/biz/ - Business & Finance

>>52279154
This is financial advice, take it or leave it

1 – Taxes

First, take out a calculator (or use your noggin, this isn’t difficult math). Take the amount that you won and divide it in half. In your mind, half of this is going to Uncle Sam and whatever state you live in. Now, you won’t actually pay exactly half to taxes, but depending on your state, you may come damn close to it. But mentally telling yourself that half is going to taxes will protect you from getting a bit crazy and over-spending.

The next thing you’ll want to do is call a CPA (Certified Public Accountant). An actual CERTIFIED PUBLIC ACCOUNTANT. These guys are wizards with taxes and can help you find the best way to protect your money from the tax man.

Do not skip this part. And do not try to get cute and figure out a way to hide money and dodge taxes on your own. Uncle Sam ALWAYS GETS HIS CUT, and if you try to pull one over on him, he will make sure that you learn a very, very hard lesson.

The amount that you will have to pay in taxes on your gains will make you sick to your stomach. But it’s best to just suck it up and pay.

3 – Legal Advice

You’ll need an estate planning attorney. I’m not really good about all of the nitty gritty on this, I just know that you need one.

4 – Investing

Let’s say you have $500,000,000 after taxes. You could decide to quit your job and live off of your money. If you use $100,000/year off the principal, that money will be gone in about 20 years. Ooph.

A better method of living off of your newfound wealth is to invest it and live off of the earnings. If you invest $2,000,000 and earn an average 10% return annually (I earn 35% monthly on VINU, and that's a growing memecoin that is sustaining itself pretty good despite the bear market, so there are good places to invest), you can safely live off of 5% each year, and let that other 5% protect a bit against inflation.