What would you do if you won $1,000,000 today?

[anonymous_saver]

I am 25 years old and currently make $35,000 a year.

Without taxes being taken out...

(1) I would put $250,000 (25%) towards retirement, probably in a brokerage account at Vanguard.
(2) I would set aside $25,000 for a fairly large emergency fund.
(3) I would buy a $350,000 (or so) single family home outright in my current neighborhood.
(4) I would set aside $100,000 for my niece to go to college (she is currently 14).
(5) I would give my mom, my dad, and my sister $50,000 each.
(6) That would leave me with $25,000. I would use that to buy new furniture for my new home and I would likely set aside any leftovers for future home repairs.

With taxes being taken out... let's assume I would take away $650,000.

(1) I would put away $162,500 (25%) towards retirement, probably in a brokerage account at Vanguard.
(2) I would buy a $350,000 (or so) single family home, with only a $125,000 mortgage.
(3) I would set aside $100,000 for my niece to go to college.
(4) I would give my mom, my dad, and my sister $50,000 each.
(6) That would leave me with $12,500 to make some cosmetic changes for the house and get new furniture for the new home.
*In this situation I would be a bit more flexible with #2 & #3.

EDIT: If taxes were taken out, I would actually still set aside the $25,000 for an emergency fund. I would change other numbers to fit that in. Oops!

[mwgr5]

I would just invest all of the money. At a young age, a million dollars invested could compound into a huge amount of money for retirement. However, a million isn't enough money to warrent dramatic increased spending or quiting a job.

[boefixepa]

Ah, the joy of inflation and taxes. A million is not what it use to be!

1. I'd pay off the house, our only debt - Approx. 200,000
2. I'd donate 10%, there are other needy people - $100,000.00
3. Reirement - $100,000 each so $200,000

We are at 1/2 mil at this point. If there is any left after taxes this is where it would go.

1. Child fund, for college, missions, etc.
2. Help my parents pay on their home, and his parents with retirement (at least they are smart enough that their house is paid for!)
3. Help siblings (between the two of us we have 9 siblings, I come from a family of 5 kids, there are 6 in his family) to get into a house. A down payment or something like that.

[safari]

I'd buy a nice condo (a million wouldn't be enough for a decent house), and leave my current condo to my parents. I won't be doing anything differently from what I am doing now.

[Snodog]

I would quit w*rking immediately

[Broken Arrow]

Originally Posted by mwgr5

I would just invest all of the money. At a young age, a million dollars invested could compound into a huge amount of money for retirement. However, a million isn't enough money to warrent dramatic increased spending or quiting a job.

Ditto.

[DebbieL]

Here in Canada there's no tax on lottery winnings so here goes (the full $1,000,000):

Give $50,000 to my parents just because (they don't need the money, but I would love to be able to give a bit to them for all they've done for us kids over the years). I would make them spend it frivilously somehow. Maybe a couple nice trips, or a newer motor home than their current one.

Give $25,000 to my older sister (just because she's such a sweetie - again, doesn't really need the money as they do okay, but I'm sure she would appreciate a little extra something).

Put $25,000 into an account for my older brother, which I would have to manage and give to him in small monthly amounts as I see fit (he's severely bipolar and really not responsible enough to be given the money because he goes completely crazy and needs frequent hospitalization in psych wards - he would likely blow it during one manic episode).

Give $15,000 to both of my deceased sister's grown boys. They have young families and could use it.

Set aside $15,000 for my nephew who's currently 17 until he's 21 or so. He's a great kid.

Set aside $50,000 for my DD's college.

Pay off DH's truck $10,000.

Put aside $300,000 for an eventual house purchase (once the INSANE real estate market comes down here).

Probably put about $50,000 into savings for vacations, etc.

The rest would likely be put into retirement savings.

[jamai]

i'd invest most of it $800,000 in the stock markets!
$100,000 to start a small business.
$100,000 for living until my investments pay off.

[disneysteve]

Originally Posted by Snodog

I would quit w*rking immediately

I couldn't stop working, but I'd sock away most of it so that I could retire a few years earlier than planned.

[jedi]

I'll travel the world and invest the rest of the money.

[catlinye_maker]

I'd pay off my current debts (relatively small amount), buy a truck and a fifthwheel (current savings goal) and invest the rest of it.

This sort of "what would you do if you won a lot of money" dreaming is a useful thing.. if your dreams are way out of line with your current reality, you can start to change your lifestyle to be more what you'd really like to be doing. When the first thing on my list over and over was a heartfelt "quit my job," we were able to work things around to where I could, without winning the lottery.

[Fern]

Because i am still relatively young, i don't think i could quit working as i have many years ahead of me, so likely would still need the income.

My job is pretty painless, if boring. I would love to negotiate a part-time work deal that somehow would still keep my health insurance intact even while it reduced my salary.

I would:
* get expanded cable
*sign up for a small group or personal trainer at the gym
* i would volunteer more in my community with the freed up time from f/t work
* i would get a dog from the shelter
* i would send my mother on a vacation somewhere and/or give her money for a new kitchen.
* i would plan some travel abroad (Quebec City, Edinborough, Italy, Portugal)
*Oh, yeah, i guess i would pay off my only debt, my $78K mortgage
*Maybe I'd buy a Prius

The rest would remain invested.

I can fantasize, can't I?

[Ima saver]

I would save most of it and give some to people who really need it and won't blow it on silly stuff.

[anonymous_saver]

Originally Posted by Fern

I would:
* get expanded cable
*sign up for a small group or personal trainer at the gym
* i would volunteer more in my community with the freed up time from f/t work
* i would get a dog from the shelter
* i would send my mother on a vacation somewhere and/or give her money for a new kitchen.
* i would plan some travel abroad (Quebec City, Edinborough, Italy, Portugal)
*Oh, yeah, i guess i would pay off my only debt, my $78K mortgage
*Maybe I'd buy a Prius

The rest would remain invested.

I can fantasize, can't I?

Your post made me think of the fact that since in my situation I would already have a mortgage paid off, I would probably get cable internet and TV (I have neither currently), and I would get a gym membership, and I would only buy organic items and shop at the local co-op. These are luxeries that I don't allow myself now (except shopping occassionally at the co-op) since I'm saving for a home.

I would also probably increase my retirement contribution to $15,500 in my 457 plan (currently I'm at 25% of my income), and I would also start contributing to the 403(b) plan as well. This is in addition to my Roth IRA and my pension. And with all of this, I would be able to retire very early.

[scfr]

I'd bank it. My DH has a dream of trying out for the senior golf tour when he gets old enough (55?) and an extra $1mill would probably make that dream doable.

The only other thing I might do differently is just go ahead and buy a house in Austin, instead of doing what we plan right now which is renting for a year or two before buying (to make sure it's really someplace we want to stay, and to give us time to learn the market and find a great bargain on a house). At this very moment, the idea of one less move to go through is extremely appealing, even if it ends up costing us a bit more money, and if I suddenly won $1mill that might be all the temptation I'd need to make me go the "lazy" route.

[LuckyRobin]

1. Pay off my medical debt.
2. Pay off my remaining credit card debt.
3. Pay off my mortgage.
4. Pay off my sister-in-law's mortgage.
5. Put money aside for college for my kids and if there is any left over, for my SIL's kids.

[usnavy_233]

I'd go to Disney World. Twice.

[moneymatters]

If I were to receive a full $1,000,000 (no strings attached, no taxes to worry about), I'd

1. Donate 10% to my church.
2. Donate 10% elsewhere.
3. Pay off parents debt.
4. Pay all my debt.
5. Buy a nice home.
6. Set up an emergency fund.
7. Invest the rest.

Then I could just work to save/invest more or spend and live lavishly

[arctanx]

I'd pay off all my debt and invest all the rest.

Then I'd do my donations/charities with my regular pay, with no debt I could do that comfortably.

[missschinn]

First I would want to go on vacation to Egypt. Pay some debt. Invest and real estate.