Monday, June 11, 2012

Dealing with Instant Wealth


I mentioned, in a recent post, that I would probably show up for work if I won the lottery.  That has to do with an article I read recently (although I can't find it again, now that I want to comment on it).  The article mentioned some interesting things that I had never thought about.

I knew (everyone does, right?) that lottery winners start receiving all sorts of pleas for help -- from individuals and charities.  They also find out how much their relatives really care about them ... even the ones they haven't heard from in the past 20 years or so.  And they may be more susceptible to crime, where they are targeted for robbery or a break-in.

What I did not know, and what this article pointed out, is that lottery winners often find themselves to target of lawsuits.  Someone will walk across their yard and find a hole to twist their ankle in.  They will find themselves involved in a traffic accident.  Accidents will start happening all around them -- involving assets in their name -- because greedy people will see that as the best way to get to the money.

That was an eye-opening revelation for me.  I had never thought about people trying to manufacture accidents in order to file lawsuits.  And yet, apparently, this is one of the big problems encountered by people who win large sums of money.

So if I were to win, I would go to work.  I'd keep the ticket in a safe place (a safe deposit box at a bank) while I got a few things in order.  One of those would be selling my home, so that I had no real property.  Since my job is the only thing tying me to this location, I'd plan to move once the winnings were in hand ... finding someplace that would be nice to live, where no one knows me, and where people couldn't easily trace me to the winnings.  To do this, I'd get rid of just about everything I own.  Things that are true keepsakes I'd move to a storage facility rented by a relative, to be retrieved once I did find a place to settle.

I'd make sure that all the financial arrangements were in place -- trusts, multiple bank accounts, and so forth -- so that the money would be quickly dispersed into safe locations to earn interest.  My goal would be to live primarily off of the interest, rather than spending large amounts.

To help the trail go cold, for anyone who tried to follow me (and set up a lawsuit), I'd probably move around a fair amount the first couple of years.  I'd find an interesting place and move there for a couple of months.  I could live out of an apartment with a short-term lease ... or even a weekly-rent hotel room.  I would rely on public transportation, instead of having my own vehicle.  I would be a tourist, not seeking to make friends or create new relationships.  After a month or two, I'd move on to a new place.

This would take discipline.  Most people immediately start giving money away and spending lavishly.  I wouldn't do that.  I would be very methodical in protecting the funds, "going underground" to avoid as much publicity as possible, leaving a cold trail that greedy people couldn't follow, and taking several years before finally settling in an appealing area, buying a home, and buying a nice (but not outlandish) vehicle.

Based on the stories I've read of lottery winners and their tribulations, it seems to me that this approach is the one that would work the best.  Is it foolproof?  Certainly not.  Nothing is perfect.  But, given that sort of financial freedom, I would do everything possible to be untraceable.

It's all part of the dream.  Since I seldom remember to buy a lottery ticket, I doubt the plan will ever go into action.  But at least I have a plan, were it to ever happen.

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