You became a millionaire, what will you do?

[clearskies]

hi there, a weird idea came upon me. imagine you live with parents and have a decent car and good job.
Either you won a lottery or even inherited million pounds or
you got a job that earns you much so u made a million bucks in a year time..
What is the difference? which is sweeter or dearer?
The main question what will you do with this awful lot of money..
take care if you ate much cakes, fruits and sweets you might be diabetic or get high cholesterol... etc.

[Kromat]

I'll see when i get it or get there.
I could imagine it, but if it doesn't happen, it's not worth my time.
Right now I'm studying for Real Estate and going to see how that goes and then start thinking financially.
I just want enough where I'm happy and not stressed out about paying the bills. ( Financially Stable )
Nice house, decent car, nothing over the top and just give the rest to my family members or save some to invest.

[clearskies]

what about a flat in each big city? resorts and city centre flats, one for summer and the other for winter.. 4x4 Cherokee car and bmw ... what else... big bank balance... definitely NO BILLS
what else..............

[DoesntMatter]

Invest it, duh


.... And buy a whore with the spare change

[clearskies]

hows ur teeth man?

[Kiechi]

^ Rofl


_____________

[Junket]

A million dollars?

I guess that's still a nice sum of money.

But not enough to survive the rest of my life.

[Kiechi]

How about a million pounds? Then it'd be 2 million dollars?

[clearskies]

ahhhh then how mucj will do u fine ? How many years do u intend to live so we can compute it right?

[Junket]

ahhhh then how mucj will do u fine ? How many years do u intend to live so we can compute it right?

You're a communist Chinawoman aren't you?

[Gigabitch]

How about sending all of the LF regs a ticket to Vegas?

[clearskies]

Let us be good, and give half a mil to charity.. what about that?

[Junket]

Charity is gay.

Too much donated money goes to overhead costs.

There are better ways of spending that money in a charitable manner.

[clearskies]

NEVER been and dnt even like to go to China.. earthquakes man...

[GrkScorp]

Either you won a lottery or even inherited million pounds

The main question what will you do with this awful lot of money..

Well.., if I won the lottery.., then it would be an award.., line 21 on your 1040.., taxable.., and that would leave you with roughly $560,000 in NYC..

(vs.)

If you inherited the million dollars.., it's a gift.., and as the recipient of this gift.., it's not taxable.., which would leave you with $1,000,000..

(So.., it DOES make a difference.., and i'll take the gift)

What would "I" do with that money? Seriously?

1. Form an irrevocable Trust; my father being the trustee.., and me being the beneficiary

2. Place the $1,000,000 into the Trust

3. Allow the Trust to use the funds to acquire four (4) investment properties (2 family + 1 store).., using $250,000 to satisfy 20% of the down payment and any closing costs for each of the four properties

4. Rent all properties.., satisfy all property expenses.., preform any necessary repairs.., and maintain a positive cash flow on each investment property (to be deposited into the "income" account of the Trust)

5. Receive 50% of the outstanding balance in the "income" account (transfered directly to my personal account.., as the beneficiary of the Trust).., and reclassify the remaining 50% of the balance into the "principal" account where it is to be used to maintaining investments and for the acquisition of any future investments

Note: The $1,000,000 in cash.., will be used to purchase Real-estate investments worth $4,000,000.., with an outstanding debt of $3,200,000.., (8% interest on a commercial loan).., and with an estimated average 10% appreciation for the properties over a 40 year period (the average in NYC is 15%.., however.., we use significantly lower appreciation to keep our projections conservative)

This means that in one year.., the $4,000,000 of assets.., would have an appreciated value of $4,400,000.., in effect.., earning us $400,000 on our $1,000,000 investment.., in just one year.., (a 40% rate of return)..

Notice: (In just one year.., this $400,000 in equity.., can be used to acquire yet an other investment property.., and this process can be repeated each year)

Upon my death.., I can assign new beneficiaries.., without and estate or transfer tax.., and so the Trust can keep growing and growing.., passing down from generation.., to generation..

(No.., this is not my idea.., this is what rich-people do.., to keep their children rich.., it's not like they're going to sell earning assets.., just collect the income.., so why pay taxes? Why own it? Just have the right to collect any income they produce.., and keep shifting that right over to your children.., forever and ever and ever..)

Legal note: "what you don't own, can't be taken from you"

The moment you put your assets into an irrevocable Trust.., you no longer own them.., they are no longer yours.., all you have.., is the rights to receive any income or benefit they may produce..

If worst comes to worst.., and you get married.., and then get divorced.., and in a timeless display of love.., your spouse has their attorney ask for 50% of your assets.., you can go ahead and let them have 100% of what you own.., (which will probably by your clothes.., you car.., and "maybe" your primary residence).., but they can't touch anything that's inside the Trust..

(But of course.., that shouldn't impact your spouse's decision in marrying you.., unless they were more interested in marrying your money.., and not you.., )

You can all feel free to see how much the value of this Trust would be in just 5 years.., 10 years.., 15 years.., 20 years.., 30 years.., 40 years..

Best,

GrkScorp