Everyone wants to win big with the lottery. History has proven that many lottery winners end up spending all their winnings and losing everything. One person took to the internet to ask for advice on their recent lottery win.
The Big Win
The OP (original poster) won the lottery and took a lump sum upfront of just over $800k. He has around $70k of debt they’d like to pay off and also want to purchase a property. After that, he would still have a fair bit of money left over. This would also free up time to enjoy his photography hobby on his terms.
He took to a popular online forum to ask if he lived modestly and if he could stretch the remainder of his winnings over 20 years. Here’s what the internet had to say…
Find Something You Enjoy
“Honestly, I’d say find a part-time job or hobby that makes money that you enjoy, and start investing what you have saved in relatively low-risk investments,” someone suggested.
A person questioned, “Like the others, speak to a financial advisor. Now, I think it might be possible. But you kinda answered your question…you’re 40 and even “stretching” you think it’ll last about 20 years. So you’ll be 60 and broke? Where will your earnings come after that?”
Buy a Rental Property
“Buying a rental property is the right idea. Houses in my city cost around $500k. It costs about $30k a year to rent them. If I resign a 4th lease, I’ll have spent more than $100k on my rent. It sucks,” a user said.
“I think you are at an age where you are just on the edge in terms of risk of not having enough. You probably could do it, but you have little room for unexpected issues or expenses,” a person said.
“At 40, I don’t think you could retire off of that unless you invest it wisely. Before buying a property, educate yourself by reading and seeking out information,” someone shared.
Invest the Rest
“Pay off your debt, buy the property, and invest the rest so you can get a monthly return to live off of. If you need to return to work for any reason, do so,” someone said.
Live Off the Interest
“A planner will tell you exactly what to do, but if you want to retire, I think it’s best to put the $800,000 (less the debt you pay off) into the stock market and live off the interest you will make. Save a few years and then buy a place/studio,” someone said.
Save a Good Amount
“Good for you coming into some serious $$$. I would recommend putting a good amount in a high-yield savings acct (5% in the US currently). Then, work doing something you enjoy, which also makes you a little bit of money,” one person said.
Costs Will Increase
A user said, “If I retire in 25-30 years, things will be much more expensive than right now. On top of that, I imagine healthcare costs will go up as I get older. If possible, I would like to leave enough to split between the kids so that they are set up pretty well.”
Learn To Make a Living
“Starting your enterprise with that money is a great idea. With that kind of windfall and dedicated effort, you should be able to learn how to make a decent living in photography,” someone said.
Enjoy Your Life
“I think it’s a perfectly fine idea. Ultimately, all that matters is that you enjoy your life to the fullest extent, and this certainly sounds like it will help you achieve that,” one user replied.
Fine With No Kids
“If you don’t have kids, you’ll be fine. See if there’s a computer class you can take so it can get help you land a job from home. Still, have your hobby and enjoy your time,” someone said.
“Good idea” is so subjective. You might not be living comfortably in your old age if photography doesn’t work out. But you might have a comfortable 10-20 years if things are generally smooth. You have to decide what’s more important to you,” someone shared.
Life Hacks To Save You a Ton of Money
Reddit may not be the first place you go when you’re looking for inspiration to save money, but the life hacks subreddit probably has more ideas than you’d expect. The original poster (OP) asked his fellow Redditors, “What’s a life hack that’s saved you a ton of money?” The r/lifehacks community was quick to share their best money saving tips.
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Inspired by this thread – photos for illustrative purposes only.