How to Invest $1.6 BILLION DOLLARS if you win the Powerball Lottery

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Have you ever been faced with the dilemma of what happens when you win the $1.6 Billion Dollar Jackpot, and you don’t know what you should do with all of that money? Here you go…enjoy! Snap/Insta: GPStephan

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According to math, your chances of winning the lottery are a measly 1/302,000,000. To put that in perspective, you are 4 times more likely to be hit by an asteroid, and 431 times MORE likely to get struck by lightning than win the lottery. But that can’t stop us from dreaming, right?

Now in order to understand what to do with this huge windfall, it’s first important to recognize why so many lottery winners go broke. It’s estimated that a THIRD of all lottery winners declare bankruptcy, and 70% lose all of it within just a few years. I discovered that type of person most likely to play the lottery in the first place had very little financial education and very little savings…hence, why they’re playing the lottery. It’s estimated that 40% of lottery ticket purchasers in California were unemployed.

Then, you combine that with ALL of your friends and family then asking for handouts, risky investments, extravagant purchases, and it’s easy to see how winning the lottery could become so stressful. So what can someone do to potentially AVOID these issues?

FIRST thing you should do IS TELL NO ONE.

SECOND: Get an attorney. Many lottery winners chose to set up a blind trust, within a trust, to remain as anonymous as they can when they claim their prize.

THIRD: Take the lump sum. When you look at the money invested over the long term, you’ll almost ALWAYS come out ahead after 29 years by taking the lump sum and investing it, than by getting the annuity.

FOURTH: How to invest it? Assuming you took the lump sum of $1.6 billion dollars, you should be left with $900,000,000, and $450,000,000 net after taxes. Now if this were ME, here’s how I’d distribute this:

$150,000,000 in a low-fee Total Stock Market Index Fund by Vanguard. Assuming you spend just 3% of this amount annually, that should give you about $375,000 per month in income without ever touching the principle.

$150,000,000 in a low-fee Vanguard Total Bond Market Index Fund with Vanguard. This would give you a very safe, stable investment that you can rely on. It would also give us another $375,000 PER MONTH in stable income.

$50,000,000 and spread that throughout some safe, triple-net commercial real estate in highly dense cities. Lets assume you only spent 3% of this income annually, that gives you another $125,000 PER MONTH in income.

$100,000,000 and spread that throughout some safe RESIDENTIAL real estate, mainly large apartment buildings in densely populated cities. This is another $125,000 PER MONTH in income.

$50,000,000 is the amount you now have over. I’d personally decide to keep $10,000,000 as a cash buffer, and then spend the remaining $40,000,000 on whatever you see fit. At the same time, your investments will also bring in a total of $1,000,000 PER MONTH pretty much indefinitely without ever touching the principle.

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This is still relevant now given the last Powerball payout. However, Graham missed a big one here. You put 30% of the gross payout into a charitable foundation. This allows you to avoid a big chuck of taxes and employ friends and family and do charitable work.

cirquemagic
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I won $450!! Gonna do the same tactics which will leave me with a dollar each month for generations!

Oneofakind
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You forgot the part where you sue your nephew

garlicbreth
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1 in 302 million is about the same odds as stringing a line of 1/2" marbles from the east coast to the west coast and picking the right marble.

caleb
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I appreciate you for sharing such video with good content here and i will keep following you because you're the best.

gabriele
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Me: wins lottery

Everyone: allow us to introduce ourself

infectedruby
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If i won 1.6 billion, i am not investing anything besides a new identity.

Joe-nxnj
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People who watch this Channel dont Play the lottery

yannikcarrouee
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Yeah, maybe this isn't true. But, the people that I see who play the lotto never intend to be successful entrepreneurs. They tend to focus on hoping things change rather than making things change.

aalikes
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With 450 mil you could make roughly 26112.524 lifetimes worth of iced coffee (assuming life span being the us humans average of 78.69)

thecatoa
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Literally a tax on the poor. I read that low income families spend about 6% of their income on playing the lottery

zbLoodlust
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How the winner will see this video “What NOT To Do With The Lottery Money!!!” 😒😂😂

OscarMartinez
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Graham wins a billion dollars, invests it because "in the future, that can grow to a lot of money." :)

bobcrane
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this is legitimately so damn good. loved this video. would love to see this more. its wild how this simple question probably goes through everyones mind and its great to see a simple break down like this. really great. so sure, ill give you a milli when i win it lol

nickjamesc
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Okay being honest, I loved this video so damn much. It's awesome to think about these insane scenarios sometimes and how one would actually manage this insane amount of money. If I one id give you an annual salary just for making these amazing videos.

AlexJonasAlvarez
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If i win the lotto i will hire you as my personal advisor and realtor Graham I promise! 🤞 ❤️

obliviox
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Hey Graham, thank you for another very informative video!

I was still curious to ask you why you didn't include treasury bonds in your plan? I know they are a big part of an All Weather portfolio.

Thank you again !

bogdanmarcu
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Wealth preservation is brought into sharp focus with sudden lottery winnings but it applies to all wealth. It usually takes one generation to acquire wealth, one generation to enjoy it and one generation to lose it.

graemevandermeer
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You do a really good job putting the lotto statistics in perspective

bubblebuster
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you can't invest it because I already bought the winning ticket

casewhite