Yup, I won the lottery! $785 million dollars. That is a whole lot of avocado toast and Starbucks espressos. Yeah! Pinch me because I must be dreaming. I am a PF blogger. I would not recommend buying a lottery ticket. But I did! So screw all the people who said it was a waste of $2. I am rich!
Seriously, what is up with everyone moaning about lottery spending? $2 is not too bad. Now if you are dropping $100 or $200 while having credit card debt, then we should have a talk.
So here I am, the big time winner…what to do now? Well that is what this post is about. What I will do with my riches….waa haa haa.
(In reality I did not win the lottery…. I am still slaving away at a day job…ah but a person can dream, can’t they).
Step 1: Pinch myself
Seriously…. did I buy a lottery ticket despite the naysayers? Yup….mDid I really match all those numbers. Yup? Woah…. jump up and down and holler! Time to party!!!!
Okay now that that is done…. make sure to.
Step 2: Sign the back of the ticket and put it somewhere super safe
I do not want to loose this gravy train. That would be tragic. Money I had not earned vanishing and leaving me just as poor today as I was yesterday. Ah the devastation.
Step 3: Consider talking to a lawyer to set up a revocable living trust that will accept the prize money.
I want to keep anonymity in my big win. I don’t want to become a celebrity and target of scammers as is oh too common. So how can I keep my anonymity? Well a trust may help and if set up right, I can still have full control of the cash. Sure I have already set up a Trust, but now that I am super loaded I want to just get a little lawyer backup.
Step 4: Claim prize in an anonymous fashion into the trust
Step 5: Quit my job
I am not a saint. Happily I will quit my current life in clinical practice if I won the big bucks. I figure if I took a year off and really missed it then I could go and work for a not for profit caring for uninsured or underinsured patients.
I would not leave my job the next day. As a department of 6 cardiologist my sudden departure would greatly impact my colleagues (more call and clinic!). So I would give my notice and let my boss know I would stick around until a new person was hired and started. That way, my departure would be less painful for my colleagues.
Step 6: Figure out my tax burden
Face it, I am taking the lump sum. The $780 million becomes $480 million. Not too shabby. Now the taxman cometh. Out of the $480 million the federal government takes out 25% and states have there own percentage. Luckily California does not tax lottery winnings, which is pretty crazy if you ask me. So the government gets $120 million of my cash, leaving me with $360 million.
Step 7: Set up a Donor Advised Fund
If I had $360 million in cash I can promise you a large chunk of it, likely half, would be going to donations. So I would take $180 million and place it into a donor advised fund. If interested Physician on Fire goes over how to do this.
The beauty of the Donor Advised Fund is I can take a tax write off this year and reduce my income tax. All of a sudden I don’t owe the federal government $120 million anymore. Now I owe them somewhere in the nature of $75 million dollars in taxes.
Plus, I have a large pot of money that I can donate over the course of my life. It will sit in an aggressive stocks only fund and hopefully grow. I can use all of that money and it’s growth, tax free to donate to causes we find important. I will never have to worry about wanting to donate.
Now I have to figure out who to donate too…Bill and Melinda Gates, you looking for a partner?
Step 8: I have $225 million left after taxes and donation plans. Now what?
Okay so now comes the hard part. What to do with all of the left over cash?
I would probably start by paying off my home and my parents and in-laws homes. Then I would pay off my school debt.
So I still have $224 million left. I would take a few million and hold it as cash amongst various banks. I don’t mind loosing the interest to make sure the money is secure.
With the other $200 plus million I would probably put it in a 50/50 portfolio bonds/stocks and let it ride. There is no way I am going to spend $200 million. I would go on a sweet trip around the world with my family in a chartered plane. After my trip I would probably spend my time between California and Tennessee, enjoying time with both my wife and my families.
When we come back, I can figure out what else to do with all that cash.
Okay, so not too exciting, but what would you do?