# what would you do if you get 10k a month



## Mulak (Feb 7, 2017)

A buddy of mine asked me about what would I do if I won a lottery or got an inheritance that worth like 10k a month for the rest of my life.. there is no one time payment, just 10k a month

Let say you are 30 years old, no kids, single, own simple 1 bedroom 1 den condo and have a low paying job like $16/hour.

would you just quit your job? travel? buy a house? do your own business? something else?


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## gardner (Feb 13, 2014)

I think I would go for the lump sum option rather than the "cash for life" option.


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## Beaver101 (Nov 14, 2011)

Take a vacation every month, starting with Hawaii.... nthego:


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## milhouse (Nov 16, 2016)

gardner said:


> I think I would go for the lump sum option rather than the "cash for life" option.


I knew an acquaintance that worked in a different team at work that won the Set for Life scratch card game a few years ago now. I'm assuming he bought it from the lotto counter at work from where I occasionally bought the odd Set for Life card !$#@. LOL. 
Not sure if he took the lump sum (is there a lump sum option??) or the monthly payments but he definitely quit work after about a month.


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## Mukhang pera (Feb 26, 2016)

Mulak said:


> ... and have a low paying job like $16/month.


I suppose I am the only one to whom it is not crystal clear. But that $16/month job, is it really only $16 per month, or is it $160, or $1,600 or $16,000 or something else? For some on cmf, $16,000 a month would just be beer money while for others, it would be significant.

Also, I am not sure if your question embraced the lump sum v. monthly payment issue raised by other posters.


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## Mortgage u/w (Feb 6, 2014)

I'm pretty sure I would continue working - it helps that I enjoy my job which is not too demanding and pays well. If I were being paid $16/hour (or /month as stated), I would most definitely quit and re-evaluate.

What would I do with the extra money? Well, its hard to say...I would like to say that I will pamper my family but I think my frugal self will keep me very conservative. Family Trust comes to mind to secure my kids future. I am not one to splurge on unnecessary things but I will be less hesitant to buy things I want.


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## gardner (Feb 13, 2014)

Mukhang pera said:


> that $16/month job, is it really only $16 per month, or is it $160, or $1,600 or $16,000 or something else?


At a guess, the OP maybe meant $16/hr ~= $30K/year before taxes. Chump change next to $120K (after tax, I think, since lotto winnings are after tax)

If it were me, there's no way I would keep the 30K job. But I might use the income to support education or professional development of some type. Leveraging the income to get a law degree or something would be a reasonable way to get to $300K/year.

As for the lump-sum angle, I don't know if they are required to, but I believe the "cash for life" style lottos usually provide a lump sum option. How else are they going to get the elderly or infirm to pay the "stupid tax"? If you put "lottery lump sum annuity" into the gargler, you'll get a lot of discussion.


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## Mukhang pera (Feb 26, 2016)

Another thing. If the prize is, indeed, $10k/mo. and a commuted value is not payable, then unless the monthly amount is indexed (what lottery would do that?) a lot will depend on the winner's age. 10K/mo. starting at age 20 won't be much when (and if) the winner attains age 80. The OP mentions "30 years ago". That might mean 30 years old. Even then, 50 years or so of inflation with take its toll.


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## cainvest (May 1, 2013)

Mukhang pera said:


> Another thing. If the prize is, indeed, $10k/mo. and a commuted value is not payable, then unless the monthly amount is indexed (what lottery would do that?) a lot will depend on the winner's age. 10K/mo. starting at age 20 won't be much when (and if) the winner attains age 80.


If the 20 yr old invested $2.5k - $5k of the 10k per month I'm sure they'd be able to live on that in retirement.


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## Mukhang pera (Feb 26, 2016)

cainvest said:


> If the 20 yr old invested $2.5k - $5k of the 10k per month I'm sure they'd be able to live on that in retirement.


Quite likely. But then, how many 20-year-olds are able to exercise that kind of restraint and foresight?


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## Daniel A. (Mar 20, 2011)

Its surprising what some people think they'd do.

I worked with a guy that won half a million back in 1995 he was a very conservative guy had 20 years in working was 55 house paid for kids gone fairly set for retirement. He came to work for months after winning never said a word to anyone. He could have put in his retirement notice that day but didn't.He kept talking about being able to put an extra hundred grand in savings if he works another five years. He finally decided to retire after talking with other coworkers and has never looked back other than wondering why he was so reluctant.


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## cainvest (May 1, 2013)

Mukhang pera said:


> Quite likely. But then, how many 20-year-olds are able to exercise that kind of restraint and foresight?


I agree and it's not only 20 yr olds that have that problem


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## redsgomarching (Mar 6, 2016)

lotto winnings are non taxable if you took the annuity option.

the lump sum is also non taxable upon receiving however the interest or investment income earned off of it is.


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## Mulak (Feb 7, 2017)

Mukhang pera said:


> I suppose I am the only one to whom it is not crystal clear. But that $16/month job, is it really only $16 per month, or is it $160, or $1,600 or $16,000 or something else? For some on cmf, $16,000 a month would just be beer money while for others, it would be significant.
> 
> Also, I am not sure if your question embraced the lump sum v. monthly payment issue raised by other posters.


sorry about that.. I meant $16/hour job


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## Mukhang pera (Feb 26, 2016)

Thanks for returning to clarify.


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## indexxx (Oct 31, 2011)

Move to the Mediterranean and be a photographer. In no way, shape, or form would I continue to chase income or do any type of employment in the rat race. If I have enough to live on then why waste a second of life trying to get more? What's the point of that?


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## My Own Advisor (Sep 24, 2012)

"If I have enough to live on then why waste a second of life trying to get more? What's the point of that?"

Great point. I would work on my own terms, but definitely $10k per month with no debt is plenty of money for me/us to live on.


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## gardner (Feb 13, 2014)

indexxx said:


> In no way, shape, or form would I continue to chase income or do any type of employment in the rat race.


How is one going to ensure the kids have something resembling a work ethic? and how is one going to get the business connections and knowledge that help them launch and sustain their own careers? Just because one wants to be a slacker doesn't mean all the people around one can't benefit from him picking up his socks and doing something with the tremendous opportunity of having that financial boost. I'm not saying that one has to keep his janitorial gig or anything, but retreating to a beach-side villa to lay on a towel the rest of his life is not really going to be a long-haul benefit to his dependents.


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## Beaver101 (Nov 14, 2011)

^ If one doesn't have kids, then what "work" ethic to ensure? Besides, any work ethics to ensure for the next gen is to work for the government, generously funded by dad & mom taxpayers.


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## gardner (Feb 13, 2014)

Beaver101 said:


> Besides, any work ethics to ensure for the next gen is to work for the government, generously funded by dad & mom taxpayers.


Maybe for you, I don't know. But using lotto money to set up a business -- maybe buy a franchise or something -- could create a source of lasting value and employment income and career development for a whole family for generations. Sitting on a deck chair sipping margaritas, not so much.


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## amitdi (May 31, 2012)

Wow, this is like a lottery but without all the -ve things that come with a lottery.

No annoying friends and relatives asking you for money...atleast not right away, because hey you have none.
No death threats or thieves or blackmailing.
No startup investors coming at your door asking how they can make you 5-10x times that money.

I would love this kind of lottery and take it over a lumpsum anyday.


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## Beaver101 (Nov 14, 2011)

gardner said:


> Maybe for you, I don't know. But using lotto money to set up a business -- maybe buy a franchise or something -- could create a source of lasting value and employment income and career development for a whole family for generations. Sitting on a deck chair sipping margaritas, not so much.


 ... maybe there was no lotto available and a poster like indexxx had spent most of his entire life operating a small business, only to have to fold it because it couldn't be sustained due to rising taxes, wages, costs, etc. or maybe indexxx had worked for decades in the administrative office of Sears (battling office politics, backstabbing, horrible bosses,etc.), only to see his pension evaporate but luckily he/she won the lotto?... so what's wrong with sitting on deck chair sipping margaritas after all that? Does he/she owe society more?


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## gardner (Feb 13, 2014)

Beaver101 said:


> had spent most of his entire life


The hypothetical lotto winner posited in the initial post is 30. We're not talking about someone ready to retire here but someone who could readily switch careers, start a family -- make something of her/himself.


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## Beaver101 (Nov 14, 2011)

^ Valid point. But then I know someone who got very successful with investing (real estate first, then stock market), making $15K+ (and growing) per month and not even 35 years old ... everyday is a retirement day for him. His "job" now is to keep himself busy and happy, shopping on eBay and Amazon.


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## like_to_retire (Oct 9, 2016)

indexxx said:


> In no way, shape, or form would I continue to chase income or do any type of employment in the rat race. If I have enough to live on then why waste a second of life trying to get more? What's the point of that?


What if someone derived pleasure from their employment in the rat race, or enjoyed chasing as much income from the markets as they could derive. 

Do you not see the point of doing something that makes you happy?

Having enough to live on offers you the advantage to do what makes you happy, whatever that may be.

ltr


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## indexxx (Oct 31, 2011)

like_to_retire said:


> What if someone derived pleasure from their employment in the rat race, or enjoyed chasing as much income from the markets as they could derive.
> 
> Do you not see the point of doing something that makes you happy?
> 
> ...


Of course- all perfectly valid. However, the question in the OP was "what would "YOU" do with $10k a month. My answer is exactly what I posted. I've spent my entire life in an idiotic industry, dealing with people I have nothing in common with and being crushed with insane amounts of stress and ridiculous hours (34 years in the bar business- now out of it, thank Christ). I was never fortunate enough to have children and am no longer married. I am however involved in artistic pursuits- so I would live where I want, which is the Mediterranean. I do not drink alcohol, so I would not be "lying on a beach chair sipping margueritas". I would pursue travel photography, teaching and leading travel groups to exotic locations. I see nothing at all wrong with peacefully pursuing what interests me while causing no harm to any being, and helping people become better photographers thereby enriching their lives on some level. As you said, "doing something that makes me happy". I've spent my whole life trying to please selfish, drunk customers, moronic staff, and clueless, grasping employers. It's time for me.


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## Mulak (Feb 7, 2017)

indexxx said:


> Of course- all perfectly valid. However, the question in the OP was "what would "YOU" do with $10k a month. My answer is exactly what I posted. I've spent my entire life in an idiotic industry, dealing with people I have nothing in common with and being crushed with insane amounts of stress and ridiculous hours (34 years in the bar business- now out of it, thank Christ). I was never fortunate enough to have children and am no longer married. I am however involved in artistic pursuits- so I would live where I want, which is the Mediterranean. I do not drink alcohol, so I would not be "lying on a beach chair sipping margueritas". I would pursue travel photography, teaching and leading travel groups to exotic locations. I see nothing at all wrong with peacefully pursuing what interests me while causing no harm to any being, and helping people become better photographers thereby enriching their lives on some level. As you said, "doing something that makes me happy". I've spent my whole life trying to please selfish, drunk customers, moronic staff, and clueless, grasping employers. It's time for me.


i like it... I always wanted to do photography myself but equipments are expensive ... I would do pictures of buildings, landscape, streetscape and sell print arts ... i dislike taking photo of people, people can be fake, I like candid


if you guys have a small condo in oakville... would you stay in oakville and upgrade to a house or move to toronto?


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## WGZ (Feb 3, 2017)

>I'm 25
>Half (5k) per month of that would be invested to counteract inflation/make more $. I already do that by habit with nearly half of what I currently make.
>Keep current job because it fits me. But I would go part time. It still should bring in extra 2000 per month.
>Get my own property. Already have decent amount saved for a down payment, and with the first 10k coming in from lottery, I could do so comfortably and at the 20% down-payment mark. Then live in it while paying it off. Rent that one out, and acquire another property, so on and so forth. Should probably get in to real estate by that point, really make that money.

Bills/living expenses etc. should all total 4k a month like this meaning still 3k a month to spare on enjoying the "now" such as get a new vehicle, spend more at restaurants, save up for vacations, ... etc. the possibilities with 10k a month are endless in my eyes.


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## can_84 (Jul 2, 2011)

1. Max out RRSP and TDSA and invest in stocks, mortgages, and GICS 
2. Start accumulating real-estate in cities with good prospects and work and live normally until I am 40
3. After 40 buy a nice yacht and start my own business and live as I please
4. Help family given they allow me to mange their finances


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## james4beach (Nov 15, 2012)

Mulak said:


> A buddy of mine asked me about what would I do if I won a lottery or got an inheritance that worth like 10k a month for the rest of my life.. there is no one time payment, just 10k a month


This Quebec teen just won $1000 a week for life. It was her first lottery ticket ever.
http://www.bbc.com/news/world-us-canada-43561379

I'm glad she took the 1K/week option instead of 1M. She could have easily mismanaged and blown through the million... but she'll be OK for life now and can't ever destroy the principal by accident.

Félicitations, Charlie!


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## STech (Jun 7, 2016)

I'd save up for 13 months and give Stormy Daniels a call. 

Seems kinda overpriced, but apparently the president knows a bargain when he sees one.


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