You Just Won The Lottery

[fredr123]

I had a vivid dream a couple years ago that I won $13.2 Million dollars in the lottery. I want to be prepared, when that day comes, for what I will do with the winnings. I'm not looking for comments like "Go on a trip" or "Buy a car." I've got my own ideas in that regard

But what about the practical aspects? You don't walk into CIBC with that giant cheuque and deposit it into a single chequing account. Would you take the lump sum payment now or accept the installment plan? Does it make a difference how much you win? Do you throw it all into a regular account and get extra deposit insurance or diversify your holdings across multiple accounts, investments, etc.? What are the tax implications here? These are the kind of problems I wouldn't mind having to deal with someday. Any thoughts?

[MarchHare]

I'd do two chicks at the same time.

[Bring_Back_Shantz]

I don't think there is a lump sum vs installment plan for lotteries here (I could be wrong though).
Either way, I'd spend half of it on strippers, gambling, and booze. The other half I'd probably spend on somthing foolish.

[the_only_turek_fan]

Well assuming that you are Canadian and living in Canada you dont have to pay any taxes IIRC on anything that you win.

[fredr123]

Originally posted by the_only_turek_fan@Mar 4 2005, 08:41 AM
Well assuming that you are Canadian and living in Canada you dont have to pay any taxes IIRC on anything that you win.

Yah, according to my Tax friend you don't get taxed on windfall gains. However, you would get dinged if you're living off the interest generated by the winnings.


BBS: Really? I thought pretty much every lottery gave you the option of taking the lump sum or getting paid out the present value of your winnings X years from now.

[MarchHare]

The lump sum is always the better option.

$1000 per week or whatever the installment plan works out to sounds nice in theory, but realize that after inflation, that $1000/week is not going to be worth all that much in 20 years.

[ChipOne]

my cousin won $1 million in that set-for-life scratch and win. bugger acted like he earned it.

anyway...he was an idiot top-to-bottom:
1) bought a $1000 cell phone
2) bought a $45000 car for cash
3) put all his money in money market and US tech accounts

i'd be suprised if he has 1/2 it left.

when he went into the bank they were all giving him a hard time and being complete ******* to him. he only had one piece of photo id and they weren't going to let him open an account. he asked to speak to the manager, who backed his counter worker "sorry...nothing we can do for you". then my cousin whipped out the cheque.

they got him donuts, took him to the back executive office, offered him drinks, treated him like gold.

that's royal bank for ya.

[Looger]

Originally posted by MarchHare@Mar 4 2005, 03:36 PM
I'd do two chicks at the same time.

always wanted to do that.

if i had the money i could hook that up, chicks dig dudes with money.

well, the kind of chicks that would double up on a guy like me do...

[Looger]

change your phone number and hire a bodyguard, those charities are out for blood.

[fredr123]

So there's no financial panthers in here that could recommend something better than going into Royal Bank and eating their donuts? Personally, I would be afraid to leave my winnings in the hands of a single bank in a single account.

[Cowperson]

Originally posted by fredr123@Mar 4 2005, 03:35 PM
I had a vivid dream a couple years ago that I won $13.2 Million dollars in the lottery. I want to be prepared, when that day comes, for what I will do with the winnings. I'm not looking for comments like "Go on a trip" or "Buy a car." I've got my own ideas in that regard

But what about the practical aspects? You don't walk into CIBC with that giant cheuque and deposit it into a single chequing account. Would you take the lump sum payment now or accept the installment plan? Does it make a difference how much you win? Do you throw it all into a regular account and get extra deposit insurance or diversify your holdings across multiple accounts, investments, etc.? What are the tax implications here? These are the kind of problems I wouldn't mind having to deal with someday. Any thoughts?

You'd get the entire $13.2 million tax free in Canada, no installments.

I'd buy a couple of new SUV's and maybe a Mustang or a new Jag because the missus would kill me if I didn't. Pure self-preservation.

I'd do some renos on my house. I'd lob some at the Humane Society and be the occasional "Mr. Anonymous Donor" to various things.

I'd arrange to go in the best suite on a Round The World Cruise in stages, a little at a time.

I'd throw the rest on the pile and keep going.

Cowperson

[Bring_Back_Shantz]

Originally posted by fredr123+Mar 4 2005, 09:50 AM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (fredr123 @ Mar 4 2005, 09:50 AM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-the_only_turek_fan@Mar 4 2005, 08:41 AM
Well assuming that you are Canadian and living in Canada you dont have to pay any taxes IIRC on anything that you win.

Yah, according to my Tax friend you don't get taxed on windfall gains. However, you would get dinged if you're living off the interest generated by the winnings.


BBS: Really? I thought pretty much every lottery gave you the option of taking the lump sum or getting paid out the present value of your winnings X years from now. [/b][/quote]
I could be wrong, but I thought Canadian lotteries paid out right away. I'm not 100% sure why I think that though.

[the_only_turek_fan]

What I would do with the money?

hmmmm, buy the biggest HD TV I can find.

Buy a lot more DVD's

Donate about 1-2 million to charities.

Buy and SUV.

Put away about 5 million bucks.

I would probably build my own personal indoor running track.

[JiriHrdina]

First step - get both my parents to retire RIGHT NOW. My Dad hates his job and always has - would like to solve that problem..

2nd step - big vacation this summer.

3rd step - buy my Grandma's house (which I currently rent from the family).

That's about it.

[TheyCallMeBruce]

$13.2 mil eh?

For sure I would invest some of it, probably $5mil to ensure that I will always have some residual income (living off interest).

The rest? Well, $1.2mil will go toward paying off the debts of myself and all my closest friends. Whatever that is left, I will spit with them.

I will then give my parents $2mil. $1mil each.

$2mil will give me a chance to buy property in Toronto, Vancouver, and of course Calgary.

$1mil will go toward charity.

The last $2mil will be spent on whatever I desire. But I think the most exciting part about the whole thing is I can start buying cars I want.

My life long dream of importing a R32 Skyline GTR to Canada will come true. RB26DETT...how I love you. Surprisingly, I will only have 3 cars. The Skyline, the M5, and Subaru WRX STi. The M5 will be approriate for upscale parties and evening night outs. The Subaru will be the daily driver. The Skyline will be a lifelong project car.

EDIT: Oh, and I would experiment with my sentra. I'm gonna use about $20,000 to see if I can boost the sentra to 30psi without blowing up anything.

[lucid]

1st- Gift to my family. Whether it be in the form of cash, or a vacation, early retirement... something. They all deserve it.

Charities

Travel, around the world. Spend a year country hopping.

Buy a grand piano.

And seeing as my current residence can't accommodate a grand: Find a nice area and have a house built for myself.

My extended family still has relatives and long-time friends overseas, many of whom they have not seen since they immigrated to Canada. I would love to give them the opportunity to see each other, just once, before it's too late.

Put away/invest

[V]

You beat me to the grand piano.

I was going to say

1 mil to my parents, and another mil to my wife's parents.

500 grand to each of the kids in my wife's and my families (total of 2.5 mil)

Build a 1 million dollar house that's energy efficient as hell so I don't pay through the nose for utilities later.

My house would contain a 100,000 grand piano and a 100,000 pipe organ

3 mil to charities

Salt away 4 mil for residual income

That leaves 500 grand. Who wants it?

[calf]

Buy a reall nice house in the Mount Royal Area - furnish it right up...big ass TV, Grand Piano, the works

Take all my buddies on a vacation

Invest about 7 million to live off of

Buy a cabin somewhere (TBA)

Buy a really nice car (a Beamer or Mercedes)

Buy a boat

I agree with Jiri - get mom and dad to retire

Donate a bunch to charity

[Pagal4321]

Make the parent's retire
Donate some to charity
Buy a nice enough house, furnish it up nicley.
Invest/Save at least half the money......spread it out among GICs, mutual funds and such.

[habernac]

Quit my job.

Change my phone number and disappear for a bit would be my first step.

hmmm....order a custom carbon fibre road bike with Campagnolo components and an Intense 5.5 mtn bike.

Then I'd call my Dad's financial planner.

Buy a Nissan Frontier and a home on the west side of Calgary (Elbow maybe?)

Mom and Dad have lots of dough already, I'd share with by brother and sister and set up my inlaws for retirement. Set aside some for the Canadian Cancer Society and a few other charities.

then I'd travel. Peru would be my first destination, hike the Inca trail to Macchu Picchu.