If I Won the Lottery: A Fantasy

Everyone has thought about it at some point in time. What would I do if I won the lottery? So many things come to mind. With powerball now paying tens of millions of dollars to winners, it would be hard to spend all of the winnings. I would enjoy trying spend it all! What follows is an attempt to layout the framework for the day my numbers come in and I win the lottery.

First, a starting point. The Powerball jackpot at the time of writing this article is $20 million. Hooray! I just won $20 million. Now I have to choose between the cash option or annuity option. This decision could change the path of this dream significantly. If I choose cash now, I will receive $7 million and change after state and federal taxes. If I take the annuity, I receive increasing annual payments for thirty years. Post-tax payments would start at just over $250,000 and end just shy of $800,000 per year. These numbers are according to USA Mega. Click here to see how much you would receive if you won the current powerball jackpot.

I choose the annuity option, as I am only 31 years of age. This will help to control my spending, and keep my projects limited to one or two at a time. If I took the cash option, I think I would spend my way into tax trouble. I think this option will also help to reduce buyer's remorse, as I will have time to plan for each year's payment. (Note: I give a yearly plan for just the first few years, and then generalize.)

With my first payment I will pay off all of my debt. No more car, house, student loan, etc. etc. payments! I still have around $100,000 in my account, and want to splurge. I think I will fly a few close friends to Las Vegas for a long weekend. Assuming I do not hit a second jackpot, I now have $75,000. It was a party! I will not quit my job this year. Now I will start looking for property to build my dream house.

The land broker called and said he found the property of my dreams. It is 50 acres, and has plenty of trees. There is a small creek that runs through the property, which also lies above an aquifer. It will cost $100,000 for the land alone, and I want to build a house. I decide to take out a loan on the property, and have to make monthly payments for a while. I am done spending for now.

When I get my check for year two, I have $260,000. I pay off the land loan, and start on my eco-friendly dream house in the side of a hill. It will cost about $1 million. It will have a wind turbine, solar panels and small hydro-electric generator in the stream. It will be laid out to best utilize the Sun's energy, and to use energy efficiently. There will be gardens and fruit trees all around. My house will be paid for in the fifth year. I still have not quit my job.

Now that I have my dream house and land paid off, I quit my job. There are still 25 years of payments coming my way. I buy electric cars and vehicles to use on my property, and longer range hybrids for trips. Travelling the world becomes my objective. First, a whirl-wind trip around the world with National Geographic Explorers. An annual trip or two is the standard. Eventually, I will buy a trip on Virgin Galactic, but will wait for the price to drop. Every year I buy some land, both locally and abroad. A portion of the winnings has also been used to start a small business, with an eye for more in the future. Some goes into other investments like the stock market, real estate and precious metals. I give family and friends annual gifts. A charitable foundation has been started, and it will continue to grow for years to come. I live comfortably, sustainably, charitably, luxuriously and happily ever after!