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?
Two chick’s at the same time.
That’s it? That’s the only thing you’d do if you had a million dollars?
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
Ten year lease?
I would buy me an American senator. Always wanted to have one.
For 100 million, you can get a majority in both Houses.
Only need somewhere around 250k for that, you may as well go big.
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.
The real answeris, get in contact with the accountants of other people who have 100mil and have them take care of it. I’d probably squirrel away some in precious metals just in case. Also, I would not post a single thing on the Internet about the fact that I’m rich.
So, you’re rich?
I wish
That’s not a no
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.
Investors shouldn’t be picking winners. That’s already too much risk and too many fees. Total market index funds and total bond indexes are what you should be investing in.
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.
After the usual paying off debts, buying houses for family and making sure that sort of needs are taken care of, I would invest in things that really should exist to improve society in general, even if thwy may bot be guaranteed return on investment.
Greener energy, pollution cleanup, educational endowments, social enterprises, things along rhat line.
Real estate and Stocks/ETF to park it. Get my family nicely set up. Then build an under the radar luxurious home with good research equipment so I can do science without all the hassle in academia. Also some charity living projects for the poor in my area.
Rich people have their own special financial advisors. The ones who know how to avoid taxes.
Considering that quality of life won’t improve much beyond a net worth of 5-10 million dollars (heavily depends on the cost of living in your area, as well as stuff like cost of healthcare), there is no point keeping that much money.
If I got 100 million dollars, I would donate 95 million do various causes, pay whatever tax I owe for the other 5 million, and retire with the 2.something millions I have left.
As for where to keep it… First I would pay off my mortgage, and then I would invest in index funds and bonds.
Two million is hardly anything for retirement. If you’re in your 50s then that’s only 66k a year until you’re 80. Unless you’re about to die that’s an absolute pittance. If you’re younger then that’s even less per year. You can’t think of retirement as “oh I only need this much money”, you have to think of it as paying yourself your yearly salary until you die. Life expectancy has massively gone up, so has inflation. If you live to 65 in the USA you have an average extra expected years of 15-20, so up to 85 years life expectancy in certain states. If you’re retiring at 30 you’ll be looking at 55 years of paying yourself. If you want a decent “salary” you’re looking at at least 5.5 million.
What? $66K in the USA is more than most. It can be a really great life. How the fuck can $66K be a pittance?
Editing to add: Real median household income was $70,784 in 2021
First, I am not from the US, and I did explicitly mention that it highly depends on the cost of living where you live.
I live in a place with a solid transit system, so I don’t own a car. I live in a place with universal healthcare, so I don’t need to worry about massive medical expenses later in life.
By investing 2.5 million dollars, using the 4% rule would give me 100k a year which is really high and I would never get anywhere near that.
Get someone qualified to manage it.
Figure out how much I would need to live the rest of my life comfortably without having to work on anything I didn’t want to.
Invest the rest in helping others that want to do good.
Just a reminder that !personalfinance@lemmy.ml exists in case people want to discuss this kind of questions
Thats only for people who want to live like paupers until they can die
I invest a decent amount.
Then I buy a large house and a very large garage and buy lots of motorbikes. As well as a fuck ton of security.
Make my dream a reality
Finally could have a freaking team for my project
Lmao