06-17-2005, 07:42 PM | #1 | ||
Coordinator
Join Date: Apr 2005
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Powerball Winner to be a Billionaire in 15 Years
http://www.msnbc.msn.com/id/8242862/?GT1=6657
$220.3 million not enough for lottery winner Idaho exec to build business empire, become a billionaire Updated: 10:26 a.m. ET June 16, 2005BOISE, Idaho - A man who won a $220.3 million Powerball lottery jackpot — the second-largest single-ticket Powerball winning — plans to invest the money and become a billionaire. Brad Duke, a 33-year-old regional fitness director for a health club chain, said he hopes to build a $1 billion portfolio within 15 years. “What better opportunity to have than me at my age with this money to build a billion-dollar empire to take care of my family and to give opportunities to the people who have given me opportunities,” he told The Associated Press on Wednesday. Duke chose to take a one-time payment of $125.3 million, rather than 30 annual installments of $7.4 million. He would receive about $85 million after taxes. Idaho Lottery Commission officials denied Duke’s request to remain anonymous, arguing that his name had to be made public to show he had no ties to lottery employees or vendors. He won the jackpot over Memorial Day weekend. “It would have been nice for me to take care of my family without making it a big thing in their lives, but we all came to the realization that would be impossible, so if that’s the way it’s going to be let’s have fun with it,” he said before traveling to New York City for talk show appearances. No large purchases Duke said he told his father and sister about the jackpot but the rest of his family was unaware until Sunday, when he asked them to meet him in Sun Valley. He said they had assumed he was going to reveal a terminal illness, multilevel marketing scheme or a wedding engagement. Duke has assembled legal, financial and public relations advisers to make business investments and charity donations and is considering appearances on a reality television program. Other than a high-end racing bicycle, Duke has no plans for any large purchases. “One of my goals is keeping my feet on the ground, not forgetting who I am and where I came from and staying active in the things I like now, like biking, the fitness industry, camping and rafting with my friends,” he said. “Keeping my feet on the ground does not include going out and buying a yacht.” Powerball is a Des Moines, Iowa-based lottery played in 27 states, the District of Columbia and the Virgin Islands. Duke bought the winning ticket at a Boise convenience store. Interesting article I came across. My predictions, he'll be out in 15 years. |
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06-17-2005, 08:09 PM | #2 |
Head Coach
Join Date: Oct 2000
Location: Green Bay, WI
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It'll be interesting to watch, considering his seed money will ultimately be about 1/3 of what the prize was advertised as being.
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06-17-2005, 08:36 PM | #3 | |
Coordinator
Join Date: Apr 2005
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I don't see him doing it. It takes alot of work and alot of expertise to do it. Is he going to pick stocks? Good returns require alot of experience and knowledge of the market. Real Estate? Not exactly the strongest "outlook". Companies? Takes alot of hard work and more then money. With the future of the economy in limbo. Alot of big-time people say its harder to keep a million then to make it. We have lots of people with $85 million and that kind of income, but we only have 300-some billionaires. I just don't know. His statements kinda make me believe that the money has gotten to him already. |
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06-17-2005, 09:11 PM | #4 |
College Prospect
Join Date: Apr 2004
Location: Barnegat, NJ
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Take the freaking $7.4 million per year
I don't know about you but I could be quite comfy living on that $7.4 million dollar per year for 30 years for doing nothing. That is much more appealing that only getting about $85 million after taxes and then working my ass off to basically earn back what I lost by taking a one time payment. Might just be me though....
Last edited by Ironhead : 06-17-2005 at 09:12 PM. |
06-17-2005, 09:29 PM | #5 |
Pro Rookie
Join Date: Dec 2001
Location: VA
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I was thinking the same thing as you Iron.
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06-17-2005, 09:38 PM | #6 |
lolzcat
Join Date: Oct 2000
Location: Annapolis, Md
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What do you reckon he "lost" by taking the money up front?
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06-17-2005, 09:56 PM | #7 |
College Starter
Join Date: Feb 2003
Location: Seattle
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I disagree completely. Don't forget he would have to pay tax on the 7.4 mil as well reducing it to probably 5 mil a year. Believe me, you can invest your own 85 million and have a lot more than 220 mil in 30 years. Even if he doesn't know what the hell he is doing he should be able to pull in the same amount of 5mil a year AND have the $85 mil still sitting in his bank account. You ALWAYS take the lump sum payment.
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06-17-2005, 10:11 PM | #8 |
Pro Starter
Join Date: Jun 2004
Location: Minneapolis
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220 mil not enough to take care of his family? Who does this guy think he is-- Latrell Spreewell?
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06-17-2005, 10:22 PM | #9 | |
Pro Rookie
Join Date: Aug 2001
Location: Canada eh
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I hear he hired T.O. as his financial advisor. |
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06-17-2005, 10:34 PM | #10 |
College Starter
Join Date: Nov 2003
Location: CT via PA via CA via PA
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You're saying he'll want to renegotiate his winnings in a couple of weeks?
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06-17-2005, 10:35 PM | #11 | |
High School Varsity
Join Date: Oct 2002
Location: Dallas, TX
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There are very few lotto 'rules,' but this is one of them. Absolutely always take the lump sum payment - you will come out millions and millions ahead of the Joe Schmo who takes the annuity, ceteris paribus. Other 'rules' - 1,2,3,4,5,6 has just as great (or crappy) a possibility of winning as does any other combination of numbers, even if 1,2,3,4,5,6 won just last time - odds are the same for those same numbers coming up again tonight as any other combo of numbers. (It KILLS me when roulette players in vegas try to tell me what the trends are, what number is 'due,' yada yada... There is simply no such thing.) AND - if you want more $ on average per lotto win, then pick numbers over 31 - this is because most people pick dates when they pick their numbers, and since every number combo has just as equal a chance at winning, if you pick numbers that others aren't picking, then more than likely, you won't have to share your prize should you win. and that's about it. |
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06-17-2005, 10:38 PM | #12 | |
Coordinator
Join Date: Apr 2005
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They had a series on TLC about Millionaire Lottery winners. They spent hundreds of thousands on jewelry, cars, homes, and statues. The one guy just went all out. Think he was an ex-convict. Guy look like a pimp with all the gold jewelry, the Tropical shirt and mullet and long beard and his possessions were tacky as hell. |
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06-17-2005, 10:47 PM | #13 |
Head Coach
Join Date: Jul 2001
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Turning 85 million into 1 billion without taking capital gains taxes or inflation into account would take a 17% return over 15 years. Good luck.
However, I think he'll succeed in saving and won't blow it all, and I think it's pretty freaking awesome personally, and I think he can turn it into 350 million pretty easily if he stuck to his plan. |
06-17-2005, 11:06 PM | #14 | |
Coordinator
Join Date: Apr 2005
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And with our "dog-eat-dog" corporate environment, shaky future in real estate market, and the future of the economy in the US kinda looking not overly postive, and the high-earnings that the top stock traders make requires no social life and long hours to make it, it would be tough. Problems I see, is will he go shopping like that 9/11 girl, buying gifts for family and crap, and he'll get people calling and calling. The US dollar's slip actually made "less" billionaires this past Forbes listing. What exactly was his "plan"? All he said he was going to do is to "invest" it. Last edited by Galaxy : 06-17-2005 at 11:08 PM. |
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06-17-2005, 11:21 PM | #15 | |
Head Coach
Join Date: Oct 2000
Location: Green Bay, WI
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I'm thinking on top of taxes, inflation would reduce the long-term value of the sum. That said, somebody else mentioned capital gains taxes on the investments, and I'm just thinking, isn't that something that you don't pay until you liquidate the investment? In other words, lump sum or not, if he's investing all of it and continuing to work at his present job, couldn't he defer the tax bill until he liquidates the investment assets? Or is he going to get hit with a double whammy - capital gains for winning the prize, and again when he liquidates whatever investments he makes? |
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06-17-2005, 11:47 PM | #16 |
Hall Of Famer
Join Date: Dec 2003
Location: the yo'
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No, the sum is always the best way to go. It is useless to resist the power of compounding interest.
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06-18-2005, 12:02 AM | #17 | |
Head Coach
Join Date: Oct 2000
Location: Green Bay, WI
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If that was a response to me, that isn't remotely what I was asking. If not, then carry on! |
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06-18-2005, 12:42 AM | #18 | |
Head Coach
Join Date: Jul 2001
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Quote:
Those are all short term worries really aren't they? Anyway, I don't know how you deal with 85 million, but I don't see what's changed in the last few years that a simple balanced Index Fund portfolio shouldn't be able to keep up an average of a bit over 10% a year return over time. Maybe not this year(though actually so far this has been a fine year) but I think the more you try to move around and "play" the market the more fees you end up with and you have to destroy the average return to keep up with all the fees and such, but with a pretty simple index fund strategy should be able to do fine. I'm sure a proven, trusted, grounded financial team can do better than that, but it's not a bad starting point at least. |
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06-18-2005, 12:50 AM | #19 |
General Manager
Join Date: Oct 2004
Location: New Mexico
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Well if this doesn't prove that money can't buy happiness...
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06-18-2005, 04:59 AM | #20 |
SI Games
Join Date: Oct 2000
Location: Melbourne, FL
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I've never understood why anyone would want to be a 'billionaire' personally, I'd love to have my mortgage paid off and enough in the bank that I didn't 'need' to work ... but I personally never particularly want to be 'that' rich ... not least because I'd feel it'd be harder for my kids to grow up as normal people in that situation*.
*Luckily I'm pretty certain they'll be 'spared' any problems in this area |
06-18-2005, 08:09 AM | #21 | |
Hokie, Hokie, Hokie, Hi
Join Date: Mar 2001
Location: Kennesaw, GA
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Quote:
One reason I can think of is just so that I when I see something in the paper or somewhere about someone going through a hard stretch, I could give them enough to get themselves back on their feet. Repeat that once a day for 30+ years and it'll get expensive. But that's just what I'd feel comfortable doing. |
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06-18-2005, 08:29 AM | #22 |
Coordinator
Join Date: Jan 2001
Location: Keene, NH
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85 Million would be way more than enough for me.
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06-18-2005, 08:36 AM | #23 |
Banned
Join Date: Feb 2003
Location: Exton, PA
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I'm surprised that nobody has mentioned this in the thread yet, but what if this guy wants to make something more of his life than just being "rich".
When he's on his deathbed, I think he wants to remember his life not so much for winning the lottery, but hopefully building a very successful business that will outlive his years many times over? Honestly, if I won the lottery, I'd do something similar. Sure, I'd buy a nice $1-2 house and do things up right, but I'd still want to work hard and try and create something. |
06-18-2005, 09:12 AM | #24 |
Coordinator
Join Date: Jan 2001
Location: Not too far away
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If I'm ever fortunate enough to win the lottery I'm not going to say something stupid like this. I am going to do all that I can to avoid publicity. The less people that know that I'm rich through luck, and thus feel they have a claim on my money, the better.
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06-18-2005, 10:12 AM | #25 | |
Pro Starter
Join Date: Nov 2000
Location: Troy, NY
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On the 1,2,3,4,5,6 thing... it is actually an extremely poor play to play these numbers in the lottery.
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06-18-2005, 10:27 AM | #26 | |
General Manager
Join Date: Oct 2004
Location: New Mexico
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Why? |
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06-18-2005, 11:46 AM | #27 | |
lolzcat
Join Date: Oct 2000
Location: Annapolis, Md
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Quote:
Because there's a far higher likelihood of having to share the winnings with someone else. That goes for any series of number with a "system" -- but especially so for things including today's date (and month, etc) and, to a lesser extent, any number under 32 (because of using dates). Of course, it doesn't make it less likely to hit, but you still reduce your EV. |
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06-18-2005, 12:11 PM | #28 | |
High School Varsity
Join Date: Oct 2002
Location: Dallas, TX
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Yea, I addressed that in the last paragraph of my post. |
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06-18-2005, 03:47 PM | #29 |
H.S. Freshman Team
Join Date: Feb 2004
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I believe if you die before getting it all, payment stops and you cant have someone else get the rest.So i would take the cash up front.I may be wrong though.
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06-18-2005, 04:59 PM | #30 |
Grizzled Veteran
Join Date: Oct 2000
Location: Edinburg,TX
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33 year old regional fitness director? Sounds like a glorified personal trainer. And he is going to be some great business man all of a sudden?
Ok. Sure.
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06-18-2005, 09:48 PM | #31 | |
Coordinator
Join Date: Apr 2005
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Quote:
Eh, I wouldn't mind be a billionaire. But most of them don't actually have billions of cash sitting around. Most of its stock and investments. |
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