case of shit” money from your year over year dividends. Reinvest/grow your funds with whatever you’re not paying yourself in salary. The amount is up to you, but I’d say if you can afford to live on less than half of the payout, and reinvent the other half or more, do it. The in case of shit funds would be for incidentals like your car getting totaled, or needing to replace the water heater/HVAC on the house, or something unexpected you just need instant cash for.
Up front, you should be paying off debts and living within the salary you set for yourself… Doing everything in your power to keep your investments intact and growing for your own future. It’s fine to go on vacations or cruises or whatever you want, as long as you stay within your self defined salary, and you’re not just blowing through the capital of your investments. Long term, you’re going to be able to live very comfortably without needing to worry about money which, honestly, is the only outcome that should be worth anything… That safety and security is extremely valuable. Do not throw it away on a few years of indulgence.
pay my personal expenses with it but keep working a job. donate to the communist party of my choice, so we can have a legal defense fund and do fancy projects that we can’t afford now and can help out comrades in need. donate to every strike fund in the world that will accept a payment. maintain a large list of such funds. donate money to battered women’s shelters and to give direct aid to poor and homeless around the world. repeat until the money runs out. as far as the technical aspects of how to manage money that large without losing it due to bank system failure, i guess i could open thousands of accounts in different banks and put 250,000 in each of them or do some other strategy. ill take off a few months from work to research how to do it and talk to people who know more about the subject until i have a solid plan for that.
Go to a big city and get a lawyer, finacial advisor, and accountant that have expeirience dealing with that kind of money. Make sure all three are okay with working together. Take their advise. Enjoy life and (for me) do fun things that bring a smile to the not-so-lucky. If i won big money id buy a nice food truck and go around factories around lunch time offering really good food for free. Or go to walmart looking for people with kids and tell them ill buy anything they can fit into 1 cart. Id also hire a professional chef (and team) to cook a great meal for the local homeless shelter. Things like that are good for your soul and will give you a far better feeling than blowing it on toys.
Edit: id do stuff like that as much as my financial team would let me.
Hire a fiduciary to invest it so you can live off the interest and some for the rest of your life. You’ll still have plenty to blow after that so it’s up to you what you want to do with it.
I’d give most of it away or start some kind of foundation. Having that much money, amongst all the poverty here in South Africa, it would just feel immoral.
The money I’d spend on myself would be to own an average middle class home, a normal car, and maybe a project car if I could get some utility from it. And on paying off medical debt and spending it on medical treatments to minimise my chronic back pain. And to set up a fund that pays me enough every month so I never have to worry about hunger or not having enough money by the end of the month to do stuff.
Rich people have their own special financial advisors. The ones who know how to avoid taxes.
