Suppose you win 100 million. What do you actually do with it? Banks only guarantee 250,000. Do you have to invest it? Is there anywhere you can just let it sit and draw interest?
Buy a house. There isn’t any more land being made. (Except in Hawaii, what with the volcanos out there)
Lend some to Uncle Sam by buying Treasury bills. He’s been good for the interest payments. They tend to earn a bit more than bank CDs anyway.
If you’re really risk-averse, go for those bank CDs. Brokerage houses like Schwab can buy those on your behalf, and track which banks hold them, so you don’t exceed the deposit threshold at any one institution. Good luck finding 400 banks through a brokerage’s finder, though.
Buy stock in publicly traded companies. Or buy mutual funds. It’s good to get some growth in the portfolio, which fixed income alone can’t do.
Donate some to a nonprofit when you need a tax write-off.
Start your own company. Go back to school. Invest in yourself.
you invest it in (foreign) right wing radical organizations bent on overthrowing their democratically elected government. that way, when these groups eventually succeed due to your generous contributions they will allow you to swoop in and buy up their country’s previously nationalized natural monopolies at bargain bin prices through local intermediaries at which point you can cut costs and inflate prices for the citizens of the entire country and receive many orders of magnitude ROI
it’s win-win so long as you propagandize enough people about how this specific thing that you’re doing is actually defined as democracy, they’ll be totally ok with it and won’t suspect a thing
Good old Vulture Capitalism. The answer to “fucking up tens of thousands of employees and maybe only hundreds of thousands of customers isn’t going far enough for me, what else can I do?”.
Diversifying stocks and bonds mainly, and each asset should be diversified from the others of the same type (eg; tech stocks counter balanced with things like agriculture or energy or something that’s also stocks but not in tech - Rinse and repeat for bonds, etc). Mainly long standing assets should be prioritized, stuff that has historically paid well in dividends and will hopefully continue to pay well.
The majority of your assets should be stored in this manner… This will help the long term value of your money. Above and beyond that, the assets will counter balance eachother if they’re properly diversified, as one sector under-performs, another should be performing better and make up the difference, so payouts should be fairly steady.
At the end of the day, those investments will make up your passive income, which any sufficiently rich person has in spades. I wouldn’t pretend to put numbers on any of this, whether to say what percentage of winnings should go to what or in what volume, and certainly nothing fixed, if you’re not sure how to get any of this finance stuff handled yourself, there are plenty of investment firms and personal wealth management companies that will gladly take your money so you can make more (so you can continue to pay for their services), and who will be more than happy to get you started.
Moving away from stocks, bonds, and passive income, you’ll want to focus on fixed assets. Having your money invested into things. What those things are is up to you, but I would advise to focus on getting a good property instead of other assets, since real estate tends to be one of the few things that continually increases in price over time with few exceptions. Compared to other investments (eg, stocks and bonds) unless the property is a specific “income property” aka, something you’re renting/leasing out, it’s not the best investment for growth, but having a home that you own and being able to live more or less rent free, helps you hold onto your money, rather than blow it on a place to live. A house will be a rather large one time investment that will at least hold its value, and you’ll get a place to live out of it. Cars tend to lose all value in a matter of years to decades, and there’s a high likelihood that they could be destroyed through use. So cars are generally expenses, not investments with few exceptions. So buy vehicles with the understanding that you may not get your money back at the end of the life of the vehicle; IMO, that applies for almost any vehicle including planes, boats/yachts, etc. So spend wisely in regards to transportation.
For everything else, out of your passive income create a salary for yourself, and set aside some “in case of shit” money from your year over year dividends. Reinvest/grow your funds with whatever you’re not paying yourself in salary. The amount is up to you, but I’d say if you can afford to live on less than half of the payout, and reinvent the other half or more, do it. The in case of shit funds would be for incidentals like your car getting totaled, or needing to replace the water heater/HVAC on the house, or something unexpected you just need instant cash for.
Up front, you should be paying off debts and living within the salary you set for yourself… Doing everything in your power to keep your investments intact and growing for your own future. It’s fine to go on vacations or cruises or whatever you want, as long as you stay within your self defined salary, and you’re not just blowing through the capital of your investments. Long term, you’re going to be able to live very comfortably without needing to worry about money which, honestly, is the only outcome that should be worth anything… That safety and security is extremely valuable. Do not throw it away on a few years of indulgence.
I’d buy a nice house somewhere a bit wild and in the middle of nowhere on the south coast of either England or Wales, something old with character and a big garden with a good pub nearby. I’d also buy a classic wooden sailing yacht and put enough funds aside to maintain her as well as kitting her out for serious passage-making. When I’d done that I’d figure out how much money I need to make work optional for the rest of my life and how much would keep my family comfortable in an emergency, as well as a small ‘shit hits the fan’ fund kept in something you don’t need electricity to access like gold just in case. I’d then donate the rest to charity, the bulk to enviromentalist lobby groups and charities directly helping people (the RNLI comes to mind for example) but also to a few niche causes like keeping the ailing pirate radio ship Ross Revenge afloat and starting a breeding programme to save the highly endangered otterhound. I’d also like to have a few documentaries made, and I’d drop a few content creators I like some donations too.
Honestly all I really want to do is go sailing and not have to deal with the rat race, I don’t want to live an oligarch’s lifestyle and I definitely don’t want the sort of attention and arseache that money would bring you. That money would be far more effectively used for good in the hands of others so I’d end up donating the majority of it, I suspect on the order of 80% of it at least.
pay my personal expenses with it but keep working a job. donate to the communist party of my choice, so we can have a legal defense fund and do fancy projects that we can’t afford now and can help out comrades in need. donate to every strike fund in the world that will accept a payment. maintain a large list of such funds. donate money to battered women’s shelters and to give direct aid to poor and homeless around the world. repeat until the money runs out. as far as the technical aspects of how to manage money that large without losing it due to bank system failure, i guess i could open thousands of accounts in different banks and put 250,000 in each of them or do some other strategy. ill take off a few months from work to research how to do it and talk to people who know more about the subject until i have a solid plan for that.
Finally get rid of the biggest barrier to a better world for at least 300million people, primary/buy-out every single politician of the democrat party to ensure the things that are ostensibly in their platform are actually enacted. Also ensure that every single current non-elected neo-liberal “policy wonk” and their sycophants never have any influence in any future government again.
I don’t think 100 million will buy you a hill of beans in US politics. And I don’t think they’ll betray their class interests for any amount of money - what’s the point in taking a $100m bribe if it means there’s fair taxation and more equitable living that prevents them being top dog with that money?
Either you or someone with a fiduciary duty to you will open up several accounts to invest in your name. These accounts will vary but be geared to making you money, providing the liquidity you need, and hedging against market risk. You might also make an investment in illiquid assets like real estate or hedge funds.
It won’t be guaranteed unless you pay insurance on it, but you should be rich enough to take the hit of one account going under.
Drugs. I would make my home a bunker, and then get high on drugs, waiting to this world to be burned. 😞 I don’t really see any good future for any investment unless to survive the climate change that is coming with non-stop.
Just invest enough to draw on to cover your basic needs for life and be secure, and spend the rest on things people you know need. Improve the place you live. Fix something small. Build some parks with low income housing nearby. Don’t be a dick and buy shit just to buy shit for yourself.
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