$60M Lotto Max jackpot cheque makes 31 N.L. co-workers instant millionaires

[Slava]

Originally Posted by corporatejay

Also access to insurance. Smaller firms usually carry less insurance because they rarely deal with such large transactions. A large national or multinational will have a tonne of insurance because they do deals in the 10s of billions.

There are all kinds of safe guards in place though, and it's a very heavily regulated industry. So while I am on my own and have my own practice, you can rest assured that if I were running a scam and were sued, the securities dealership (in this case a large multinational) would be pulled in on that lawsuit. That's the case for virtually everyone these days. And yeah, my insurance would cover me for far more than what I "normally deal with" because you need that catastrophic loss protection in place, but I would imagine the dealership coverage is well into the billions.

Even a lot of "mom and pop shops" or places that give that kind of vibe really aren't these days. They're very often through one of the major banks or a huge financial company.

[CliffFletcher]

Originally Posted by psyang

A pretty thorough description of what to do (and what not to do) if you win the lottery. It's broken into 3 parts - read the first 3 comments.

I do think a lot of the bad outcomes for people winning lotteries is due to the demographics of people who play the lottery heavily - tending towards the poor, uneducated, and undisciplined.

Having said that, I honestly would rather win $500k than $10 mil. With the former, I'd just stash it away to ensure a comfortable and early retirement, with maybe a few nice vacations thrown in. I would hate having to deal with the stresses of portioning out a $10 mil win to family, the attention the higher sum would garner, the hassles the kids would get at school, the safety and security issues, and the people coming out of the woodwork to beg money.

I like where I live and my social network. I wouldn't want to abandon it, even if it meant having millions of dollars of play money in a dream home on Vancouver Island. That much money would be very socially isolating.

[Cowperson]

Originally Posted by dammage79

Which movie was it where John Goodman said " You need at least 2.5m of F-you money".

In James Clavell’s 1981 book “Noble House,” it’s called “Drop Dead Money.”

You’ve got enough money to tell anyone to drop dead if they’re bothering you or you don’t want to do something.

Shogun and Taipan were better known first books in the trilogy.

[corporatejay]

Originally Posted by Slava

There are all kinds of safe guards in place though, and it's a very heavily regulated industry. So while I am on my own and have my own practice, you can rest assured that if I were running a scam and were sued, the securities dealership (in this case a large multinational) would be pulled in on that lawsuit. That's the case for virtually everyone these days. And yeah, my insurance would cover me for far more than what I "normally deal with" because you need that catastrophic loss protection in place, but I would imagine the dealership coverage is well into the billions.



Even a lot of "mom and pop shops" or places that give that kind of vibe really aren't these days. They're very often through one of the major banks or a huge financial company.

I thought we were talking about law firms.


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[GGG]

Originally Posted by OMG!WTF!

Of course nothing is guaranteed but I grew up thinking real estate was the best investment. And it was for many years but it is by no means without risk. Mortgage lending is not Shire or Concrete. I find actual people who need loans and have the kind of security I want. If you have a first mortgage on a property you like and at a loan to value you are comfortable with, that's the best you can do as far as risk.

You'd also be amazed at what people will pay for mortgage money. A 12% roi on a first mortgage at 60% ltv is not at all unusual. 6-9% is a very secure loan and usually around 40% ltv. Private money is much different than banks.

I'm always fascinated by your investing posts. It's across such a wide variety of areas and always shows a great understanding for whatever instrument you are talking about.

[AltaGuy]

Originally Posted by CliffFletcher

I do think a lot of the bad outcomes for people winning lotteries is due to the demographics of people who play the lottery heavily - tending towards the poor, uneducated, and undisciplined.

Having said that, I honestly would rather win $500k than $10 mil. With the former, I'd just stash it away to ensure a comfortable and early retirement, with maybe a few nice vacations thrown in. I would hate having to deal with the stresses of portioning out a $10 mil win to family, the attention the higher sum would garner, the hassles the kids would get at school, the safety and security issues, and the people coming out of the woodwork to beg money.

I like where I live and my social network. I wouldn't want to abandon it, even if it meant having millions of dollars of play money in a dream home on Vancouver Island. That much money would be very socially isolating.

I’m happy to offer you my “take your extra 9.5M off your hands” service. It’s a niche industry without a lot of clients, but I believe in my product, so if you ever find yourself in that position, PM me and I’ll get to work.

[OMG!WTF!]

I think what you should do if you win 2 million in the lottery is stick it in the bank, keep your job for a while but learn how to invest in whatever interests you. Undertake a serious education and make investing your job. Become a realtor if you want to buy houses. Same with stocks. Education gives you a huge advantage.

I know buying the SPY and waiting for a 30 year return will not suite most people because we're all the same. Watching your two million turn into a million is too painful for most people to endure. Most people will buy stocks now because they're high and it is the thing to do. The market feasts on those people. 10-20-30% losses will punt most retailers. A 50% loss will kill all but the most willfully blind investor. No one kept stocks in 2009. Jim Cramer was telling people to bail out. Having a long time line doesn't preclude anyone from the common human psychology we're stuck with. We avoid pain and seek pleasure, we're scared of missing out and we're scared of losing. You have to know how to beat your human nature. That doesn't suit lottery winners very well.

[GirlySports]

Originally Posted by OMG!WTF!

I think what you should do if you win 2 million in the lottery is stick it in the bank, keep your job for a while but learn how to invest in whatever interests you. Undertake a serious education and make investing your job. Become a realtor if you want to buy houses. Same with stocks. Education gives you a huge advantage.

I know buying the SPY and waiting for a 30 year return will not suite most people because we're all the same. Watching your two million turn into a million is too painful for most people to endure. Most people will buy stocks now because they're high and it is the thing to do. The market feasts on those people. 10-20-30% losses will punt most retailers. A 50% loss will kill all but the most willfully blind investor. No one kept stocks in 2009. Jim Cramer was telling people to bail out. Having a long time line doesn't preclude anyone from the common human psychology we're stuck with. We avoid pain and seek pleasure, we're scared of missing out and we're scared of losing. You have to know how to beat your human nature. That doesn't suit lottery winners very well.

thats so boring, what's the point of playing the lottery then

If I won 2 million I would blow the first million on trips, food, sporting events and concerts. Would spend a year or two travelling the world.
Investing the remaining million and going back to work afterwards would suffice. I'm not trying to grow the 2 million into 3 million. Staying around 1 million is fine!

[Johnny Rotten]

If you want to win the lottery, here's how:

http://highline.huffingtonpost.com/a...lotto-winners/


Good read!

[Nufy]

Fata...

See page 3

[Locke]

I'd be on a plane to wherever hours after picking up the cheque.

I think with a few million handy I'd be in a position to make that happen.

"Hi honey! Yeah, so I bought Djibouti. I'm a warlord now. Apparently. So far its going well."

[troutman]

Originally Posted by GirlySports

thats so boring, what's the point of playing the lottery then

If I won 2 million I would blow the first million on trips, food, sporting events and concerts. Would spend a year or two travelling the world.
Investing the remaining million and going back to work afterwards would suffice. I'm not trying to grow the 2 million into 3 million. Staying around 1 million is fine!

+1

Don't assume you can enjoy your wealth when you are 60 or 70. Health is such a wild card.

[HockeyIlliterate]

Originally Posted by OMG!WTF!

Watching your two million turn into a million is too painful for most people to endure. Most people will buy stocks now because they're high and it is the thing to do. The market feasts on those people. 10-20-30% losses will punt most retailers. A 50% loss will kill all but the most willfully blind investor. No one kept stocks in 2009.

What are you talking about?

No one should put their entire $2 million in the stock market, but rather split the $2M amongst bonds and stocks (domestic and international), preferably index funds.

And the smart people did keep stocks in 2009, and the smarter ones bought more of them then too. And those people are quite likely enjoying the returns on their investments from that time.

[Weitz]

What’s the point of winning $2 million if you are going to invest it all? Id probably blow at least half on upgrading a house/car and trips and not working for a year at least.

[btimbit]

Originally Posted by Weitz

What’s the point of winning $2 million if you are going to invest it all? Id probably blow at least half on upgrading a house/car and trips and not working for a year at least.

I'd force myself to do something smart with half but the other half is mine to pay stuff off and be a dumbass with

Just because of this thread I'm buying a ticket today and you can all laugh at me when I win and am looking for a job by Christmas

[Kybosh]

No kidding. If I was talking to someone who won the lottery and they invested the entire thing, the conversation would pretty much be something like this.

Me: You won the lottery?! That's amazing! What have you started doing with the money?
You: I took the entire amount and invested it into low risk stocks and bonds.
Me: . . . .
Me: #### off

[Locke]

Originally Posted by Kybosh

No kidding. If I was talking to someone who won the lottery and they invested the entire thing, the conversation would pretty much be something like this.

Me: You won the lottery?! That's amazing! What have you started doing with the money?
You: I took the entire amount and invested it into low risk stocks and bonds.
Me: . . . .
Me: #### off

You would not be friends with Samir.

NSFW!

[Table 5]

I think like with normal financial planning, if you take care of the important stuff first, you can do whatever you want with the rest. Pay off your bills, set up a trust, and set yourself up for the future....and with whatever you happen to have left, you can blow it on anything and everything.

[Swarly]

Originally Posted by Kybosh

No kidding. If I was talking to someone who won the lottery and they invested the entire thing, the conversation would pretty much be something like this.

Me: You won the lottery?! That's amazing! What have you started doing with the money?
You: I took the entire amount and invested it into low risk stocks and bonds.
Me: . . . .
Me: #### off

You: ...enjoy going to work every day for the next 50 years. I'll be traveling the world on my investment returns.

[OMG!WTF!]

Originally Posted by HockeyIlliterate

What are you talking about?

No one should put their entire $2 million in the stock market, but rather split the $2M amongst bonds and stocks (domestic and international), preferably index funds.

And the smart people did keep stocks in 2009, and the smarter ones bought more of them then too. And those people are quite likely enjoying the returns on their investments from that time.

Bingo. That's the education part I was talking about. But when you go a step further and get even more education you learn that diversification is not the free lunch everyone thinks it is and you should be investing where the returns are. A balanced portfolio makes sense if you're not willing to know how to actively manage your dough.

Smart people, aka educated people, may have kept their stocks in 2009 but the huge majority of retail investors were punted. The only way to combat emotion is through knowledge. Buying anything, balanced or not, is a bad idea if you don't understand what you're doing.