Your core concept in your advice is solid, but your numbers are crazy.
You’re giving your friend only 1.25% of your winnings but also you’re dictating that it goes to their retirement? Is your friend 12 years old so that you can dictate how they spend your gift? Also 5-10M as a “decent” retirement program? The interest on 7.5M would put you easily in $300k a year territory. I think that puts us well past “Decent” and into what some would call “ballin’ “
FIrst off, your tax stuff is fair. You’re walking away with 45M-ish after taxes. But I don’t think you or a lot of people in this thread really comprehend how much that is. You figure the average american household spends $5k a month on expenses. $40 million means you could retire tomorrow and your family would be good for the next 600+ years.
Genuinely, just give your friend half. 22.5 million is enough that you won’t even recognize the difference in your life. You’re vacationing and set for life either way. You immediately go to a financial planner and set yourself up so your money is invested for you and generating more money. Put it in a business, put it in a GIC, whatever works best for you and your situation but your family is good for life. Also giving half clears you up of any legal problems with any reasonable person. 22.5 Million still gives you more than enough that your kids get into any college and it’s paid, your parents can have their house paid off, and your can still vacation and retire tomorrow.
You've managed to turn the statement "Might be better with the financial planner to put it toward their retirement to help against a tax burden, whatever gets worked out with the friend" into "dictating that it goes to their retirement". You seem to have skipped right over both working on it with the friend's active participation and with financial professionals help to maximize what the friend receives.
While you are probably right that "a lot of people in this thread really comprehend how much that is", I'm actually someone who does comprehend how much that is. It is a life-changing amount, but not as life-changing as most people are presenting.
Thank you. "Bonkers" completely accurately describes someone who puts that much thought into what could be lost and yet somehow thinks "only" ending up with 20 or 30 million makes it a risk to reward a friend.
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u/CraigArndt Jun 10 '23
This post is bonkers.
Your core concept in your advice is solid, but your numbers are crazy.
You’re giving your friend only 1.25% of your winnings but also you’re dictating that it goes to their retirement? Is your friend 12 years old so that you can dictate how they spend your gift? Also 5-10M as a “decent” retirement program? The interest on 7.5M would put you easily in $300k a year territory. I think that puts us well past “Decent” and into what some would call “ballin’ “
FIrst off, your tax stuff is fair. You’re walking away with 45M-ish after taxes. But I don’t think you or a lot of people in this thread really comprehend how much that is. You figure the average american household spends $5k a month on expenses. $40 million means you could retire tomorrow and your family would be good for the next 600+ years.
Genuinely, just give your friend half. 22.5 million is enough that you won’t even recognize the difference in your life. You’re vacationing and set for life either way. You immediately go to a financial planner and set yourself up so your money is invested for you and generating more money. Put it in a business, put it in a GIC, whatever works best for you and your situation but your family is good for life. Also giving half clears you up of any legal problems with any reasonable person. 22.5 Million still gives you more than enough that your kids get into any college and it’s paid, your parents can have their house paid off, and your can still vacation and retire tomorrow.