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Bill McDavid / Hall and Hall
Mill Creek Ranch property
Welcome to the 1 percent, hypothetical lottery winner. Here’s what you can buy with your winnings.
The Mega Millions lottery jackpot hit a record $540 million Thursday and by Friday it had climbed to $640 million with a lump sum option of $462 million.
If you're lucky enough to beat the 1-in-176 million odds and win, the bad news is you won’t be able to take home that full amount. That's because lottery officials will withhold 25 percent for federal gaming taxes, according to Arlen Harris of the Washington's Lottery, which participates in the Mega Millions.
Still, you should be pretty well set for life.
While you still might be on the hook for state taxes, you would have the kind of money to afford multiple homes, travel by private jet and take up a fancy hobby like collecting fine wine or antique cars, said Bruce Wallin, editorial director of the luxury goods magazine Robb Report.
"That kind of money affords the ability to pursue your passions to the kind of extreme that a lot of us dream of," he said.
You could even follow in the underwater path of Hollywood director James Cameron and spend a few million on a personal submarine, one of the latest trends among the superrich.
Still, Wallin cautions that you might want to try before you buy. For example, a 220-foot luxury yacht, complete with a crew and all the toys you can imagine can be rented for about $300,000 a week. That's well within your new budget and a good way to test the waters, literally, before spending $10 million or $20 million on your own yacht.
If you are ready to buy, here are some items to consider for your shopping list.
Your own island
Windermere
Allan Island in Washington state
What’s the first thing that’s going to happen after you win the lottery? Inevitably, that guy who was a jerk to you in high school or that relative who’s been ridiculing you for years is going to find you on Facebook and start hitting you up for money.
Time to get away. Far away.
Private islands range in price from under $50,000 to $160 million. For just a small fraction of your winnings, you can be the owner of 292-acre Allan Island in Washington state, listed for $13.5 million.
Still, the upkeep alone can be daunting. Wallin recommends renting an island before you buy.
"One of the things you'd want to do in winning the lottery is take a great trip," he said.
Your own ranch
Bill Mcdavid / Hall and Hall
Mill Creek Ranch
Maybe you get seasick easily or you fancy yourself more of a rugged Western type. Don’t despair, you can still find plenty of privacy on the mainland.
With less than one-tenth of your winnings -- or $29.5 million -- you could be the owner of Mill Creek Ranch, a nearly 26,000-acre ranch in Red Bluff, Calif., with a 7,388-square-foot Spanish Colonial home.
Of course, you’ll have to budget about $48,623 a year in taxes. For perspective, that’s a little less than the median annual household income in this country.
A jet
Mike Wintroath / AP
A Hawker 4000 jet airplane
The good news about the Red Bluff property – it’s just a few miles from a jet-capable airport.
Here’s where you might want to take some advice from the other 1 percenters. Warren Buffett’s Berkshire Hathaway owns NetJets, which provides fractional ownership of jets and saves you the hassle of having to buy a whole jet all on your own.
The Marquis Jet Card gets you 25 hours of flight time for a mere $119,000 a year.
If you take the lottery's annual payment option, that would represent just a few days' worth of your yearly payout.
Your dream car
Porsche
Porsche 918 Spyder
Before you won the lottery, maybe your idea of a dream car was just something that didn’t leak too much oil and was less likely to break down on the freeway during the heavy commute hours.
Now, you can afford to have a lot more fun on the road.
The Porsche 918 Spyder may be a good option, if you can wait a while.
Porsche only plans to make 918 of these, so it will set you back $845,000. But on the bright side you’ll be saving money on gas. The plug-in gas-electric hybrid, due out in November 2013, has a V8 engine that generates 500 horsepower plus two electric motors that help it get an estimated 78 miles per gallon.
A great party
Frontiers Elegant Journeys
Orient Express Royal Scotsman
Look, you’ve just won the lottery: Beer and chips at your place is just not going to do.
When it comes to luxury party planning, the options are endless. If you want to keep the gathering intimate, and keep the paparazzi and unwanted guests out of your hair, it’s best to keep moving.
The Royal Scotsman will take you and up to 36 of your closest friends on a four-day excursion through the Scottish Highlands. Yes, you’ll be traveling on your own private train. The “rolling house party” starts at just $166,800, or less than 1 percent of those annual payments.
A sports team, or a few companies
The Mega Millions lottery hit $540 million on Thursday, reports CNBC's Darren Rovell.
If you do win the lottery, the most common bad joke/piece of advice you're likely to hear is, "Don't spend it all in one place." (Wow, is that going to get old.)
But if you do want to go big, CNBC notes that your winnings are enough to buy the Dallas Stars of the National Hockey League or a medium-sized company like Rosetta Stone or Martha Stewart Living Omnimedia.
Leave a Comment:
first thing i'd get is health insurance. WAKEUPAMERICA.
Ill either purchase $540 million worth of lottery tickets and hope to hit the jackpot or donate most of it to the US government to help pay off the national debt.
So basically, you'd burn the money uselessly in either case. Good thinking.
The first insurance you better buy is personal liability, because many of the people that know you have money will be trying to figure out some way to sue you to get some of it.
And might want to consider a house in a gated community, as you will now be one of the much despised 1%ers.
I would like to think I would become a philanthropic investor and give loads to those less fortunate. Of course I would love to own my own island, set up a themed adults only resort area that would make the Playboy mansion look like preschool.
Of course it goes without saying my wife's and my families would be much more comfortable with a few million each. I could probably burn through half of it in a couple years because I do get a LOT of enjoyment giving.
<crosses fingers and buys a ticket>
Paul, I'm with you but cynical enough that, if I gave money to family members, they'd have to sign a contract that if they asked for more, they would have to give back what I gave in the first place (I'd then forward that to a charity).
I think that way, they would think before blowing it.
Also, I'd do college trust funds for the younger ones ... only get it while enrolled and getting decent grades in post-secondary education, with perhaps a "balloon" at the end to help start out.
Good luck getting the money back from any greedy relative with that kind of gall.
You won't need health insurance if you win. You'll be able to pay cash for any healthcare you need...
I would do what several other lottery winners in Michigan have done . ..
I would PUT THE MONEY IN THE BANK AND CONTINUE MY FOOD STAMPS, UNEMPLOYMENT AND SSDI!!!
I'd buy about 3 or 4 Senators from the Senate, there cheap. Then we could finally get the Promised Change that many dummies voted for.
After that, I'd first help my kids and their families. Then there is not much else to do but wait until November and enjoy the End of the Error.
Change in 2012 - it was promised in 2008, we just have to wait a few more months.
In all fairness, it was never touted as being "free". Still, Obamacare needs to go bye, bye. Back on topic, I would never let some online news journalist who never came close to having even 1 million dollars, tell me what to buy with my winnings. All the materialistic suggestions are the usual fodder of what people think will bring them happiness. The statement made is that you should have enough money to be set for life and that is followed by all the suggestions on how to waste it on what the naive believe is important.
The real question is, What is the states doing with the losers money? I can tell you that billions of that money will not go towards education, but will go to municiple pensions!
Id get that full tank of gas I have always wanted.
That made me lol bma.
First I'd hire a lawyer and an accountant (even though I am an accountant I wouldn't want my integrity questioned)
I'd give a million to each of my siblings anonymously pay off my bills and invest the rest.
This is the first lottery ticket I've ever bought I'm not even sure what to do with it lol
Sign the back of the ticket, make a photocopy, put the original in a safe deposit box. Set up a trust to manage the distribution. Notify the state lottery officials (meet with them - they can recommend advisors if you don't have your own) and have the ticket validated as genuine, then ask them to delay revealing your name while you get your ducks in a row. Plan on a new unlisted phone number, a place to get away to for a few months until the buzz dies down. In any major change like this, don't do a lot for the first year. Once you get your money, pay bills, treat yourself to something small, maybe even hire someone to run interference for you for a while.
Believe me if all of your siblings get a million dollars "anonymously" it will take them about ten seconds to figure out who their benefactor is.
That's true Floretta thanks for the advice (not that I'm counting on winning it but it's good to dream once in a while) I would tell my siblings that's all you get so spend it wisely! Between my husband and I we have 6 siblings, I can only think of two who would invest it the other four would have it spent in a year.
you have a great attitude, love it
pay-off my Visa card.
I'd share half with the world: Doctors Without Borders, the Smile Train, etc., invest in companies that would relocate or branch out to poor areas in the US such as Appalachia, and Native American territories to promote jobs. Then I'd split the other half again-- one half goes into a foundation I would run to provide random acts of kindness to people in need. I'd then put 25 million in the bank to secure a nice lifestyle for myself. The balance (another 25 million or so) will provide cash gifts to family, friends, coworkers, neighbors, etc. What fun, right??
"Two chicks at the same time" (from Office Space)
With over 300 mill you might as well go for four
Best advice I've heard all day.
I'd become a prisoner of my own wealth. I'd have to move to a gated community with heavily armed guards because every idiot in the world would be knocking on my door for money or trying to sue me for tripping in front of my house. Each time I tried to pull out of my driveway some despondent, unemployed person would be throwing themselves in front of my car. I couldn't go shopping or go on vacation without someone following me. Neither my family nor I could go out of the country without fear of being kidnapped and held for ransom. My groceries could be poisoned or I could be assassinated by someone desperate enough to get rid of me or my loved ones and try to take control of my winnings. That being said... I'm still buying some tickets today.
I've never been part of the "rich" crowd, nor has anyone in my family. I wouldn't fit in. I would rather know that all my successive generations will have choices and opportunities that I didn't have. Better schools, jobs they WANT, etc. Set the nut aside and make it grow further and you can do some real good helping everyone you know also, not just your family. You have to manage the flow though as it's NOT enough to solve all the worlds problems and it can still run out VERY fast.
rbe I don't think I'd "fit in" either I wouldn't be as bad as the Beverly Hillbillies but I wouldn't know how to act (that kind of makes us sound like trailer trash though doesn't it? lol) I think we're just "normal" people trying to make ends meet and do the best we can with what we have.
Though my first charitable donation would be to give a big chunk of change to the Wounded Warrior Program,
I woudln't try to fit in ... but I'd like to do a foundation that invests money in young people -- such as major scholarships for post secondary education (not necessarily traditional 4 year college though).
Pay off my current house, buy another modest home in a more temperate climate, seek out a classic muscle car like I have always wanted and perhaps a new one too. The rest ... I would retire, help my parents financially, travel, and live off the rest. Pipe dream for me, since I rarely buy lottery tickets. When I do buy them, NOBODY wins.
$540 million ought to be enough to buy a Senate seat.
Me i would invest in criminal empire of drugs and buy small island and casino and nightclub as two legit bussiness but i would try create empire
i would invest some of it in making a movie of my choice reguardless if people like it i would have them make me sopranos the movie
If you invested it in creating the most "graphically violent movie ever released" with 50 caliber machine guns mowing down children in a scene.... I'd be at the midnight showing.
I'd do anything I want, wherever I wanted too :)
The one thing I noticed about most of the short answers above is that the majority of people are very generous. I think that says a lot for our population. Of course, we all have a few "selfish" dreams, who doesn't? But by in large, most would share and spread it around a bit. I think that's a wonderful thing.
I have a short list above, but know that everything (purchasable) on it could probably be bought for less than a couple of million--this includes the "island." (LOL) The rest-- I would work to spread around to good people and causes. We all have our pet projects; mine includes giving children opportunities to improve their lives. I'm sure other folks have similar thoughts and wishes.
Even though some of us can only really dream of doing great things, someone (or maybe even a couple of someones) will actually have the opportunity. Woohoo. Let the good times roll.
I noticed the same, and it's very heartening. It seems people's first thoughts are not for big-ticket items but taking care of their family, ensuring their family's success in the future, and contributing to a cause.
Sarcasm alert!!!!
I would start a new political party The Pragmatic Common Sense Party. Dedicated to running the government in the most fiscally responsible and efficacious way possible with the least amount of waste!
Of course given the political climate I don’t think I would attract any members, so I guess I just spend it all on big houses and flat screen TV’s
I want in on that political party Ycaint!
Sign me up for the "PCSP" and let's help ALL AMERICANS
Not liking traveling or taking vacations, my choice would be a new home in the country, a new car, new furniture throughout. Not having any family except my husband, my dog and my cat - I would just veg out until death overtakes me. But I would die happy. But I'm not interested in the lottos - so all of this is a dream for me. I don't purchase lotto tickets.
I would buy two Republicans and one Democrat. Have them report to the press daily on the use of public office for private gain and introduce real legislation to clear the corruption out of Washington. That and a large college fund for anyone I've ever known to educate themselves or their children.
Why not buy a company along with those politicians? You can then get them to hook you up with a huge grant/subsidy for your product. Green energy is the way to go... unless Obama loses.
You could invest in oil but they don't get nearly as much money but that's where the profits are. Don't invest if it appears that we'll open up new areas for exploration along with that pipeline. If we don't do those things, invest it all. You'll double your money in no time flat.
lottery is nothing more than a tax on poor ppl and ppl that cant do simple math or dont understand odds and statistics
I don't play, but tell that to the winner.
Anyone thinking of donating to charity, check out charitynavigator.org It talks about how much goes to the cause and how much is pocketed. Probably most charities are good, but some are for the benefit of the founder. One of the ones mentioned above in this string in particular is for the benefit of the founder. When the people running a charity are all making millions per year and so are their brothers, sisters and kids, you have to wonder who the charity is for. Watch your dollars.
I don't have any belief in actually winning but I've always thought that my first move, after the basic getting things in order moves, would be setup a tuition foundation for my kid's schools. That way I know people are getting a direct benefit from my good fortune and the burdens of balancing needs against costs are reduced for two private schools in my area.
I would have a heart attack and die on the spot.
lmao!! Right?!?! I'm terrified of the thought of actually winning
I have no idea what I would do if I won $540,000,000, but if it happens I'll let you know !!!!!!!!!!!!!!!!