What if…. You won the lottery? What would you do?
Driving home from work today I passed by a billboard with the Super 7 Jackpot advertised. $30 million dollars it displayed.. and the image repeated over and over again in my head until I arrived home. I remember seeing somewhere that nearly 1/3rd of all big lottery winners go bankrupt within 5 years. I guess it's not that hard to believe, not everyone is financially literate. What would I do if I won $30 Million? Here is my hypothetical plan in order:
- Change our home phone number then have our new number unlisted.
- Donate 10% to various charites ($3 million).
- Give away another 10% to family and friends ($3 million).
- Start a diversified dividend investment fund with 10% ($3 million) and donate the proceeds of the quarterly dividends to charity. This would work out to around $3 million * 4% annually = $120k / year (increasing annually).
- Pay off all my debts ~$200k.
- Buy a new house $400k.
- Buy a couple new cars $90k. Why not right? ;)
- Quit my job.
- Keep $300k in a regular chequing account for other toys, luxuries and travel.
- Perhaps take $5 million and invest in venture cap, franchise restaurants, and/or real estate.
- Take the remaining, which is approximately $15 million, spread it among various investment accounts (to account for the limited CIPF) and purchase strong dividend paying stocks among other income instruments. This would pay approximately $600k / year in dividends assuming an average 4% payout. This would be our yearly salary.
- Continue blogging, but change the domain name to 100MillionDollarJourney.com. :)
There you go! That's my plan! What would you do?