What Would You Do If You Won A Billion Dollars?
Photo credit: Money Cortex
The vast majority of us are not and will never be a billionaire. We may be comfortable or even a bit more than comfortable, but we will never have an amount of money that makes us have to consider it a civic responsibility or a threat to our safety if the wrong person were to hear of it. But, we still dream about our ship coming in and winning the lottery. This inevitably brings up the question, if I won a billion dollars, what would I do with it?
Is it possible?
Even dreamers wonder if it is possible to win a billion dollars. While it is rare, it is possible. In the lottery, and other games of chance you are more likely to become a millionaire. The most recent high-winners have won:
- $590.5 Million
- $648 Million
- $656 Million
- $758.7 Million
However, there is also a recent record of a winning of $1,537 Billion in South Carolina, USA.
This is just a small example of many winnings that happen every day.
Photo credit: Rawpixels
When you ask people what they would do with a large cash winning and you can expect a few “standard” answers. Here they are:
- Quit my job!
- I would travel around the world.
- Buy a new house and a new car.
- I would give some to charity and save the rest.
- I would retire and invest in the stock market.
The fact is, if you have never had a large amount of money, it is hard to know what you would do. The rules seem to change at that level. The first thing you will face is a winnings tax from the government. That is a substantial amount of money. You will still have a lot of money but not nearly as much as you had.
The next thing you can expect is most of your family and everybody who ever called you friend is suddenly calling you. They all have a need or a cause that they want you to pay for. If you start handing out money it will be hard to stop. It is hard to believe but many millionaires have gone through all of their money in a year or less.
Chase a fantasy
Do you love the glitz and glamour of Hollywood? Are you first in line to see the latest and greatest movie to hit the silver screen? Your fantasy may be to follow the stars through Hollywood. You may see people handing out tickets to anyone who wants to be in a studio audience. Get maps of where television shows and movies are being filmed. Go on tours and see where the stars live. There are many famous sets, restaurants, and shops to visit and who knows who you will meet there. So take a long vacation and take a trip that you will never forget. Who knows? You might get discovered and be the next big star!
Taking a chance on a life-long dream
Maybe you have always wanted to open a bakery or a coffee shop. There is no harm in researching what is needed to make it happen. But you have to face facts. You are not an expert in real estate, employees, labor laws, inventory control, or payroll. You will need to hire someone who is an expert to scout out the property and research the zoning as it applies to that location. He would need to be able to tell you who the competition is and what they sell. You would have to decide what you would sell and if it has enough draw to bring in business. A dream without this information should remain a dream. If you are serious in going for the shop, contact an expert. If not, you will have to decide if your dream is worth all of your winnings.
What the experts tell you not to do with your Billion dollars!
There are some tips that experts tell you not to do. These tips can apply to many things in life, so let’s take a look.
- Do not take the reduced amount in one lump sum payment.
The organization will offer you a lump sum payment that is less than what you won. Not only have you just given away your own money, you now have all the money you are going to get. After taxes, you will be tempted to blow money (like most winners) and your money will not go as far as you expect. You may actually blow all your winnings at one time. Instead, accept your winnings on an annuity plan.
- Hire an accountant and a financial adviser
Hire an accountant and a financial adviser to manage your account. However, make it clear that neither of them can touch your money. Any money that is spent must be paid by you.
- Wait for 1-year before buying anything.
- Unless something is beyond repairs, wait one year before making a large purchase. If it is something like a house, car, vacation property or a business, think about it and think some more. Wait a year then revisit the topic and see if you still feel the same way.
- Do not invest your money
- Experts suggest that you put your money in the bank and live comfortably off of the interest. It is a no-risk venture. This is not the time to begin playing with investing.