Not So Life-Changing
If you’re like me, you jumped onto the Powerball bandwagon and bought a $2 basic ticket in case lightning struck and you turned that $2 into a billion. The fact that I’m talking to you today suggests I did not hold the winning ticket; the fact that you are listening to this today suggests you are in the same boat.
No doubt there were plenty of conversations around American households and at holiday gatherings centering on the question of “what would you do if you won the lottery?”
Most would say they would quit their current jobs, and that’s likely the case for most. Then what?
Many of us have obligations that keep us where we are—we dote on our pets, and wouldn’t want to put them through a move or frequent travel. Many have family that tethers them to their current location. So the idea of going on the TV show where the host helps you find your “lottery dream home” in a tropical location for most is just that—only an idea.
It would also be hard to stay, with everyone knowing you are the world’s newest billionaire. I’m guessing you’d quickly develop a bunch of new close friends—but you couldn’t trust that they liked you for you, as opposed to your unlimited supply of money. And with that much money, no matter how much you gave to a friend or family member, they wouldn’t think it was enough and that you were cheaping out on them.
Alright, so let’s say you take on a runner-up prize…say, a million dollar lump sum payment. After taxes, it’s more like $600,000—still a pretty good chunk of change.
So you go to buy a dream house. You still have to pay for on-going expenses for taxes and upkeep, so you can’t spend the whole amount. And you’ve got to move wherever that dream house is, which is also costly. Let’s say you want to move to Florida; the average house there costs $400,000. Pretty soon, with on-going costs and the like, your whole lottery windfall is gone—so you either live off of existing savings, if any, or still have to work, depending on your age.
Don’t get me wrong, you hand me a check for that much and I’m taking it, happy to figure out the rest later. And as I said last week, if you are spooked about playing to win insane amounts of money, just keep playing and feel free to give me whatever amount makes you uncomfortable.
Dreaming of winning the lottery is fine, and often can be fun conversation. But when you return to “realsville,” as Rush used to say, you’ll find that winning ticket might not be so life-changing after all.
