As Powerball crosses the billion-dollar mark once again, keep in mind that winning the lottery comes with a lot of questions. Will it change the way my friends treat me? How much will the government get? Should I accept the one-time payment? And, perhaps more importantly, how on earth can I spend this newfound wealth?
As for your friends, it really depends on how wise you were in choosing them. The government? The Fed will take 24% away from you before you can blink, and state rates will depend on where you live.
A lump sum or an annuity? Most financial advisors suggest annuity, as few people are ready to handle that amount of money at a moment’s notice.
Ah, but spending… that’s where it gets fun.
Of course, we’ve all heard the advice: avoid major purchases and be smart with your money. Then, we see people like Edwin Castro, who won the $2 billion prize in 2022 and quickly began buying luxury real estate, purchasing a $25.5 million home in the Hollywood Hills; a $4 million seat near the gas station where he bought the winning ticket; and a $47 million home in another part of Los Angeles (along with a vintage Porsche 911).
They’re small potatoes, though.
Let’s say you ignore the financial problems and opt to pay $595 million. There is $452 million left after Uncle Sam takes his first bite. For the purposes of this experiment, we’ll assume that you live in a place where there are no state 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 while. It’s a 110-acre land mass with fresh water, an electric generator and, most importantly, mobile service, with an asking price of $160 million. If you want something closer to home, Pumpkin Key, a 26-acre island off the coast of Miami, is just $75 million (a $20 million price cut from a few years ago). It comes with a three-bedroom house, two keeper’s cottages and the harbormaster’s apartment.
Take your crew into space: A trip to Las Vegas or Paris? This is common man stuff. Tickets to Jeff Bezos’ Blue Origin are worth about $1.25 million each (at least, that’s what MoonDAO paid to ride on the suborbital rocket). You might even all become frequent flyers.
Some really nice beachfront properties: Sorry… “The One,” the 21-bedroom, 49-bathroom Bel Air megamansion, sold in 2022 for $141 million. But luckily, on the other side of the country, a nine-acre compound in Naples, Florida, is available for $295 million. It is located at the tip of Gordon Pointe in the Port Royal neighborhood of Naples.
A personal concert of your favorite band: Skip Ticketmaster and get your own personalized front row seat for the concert. $6 million will reportedly get you the Weeknd, Ariana Grande, or Bruno Mars. Coldplay is asking for around $1.5 million, as is Post Malone. There’s no telling what Taylor Swift would ask for, but… hey, you’ve got a few hundred million.
A professional sports team: Oakland A’s fans hope to keep the team in California, I’m afraid even winning this lottery wouldn’t help. And forget about buying an NFL team. But you may be able to invest in a minor league baseball team. The first step is to find a team affiliated with an MLB team you love, 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 many lifetimes after).): Your millions haven’t changed you! Still love a good Pizza Hut pizza! You can skip the coupons, so a large meat-lovers’ pizza could cost you around $23 each. You can now afford 19.6 million, enough to devour a whole one every day for 53,841 years. (Not factored into these costs? The cardiologist’s bills.)