Here’s an outline of what happens just in case if I became one of them.
OK a humorous post today as the sky is grey and I need something cheerful.
I’m an optimist, which also makes me a dreamer. In fact day dreaming is one of my favourite activities. I find being able to visualise your end destinations as vividly as possible provides the motivation and clarity for me to achieve my goals. So give it a try. Plus it’s fun.
I had a discussion with Mrs WB40 over dinner the other night where we talked about what we would do if we won the largest jack pot on the U.K. (estimated to be around £160m). Not even sure how we got onto that topic but there we go, life is full of left field balls.
Here’s a list of things that I’d like to happen.
1. No champagne, please
I prefer beer, simple as! Mrs WB40 also won’t be drinking champagne as she’s got Little WB40 coming.
2. Take it as a lump sum
When you’ve won the jackpot, you are usually presented with the option of taking it as a lump sum or taking a lifelong monthly income (annuity). I haven’t done much research on the pros and cons of each option since the chance of landing a jackpot is less than being struck by lightening and then immediately suffering a shock attack, however I suspect the the annuity option will result in higher lifetime value than lump sum.
Personally I would take the lump sum as I’m relatively experienced in managing my finance and investment.
3. Tell the taxman
I know it’s a pain but you need to check with the tax man to see if anything is due. Legally you should. Morally you also should given that the society had just changed your life, so you need to pay your dues.
Thankfully and bizarrely lottery winning is not taxed in the U.K.! So I’m still £160m up.
4. Not quitting my job
Many people yearn for the big moment where they stick their middle finger to their bosses and colleagues and walk out of the door with the big win. Personally I won’t be doing that as I love my career and find my work extremely fulfilling. Thus you will still find me on the morning commuter train.
5. Buy a farm – £3m
This has been my dream ever since when I was a kid. A modern farmhouse with 50 acres of land and a lake set in the picturesque Cotswold like this one. I’m sure the local estate agents will be praying for my winning after reading this.
6. Invest in stocks – £30m
Managing my investments is one of my favourite past time activities. I will therefore significantly expand my portfolio and really make it a kick ass nest egg. Assuming a 3% annual yield (my style is dividend growth), that’s still £900k of gross income (or around £500k net after tax) per year, which is more than enough to live on.
7. Give the rest to charity – £120m
The society had just given me a lift changing gift and it would be a travesty for me not to reciprocate. With £33m under my name, I already had more han sufficient to live a plentiful life therefore it’s only logical for me to donate the rest of the winning back to the society to help those in need.
Personally I would choose British Cycling as the main beneficiary as I am an avid supporter of expanding cycling as main mode of transportation. Such sum could build at least 2 additional cycle superhighways in our big cities, making the journey safer for millions of cyclists and saving hundreds of lives directly and indirectly.
8. Keep the rest as pocket money, keep calm and carry on – £7m
So that’s just me. Please turn your daydream tap on and let us know your post-jackpot plan in the comment section below.