My friend had 900 thousand, its gone now.

**Early Bird** · 02-09-2007, 03:03 PM

First, 10% - charity

Then:

10% - my retirement
10% - DH's retirement
10% - pay down house loan

10% - DD#1's college
10% - DD#2's college
10% - house rennovation

10% - new cars
10% - vacations for the next x years
10% - splurge? extra investment?

**zakity** · 02-09-2007, 06:00 PM

Money to just blow - 5,000 (this would cover "toys" and vacations)
Pay off house - 120,000
Put money away for the boys' college funds - 60,000
Buy a different house - 500,000 (we would sell this one for at least 350,000)
Put money back for the nephew's college funds - 30,000
Buy a camping trailer - 10,000 (used, of course)
Buy a vehicle to tow the camping trailer - 5,000 (cause what we have won't)

I probably would spend a little to help out Grandma, my sister, and my brother. We still have 520,000 without helping any family members.

**AheeK** · 02-09-2007, 07:21 PM

In Canada, lottery winnings are tax-free...how much tax do people in the States have to pay on lottery winnings? I've heard stories similar to this before. One of the major lotteries here is Lotto 649...not too long ago someone from Alberta won $8 million. Within a week, they had spent half of it. I couldn't believe it when I heard that. For myself, I would buy land. I've wanted to own my own land for as long as I can remember. Other than that, the money would be put into RRSPs and high-interest savings accounts.

**i.m.cheap** · 02-09-2007, 10:41 PM

If I had won $900,000 after taxes, we would buy a modest, new home in the range of $140,000 (we currently rent), buy a second car (used would be fine, maybe $10,000), get some health insurance, and invest the rest. If we lived frugally on the interest from the investments, DH could finish school without having to work two jobs.

**Emjo** · 02-09-2007, 11:33 PM

Hmm...let's see:

1) Pay tithing (90 000)
2) Pay off existing debt (8500)
3) Buy a mid range home in the suburbs (400 000)
4) Buy a car (15 000)
5) Give money to friends and family (25 000)
6) Travel (20 000) (First class all the way, baby!)
7) Invest (300 000)
8) Live off the rest for about a year (41 500), then live off my investments. DH and I would probably end up being house flippers.

That's really sad about your friend...I guess it's true that money doesn't buy sense!

**Marie78** · 02-10-2007, 12:03 AM

I always think about what I would do

If I had $900,000.00
I would definitely invest a large sum (maybe $500,000-$600,000) I would invest it and live off of the interest. I would also consider this money as part of my retirement someday, so I wouldn't let myself spend it.
I would then use the remainder to get work done on my teeth and pay off my current debts. I would give my family enough to bring them current with their debts and a little spending money for them too. With whatever I have left over I will have a simple wedding and save the rest of the money as a nest egg for a house someday and I would make sure I had at least $10,000 in an emergency fund for myself. I would probably not work again, but if I did it would be part time ( then I could reinvest more of my interest on my money as long as I didn't need it to live on.)
I would give to charity yearly and I would do volunteer work too

Since I would only work part time, if at all!
I have thought about this way too much, I live a simple life now though and I would continue to do that. In that way I could live happily off of $900,000 and contribute some good to this world too

**McD** · 02-10-2007, 08:23 AM

If I won that much money I would:

Pay off all debt other than the house. I would continue making normal payments on the house for the year to help with taxes. Plus we have to build my husband's credit score and house payments are a great way to do that.

I would remodel the current house.

I would set aside about 20,000 into an investment savings account at 5% interest that my bank offers.

I would invest the maximum tax dedutible amount that I can into a 529 plan for Wesley. (think it's 10g).

Set aside retirement money.

Have a fun little vacation.

Give some $$ to my brothers.

**banana** · 02-10-2007, 08:38 AM

Wow that is very very sad about your friend. If I won that amount of money. I would

Pay off my mortgage (93,000)
Update my house and finish off the rest of the basement (50,000)
Pay off my car (7,400)
Invest in son's college education (100,000)
Have hubby stop working overtime
That would still leave me with approx 650K
I would give some of it to family and charities and invest the rest for retirement.

**kestrel91316** · 02-11-2007, 03:14 PM

I buy the occasional lottery ticket, and since reading Dave Ramsey there's a different approach to how I would handle any big winnings.....................when I dream about how to spend that money, I look at how much I would have to pay in taxes up front, and then I look at how I would invest ALL THE REST. Any money I get to spend would come from the INTEREST EARNED on the principle. Period. If I won $1 million, I figure taxes would take 40%. That leaves $600k. Invested at 5% or so in a money market account would pay $30k a year. Forever. So it would just be a nice big raise.

Upon retirement I would consider using some of it to help set me up in a paid-for home, and hang onto the rest to pay me a guaranteed income. $1 million would NOT make me rich. But it would make me SECURE for life.

**acidcookie** · 02-11-2007, 04:24 PM

Amazing. Nearly 1 million dollars, GONE.

I would pay my student loans, but keep attending school.
I would still get a job with my degree.
I would buy a car probably
I'd admittedly live somewhat more comfortably, maybe spend more on clothes.
Most would go immediately into savings.

**Early Bird** · 02-11-2007, 08:50 PM

Originally Posted by kestrel91316

I buy the occasional lottery ticket, and since reading Dave Ramsey there's a different approach to how I would handle any big winnings.....................when I dream about how to spend that money, I look at how much I would have to pay in taxes up front, and then I look at how I would invest ALL THE REST. Any money I get to spend would come from the INTEREST EARNED on the principle. Period. If I won $1 million, I figure taxes would take 40%. That leaves $600k. Invested at 5% or so in a money market account would pay $30k a year. Forever. So it would just be a nice big raise.

Upon retirement I would consider using some of it to help set me up in a paid-for home, and hang onto the rest to pay me a guaranteed income. $1 million would NOT make me rich. But it would make me SECURE for life.

I like the way you think!

**rebecca** · 02-12-2007, 06:23 AM

I would of paid my house off and my car. Would of went back to college, helped my brother go back to college. Than would of moved down south somewhere and saved the rest in a good cd or something. Maybe your friend thought material things would of brought her happiness. It's so sad to see others have all that money and spend it on material things and think they will be happy.

**rebecca** · 02-12-2007, 06:26 AM

Forgot to add I would help pay for some of my daughters college. They would have to work to realize that if they want something in life they have to work for it.

**acidcookie** · 02-12-2007, 04:44 PM

Originally Posted by kestrel91316

I would invest ALL THE REST. Any money I get to spend would come from the INTEREST EARNED on the principle. Period. If I won $1 million, I figure taxes would take 40%. That leaves $600k. Invested at 5% or so in a money market account would pay $30k a year. Forever. So it would just be a nice big raise.

This is very, very smart.