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I wouldn't worry too much about it. Your chances of winning are pretty low.
Well hey, somebody has to win it, right? It could be you or the OP, but gotta buy a ticket at least. There's no strategy to playing, it just might happen.
But no sense in figuring out where to put the money right now. That's a fun task you can do once you match all the numbers. (In addition to hiring security)
Just curious. I'm sure there are people who have brainstormed this all out.
Suppose a person just wanted nice passive cash growth. (Stock market, banks, etc.)
Is there a way to keep/manage that large a lumps simply?
No investing in any businesses. No buying any real estate. Both of which would have to be managed.
They don't want 5 houses. They don't want acres of land.
Dozens of accounts dozens of banks with less than 250K in each?
How do they even manage it? Where do they put it?
If the initial lottery payout goes to one bank wouldn't they have to split it up fairly quickly to get under the insurance limits?
The person doesn't want the annuity.
IF they were going to do annuities they should have just taken the lottery'e annuity.
So I'm wondering about someone who takes the lump sum and want to just let the money itself grow.
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If there's any way at all they'd rather take the lump sum...
Or with a billion dollar win is the only way to keep it simple to just go against what they'd rather do......and just take the lottery annuity. ....because .....In the long run THAT is the easiest to manage.
Something boring like a dividend oriented stock fund would work.
I'm thinking of something like Schwab Dividend Equity ETF (SCHD).
Vanguard Dividend Appreciation Index or Vanguard High Dividend Yield Index would also be good alternatives.
I'd also have somewhere between 3 to 10 years' worth of reasonable living expenses in cash or a money market fund, depending on comfort level.
Something boring like a dividend oriented stock fund would work.
I'm thinking of something like Schwab Dividend Equity ETF (SCHD).
Vanguard Dividend Appreciation Index or Vanguard High Dividend Yield Index would also be good alternatives.
I'd also have somewhere between 3 to 10 years' worth of reasonable living expenses in cash or a money market fund, depending on comfort level.
With this amount of money I wouldn’t own a single fund. You can have direct indexing with tax management overlay to benefit from much better tax control, actual direct ownership and voting capability. I don’t think there’s any advantage to selecting a single fund really
If the jackpot is large enough, then don't worry about investing. Just put the money into T-bills, CDs, and money market funds and go and relax and live nicely on the interest and maybe a bit if capital draw down.
If the payout is only a few million, at that point you need to worry about how to invest to preserve the capital and still live a nice life. That would be a little trickier. Once they take away half because you want the lump sum and the state and feds take their taxes, there is a surprisingly small amount left to try to get it to support you.
Agree, why worry about growth (or loss) with all that cash.
One could open a trading account and manage the purchase of their own treasures portfolio. Develop a barbell strategy and hold to maturity. A pretty straight forward process once you get it setup.
I can't believe this has not been posted yet. If it has I overlooked it. When you have large sums of money you don't have to open accounts at multiple banks or have multiple types of accounts at different institutions. You simply use an Intrafi Network Deposit account. You have one bank account at your bank that is a member of the Intrafi Network. Any amount over $250,000 is funneled into accounts at other network banks so it is insured by the FDIC. You can have millions covered by FDIC insurance this way and it is very simple to set up and use.
Last edited by dijkstra; 10-04-2023 at 01:39 PM..
Reason: spelling
I can't believe this has not been posted yet. If it has I overlooked it. When you have large sums of money you don't have to open accounts at multiple banks or have multiple types of accounts at different institutions. You simply use an Intrafi Network Deposit account. You have one bank account at your bank that is a member of the Intrafi Network. Any amount over $250,000 is funneled into accounts at other network banks so it is insured by the FDIC. You can have millions covered by FDIC insurance this way and it is very simple to set up and use.
I think not too many people have a need to know that information is why nobody has mentioned it.
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I'm sure there are people who have brainstormed this all out.
