20 Years Old Hits the Mega Millions
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- Ad Orientem
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20 Years Old Hits the Mega Millions
https://www.washingtonpost.com/news/pos ... a6640b381f
The kid sounds like he has his head screwed on more or less right. Apparently he hired a lawyer and got some professional help. I just hope his new found high priced friends aren't steering him into a bunch of crazy investment schemes. See also here
http://www.tampabay.com/news/Lawyer-cha ... _164483706
and here
https://www.google.com/url?sa=t&rct=j&q ... G2drsuJRaI
In fairness though, I can't even imagine what I would have done if I had come into that kind of money at age 20.
The kid sounds like he has his head screwed on more or less right. Apparently he hired a lawyer and got some professional help. I just hope his new found high priced friends aren't steering him into a bunch of crazy investment schemes. See also here
http://www.tampabay.com/news/Lawyer-cha ... _164483706
and here
https://www.google.com/url?sa=t&rct=j&q ... G2drsuJRaI
In fairness though, I can't even imagine what I would have done if I had come into that kind of money at age 20.
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Re: 20 Years Old Hits the Mega Millions
Would you advise him to put it all in the Permanent Portfolio? Just jump in?
- Ad Orientem
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Re: 20 Years Old Hits the Mega Millions
With that kind of money, probably not. He can afford to be a bit more aggressive. But I'd still suggest sticking to index funds, at least for the stock part of the portfolio. Maybe 10% each in cash and gold and the rest split between bonds and a couple of stock market index funds. And this may be one of the few times I would actually consider using a low cost municipal bond fund. I did some quick math and I think the kid is likely to walk away with about $177 million and change after paying the income tax (37% thanks to Mr. Trump). Florida has no state income tax.sweetbthescrivener wrote:Would you advise him to put it all in the Permanent Portfolio? Just jump in?
Re: 20 Years Old Hits the Mega Millions
sweetbthescrivener wrote:Would you advise him to put it all in the Permanent Portfolio? Just jump in?
I sure would. I might tell him to tweak it slightly by increasing the cash amount, so maybe 20% Gold, 20% stocks 20% LTT and 40% cash. Real growth to his portfolio is pointless (in my humble opinion). As long as he can pace inflation and pay for withdrawals/taxes, your family is set for generations to come.
Re: 20 Years Old Hits the Mega Millions
The lump-sum payout after taxes netted him $211mm. Divide that by four for the Permanent Portfolio. At today's spot price for gold, he'll get to purchase over 39,000 1oz gold coins.
Works for me!
Works for me!
- Ad Orientem
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Re: 20 Years Old Hits the Mega Millions
That's based on the mandatory tax withholding. The actual Federal Income tax is going to be around 37%. And with that kind of money I'd consider only buying a thousand coins, and the rest in bars. Bars typically deliver more gold for the buck.Tyler wrote:The lump-sum payout after taxes netted him $211mm. Divide that by four for the Permanent Portfolio. At today's spot price for gold, he'll get to purchase over 39,000 1oz gold coins.
Works for me!
Re: 20 Years Old Hits the Mega Millions
If one were buried up to one's neck in 1-oz gold coins like Scrooge McDuck, I wonder how hard it would be to move. Or breathe.
- Kriegsspiel
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Re: 20 Years Old Hits the Mega Millions
I predict it would be a big hit among altitude-mask-wearing bros I see all the time at the gym.Tortoise wrote:If one were buried up to one's neck in 1-oz gold coins like Scrooge McDuck, I wonder how hard it would be to move. Or breathe.
Re: 20 Years Old Hits the Mega Millions
For practicality's sake, I would probably have no more than $1m in physical gold and use ETF's for the rest. I would also have no problem replacing half of the "gold portion" with REIT's and/or NNN properties.
- dualstow
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Re: 20 Years Old Hits the Mega Millions
Fun to dream, isn’t it. I’d be setting up safe deposit boxes near trusted relatives.
Gold tumbles as interest rates look to be staying high for now (APR30)
Re: 20 Years Old Hits the Mega Millions
He's going to become suddenly MUCH more attractive to a LOT of women.
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Re: 20 Years Old Hits the Mega Millions
What he should really do is get a dealer account at a big wholesaler. That will lower the spread on kilo bars to about 1/2%.Ad Orientem wrote:That's based on the mandatory tax withholding. The actual Federal Income tax is going to be around 37%. And with that kind of money I'd consider only buying a thousand coins, and the rest in bars. Bars typically deliver more gold for the buck.Tyler wrote:The lump-sum payout after taxes netted him $211mm. Divide that by four for the Permanent Portfolio. At today's spot price for gold, he'll get to purchase over 39,000 1oz gold coins.
Works for me!
For some reason the coin spreads are a lot higher than usual right now. Maybe because the US market isn't open?