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?If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).