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How To Invest Your $ 1.6 Billion Mega Millions Winnings

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Mega Millions lottery tickets are printed out of a lottery machine at a convenience store. (AP Photo / Nam Y. Huh)

One in 300 million. The odds are not great, but your chances of winning the massive Mega Millions lottery are as good as the next person. The current jackpot is estimated to be more than $ 1

.6 billion. That’s 1,600 million for those who are used to seeing smaller prizes According to the United States Mega & nbsp; lottery website the lucky winner will take home approximately $ 687 million after taxes if he or she optes for the cash option – life-changing wealth by any standard. It’s fun just dreaming How would you spend or invest the money if you won? The opportunities would be endless. Well, almost.

You still could not buy an NFL team or an NBA franchise. They are reserved for the multi billionaires, not somebody who has a more $ 687 million. Nevertheless, you could still afford most of life’s extravagances. Once you & nbsp; have shared the wealth with family members and your favorite charities, you would eventually have to get down to the business of investing your windfall. Do not worry; Der ville være mange rådgivere som knocking at your door med alle slags ideer. Help is only a 1% fee away, after all. Men hvis du er mere eller mindre en DIY investor, vil du få det til at starte. & Nbsp;

Diversification is going to be the key to preserving your capital. It would include an allocation to private equity, public market stocks, hedge funds, real estate and fixed income – & nbsp; similar to the model many endowments follow . In elke bucket moet elke enkele investering in een bedrijf, strategie of fondsen niet groter zijn dan 3%. Der er ikke behov for at tage outsized bets. You & nbsp; would be in the ” stay rich “game, not the” get rich “game. Det er umuligt at forutse hva din faktiske afkast ville være; men i det lange løb kan du forvente at gøre ca. 5-6% på dine investeringer årligt, afhængigt af din aktivitetsfordeling, markedsforhold og dine rådgivende gebyrer. & nbsp; Dette ville give dig en årlig tillæg på over $ 30 mio. taxes) without eating into your principal. There are many tools available for forecasting returns by asset class. The projected gross returns in each asset class described below are from JP Morgan Asset Management .

Allocations from Garth Friesen. Expected returns from JP Morgan Asset Management. Garth Friesen

Cash

Not that you would need “rainy day” money with a net worth of almost $ 700 million, but having a modest 5% allocation (roughly $ 35 million) of cash or liquid short-term investments allow you to deal with investment opportunities as they arise. Også, det kan komme i handy hvis du finner deg selv i en situasjon hvor du trenger å kjøpe et yacht, jet eller minor league baseball team. Alle soorten van verrassingen gebeuren in het leven. Expected gross return: 2.0% & nbsp;

Private Equity

You can afford to have some illiquid investments when you have hundreds of millions of dollars to put to work. Private equity investments often require a 7-10 year commitment, but the returns have historically outpaced public markets. & Nbsp; You can capture the “illiquidity premium” associated with tying up your money for such a long period. Allocations should include a variety of different strategies: traditional buyout funds, timber, private debt, venture capital, etc. Pick roughly funds across different market segments and geographically and allocate to them equally. Hedged Funds

Hedge funds have not performed very well in the last few years compared to the US equity market. There are many explanations for the lackluster returns, but one reason is that most hedge funds are actually hedged! & Nbsp; Few hedge funds have 100% long exposure to the stock market because their investors want a different / uncorrelated return stream. If investors wanted 100% beta to the S & P 500, they could simply buy a low-cost ETF. Hedgefondseinvestorer venter på dagen når en dynamisk, sikret portefølje overgår det brede offentlige aksjemarked. Given the volatility of late, such a day may come sooner than later. Diversify & nbsp; your allocation to hedge funds by not putting more than 3% weight to any one manager or fund and spread your money across several strategies: long-term equity, fixed income relative value, distressed credit, event-driven, etc. Expected gross return: & nbsp; 4.25%.

Real Estate

The allocation to real estate & nbsp; should not include your recently acquired beach mansion or chateaux in France. Det primære formål for en tildeling til fast ejendom er for den skatteeffektive indkomst og potentielt attraktive langvarige samlede afkast. It also happens to give you an inflation hedge, which is important since inflation can be a primary driver of wealth erosion ( look to & nbsp; Venezuela to see the & nbsp; devastating effects of hyperinflation ). & Nbsp; Investments should include both commercial (office buildings, hotels, warehouses, etc.) & nbsp; and residential properties (multi-family complexes like apartment buildings). & nbsp; These investments should also be diversified across geographies. Some of the best opportunities (and potential returns) are overseas. This is the hardest allocation to do-it-yourself. Hire a firm with expertise in the area and be prepared to spend time & nbsp; due diligence at your chateaux. Expected gross return: 6%.

Public Equities

In contrast to hedge funds, private equity funds or real estate, you can probably invest in public equities as long as you stick to going long on the market and don ‘t probeer om de næste Google eller Amazon. Boring, low-cost index funds or ETFs can give you exposure to the entire market. Det bør omfatte en allokering til internasjonale og amerikanske stocks in addition to emerging markets. The & nbsp; goal should be to try to get the market return rather than trying to beat the market. Leave the stock picking to the high-priced managers in your hedge fund portfolio. & Nbsp; Expected gross return: & nbsp; 6%.

Fixed Income

Yes, yields are low, but you will need a steady source of & nbsp; income for your & nbsp; new lifestyle. Your house staff and army of accountants and lawyers will need to get paid; Du vil ikke være i en situasjon hvor du er tvunget til å & nbsp; likvide en av dine kontor towers til måle lønn. Also, fixed income has tended to increase when your other risk assets saw. & Nbsp; That will not always be the case, but an uncorrelated return stream is the primary goal of investment diversification and explains why many of the largest long-term investors & nbsp; i det minste bevare tildeling til obligasjonsmarkedet. Du bør sprede de penge rundt om de forskellige faste indtægtssektorer: corporate bonds, municipal bonds, US Treasuries, agency mortgage bonds as well as some bonds from higher-yielding emerging market countries. Expected gross return: 3.5%.

As mentioned above, the anticipated blended annual & nbsp; gross return for this asset allocation is in the neighborhood of 5-6%. Målet, husk, er å være rik og ikke gjøre investeringer hvor du løper risikoen for å miste alt. A 5% return on $ 687 million is $ 37 million a year – enough for anyone to live a rock star lifestyle. Jackpot fever is consuming the nation, but as the saying goes, ” you have to be in it to win it “. Til trods for odds, kan fantasien om at vinne være verdt $ 2 billedpris.

De synspunkter som er anført ovenfor er de forfatteres og ikke hans arbejdsgiveres eller andre parter. Disse visninger bør ikke opfattes som investering, lovlig eller skatteadvokat.

“>

Mega Millions lottery tickets are printed out of a lottery machine at a convenience store. (AP Photo / Nam Y. Huh)

One in 300 million. The odds are not great, but your chances of winning the massive Mega Millions lottery are as good as the next person. The current jackpot is estimated to be more than $ 1.6 billion. That is 1,600 million for those who are used to seeing smaller prizes. According to the US Mega Lottery website, the lucky winner will take home approximately $ 687 million after taxes if he or she optes for the cash option – life-changing wealth by any standard. fun just dreaming how would you spend or invest the money if you won? The opportunities would be endless. Well, almost.

You still could not buy an NFL team or an NBA franchise. They are reserved for the multi billionaires , not somebody who has a more $ 68 7 million. Desondanks, you could still afford most of life’s extravagances. Når du har deltaget med familien og dine gunstige velferdsmiljøer, så ville du til slutt bli nødt til at komme ned til den investering i din vejrfall. Do not worry; Der ville være mange rådgivere som knocking at your door med alle slags ideer. Help is only a 1% fee away, after all. Men hvis du er mer eller mindre DIY investor (som mest vil ændre med $ 687 millioner til din navn), her er et par forslag til at komme i gang.

Diversification is going to be the key to preserving your capital. Det vil omfatte en tildeling til private aksjer, offentlige markedsaktier, hedgefond, fast ejendom og faste indtægter – ligner på modellen mange endowments følge. In elke bucket moet elke enkele investering in een bedrijf, strategie of fondsen niet groter zijn dan 3%. Der er ikke behov for at tage outsized bets. You would be in the “stay rich” game, not the “get rich” game. It is impossible to predict what your actual returns would be; but in the long run, you might expect to make roughly 5-6% on your investments jaarlijks, afhankelijk van uw asset allocation blend, marktvoorwaarden en uw adviserende kosten. Dat zou u een jaarlijkse toelage geven van over $ 30 miljoen (vóór belastingen) zonder te eten in uw opdrachtgever. [19659000] Garth Friesen

Cash

Not that you would need “[19659000] Garth Friesen

Cash

Notices of Garth Friesen. rainy day “money with a net worth of almost $ 700 million, but having a modest 5% allocation (roughly $ 35 million) or cash or liquid short-term investments allow you to deal with investment opportunities as they arise.handy if you find yourself in a situation where you need to buy a yacht, jet or minor league baseball team. Alle soorten van verrassingen gebeuren in het leven. Expected Gross Return: 2.0%

Private Equity

You can afford to have some illiquid investments when you have hundreds of millions of dollars to put to work. Private equity investments often require a 7-10 year commitment, but the returns have historically outpaced public markets. Du kan fånga den “illikviditetspremie” som associeras med tyngd på dina pengar för så länge. Allocations should include a variety of different strategies: traditional buyout funds, timber, private debt, venture capital, etc. Pick roughly funds across different market segments and geographically and allocate to them equally. Expected gross return: 7.25%.

Hedge Funds

Hedge funds have not performed very well in the last few years compared to the US equity market. There are many explanations (or apologies) for the lackluster returns, but one reason is that most hedge funds are actually hedged! Few hedge funds have 100% long exposure to the stock market because their investors want a different / uncorrelated return stream. If investors wanted 100% beta to the S & P 500, they could simply buy a low-cost ETF. Hedgefondseinvestorer venter på dagen når en dynamisk, sikret portefølje overgår det brede offentlige aksjemarked. Given the volatility of late, such a day may come sooner than later. Diversify your allocation to hedge funds by not putting more than 3% weight to any one manager or fund and spread your money across several strategies: long-short equity, fixed income relative value, distressed credit, event-driven, etc. Expected gross return: 4.25%.

Real Estate

The allocation to real estate should not include your recently acquired beach mansion or chateaux in France. Det primære formål for en tildeling til fast ejendom er for den skatteeffektive indkomst og potentielt attraktive langvarige samlede afkast. Det er også tilfældet for at gi deg en inflation hedge, hvilket er vigtigt siden inflation kan være en primær drivkraft for velocity erosion (se til Venezuela for å se de ødeleggende effekter av hyperinflation). Investments should include both commercial (office buildings, hotels, warehouses, etc.) and residential properties (multi-family complexes like apartment buildings). Deze investeringen zouden ook moeten worden gediversifieerd over geographies. Some of the best opportunities (and potential returns) are overseas. This is the hardest allocation to do-it-yourself. Hire a firm with expertise in the area and be prepared to spend time for due diligence at your chateaux.

Invented Gross Return: 6%.

Public Equities

In contrast to hedge funds, private equity funds or real estate, you can probably invest in public equities as long as you stick to going long on the market and don ‘ T attempt to pick the next Google or Amazon. Boring, low-cost index funds or ETFs can give you exposure to the entire market. Det bør omfatte en allokering til internasjonale og amerikanske stocks in addition to emerging markets. Målet var å forsøke å få markedet tilbake, snarere enn å prøve å slå markedet. Levert de stockpicking naar de hoogwaardige managers in uw hedgefond portfolio. Expected gross return: 6%.

Fixed Income

Yes, yields are low, but you will need a steady source of income for your new lifestyle. Your house staff and army of accountants and lawyers will need to get paid; Du trenger ikke å være i en situasjon hvor du er tvunget til å likvide et av dine kontor towers til måle lønn. Also, fixed income has tended to zig when your other risk assets saw. Det vil ikke alltid være tilfelle, men en ukorrelert avkastningstrøm er det primære mål for investeringsdiversifisering og forklarer hvorfor mange av de største langsiktige investorer holder minst noen tildeling til obligasjonsmarkedet. Du bør sprede de penge rundt om de forskellige faste indtægtssektorer: corporate bonds, municipal bonds, US Treasuries, agency mortgage bonds as well as some bonds from higher-yielding emerging market countries. Expected gross return: 3.5%.

As mentioned above, the anticipated blended annual gross return for this asset allocation is in the neighborhood of 5-6%. Målet, husk, er å være rik og ikke gjøre investeringer hvor du løper risikoen for å miste alt. A 5% return on $ 687 million is $ 37 million a year – sufficient for anyone to live a rock-star lifestyle. Jackpot fever is consuming the nation, but as the saying goes, “you have to be in it to win it”. Til trods for odds, kan fantasien om at vinne være verdt $ 2 billedpris.

De synspunkter som er anført ovenfor er de forfatteres og ikke hans arbejdsgiveres eller andre parter. Disse visninger bør ikke opfattes som investering, lovlig eller skatteadvokat. Once you win the lottery you should consult with your professional financial advisers prior to investing your winnings.


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