The next big Powerball jackpot is estimated to be $125 million. The Oct. 11 Powerball was at $1.725 Billion with a BIG B. Can you even visualize what that much money looks like? I certainly can’t.
Granted, most winning lotto tickets will be in the range of a few hundred dollars to a few million dollars. The Oct. 9 drawing had 3.7 million winning tickets at those lower levels, with one $2 million winner from Florida, and four $1 million winners in California, Oregon, Virginia and Indiana. Depending on your local area’s cost of living, a $1 million pre-tax windfall can definitely pay off your mortgage, debts, and set you up with a nice little nest egg. Less so in California, but I’m also pretty sure that no one would turn down a $1 million lump sum pre-tax windfall.
Out of curiosity, I asked my friends the very question: What would you do if you won the lottery?
Surprisingly, the answers didn’t vary much by geography (responses came in from people across 10 states from the coasts to the midwest to the south), nor did they vary much by life stage.
The top response was: They would pay off their home or if they didn’t personally have mortgage liability, the mortgage of their loved ones (parents, caretaker, grandparents, sister, brother, etc). Number two? Pay off all remaining debts. While yes, some people have had their student loan debt forgiven, a vast majority have not and it ranges from $75,000 to $600,000 (medical school).
Truth be told, I don’t think I would pay off my mortgage, but I might pay the principal down to a point where my interest paid hit the maximum threshold for income tax deductions and then leave it at that. For the past few generations in the United States, owning a home has been and continues to be one of the most effective ways of reducing tax liability — I don’t think having more money changes the formula there but likely only increases your ability to leverage existing assets against future investments (yay, more liability on your balance sheet). I suppose the other thing to consider is the interest rate on your mortgage — if you secured one of those amazing sub-3% rates on a fixed 30-year mortgage, it may make more sense to keep it as is and put that money into a 4.75% annual percentage yield interest earning account. Then again, peace of mind in not having any debt is worth a whole lot to some people. Of course, with that much money at hand having a financial advisor (and lawyer) that you trust is going to be important, and they would be the people to help you build the right plan for your situation.
I guess the big question (maybe for another piece) is why is “the system” designed to reward debt and leverage?
Once all the debts have been cleared, then it looks like the answers to my question become a game of bringing dreams to life and investing in one’s community or causes they are passionate about. And they are beautiful dreams and important causes.
Cat would donate a big chunk to a coastal farm nonprofit called The Big Wave Project, where you can find her most weekends volunteering.
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Jeremy, who is passionate about fitness and health, would open a gym that would be free to people ages 17 and under so he could have a platform to teach fitness, self-confidence and offer his community a safe place for kids to go after school.
Catherine would invest in electrification, solar and climate projects in states with high carbon output.
Vicky would focus on reducing hunger worldwide.
Peter would invest in charity endowments where he and his family could be active participants in the work.
Hedi would buy a theater, bring together an ensemble and staff, and establish a universal basic income/stipend for all employed by her theater so they wouldn’t have to hold a day job to pay the bills while they worked on their craft.
Deborah would do even more than she already does for the unhoused community (she really does spend hours every week packaging and delivering meals).
Michelle, who founded nonprofit Techtonica.org, would give much of it away to organizations focused on planting trees, supporting BIPOC families in need of economic stability, housing the unhoused, bringing countries together to fight climate change, and much more.
The list goes on, and the causes and passion projects were varied but also themed — helping each other and our planet. That gives me hope.
So now the same question is for you, reader. What would you do if you won the lottery?
Annie Tsai is chief operating officer at Interact (tryinteract.com), early stage investor and advisor with The House Fund (thehouse.fund), and a member of the San Mateo County Housing and Community Development Committee. Find Annie on Twitter @meannie.
Depending upon the amount, I’d fund a group of lawyers who would file lawsuits, local and state, against CA overreach and especially laws about man-made climate change idiocy. I wouldn’t need to bother with Second Amendment stuff since pretty all gun-grabbing measures are overturned, while these same gun control measures are ignored by politicians with security details. Let the subpoenas begin. Oh wait, I need to first win a sizeable lottery. Wish me luck!
I would buy a newspaper, like the Journal, and aim to neutralize the garbage news emanating from the major news papers and alphabet TV stations. My dream would be that Jorg and his following finally realize that they have been wrong on every issue that they struggle to explain.
In a funny way, you remind me of a classmate, Dirk, I once had at a lower level. His math solutions never matched the teacher’s, so in his wisdom he assumed that the teacher always was wrong.
I tried to give him some much-needed tutoring, which didn’t seem to help much, since he flunked, with flying colors.
Jorg, in a funny way, you remind me of someone who doesn’t understand the concepts of the Second Amendment and the Electoral College or the definition of an “assault weapon” or “insurrection” to name a few, and yet this person continues to insist that everyone else is wrong. You remind me of the kids in my earlier classes who flunked math because they didn’t understand the concepts. We’re trying to give you much-needed tutoring, which don’t appear to help much, since you’re still flunking with flying colors. Please do better.
Jorg, it’s interesting you’re unable to refute my assertions and you predictably resort to a laughable personal attack. The least you can do is define “excemplatory” because nobody else is at your level of “intelligencia.” Perhaps pre-K kids? Happy National Deviled Egg Day – perhaps you can enjoy one of those while you’re figuring out what a dictionary is used for.
My goodness, how you impress me! I never thought you would catch that one, leaving it for me to make fun of you for not being smart enough! But again, I underestimastoried you, - MAGA-time, - resulting in deviled eggs on my face.
Debt in not taxed. Housing debt would be hard to change. Other forms of debt are pulling forward future earnings and should treated as income now and a reduction of income as it is repaid.
Good morning, Annie. Thanks for an interesting question.
Like most folks, I would settle personal debt then set some investments for my son and daughter. After that, with the counsel of a financial advisor and attorney, I would invest in education. That investment would be inspired by Greg Mortenson's book, "Three Cups of Tea." Mortenson raised funding to build schools in Pakistan and Afghanistan where there were none. My investment would be focused on US inner city communities where good schools can make a difference.
I don't need more, and both son and daughter have done quite well on their own. Instead, I would donate it all to Freedom from Religion Foundation, Humanistic societies, animal rescue and childrens' hospitals.
Thanks, Ray. Not that I ever expect to win much, I rarely do more than a few bucks, which I reinvest, just for the entertainment value: something to look forward to.
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(15) comments
Depending upon the amount, I’d fund a group of lawyers who would file lawsuits, local and state, against CA overreach and especially laws about man-made climate change idiocy. I wouldn’t need to bother with Second Amendment stuff since pretty all gun-grabbing measures are overturned, while these same gun control measures are ignored by politicians with security details. Let the subpoenas begin. Oh wait, I need to first win a sizeable lottery. Wish me luck!
I would buy a newspaper, like the Journal, and aim to neutralize the garbage news emanating from the major news papers and alphabet TV stations. My dream would be that Jorg and his following finally realize that they have been wrong on every issue that they struggle to explain.
In a funny way, you remind me of a classmate, Dirk, I once had at a lower level. His math solutions never matched the teacher’s, so in his wisdom he assumed that the teacher always was wrong.
I tried to give him some much-needed tutoring, which didn’t seem to help much, since he flunked, with flying colors.
Well Jorg - your analogies are as stunted as your Constitutional knowledge. You are forgiven.
Good point Jorg - several of us have tried to tutor you but you continue to flunk so we are wasting our time.
Do you really think that anyone in his or her right mind ever takes your nonsense seriously?
Jorg, in a funny way, you remind me of someone who doesn’t understand the concepts of the Second Amendment and the Electoral College or the definition of an “assault weapon” or “insurrection” to name a few, and yet this person continues to insist that everyone else is wrong. You remind me of the kids in my earlier classes who flunked math because they didn’t understand the concepts. We’re trying to give you much-needed tutoring, which don’t appear to help much, since you’re still flunking with flying colors. Please do better.
What a predictable replay of compact ignorance, from someone who is still blended by Trump's intellect and excemplatory life!
Jorg, it’s interesting you’re unable to refute my assertions and you predictably resort to a laughable personal attack. The least you can do is define “excemplatory” because nobody else is at your level of “intelligencia.” Perhaps pre-K kids? Happy National Deviled Egg Day – perhaps you can enjoy one of those while you’re figuring out what a dictionary is used for.
My goodness, how you impress me! I never thought you would catch that one, leaving it for me to make fun of you for not being smart enough! But again, I underestimastoried you, - MAGA-time, - resulting in deviled eggs on my face.
Debt in not taxed. Housing debt would be hard to change. Other forms of debt are pulling forward future earnings and should treated as income now and a reduction of income as it is repaid.
Good morning, Annie. Thanks for an interesting question.
Like most folks, I would settle personal debt then set some investments for my son and daughter. After that, with the counsel of a financial advisor and attorney, I would invest in education. That investment would be inspired by Greg Mortenson's book, "Three Cups of Tea." Mortenson raised funding to build schools in Pakistan and Afghanistan where there were none. My investment would be focused on US inner city communities where good schools can make a difference.
I don't need more, and both son and daughter have done quite well on their own. Instead, I would donate it all to Freedom from Religion Foundation, Humanistic societies, animal rescue and childrens' hospitals.
Good for you, Jorg.
Thanks, Ray. Not that I ever expect to win much, I rarely do more than a few bucks, which I reinvest, just for the entertainment value: something to look forward to.
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