For the professionalls: What should one do IF they actually hit the Powerball? (funds, payments)

[armourereric]

OK, you find yourself having just won $1Billion what is the wisest course of action over the first 24-48 hours, a week, a month as to insure you don't do anything especially stupid. I always envisioned immediately buying some type of annuity that would get me $75-100K a year, even if I lost the rest of it.

[justinbro2002]

Day one- get a good lawyer
Day two- change your phone number
My mother in law had several annuities that lost money during the crash.

[MDrenter223]

Originally Posted by armourereric

OK, you find yourself having just won $1Billion what is the wisest course of action over the first 24-48 hours, a week, a month as to insure you don't do anything especially stupid. I always envisioned immediately buying some type of annuity that would get me $75-100K a year, even if I lost the rest of it.

That's how the big winners end up broke. They sell off future cash flows for pennies on the dollar.

Take it all now, buy some property, invest the rest in index funds and withdraw 4% per year.

PS 4% of $800,000,000 is $32,000,000 a year forever.

[NewbieHere]

If you worry about blowing it all then take in payments, it does the same thing.

[1AngryTaxPayer]

Be armed at all times, even get WELL PAID armed guards.

[freemkt]

Originally Posted by NewbieHere

If you worry about blowing it all then take in payments, it does the same thing.

I once read something which claimed that if you take the payments and die before receiving all of them, the remaining payments do not go to your estate.

Not sure if this is true but it's worth checking out before taking any money.

[NewbieHere]

Originally Posted by freemkt

I once read something which claimed that if you take the payments and die before receiving all of them, the remaining payments do not go to your estate.

Not sure if this is true but it's worth checking out before taking any money.

I heard in the news today, it goes to your estate.
The link bellow confirms it.
http://www.powerball.com/pb_contact.asp

[Petunia 100]

Originally Posted by MDrenter223

That's how the big winners end up broke. They sell off future cash flows for pennies on the dollar.

Take it all now, buy some property, invest the rest in index funds and withdraw 4% per year.

PS 4% of $800,000,000 is $32,000,000 a year forever.

That would be 3.2 million, not 32 million.

But yes, no reason you couldn't live frugally, clip a coupon or two, and make it work.

[LiaLia]

Originally Posted by Petunia 100

That would be 3.2 million, not 32 million.

Yikes

[SaucyAussie]

Originally Posted by Petunia 100

That would be 3.2 million, not 32 million.