How to spend a $587M Powerball jackpot

Perhaps the biggest decision the winners will face is where to spend the rest of their days.

By MSN Money Partner Nov 27, 2012 2:50PM

This post comes from Quentin Fottrell at partner site MarketWatch.

 

MarketWatch logoLottery winners have been known to lose their instant fortunes, but blowing Wednesday's $587.5 million Powerball prize will take some serious shopping.

 

Luxury tavel © Mark Evans, the Agency Collection, Getty ImagesIf someone were to splurge on holiday gifts and purchase every single item listed in the Neiman Marcus catalogue, the tab would come to roughly $2.6 million -- less than 1% of the $384.7 million lump-sum jackpot, before taxes.

 

Officials confirmed that two winning tickets were sold, which means the record Powerball prize will be split.

 

But there are some gems inside the catalogue, such as $30,000 for a walk-on role in the Broadway production of "Annie: The Musical," a potential holiday pleaser for a young child. That price is split evenly between the dog rescue Pedigree Foundation and Pajama Program, which provides pajamas and books for children in need.

 

An outsize dinner party might be another way for a newly minted member of the 1% to launch himself or herself into high society. Neiman Marcus offers a $250,000 private dinner for 10 prepared by chefs Daniel Boulud, Thomas Keller, Jerome Bocuse and Richard Rosendale. Bertha Gonzalez, the world's first female "Maestra Tequilera," will kick off the evening with a Casa Dragones tequila tasting. This is limited to one customer, and all proceeds will benefit the Bocuse d'Or USA Foundation, an organization dedicated to inspiring culinary excellence in young professionals.

 

Of course, it's possible to spend nearly all the winnings on one item if only one person had purchased the winning ticket. The 840-pound Bahia Emerald, which was dug up in Brazil in 2001, was recently valued at $372 million, but was at one time listed on eBay at a buy-it-now price of $75 million, so there may be some room for bargaining, says Brent Shelton, a spokesman for deal site FatWallet.com. However, the emerald has also been the subject of different ownership claims in recent years.

 

For the more sporting inclined, the jackpot would also buy a decent stake in an NFL team -- more than 20% of the Chicago Bears, Shelton says.

 

Another big-ticket item, one that will forever eliminate the need to buy a plane ticket: a private aircraft. The online-listing site Jameslist.com, a Craigslist for the super-wealthy, has a Bell 41EP helicopter for $7.19 million and a 1996 Challenger 604 for $7.9 million. Before buying a jet or helicopter, retail analyst Jeff Green suggests, take a share in a jet through a site like FlexJet.

 

Those who prefer to stay on the ground, on the other hand, might opt for the fastest and most expensive production car in the world: the $2.4 million Bugatti Veyron Super Sport car.

Perhaps the biggest decision the winner will face is where to spend the rest of his or her days.

 

The largest single-family residence in the world is still 6121 Kirkstone Lane in Windermere, Fla. The design is (loosely) based on the Palace of Versailles. Conceived by David Siegel, the CEO of time-share giant Westgate Resorts, the partially built home is a massive 90,000 square feet. It is listed at $65 million unfinished, recently reduced from $75 million. The estimated taxes for 2012 are $65,400. Siegel has started construction again, adding exterior marble. "This will enhance our sales efforts," says Realtor Lorraine Barrett, who is selling the property.

 

For those who like their homes more ready-to-wear, there are several around the $80 million level. They include the $79 million Rancho Dos Pueblos in Santa Barbara, Calif., a working ranch that harvests macadamia nuts, cherimoyas and avocados, among other things, and covers 2,190 acres. It comes with 14 houses and more than 50 employees.

 

And those seeking the ultimate retirement might consider "Tranquility," a 38,000-square-foot home billed as Lake Tahoe's most exclusive property. This $75 million crib has its own private lake.

 

There are options for winners who fear the long lens of the paparazzi. A private island can be yours for less than 10% of the jackpot. Little Hawkins Island in Georgia costs $20 million, says Chris Krolow, the CEO of real-estate company Private Islands of Toronto. Shelter Island in Flathead Lake, Mont., can be yours for $78 million. Buck Island in the British Virgin Islands is "spectacular," Krolow says, and has a price upon request. That is, if you must ask, you probably can't afford it.

 

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41Comments
Nov 29, 2012 9:52AM
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The truth is if you have 500 million you could defer taxes by investing in real estate. Say the winner bought 500 million in 250 thousand dollar fourplexes. That would be 2000 fourplexes with 4 units each being 8000 units. If the rent was a flat 650 a month per unit that is $5,200,2000 for the first month. $62,400,000 a year. Assume 90% occupancy year long and the value he would earn in a year is $56,160,000.  His 500 million dollar investment would be returned in 8.9 years. Then he would be growing his investment 56,160,000+ a year for the rest of his life. This means that he could potenially by 224 more properties a year every year, which is a growth of 6.3 million a year.
Nov 28, 2012 2:13PM
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Actually I think my chances of dating a super model are better than me winning this PowerBall. ;.)

but it's only two dollars. I blow that (at least) at Starbucks every day
Nov 29, 2012 9:28AM
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That is way too much money for one person to handle. In Canada there is Lotto MAX which is a top prize of 50 million. All other money from ticket sales go into extra draws of 1 million each. Also new numbers are drawn for each extra million. I think this increases every ticket buyers chances of winning something. I think last week there were at least 20 extra million to be won. This is a good way to distribute money from ticket sales. Also lottery Canada gives a percentage of their surplus to fund charity organizations.

Nov 29, 2012 11:31AM
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The best thing to do with the money if you have it and don't know what to do with it is to pay off your debts and get an education (if you don't already have one) so you can know what more to do with this money.  You've got the money....and now the time it takes to get the money through a 9-5 job is essentially eliminated. 

 

To me, this article is a advertisement to drive these people into spending their winnings on things that are unnecessary. 

Nov 27, 2012 7:37PM
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Obama's wringing his Sidely Whiplash hands with glee "My moneyMy moneyMy moneyNOT yours!"
Nov 29, 2012 11:02AM
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and... what makes one person so intelligent that they can determine who or how much money anyone should be able to win

You're way out of line here. The juice is what's exciting. Why would it matter if it were 1 Billion dollars or .50 cents? it's all relative to the winner. Besides, I bet you're one of the dopey gimlets  that didn't win, just like me and everyone except of course for the Arizonian and the Missourian that were lucky.

How much money is too much money? You're nuts.
Nov 29, 2012 11:53AM
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The best thing someone who falls into a lat of money can do is NOTHING....at least not until they have first hired a professional investment advisor, CPA and a good attorney. Then they should not make any major changes in their lifestyle for a month or two until they have a plan sorted out.
Nov 29, 2012 1:05PM
Nov 27, 2012 6:08PM
Nov 28, 2012 6:20PM
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Question,,if I had 10 tickets, would they not all have the same . 000003157 chance of winning ? and therefore I should have 10 chances rather than just one.
Nov 27, 2012 9:18PM
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so much need in the world or even here in the USA. why waste the money on that stuff. Helping

those less fortunate would be much more satisfying and fulfilling.

Nov 29, 2012 11:30AM
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if I was the winner i  would get my kids a new car ... and get them in a houes and pay it off  for them ..   then i do not know ...
Nov 29, 2012 11:27AM
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HAHAHA, This article just proves the old saying;  "A fool and his/her money, are soon parted!".
Nov 29, 2012 10:12PM
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Man, the people who write these articles are vicious.  "That is, if you must ask, you probably can't afford it." Are you kidding me? Other than the inexperienced lotto winner, multi-millionaires didn't make their fortunes by buying things on sight. They know how to manage money and probably aren't going to purchase every item in the Neiman Marcus catalog and will MOST DEFINITELY ask the price of a private island, not to mention visit it and meet the owners. Ridiculous bias.
Nov 29, 2012 11:04AM
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best thing to do,? Get out of the U.S. as fast as possible and get your money off shore. Bam Bam is comming and he wants everyones elses money to pay Paul     
Nov 29, 2012 1:10PM
Nov 29, 2012 12:45PM
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It would be an absolute pleasure to create a charitable foundation and play a role, albeit a relatively small one, in helping to solve humanity's most perplexing problems. 
Nov 27, 2012 3:13PM
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Make sure you save plenty for taxes.Your chances of winning are about as good as

dating a supermodel.

Nov 29, 2012 1:03PM
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With a pile of money this size and the right legal team, someone could be instrumental in returning Christian ethics into our school system and government.  In the 60's and 70's anyone free of a hateful demeanor knew in our hearts that the rulings by the supreme court establishing seperation of church and state were a gross misinterpretation of the intention of the constitution.  Now 50 years later so many people are blind to the truth because that's all they've heard - seperation of church and state over and over again.  Children move further away from the teaching of their parents because they are told, or led to believe, the opposite in school. Our country has lost our strongest binding concepts and we may well destroy ourselves because of it.  God has blessed this land with greatness and in thanks we are turning away from Him- very foolish I think.  All the damage can't be turned around in a day as it took years to fall this far, but we must push back using ' the system' in a way to gain ground in small ways at first. What better way to use such a windfall.

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