As Powerball once again surpasses the $1 billion mark, keep in mind that winning the lottery comes with a lot of questions. Will this change my friends’ attitude towards me? How much will the government take? Should I take a lump sum payment? And perhaps most importantly: how the hell will I spend this newfound wealth?
As for your friends, it all depends on how wisely you choose them. Government? The feds will take your 24% off before you can blink, and state rates will depend on where you live.
Lump sum payment or annuity? Most financial advisors suggest an annuity because few people would be willing to dispose of that amount of money without warning.
Ah, but spending… That’s where the fun is.
Of course, we’ve all heard the advice: hold off on big purchases and manage your money wisely. Then we see people like Edwin Castro, who won the $2 billion pick in 2022 and quickly began snapping up luxury real estate, purchasing a $25.5 million home in the Hollywood Hills; the $4 million spot near the gas station where he bought the winning ticket; and a $47 million home in another part of Los Angeles (complete with a vintage Porsche 911).
However, these are small potatoes.
Let’s say you ignore the financial oddballs and opt for the $595 million payout. After Uncle Sam takes his first bite, there will be $452 million left over. For the purposes of this experiment, we will assume that you live in a place where there are no government taxes.
Here’s what you can add to your portfolio:
A private island or two: Rangyai Island, near Phuket, Thailand, has been on the market for a long time. The asking price for this 110-acre plot of land with fresh water, a power generator and, most importantly, cell phone service, is $160 million. If you want something closer to home, look no further than Pumpkin Key, a 26-acre island off the coast of Miami that’s priced at just $75 million (down $20 million from a few years ago). It includes a three-bedroom house, two caretakers’ cottages and a dockmaster’s apartment.
Go into space with your team: Trip to Vegas or Paris? These are ordinary men’s things. Tickets to Jeff Bezos’ Blue Origin cost about $1.25 million apiece (at least that’s what MoonDAO paid to fly on a suborbital rocket). You might even become a frequent flyer.
Some really good hotels by the sea: Sorry… “The One,” a 21-bedroom, 49-bath Bel Air megamansion that sold in 2022 for $141 million. But luckily, on the other side of the country is a nine-acre site in Naples, Florida. available for $295 million. It is located at the top of Gordon Pointe in the Port Royal district of Naples.
Personal concert of your favorite band(s): Bypass Ticketmaster and get your own personalized front row seat at the concert. Reportedly $6 million will give you the Weeknd, Ariana Grande or Bruno Mars. Coldplay is worth about $1.5 million, as is Post Malone. No word on what Taylor Swift will demand, but… hey, you’ve got a few hundred million.
Professional sports team: Oakland A’s fans are hoping to keep the team in California, I’m afraid even winning this lottery won’t help. And forget about buying an NFL team. But you could invest in a minor league baseball team. Step one is to find a team related to your favorite MLB team and then make an offer. Last year, sports and media giant Endeavor sold nine teams to private equity firm Silver Lake. for $280 million.
Pizza for the rest of your life (and a few more lives after that)): Your millions haven’t changed you! Do you still love good Pizza Hut pizza? You might miss coupons, so a large Meat Lover’s pizza could cost you about $23 each. You can now afford 19.6 million – enough to eat one every day for 53,841 years. (Not included in these costs? Your cardiologist’s bills.)