If I won the $1.4 Billion Powerball
If I won the $1.4 billion Powerball, here is what I would do…
In case you missed it, the Powerball winner is currently set to win $1.4 billion. If I win, here is what I am going to do:
Did you know?
According to the National Endowment for Financial Education, 70% of lottery winners go bankrupt within a few years. So odds are, the actual winner of the Powerball will be broke. So to be not broke, here is what I would do.
I would celebrate that night before telling anyone. Some states require you to disclose if you are a winner, others do not.
Then, I would figure out what my after tax winnings would be. The real winner of the Powerball is the tax man. The winner of the recent $2 billion Powerball paid over $1 billion to the tax man. INSANE.
After the calculation of taxes, winning the $1.4 billion Powerball would take home ~$400 million (depends on tax bracket & state).
So now I have $400 million in cash.
90% immediately would go to the stock market. VOO baby. $360 million in VOO = ~$36 million in gains per year on average. I will take it.
The last 10% would be spent on giving to my family members, going on a vacation, buying a nice home & giving back to charities.
The reason most people go broke after winning the lottery is due to the minute they get the money, they spend it or elevate their lifestyle. Meaning, they spend it like it will last forever. Well, there is one way I will make it last forever, by buying assets.
Assuming a 2% withdraw rate (meaning you pull 2% every year from your investments to live off of), my $360 million in VOO would be “pay me” $7.2 million every year. That is a nice salary.
I have always lived by the mantra to invest first, then spend. So in this case, if I won, I would invest first, then spend. (& not be one of the 70% who go broke after winning the lottery 😉)
If you want to learn how to make $100s or even $1,000s every week selling options, 5 people can get my $50 video course for just $35 (or 30% off). My guarantee is if you do not make $35 back in 1 month following my lessons, I will refund you. (Discount code already applied): https://decadeinvestor.gumroad.com/l/rauxb/newsletter
(x)Tweet of the Week:
Just do you. People are going to say stuff or make comments that you have decided to build your wealth. F*ck em… do you.
You piss off a lot of people when you start doing well financially.
F*ck em. Do you.
— Decade Investor💸 (@DecadeInvestor)
Oct 17, 2023
Thank you so much for reading & I will see you next week! Until then, keep buying assets & stacking those dividends. 🙂
- Decade Investor