WWYD- powerball!!!

yogahh

You don't have to worry too much about winning though since I already bought the winning ticket! But I thought it would be fun to play...

So if you win the $700 million tomorrow what is one smart/financial thing you would do, one extravagant and one charitable thing?

Smart- figure out where DH and I would really like to live and buy a house. I know it would be somewhere warm. Maybe Malibu or even somewhere in Hawaii.

Extravagant- definitely a baby moon to end all baby moons. Santorini, Bali, Fiji, Rome. I would hit as many locations up as possible before I can't fly anymore! I might also buy a mini horse ala the Amazon commercial!

Charitable- Currently I donate monthly to Save a Gato in Puerto Rico. If you have ever been to the old city, you probably spotted the cats everywhere. That was one of my favorite parts of the trip, walking around the forts and trying to count how many cats we saw. With 700 million I could give more to them, as well as other animal charities. I read about a woman that runs a hospice for cats out of her home. While I don't know that I would have the patience to do that, I would love to open and fund similar organization.

If I can be serious, all I really want to win is enough to to pay off my schools loans. Hey, I'm not greedy at all!!

kp90

We played on Wed with no luck... lets hope tomorrow is a better chance. You know... since everyone and their great uncle will buy a ticket! -_-

If we won we would definitely go on a fabulous babymoon and enjoy ourselves for an entire week... maybe two! Then continue to buy things for the nursery and start her college fund!

Charitable.. I would love to buy a bunch of food/clothes/items for the homeless or a shelter and be able to hand everything out. I'd like to be Santa for a day and give to others what they truly need and see smiles on their faces. I'd also like to buy my parents their dream home.

The rest.... its hard to say what I would do with so much money but the idea gives me goosebumps!

js8812

After taxes, it would be about $350MM and I would definitely take the lump sum.  I would start a private foundation and fund it initially with $100MM, and then add to it annually to maximize tax benefits (charitable AND financially savvy).

My family foundation would make grants supporting local projects and help individuals or families in the state who are facing hardship from illness or disaster.

I would buy a lot of land and get into developing.  We would also buy a quarter section of land to live on and build our house and shop.  It wouldn't be anything crazy over the top, but probably a million home.  We would also want to have a lake home.

We would definitely give a lot of money to our immediate family, too. 

Gosh, that would be so fun to win.  I've only bought lottery tickets once (except the scratch offs), because I believe that the lottery is a tax on ignorance.  It's fun to dream though!

kbrands7

Smart-- DH and I would buy a larger house that's more practical for us-- maybe we'd even build the house that DH designed years ago that we haven't had the money to build I'd put money into our retirement accounts and the 529 accounts for the boys. Oh, and pay off my student loans so that I could stay home with our kids for at least a few years and pursue a creative career money-guilt-free. Maybe that's an extravagant thing...

Extravagant-- Quit my job! (At least for a bit...see above). Also, DH and I have always wanted to go to Italy and do a European/Mediterranean tour of sorts. We'd wait until the boys are older so they could come too, but we could start planning it now and sock away some money for it.

Charitable-- I'd give money to Children's Hospital and/or Doctors Without Borders and also pay down debt for family members' student loans and mortgages.

sarawifenow

Smart-Build our dream home, pay off all debts, set up a trust account for DS.

Extravagant-Spend a few months travelling all over the world like @yogahh fly until I can't fly anymore. First class of course!

Charitable-Pay off all of my mom's debts, buy her a brand new house wherever she wants, and let her retire! She has done so much for me and I want to take care of her for the rest of her life.

Charissadeats

I have no chance whatsoever but DH and I often play this game.

We would both take off for a year and travel the world.

Then we will buy a couple of houses - to rent out so that pays for itself. We'll buy a nice house for us to live in SA as well as somewhere in Europe.

I will start a Non-Profit for kids/young adults who don't have basic necessities. And water is a big issue in some parts of the world so I would like to help with that.

DH will start a tech company - he is a genius!

I will have a library and lots of shelter animals and he will have nice cars.

I think that's fairly balanced. I don't think we will spend it all in our lifetime though!

js8812

FYI --- If you invested the entire $350MM conservatively, you could yield $12MM+ per year tax-free to put it into perspective.

swflJD

I never play the lottery, but I did buy a powerball ticket yesterday because you never know.    If I were to win, the first thing I would do is schedule an appointment with my financial planner. After getting his advice, I would likely do the following:

• Smart -- Pay off all of our debt - mortgage, student loans (which are larger than our mortgage! ), vehicle loans, credit cards, etc.  Purchase a number of commercial investment properties and vacant land in my local area (land development is booming here right now).  Hopefully make stock and other investments that would allow us to live comfortably off the interest/dividends without having to use the principal. 
• Extravagant -- Buy my dream boat and travel the world on it (of course that would have to wait about a year until this LO was here and old enough to go).  It would probably be a Tartan 4700 like this:
• Charitable -- Pay off my family members' and IL's home mortgages and other debts so they could retire early and travel with us. I really love my job, so I don't know if I would quit it.  If I did, I would start a non-profit legal foundation where I (and other attorneys I would hire) would provide pro bono legal services to the indigent. If I didn't quit my job, I would make large annual donations to my local legal aid foundation.   

Edited because the pic didn't come out right the first time.

Charissadeats

@swflJD Random question - but why is student loans such a big thing in the US? I always hear about it, but don't fully understand why it amounts to so much. Is University super expensive? Is the interest high? Sorry, I've just always wondered!

gorgeousariel

I played Wednesday and doubled my money (payed $4 won $8). 

Smart: Build a dream house on at least a few acres of land. Keep our house now and rent it out. Invest majority of it

Extravagant: Quit both our jobs and travel. H has always wanted to go to Europe so we would spend a month overseas. 

Charitable: Pay off ILs debts and then donate to local animal rescues

yogahh

charissadeats said:

@swflJD Random question - but why is student loans such a big thing in the US? I always hear about it, but don't fully understand why it amounts to so much. Is University super expensive? Is the interest high? Sorry, I've just always wondered!

I cant answer for everyone, but I paid for my own schooling, housing and other essentials (books, food, etc), so my loans were always for more than the school tuition. Factor in interest, and they are sky high! I paid off one, and really just want to get the other one paid, but I cant see that happening for another 10 years or so. 

PYLWhammy

charissadeats said:

@swflJD Random question - but why is student loans such a big thing in the US? I always hear about it, but don't fully understand why it amounts to so much. Is University super expensive? Is the interest high? Sorry, I've just always wondered!

University costs are sky high in the US, especially for private schools. A lot of financial aid packages consist mostly of loans. Many naive students figure they'll be able to pay them off no problem, then find out that's not necessarily the case. I've read stories of people getting humanities or arts degrees at private schools, and ending up with 6-figures in loans, and jobs that pay maybe $20k or something. 

js8812

charissadeats said:

@swflJD Random question - but why is student loans such a big thing in the US? I always hear about it, but don't fully understand why it amounts to so much. Is University super expensive? Is the interest high? Sorry, I've just always wondered!

Tuition has been increasing at rates much higher than inflation for a very long time, so many universities are pricey.  There are more affordable options, but not everyone chooses to go that route. 

Student loan interest is typically much higher than other loan types because they are unsecured and they aren't backed by an asset.  If you have a car loan, the lender can repossess the vehicle as a method of recourse.  A degree in theater performance has no value for a lender, so interest is higher.

swflJD

charissadeats said:

@swflJD Random question - but why is student loans such a big thing in the US? I always hear about it, but don't fully understand why it amounts to so much. Is University super expensive? Is the interest high? Sorry, I've just always wondered!

My student loans are so high because, even though my parents paid for most of my tuition and books for my undergraduate degree, I still had to take out some loans for living expenses in college. Then for graduate school, I went to a private law school where, even with a partial scholarship, I had to take out huge loans for tuition, books, and living expenses.  DH quit his job to move to the city where I was attending law school, and it took a while for him to find another job, so we had to take out the maximum amount we could for living expenses in the meantime.  The interest rate is somewhat high, so that doesn't help, either.  Right now, I am on an income based repayment plan, and my monthly payments are still more than my mortgage payment, but they would be more than double that if I was paying them at the the standard repayment rate.  Even though DH and I both have good jobs now, unless we win the powerball, I'll be lucky to pay off my loans before I retire! 

PYLWhammy

Smart - I think the smartest thing to do with that sort of money is to hire a financial adviser!

Extravagant - Quit jobs and travel the world. 

Charitable - We'd give to local animal rescues and the animal shelter. Shark conservation charities, such as the Shark Trust. The Elephant Sanctuary. ASPCA. Maybe even start our own animal rescue. 

BuzzBee614

charissadeats said:

@swflJD Random question - but why is student loans such a big thing in the US? I always hear about it, but don't fully understand why it amounts to so much. Is University super expensive? Is the interest high? Sorry, I've just always wondered!

Echoing what past posters said. Also, I know for me I had always pictured myself as a working mom and it was a huge shock to me that I would want to stay home. It was making me miserable to work, however, so I'm home with DD. I owe $65000 for my masters degrees and pay almost $400 a month in loan payment by working at a restaurant 2 nights a week.

If I win the powerball I'd get rid of those loans the first minute I had the money.

Then I'd meet with a financial advisor, buy a new house closer to our families, and just have fun raising my kids.

My extravagant purchase would probably be our family home.

For charitable donations I'd love to create a program that helped at risk kids in all aspects of life and maybe even a school. It would provide parenting classes, nutrition for all students for all meals, and keep kids off the streets.

kami09

Oh girl, you have no idea how many times I've actually sat down and written out how I would spend my powerball money haha

Smart: pay off this debt! & buy the house we are renting from my parents currently (No, I would not move into a bigger, nicer house- this is the one I grew up in). I would also use some $ to start this mommy spa idea I've had.

Extravagant: travel through Italy. Buy a home in Hawaii and take our families there every year for vacation.

Charitable: Honestly, I would give most of the money away. I wouldn't feel very comfortable or safe (I watch too much TV) to have that much. Church, family,friends...and then I would give $ to one of my labor and delivery nurses who I absolutely loved, one woman who used to help me clean when I cleaned at an office building (she worked there and would just get up and help me...I've literally had daydreams of going into the office and giving her $1M), and a paraprofessional at a school where I had a long term sub position years ago.

countrygrl5533

Smart- Pay off all debt (student loans, car, medical, house) and replace my 11 year old van.

Extravagant- Buy a new house that is exactly what we want, not something that will make do because it is all we can afford.

Charitable- Give my church the remaining amount needed or at least a very large chunk of the building fund. Having so many people we barely fit in the sanctuary on a Sunday morning a great problem to have for sure...but it is seriously crowded and uncomfortable.

Charissadeats

Wow thanks so much for the feedback! That is some serious dedication to go study then! Flippet! If I won the powerball I would pay some of you ladies' student loans (haha) - too bad I can't play

yogahh

Ohhhh I have one to add to my extravagances... I would hire Bey and Jay for a private concert

Sunshinebins

Smart- pay off our credit card debt (not much at all but might as well), buy our dream house or the land to build it on, put money away for the girls to go to college, retirement, etc.

Extravagant- fancy new cars, an annual vacation for a whole month, hire someone to come to my house and do my hair every day that's my real dream haha.

Charitable- buy ILs a house or pay off theirs. I would make large donations to my high school, St. Jude's and Make a Wish Foundation. And I'm sure lots of other little charities along the way.

jessiedee13

Smart- pay off our house. That would be so awesome to do.

Extravagant- I'm buying a new car. Brand freaking new...not new to me...and I'm getting all the stupid options and what have you. Just cuz I can.

Charitable- I love st judes hospital. They've always been my favorite charity even when I was too young to fully understand. They'd get a good chunk of that money

AdorkablePixie

We went in on tickets with some friends, we each out in $10. If DH and I win with our parts this is what we will do:

Smart- Buy our new house outright with cash.

Extravagant - I would LOVE to take a month off work and backpack around Europe. Yes, I will keep working. I love my job.

Charity - We will donate to homeless shelters, St. Jude, Ronald McDonald, and ASPCA. We would also pay off the mortgages for our family and close friends and buy houses for our friends who don't have one yet.

AdorkablePixie

Oh! And we would put money in an account for our baby!

countrygrl5533

js8812 said:

Student loan interest is typically much higher than other loan types because they are unsecured and they aren't backed by an asset.  If you have a car loan, the lender can repossess the vehicle as a method of recourse.  A degree in theater performance has no value for a lender, so interest is higher.

My experience was the exact opposite. Until the last couple years my student loan interest rate was much lower than any other type of loan rate. Plus, there are so many more options for pay back. We've had loans deferred at different points when DH or I were out of work. We currently have income based repayment on one of our loans. Student loans can be much more forgiving than any other types of debt.

Not saying I enjoy my student loan debt just that it can be much more forgiving than car, credit card, etc. Based on things like Stafford and such. We do not have private student loans so I cannot speak about those type.

kbrands7

countrygrl5533 said:

js8812 said:

Student loan interest is typically much higher than other loan types because they are unsecured and they aren't backed by an asset.  If you have a car loan, the lender can repossess the vehicle as a method of recourse.  A degree in theater performance has no value for a lender, so interest is higher.

My experience was the exact opposite. Until the last couple years my student loan interest rate was much lower than any other type of loan rate. Plus, there are so many more options for pay back. We've had loans deferred at different points when DH or I were out of work. We currently have income based repayment on one of our loans. Student loans can be much more forgiving than any other types of debt.

Not saying I enjoy my student loan debt just that it can be much more forgiving than car, credit card, etc. Based on things like Stafford and such. We do not have private student loans so I cannot speak about those type.

I think it depends on the terms of the loan. My student loans have a 6.8% rate for the loans (which started out at $65,000). I was only recently given the option to switch to income-based repayment. I've been paying $730 per month for six year now. My car loan was 0% because of my credit, and our mortgage is 3.2%. We don't keep a balance on our credit cards month to month, though I'm sure that would be the worst rate if we did.

countrygrl5533

kbrands7 said:

I think it depends on the terms of the loan. My student loans have a 6.8% rate for the loans (which started out at $65,000). I was only recently given the option to switch to income-based repayment. I've been paying $730 per month for six year now. My car loan was 0% because of my credit, and our mortgage is 3.2%. We don't keep a balance on our credit cards month to month, though I'm sure that would be the worst rate if we did.

Wow! When we got 5% back in 2008 on our mortgage, that was considered excellent. Student loans are mostly around 5-6% which was lower than any other loan rates at the time they were taken out. Apparently, I am old. lol

Are loan rates maybe regional too like so many other things?

BuzzBee614

kbrands7 said:

countrygrl5533 said:

js8812 said:

Student loan interest is typically much higher than other loan types because they are unsecured and they aren't backed by an asset.  If you have a car loan, the lender can repossess the vehicle as a method of recourse.  A degree in theater performance has no value for a lender, so interest is higher.

My experience was the exact opposite. Until the last couple years my student loan interest rate was much lower than any other type of loan rate. Plus, there are so many more options for pay back. We've had loans deferred at different points when DH or I were out of work. We currently have income based repayment on one of our loans. Student loans can be much more forgiving than any other types of debt.

Not saying I enjoy my student loan debt just that it can be much more forgiving than car, credit card, etc. Based on things like Stafford and such. We do not have private student loans so I cannot speak about those type.

I think it depends on the terms of the loan. My student loans have a 6.8% rate for the loans (which started out at $65,000). I was only recently given the option to switch to income-based repayment. I've been paying $730 per month for six year now. My car loan was 0% because of my credit, and our mortgage is 3.2%. We don't keep a balance on our credit cards month to month, though I'm sure that would be the worst rate if we did.

@kbrands7 didn't you love spending $65000 to become a teacher and then have strangers complain teachers make too much money? Most younger teachers I know are around $50-$100000 in student loans by the time they finish their Masters degree.

My husband says if we win he's giving money to the teachers he likes at his school. Haha

js8812

countrygrl5533 said:

js8812 said:

Student loan interest is typically much higher than other loan types because they are unsecured and they aren't backed by an asset.  If you have a car loan, the lender can repossess the vehicle as a method of recourse.  A degree in theater performance has no value for a lender, so interest is higher.

My experience was the exact opposite. Until the last couple years my student loan interest rate was much lower than any other type of loan rate. Plus, there are so many more options for pay back. We've had loans deferred at different points when DH or I were out of work. We currently have income based repayment on one of our loans. Student loans can be much more forgiving than any other types of debt.

Not saying I enjoy my student loan debt just that it can be much more forgiving than car, credit card, etc. Based on things like Stafford and such. We do not have private student loans so I cannot speak about those type.

I said typically higher because there are some special loans out there.  Even if someone qualifies for an income-based repayment option (which can take a lifetime, BTW), it doesn't take away the accrued interest of a higher percentage amount for however many years you were in school.

Interest rates aren't too regional because they are mostly based on the Fed's prime rate.  We actually have a state-owned bank in North Dakota and they offer to refi student loans for residents at a low (but variable) rate.  Right now it's at 1.34%.  My H and I paid our own way through school and living expenses and the lowest rates we had were 4.5%.  Most were 6.8% and I think my H (he is 3 years older than me) even had a couple at 8%. 

Our mortgage is at 2.75%, so we actually pay the minimum payment on that and invest more for retirement because of the tax advantages and we can make more than 2.75% long term in the market.

Sorry... I'm a CFP candidate and I nerd out on this stuff big time!

countrygrl5533

I think I'm just old then. lol. The last time I was looking at student loan rates (which was years ago when I was applying for them), they were easily half the rate of any other type of loans. It appears it is now the opposite way around.

kbrands7

BuzzBee614 said:

countrygrl5533 said:

js8812 said:

Student loan interest is typically much higher than other loan types because they are unsecured and they aren't backed by an asset.  If you have a car loan, the lender can repossess the vehicle as a method of recourse.  A degree in theater performance has no value for a lender, so interest is higher.

My experience was the exact opposite. Until the last couple years my student loan interest rate was much lower than any other type of loan rate. Plus, there are so many more options for pay back. We've had loans deferred at different points when DH or I were out of work. We currently have income based repayment on one of our loans. Student loans can be much more forgiving than any other types of debt.

Not saying I enjoy my student loan debt just that it can be much more forgiving than car, credit card, etc. Based on things like Stafford and such. We do not have private student loans so I cannot speak about those type.

I think it depends on the terms of the loan. My student loans have a 6.8% rate for the loans (which started out at $65,000). I was only recently given the option to switch to income-based repayment. I've been paying $730 per month for six year now. My car loan was 0% because of my credit, and our mortgage is 3.2%. We don't keep a balance on our credit cards month to month, though I'm sure that would be the worst rate if we did.

@kbrands7 didn't you love spending $65000 to become a teacher and then have strangers complain teachers make too much money? Most younger teachers I know are around $50-$100000 in student loans by the time they finish their Masters degree. My husband says if we win he's giving money to the teachers he likes at his school. Haha

Seriously! Mine would have been even worse had I not had scholarships to cover part of my undergrad (which wasn't even a private school!). The Master's degree doubled my debt.

PYLWhammy

countrygrl5533 said:

kbrands7 said:

I think it depends on the terms of the loan. My student loans have a 6.8% rate for the loans (which started out at $65,000). I was only recently given the option to switch to income-based repayment. I've been paying $730 per month for six year now. My car loan was 0% because of my credit, and our mortgage is 3.2%. We don't keep a balance on our credit cards month to month, though I'm sure that would be the worst rate if we did.

Wow! When we got 5% back in 2008 on our mortgage, that was considered excellent. Student loans are mostly around 5-6% which was lower than any other loan rates at the time they were taken out. Apparently, I am old. lol

Are loan rates maybe regional too like so many other things?

Mortgage rates don't vary as much regionally - they vary with the overall financial market. Fixed rate mortgages pretty much everywhere have been 3-4% for a few years now. Whereas in the 1980s rates were in the double digits! 

Dantzscher32

Smart: Pay off our mortgage and invest.

Charitable: Up what I am currently giving to charities; invest in the local school system; provide the "wants" for all the local charities; invest in the local hospitals; and provide earmarked funds to the city to finish all the proposed greenways. 

Extravagant: hubby and I both retire. He can then start his own business and I can start my own.

countrygrl5533

PYLWhammy said:

Mortgage rates don't vary as much regionally - they vary with the overall financial market. Fixed rate mortgages pretty much everywhere have been 3-4% for a few years now. Whereas in the 1980s rates were in the double digits! 

I didn't think they did. Which is how I then came to the conclusion that I am old. I remember when we were able to get our mortgage at 5% instead of 6% and we were thrilled. Then two-three years later then dropped more to what they are like now. The last time I was looking at student loan rates was the early 2000s and they were seriously half what you would pay for a car and mortgage rates weren't much lower than a car. I had no idea that student loan rates were now considered high because last time I was paying serious attention, they were considered low.

So, what we can conclude from all this is, I don't pay attention at all to interest rates these days other than mortgage, :P

yogahh

Dantzscher32 said:

Smart: Pay off our mortgage and invest.

Charitable: Up what I am currently giving to charities; invest in the local school system; provide the "wants" for all the local charities; invest in the local hospitals; and provide earmarked funds to the city to finish all the proposed greenways. 

Extravagant: hubby and I both retire. He can then start his own business and I can start my own.

What kind of business? I would love to open a yoga studio...

doozer1345

It is now up to $800 mil and I am sending someone out to buy tickets tonight dang it. Someone has to win right?!

yogahh

doozer1345 said:

It is now up to $800 mil and I am sending someone out to buy tickets tonight dang it. Someone has to win right?!

Yeah me! Save your money cause I already have the winning ticket.

doozer1345

@yogahh I think you're going to wish I won it bc I was listening to talk radio today and they were saying the worst state to win the lottery is NY bc of the taxes!!! I'll share some when I win

Pascal86

Smart: Somehow channel the money into building a better infrastructure and emergency alert system for my city (Portland) for when the big one hits (so terrified about this)!

Extravagant: Weekly massages... for life. And a personal chef.

Charitable: Probably food banks and/or sex education/condoms for wherever needs it the most. I would have to do a lot of research here to figure out where the money could do the most good.

To be honest, I used to fantasize about winning the lottery all the time, even though I don't play. As soon as I got pregnant, that changed. I think growing up with hard-working role models is important, and having everything handed to you in life isn't good for you. Since I already grew up like with hard-working role models, I was all set to win the lottery - but now I want to set a good example for my kids, and unfortunately that means working hard* and living conservatively

*Whether that be at a paying job or as a SAHM

valerie4786

Smart: Pay off our debts - mortgage, vehicles, credit cards, student loans!, other debts.  And buy our dream home.

Extravagant:  Hire a housekeeper to do the cleaning, a personal chef to cook us amazing meals, and a hairstylist because my hair is so thick it's exhausting to straighten let alone style in any fancy way!

Charitable: I'm not exactly sure if this would be considered charitable, but I would want to pay off our close family's debts - mortgages, vehicles, student loans, legal shit, credit cards.  I'd set up college funds for my nieces & nephews.  I just really want my family to be comfortable.

I'm sure I'd have a shit ton of money left over after that, and I'd donate to some amazing charities I believe in and support, but first and foremost I'd take care of ourselves and our families.  And I REALLY want to pay off my damn student loans and buy us a new house.  I just paid on my student loans today and I'm pretty sure the payments are barely paying off the interest, let alone the principle.  Wahhhh, I'll be in debt til I die. 

nerdymama15

Oh lots of stuff. 
Dh said there is a way to  be able to accept the prize anonymously or something through some sort of lawyer or financial advisor or something.  Not sure of the details on how that works, but first we would do that so we couldn't have every tom dick and harry and bubba the fifth cousin seventh removed from great grandmas daughters cousins wife's husband's brothers son's daughter's son.  (I realize that made no sense what so ever i was just typing the words to get the point across lol).
After that we would accept the lump sum and let Uncle Sam have its share of the taxes.   The remainder would  would spent in the following way. 
Put a few million into an account and live off the interest
Pay off the house
Pay off college loans (I only have about seven more years to pay on it Thank God!)
Pay off personal bank loan
Basically pay off all the debts we have. 
Put a new roof on the house

Put a few million into an account so my parents can live off the interest and so that my dad can retire. 
Pay off any debt my parents may  have and make sure they are living comfortably.   Do the same thing with DH's parents.   Give a very specific list of family and friends (and I mean a specific small list of people here) a couple million each. We are talking maybe about 20 people or less total.

Donate money to KLove, Humane Society, Habitat for Humanity, Project Pearl, church, UnChain Winston

Buy a bunch of land and start a dog/cat rescue and hire our own vets to work there.


Have more kids if possible.  Would be able to afford to have more than one if we won the lottery.