Lotto max fever: How to spend it all?
Lotto Max Fever! How would you spend $60 million?
Here in Canada we have two national lotteries. Lotto 649 is the longest running since 1982 in which for $3 you can pick 6 numbers from 1-49 or have them instantly chosen at random for you. The jackpots start at a minimum of $5 million and always have a separate randomly generated number for a guaranteed million dollar payout with each draw. The second national lottery is called the lotto max jackpot. This lottery costs $5 to pick 7 numbers from 1 to 49 but also generates 2 additional groups of 7 numbers at random for a total of three chances to win. The jackpot starts at a minimum of $10 million and caps out at $60 million. Once it hits the $50 million mark it adds additional draws of $1 million dollars but these are not guaranteed like the lotto 649 extra draw.
Now these jackpots are nothing compared to the size of the powerball lotteries in the United States, with the most recent mega jackpot in January 2016 reaching over $1.6 BILLION but also Canada has less than a tenth the population when compared to our neighbours to the south and we have a measly Gross Domestic Product(basically the value of all goods and services produced in the country over a year) of $1.827 trillion compared to the US’s $16.77 trillion. Nonetheless, Canadians like they’re lottery playing just as much as the Americans and since Lotto Max’s Friday March 11th $60million dollar jackpot didn’t have a winner Canadians are going to be spending all this week dreaming what if…
So…what would you do if you won the lotto max jackpot $60million dollars this Friday?
First of all yes it’s a full $60 million, completely tax free in a big lump sum dropped in your bank account! Luckily for us Canadians the lotto max and 649 jackpots along with all lottery winnings are tax free.
I think first I’d have it deposited all in one account just to see that many zeroes…but then immediately afterwards I would start setting up some trusts and distributing my winning.
With a jackpot that large, I think I’d be generous to my immediate family, probably give them all a million each. So that would be $5 million off the table instantly. Ideally, this would pay off any mortgages they have remaining and set them up for a comfortable retirement in many years without any decrease in their current lifestyles.
I’d then take another million, maybe two and set it up in a reasonable safe investment to give me a decent 3-4% dividend. This would be my family travel fund. Basically the point of this would be to plan one or two big vacations with my family. They always take a trip to the mountains in BC/Alberta each year to ski and I joined them for a few days this year and it’s definitely something I’m going to continue to do as long as I’m able. Our families are only going to grow over the next few years, so it’ll be harder and harder for everyone to fly out and ski together so this would ensure $30,000-$60,000 dollars a year for a ski trip. Which sounds like A LOT for a ski trip but when a week’s lift ticket is around $500 dollars and the flights around another $1000 each, plus $5000/week (that’s for all 4 families) for lodging on the mountain, then food and whatever else, it’s easy to see that this can easily cost around $2000 per person. Add a few kids into that over the next few years and the lower end of the budget will get eaten up pretty quickly. Of course, if I put the $2 million away we’ll be able to take a second week somewhere, preferably to relax on a beach after I’m exhausted from a week of skiing. I’d set this fund up if I won anything over $2.5 million, that way the only thing anyone needs to worry about is getting the time off.
Any major purchase I made, like a house for instance I’d make sure I have an account set up so 3% in dividends/appreciation were hopefully generated to pay the costs to own that asset. 4% is considered a safe withdrawal rate for a 40 year time frame in retirement, which has been studied to be successful 98% of the time with a 50/50 stock/bond distribution historically. So based on that information by people much smarter than I am, I think a 3% withdrawal should be able to handle my expenses for a long enough time frame.
I honestly haven’t planned out what else I’d do with this incredibly large sum of money very well…because well at 1 in 85,900,584 odds I don’t really need to have much of a plan now do I? The only other thing I think I would definitely do is put the vast majority into some safe and secure investment and take $100-250,000 and travel in luxury for 6 months to a year. I’d come back to visit friends and family for milestones like birthdays and most holidays but I’d quit my job after making sure a suitable replacement was in place and then take my girlfriend and travel until we weren’t sure where to go anymore. Everything would be first class and top of the line because if I didn’t get back to spend the rest of it then I’d know what that life was like! YOLO! AMIRITE?…ugh sorry about that, I’m too old to even know if that was the appropriate use of such a terrible phrase.
So there we have it, that’s my tiny plan to spend 10% of my soon to be $60 million dollar winnings. Which seem to be me spending money on other people, but I have lots of time to adjust to my new $55 million dollar net worth now don’t I?
How about you guys let me know what some of the first things you would do are?