Powerball Fantasy: 8 Ideas For the New Billionaire's Shopping List

[KaidenKass00]

Disclaimer: I think we all know that despite the much-advertised $1.3 billion Powerball lottery jackpot, the winner won't actually get anywhere near that amount. In fact, if you elect to take it in a lump sum and then factor in taxes, you're probably only looking at a half-billion. But the title works better with "billionaire" in the headline. ;)

Forget million-dollar cars and jewlery. This list is only for the stupid rich. Heck, even the jackpot winner can't quite afford this first one:

1. Villa Leopolda: $506 Million

Said to be the second most expensive home in the world, this massive estate located in the French Riviera is just absurd. Wonder what the property taxes are... And by the way, #2 on this list is totally out of your price range, coming in at $1 billion. I didn't list it because the Powerball jackpot won't even come close.

2. Cezzane Painting, "The Card Players:" $300 Million

Hope you like art. One of the most expensive pieces of art in existence can be yours. Where you gonna hang it? In your bedroom or something?

3. The Priciest Rental Ever: $65,000 Per Night

This Royal Penthouse Suite at the Hotel President Wilson in Geneva boasts 10 bedrooms and 7 bathrooms, and some absolutely stunning views. Stay for a week or two, why don't you?

4. Haute Joaillerie from Chopard Watch: $25 Million

Frankly, this looks like a glittery nightmare and even if I had the money, I wouldn't put it on my wrist. But you could still say, "look, a watch that costs more than most mansions on the earth." Seems as if it'd be hard to actually tell the time, though...the sun flashing off those gems would blind you.

5. Sculpture, L'Homme qui march (Walking Man): $104.3 Million

It recently became the most expensive piece of art to ever sell at auction and now it can adorn your living room. I love art but for me, this thing just seems way too creepy. I don't what it is but I'm not sure I'd give you fifty bucks for it.

6. Australian 2011 One Tonne Gold Kangaroo Coin: $54 Million

Coin collectors, unite! It has a legal tender value of $1 million (AUS) but it's worth a LOT more than that. This giant coin tips the scale at 1012 kilograms of 99.99% pure gold and to date, it has never been sold because it's owned by the Australian Mint. Maybe you can negotiate a sale price, though...

7. Mega Yacht, The Dubai: $350 Million

This yacht has quite the backstory (check it out here) and it features a helipad, swimmping pool and spa, and it has been called a floating city 'cuz it has just about everything any human could possibly want. The sea beckons!

8. History Supreme Yacht (if it actually exists): $4.5 Billion

It's so ridiculous that despite the impossibility of the Powerball winner getting it, I had to show it. It's rumored to be owned by an anonymous Malaysian businessman and it's comprised of 100,000 kg of gold and decorated with freakin' T-Rex bones and minature meteorites. Yeah. It was supposedly confirmed to exist back in 2014 but I still don't believe it.

[pnl86]

Err, no.

First thing I would do is form an irrevocable trust. Then, form an LLC owned 100% by the irrevocable trust.

Second, I would declare the irrevocable trust as the owner of the winning ticket, and take the annuity payout over 29 years.

Third, each year the annuity payout would come in, I would put that money into the LLC as a contribution. From there, the LLC can spend it on business "expenses" (e. g., marketing, etc.) which would generate income at some later time (but would add to the value of the business, or start-up businesses under the umbrella of the LLC). This would effectively be investing in a future stream of income that belongs to the LLC (i. e., the trust, i. e., me), instead of paying taxes on that amount. I would also pay myself a salary and max out social security and deferred compensation plans and other pre-tax dollar benefits.

Fourth, with whatever was left, I would donate it strategically to charitable organizations that I could partner with as strategic partners. I rub your back, you rub my back. If you let me sit on the Board of Directors and you align your university's initiative with essentially becoming a marketing or distribution channel for my start-up businesses' products/services, then I'll be more inclined to maybe reach into my wallet and "donate" $1 million to your university this year.

Fifth, I would invest in my own brand and make my last name a brand in and of itself. Start tackling social issues with either mass appeal, or underaddressed underdog social issues. For example, be the champion for income inequality, lobby Congress to remove the tax incentives for pumping out more babies into this economy (and perhaps impose a tax or financial penalty for families that pollute the economy and destroy the labor market and cost of living by having 2+ children).

Sixth, buy municipal bonds (not taxed at the state or federal level). Just keep buying them, especially if it's part of a fund that rolls up the maturing bonds into new bonds. As interest rates go up, your great grandchildren will be able to live off the tax-free income for generations to come after you've died.

[Bandit74]

Does using a trust to claim it allow you to get the winnings anonymously?

[KaidenKass00]

Wow... somebody has put a lot of thought into this. ;)

Do me a favor, though: If you do get involved with universities in any way, make it a requirement that if they want your million bucks, they have to promise that not a dime goes to their athletic program.

[pnl86]

@Bandit74 technically, the trust is the owner of the ticket, so the trustee of the trust must pick it up and attend press conferences where anonymity is not permitted under state gaming laws. But, the beneficiaries of the trust don't have to appear, especially when the trust is set up as a blind trust.

[Bandit74]

Does it vary from state to state or would using a blind trust for anonymity work in every state?

[pnl86]

I can't confidently represent the law of every state. Most states are like New York, in the sense that the law that creates and allows for the "Powerball" or "Lottery" game is contained in the state's Tax code. All proceeds usually go directly to educational programs. The key section is usually titled "participation," or "prohibited sales," etc. Persons "under the age of 18" are prohibited from participating in the game. Additionally, "assignment" of the proceeds is "void" unless a judge signs off on it. Decisions from state taxing authorities have allowed for LLCs, partnerships, Corporations, and trusts to be the owner of a lottery ticket (i. e., be entitled to the winnings). The effect of this is that the "prohibition" on persons under the age of 18 would seem to only apply to "natural" persons (i. e., it is not the case that "only" natural persons can participate in the game).

Of course, every state law is different, especially in states like CA that have no tax on lottery winnings.

[Anonymous]

First I would set enough aside for taxes. I don't want to end up screwed like a lot of people have about that. Then I would like to travel and see more of the world. Eventually I would like to find some land with nice weather, and laws that pretty much left me alone. Then I just want to live a nice quiet life without people telling me what to do. Not sure how much that would cost, but I know it wouldn't be anywhere near what I would win.

After setting aside the money needed for that lifestyle, I would invest the rest to generate more wealth. Money can always come in handy, and if you don't invest your money, then inflation will take your money away from you eventually.

[KaidenKass00]

The taxes come out immediately, anyway. Of the lump sum awarded at the outset, I mean. But it's certainly true that people who aren't familiar with big money can get into lots of trouble. Most don't even know something like luxury tax exists. ;)

[coolbreeze]

Nice take. And nice over priced collectibles. Some of those pieces after taxes the powerball winner still wouldn't be able to afford. It's to bad the winner should be able to keep the whole prize money.

[oddwaffle]

Not to bust your bubble but the 1st thing you do is to hire a very good CPA and a very good lawyer.

I think your tax will be 50% of everything so don't spend the IRS money or your will suffer.