This is the 8th of 31 blog posts that I am going to write in 31 days.
Is there anyone who hasn’t let themselves dream about winning the lottery? I know that I have but I also know that you have to play the lottery to win. The odds are just way too astronomical against you winning for me to throw money at it. I have heard that the odds of you winning the lottery are the same as if you stacked pennies in a single column from here to the moon and them picking out the right one. Okay, okay enough of the negativity. Here is what I would do if I won the lottery.
Just so we are all on the same page, the lottery I will be winning in this post will be one of the HUGE lotteries. You know ones like Powerball and MegaMillions where the winning ticket can win in excess of 100 Million. So lets say 100 Million is the amount paid in one lump sum before tax. We will deduct 40% in taxes which may be a bit high but whatever this is just me having a bit of fun. That leaves 60 Million for me to spend, give away or invest.
Obviously the first thing I would do would be to make sure that my family would be taken care of. Is 20 million enough for family? I think so. Buying a new house, cars,traveling the world and the things that people do when then win a crap load of money would take of part of the money with the rest being invested to earn a yearly income for us to live off of.
The rest of the money, 40 million, I would like to think that I would do good things with. Donate to charities, set up scholarships and perform random acts of kindness. If you were to invest the remaining 40 million into a low-risk investment that averaged a 3% yearly return you would be able to spend 1.2 million dollars a year improving the lives of others without taking away from your principle investment.
Maybe one of the items that I would invest in, especially locally where I could oversee it, would be a renewable energy pay it forward program. Not quite sure of the logistics but I think it would be cool if someone were to install solar panels on a number of homes for free and these homes would then “donate” 75% of the money they save on the electricity bill towards a fund that would be used to continually build more and more solar panels on more and more homes creating a snowball effect.
Lets say that the average cost to install a solar panel system on a home is $20,000. I have read a few articles on this recently and this seems to be a fair estimate based on size of the system and where the system is installed. With an initial investment of one million dollars we would be able to install solar panels onto 50 homes. Hypothetically lets say that the average saving per household is $100 per month. The homeowners would then send $75 back to the fund used to build more solar systems. $75 * 50 homes is $3,750 per month or $45,000 per year. Meaning that after the first year 2 more homes would get solar systems.
It is not a perfect idea but this the type of thing I think about when I dream about winning the lottery?
Leave a comment below if you have any grand ideas about what you would do if you want the lottery!