What to do with money after winning Lottery

Lets say you won a million in Tatts, Powerball or whatever. You also currently have a couple of IP's with 80% loans and the balance against your PPOR, with offset etc (your bad debt on PPOR has all been paid off).

What is the most tax effective strategy moving forward to use this money - do you set up offset accounts against all loans and plonk it there, buy more IP's, fully franked shares, etc?

 

Let's see how much is still left after the party...

 

Good timing, $15mil draw tomorrow.

 

This is quite interesting scenario.

For tax effectiveness. I would buy a nice Ferrari and use it as a Uber vehicle. Every car nut in the Sydney metro area would be booking you to pick them up and drive around anywhere.

I reckon you'd be making hundreds of dollars a day. And all business use would be tax deductible (check with an accountant first).

You could have special extras (cashies) that the passenger can pay for eg $50 for smoking the tyres in front of their friends house or an extra $300 to enter Eastern Creek to race friends.

Yeah, that's what I.'d be doing.

 

@datto "Woof woof" you know what that is ?

It is the neighbors dog saying don't splash the cash, buy more places in Mt Druitt..... lol..... do you remember this ?

 

I would give the money to my folks. Let them enjoy it.

 

It was more like doof doof. My commodore telling me to go hang out at the nearest McDonalds carpark lol.

 

If I ever won lotto. I would open up a 12month term deposit and put it there.
Carry on with my life as per normal and gives me time to plan properly without making hasty decisions. Depending on the amount I would keep working for a few months, or live off interest from the TD.
Not a great 'tax' strategy initially, but at least I wouldnt blow it on the first 'opportunity' that came up.

Blacky

 

I'm not a tax guru, but how about simply upgrade the PPOR.
Still get inflated CG over time and no tax payable.
The equity will always be there.

 

Majority of lotto winners are not financially intelligent enough to handle that large amount of money. Taking time to plan on how to effectively make good use of the blessing is a good way to handle it.

 

Yep, this was along my thinking as well. Pay off the PPoR, then put the rest away for a period long enough so I didn't splurge on the first thing that came around. Ok, tax on earnings but I'm sure an accountant could advise on that. The other consideration (not meaning to be -ve) but is the urge to tell everyone, then those 'everyone' wants a piece of it.... But let's keep this thread positive! With some forward thinking, a mil could go a fair way!

But I do like @datto 's suggestion!

 

Congratulation mate!

 

Nah, nothing won - just curious as to what the strategy would be to make the most out of it.

 

Well, $1mill still doesnt go too far in Sydney.
I'd start by paying down (or off) the PPOR loan. That would take the whole mill.

Or I could do ~50% in PPOR Loan and 50% into shares. And leave whatever amount possible into super (without attracting extra penalties)

Edit: I'd also like to set aside some funds for a new house at Birkdale as that old house on my land there currently does not do that land any justice.

 

Because Intelligent man don't play Lotto ?
or is it because money can change a personality.

 

True. I dont play lotto

 

True.. and yes, money can easily change your personality if you let it happen..it can easily associate you with the wrong crowd pretty quickly too..

 

Very true
How that 18 yr old kid who won like 60milliin in the uk managed to be back on welfsre by 25 astounds me

There isa difference between financial illiteracy and just plain stupid

 

Is hookers and blow an option?

Seriously though 1M would not quite be enough for me, if it was 1.5M it would be enough for me to retire on

 

Reinvest into speculative investments. ie. buy a shedload more lotto tickets!