$1M Lottery Winners Are Split on What To Do With the Money
HTML-код
- Опубликовано: 29 авг 2024
- 💵 Plan your monthly spending for free with EveryDollar- ter.li/vkumyr
📞 Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET or send us a message - www.ramseysolu...
🏦 Take Your 3-Minute Money Assessment - ter.li/fi5xhh
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/rqwdws
🍸 Smart Money Happy Hour ⮕ ter.li/tmj3vq
🧠 The Dr. John Delony Show ⮕ ter.li/s5yazz
💰 George Kamel ⮕ ter.li/dc2gee
💡 The Rachel Cruze Show ⮕ ter.li/a6emrr
💼 The Ken Coleman Show - Highlights ⮕ ter.li/v8n4u8
📈EntrLeadership ⮕ ter.li/g7s9g0
Ramsey Solutions Privacy Policy
www.ramseysolu...
We leave money like this alone. If it’s unexpected & not needed for our basic necessities, you let it grow. Throw it in a mutual fund & let it grow. Live in the home you just paid off
I agree, invest it and forget it..
Live in your paid off home with your two incomes and you will be living the dream.
@@user-dq4ri6fi7b 100%!!
Who's "we?"
@@raymond_sycamore My husband and myself.
@@raymond_sycamore probably spouse.
Win $1 million and their dream is to buy a $1 million dollar dream home and go back just to debt sooner rather than later. Genius!
yeah some people are unable to hold money, TGIF OGIM, from hands to mouth...
Not really, real estate is king in Canada. As long as they don't upgrade to a home that costs more than 1.5M they'll realistically be putting money in the bank and still get the home paid off from the sale of their old home. Just keep working and saving, most people dream for a life changing handout like this.
@@kimblem.w9952 I would want to have a lot of money to make owning 800k in land fun.
That is her dream, not her husbands dream
Pigeon mentality 🤦🏽♂️🤦🏽♂️
Invest in index fund. Manage your own money. Learn investing. Stay away from shady financial advisers.
Her husband’s in the background doing the most aggressive silent fist bump of all time
I dont doubt it😂
LMAO
I live in Vancouver, don't buy the rental. Don't be a landlord.
yeah I thought that was weird. There are people sitting there saying I wish I had 500k in the bank, I'll make that from becoming a landlord. They already have that cash, they get to skip that step and live in a dream house, mortgage free, other debt free, just work a job on your terms and retire early!
I would keep living in my house, invest it in a VOO and a VTI and some bonds, some in a rental & keep working.
pretty safe. little downside so agree
liar
Boring
I would quit my job, travel and live off the interest..maybe work part time if absolutely needed!
@@Shopgirl1 I'm not sure what you mean by interest. The market will go up and down.
Anything that doesn't go up and down will not pee you very much.
If you could find a 5% return on $600,000, that would be 30,000 after one year.
I'd rather let the money double in about 7 years. Don't play with it and it should double twistce in about 14 years. Now we're talking about 2.4 million. That is much more exciting than 600,000.
The money is burning a hole in her pocket. I agree with the husband.
I would be leery of having someone manage it for them though. Being charged 2% on your money for someone to manage it would not be a great deal. If you weren't comfortable managing it yourself get some education in that.
They should just be able to buy some mutual or index funds and leave it alone.
Paying another 2% on top of that is going to be hard on performance.
You’re nuts if you think it costs 2% to have money managed
Yup, she’s definitely ready to spend the Mil
@@jamisojoinvesting one million and have to pay 2% comission fees. Isnt that 20000 just for some dweeb to handle your money?
She's an example of how lottery winners go broke. Following the caller's plan, they'd be back in debt living in a big house that eats up more of their income than expected, leaving them with less cash flow to enjoy life than before they won the lottery.
That’s why giving people money who have no financial education, discipline, and work ethic don’t hold on to it!
I believe she wanted to keep her own house rent it have a rental. That will be two cash flowing properties and then acquire the dream house. She said those two rentals would practically pay off the dream house mortgage every month.
I don’t see an issue, just keep a cash reserve of $50k or so. Having 1.6 to 1.8million in real estate and appreciating 4-5% a year is a higher ROI than a mutual fund
I know Dave preaches no debt but he also says 20% down on a house. So 50% of debt of real estate and paying itself off is better than 20% down and having to pay it from one’s salary.
If they come to a pinch sale a rental or both.
Set up a portfolio. Have it make you money and live in the house you paid off happily until it 10x
This is the winner
They won’t
It's sad, but a million in Vancouver real estate is unfortunately not that fortunate.
Husband is right. But, whoever is demanding a 1/2 mil buy in is not the right advisor. They need to see a good tax accountant in their province and find a fee only financial advisor who will make a realistic plan for them. Perhaps I misunderstood, but around here $800K is a lot of acres, like 500. That is a business investment. On the other hand, in the major cities $800 is a generous down payment on a detached house.
I don't even know how she would get acreage in her area unless she goes WAY out. Look at Zillow for property, it's obscene.
1/2 million buy in is just a bullshit scam, so happy I learned all the financial education I needed on my own time and dime!
They live in Vancouver, $800,000 is like a half acre smashed parking lot on the edge of town
My father owns a bunch of forest land here in nys. The land value is based on its resources (get a forester) but about $1.5-2k/acre sounds right. Any suburban or metropolitan areas will be be substantially higher per acre because the lands value isn't based off its resources but its proximity. Also, I don't recommend buying a 500 acre property as an investment unless the buyer is looking for a safe place to store wealth and is not expecting large returns from the investment.
I’m with the husband. Rental property is risky and a lot of work. She’s been watching too much HGTV. Invest that money, stay put, and save up for the place in the country.
Absolutely. Stay in your house for a while longer. Put the current nest egg and as much as you can pile up in a market index. Stay away from the financial advisor (he siphons off your profits to make below average returns). Stay away from the rental property (headaches and risks). You're young, work extra hours and make extra money. In a few years you can reevaluate about buying property out of town. Oh, and not a very good response from the hosts.
Thank you for your research. I find your videos are well done. RIght now I'm keeping an eye on Eledator
just paid our house!!hey babe lets go buy another way more expensive house...people please chill!!
WIns a million dollars in Vancouver, Canada. They could put it towards a down payment on a small condo there.
it’s refreshing to see people finally waking up and getting out of these cities that suck people dry, hopefully they move out these cities but don’t bring their awful ideas with them to my city
Lol
Buy the land, but don,t build the mansion. Build a modest house that's built to take additions, get any money left over invested, and add to the house when you actually need the additions, which will likely be never.
@@mydeadtrim it's a city with limited land. demand and supply dictates house prices, not awful ideas. They can eliminate all permits and governmental hurdles tomorrow and house prices would still go up.
@@peterrose5373you obviously don’t know about Vancouver. $1M is sure as hell not getting you even a small new house on land there.
I love the discipline of this couple and not gettint tempted to splurge their winnings into parties and fancy stuff. They'll be more successful with their discipline.
Do not find some persons that their minimum is conveniently “500k”
Canadian dollars. Fun fact this is barely a down payment on a house in Canada.
The average house is not 5M in Canada
@@perotal I was partially joking.
Fun fact: Their current is about 350k. That is not a lot.
If she is from Vancouver, no way her house is only worth $350K. She probably lives outside of that. As crappy houses in Vancouver exceed a million.
@dudeorduuude5211 she said they paid off remaining $350,000.
Learn the basics of personal finance. Spend a day watching some youtube videos. And put the money in an index etf. Nothing fancy. Don't pay someone to manage your money. Done! Pronto!
📠
$1 million Canadian, isn't that like $3.50 here?
$728k. close tho
Actually, $1M Canadian from the lottery in Canada is like getting $1.5M USD from the lottery in the US :)
Just hold onto the money why is it everytime people get excess money in their pockets they have to spend it I would put it in an investment portfolio and pretend it doesn't exist
Bills??
Exactly @nathanroark3339 .. !
@Gumby6583 I said excess money, and I'm talking about this senerio where they won 1 million dollars and they were living just fine before they won so continue living like the money doesn't exist
@@nathanroark3339That’s a good plan.
Because you’re liable to spend it if it’s just sitting there. You wanna put it somewhere , where it makes you more money and it’s working.
Sounds like they already blew through half the money.
You couldn't pay me enough to be a landlord.
I’d buy the dream property. With two incomes and no mortgage, they’d build a nest egg back up in no time.
Sounds like they need more options. I got visceral reaction from reputable guy and 500k minimum.
You were BLESSED not lucky, to win..
In Canada max out your TFSA and buy dividend paying stocks only
The same here in Europe; no taxes for lottery-winnings.
Same everywhere except USA
Make sure to maximize tfsa contribution room when you put your money in a tfsa all that money in there is tax-free with withdrawal and can be earned within tax-free make sure to max it out every year or close to it
Remodel the paid off house and chill.
Oh man, she's gonna make him miserable not getting her dream home right now! Poor (rich) guy
to have your house paid for is so underrated i think.....i can only imagine.ill be in my 60s before that happens.i could retire in 5-8yrs instead of 15yrs from now!this is why people piss this kind of money away,they were never good with money so when they have a bunch it doesnt mean there are all of a sudden good with money
the husband is obviously correct in wanting to invest it which is passive income. i dont know where people get this warped idea that being a landlord is passive income. its a job and people will destroy your house. also its idiotic that they're wanting to buy a $900k property when their NW is around 1M. they should look for something sub-500k and keep the rest invested so they're getting those compound interest gains. land outside of the city is cheaper, so idk why it would need to be 900k. if they were really wise they would have paid off their debt and invested it all and in 30 years theyd have millions of dollars. 500k invested at 12% for 30 years in nearly 15m
Agreed. At least let it build to a couple million.
Have you looked at Vancouver BC real estate? They must have a tiny condo because that's all you can get for under 500K in Vancouver.
@@suen5006 nope, thats pretty absurd though. Canada is one of the largest countries on earth, there should be no reason for everyone to be squished together in an expensive city like that. surely semi rural land can be found for like $4000 an acre. its annoying how people get so tied to a certain state/city while drowning financially. i lived in San Francisco making $120k a year barely surviving in a crap apartment with no hopes of having a home let alone a home on acreage. i moved to Arkansas to make $70k and within 10 years (could have been quicker) i had a paid off family home on 43 acres. sure i moved away from some family members which sucks, but planes exist and i fly out to see them every 3 months. nobody is going to keep me living in a place where only the ultra rich or the homeless can survive.
we can live poor near family in a city for the elites or live an upper middle class life on a paid off farm that my family loves. the choice was super simple for me.
unless you're rich and youi can afford it easily as a vacation dwelling, its just actually idiotic to pay $500k for a Condo which you dont actually own, ive seen so many stories of the building owner selling which forces you out etc, and ofc you just dont have the freedom of owning an actual home.
Oh, I love you guys, the best market analysis! Seriously, why not mention Eledator?
I'm curious how much land is per acre in Vancouver. I have listings within an hour of me that are $5000/acre. It wouldn't be too hard to get 30-40 for $200k.
Happier chickens make healthier eggs.
😂😂😂😂😂
... since when is there is a MINIMUM of $500K for an investment account. Sounds shady to me🤔
@nancymoore8250 No, that is pretty standard for an investment advisor. But that's just stupid. They should invest in a whole market index fund, like VOO and VTI. No minimum and no $10,000 annual fee.
@@Fred2-123yep.
And I don't know about the minimum to invest but there can be a minimum to get a lower fee rate.
And then the fees are still much too high. They are investors now and they should learn the simple things you need to know to do it well. Like, don't play with it.
No need to hire an investor. S&P500 pretty much beats all the investors out there so just throw it in VOO and avoid those small seeming fees that actually take a lot of your money away from you.
Yes.
You sound like they need a little more knowledge though because they don't seem prepared to do it themselves.
And when you do it yourself you need to know not to get nervous and sell.
Being comfortable sith delayed gratification is a super power 😂 the portfolio will make them so much more money and they can still buy their dream property in a few years. Just be patient lady
4 percent on 500000 is 20000 per year roughly 1500 per month
Wow!! Getting a million dollar check is awesome!!!
Get the cheapest bank foreclosure you can get that has sewer and electric, knock down the old disliked building, and build your own. Do it yourself or with a contractor because $800,000 for 'land' is ridiculous.
even puting a bathroom in requires stupid permits let alone a whole house
Yep. I can't imagine what I'd want 800,000 worth of land for.
You can rent out farmland that's worth that much but the payout is pretty slow.
DIY a brand new house?? No way! They’ll go broke before they’re even finished if they don’t have experience with building houses!
I would fully fund my RRSP and TFSA to the limit, invest in an RSP and then look at a land purchase. Congratulations to them!
They have money....suddenly the need to do what they never planned for before that time ????????
Sounds like either way they will lose this money. 500K minimum to invest with some guy? spending all money on land/house to become a landlord? how much time to recoup the 500K and then earn interest? They need to do more research. Where's Dave!
So she asked them for their opinion, and they didn’t even give her one 😂
I was like looking for this comment 😂
She presented two ideas and they chose one.
For laughs go watch some videos on lottery winners that go broke. It's astonishing how people can destroy their lives.
It’s easier to lose than you’d think. I’ve been there.
Suddenly, your day job isn’t worth your time. You work for a few weeks but realize your wasting your time.
You pay off all your debts, give very little to friends/family, go on a modest vacation, then have to decide how to invest.
That’s the hardest part because you see the value go up and down.
After that, you have think about your next career. If you have the education to back it - you apply to the best jobs and only take the ones that pay great and offer great benefits. However, it’s not enough to mentally stimulate you.
So, you quit that job and try to live off the interest and eventually end up spending more than you’re earning in the market.
You look up a few years later and you’ve got $100K left and chalk it up to a dumb mistake. But, you know at least what NOT to do next time.
It’s cause most of people gives so much money away to family and friends. Spend it on drugs, alcohol, fancy lifestyle, instead of investing all that money
Yeah putting everything into a property you live in without much secondary income streams means you don't have the freedom to stop working if you suddenly fall ill or get a horror boss all of a sudden etc. For me a passive income that guarantees freedom is worth so much more than a lifestyle upgrade if I still have to work hard to build up cash generating investments that will enable me to retire comfortably.
Agreed. I would want real wealth behind me that pays me regardless. Mutual/index funds.
CRAZY... Just stay in the home you just paid off.
If I had 550k laying around AND a paid off house, I’d let the money grow. If I had 550k and no house, I’d go and purchase a home cash
Smartest comment here.
wish i had this problem to figure out😂...
I would reinvest all of that money in more tickets. No brainer.
Invest what is left. Single or even two rentals have a lot of risk.
im gonna buy a ticket now jokingly
the interest rate is accurate she most likely has it in what we call a GIC so 4% is around $1666 per month which is decent. pretty much risk free money.
I can live on 25k a year in NJ. So 1 million can last me 40 years. Without investing any of it.
With inflation, I'd say 30 years.
I would have kicked the bucket before I would spend it all.
Lol, of course you’re from New Jersey
Blow the million.. invest the million get 10% for life don't understand the blow the egg minset
S&P 500 index fund set it and forget it. Don’t pay the fees for an advisor.
Why can't she put her money in an interest-free savings account. Canada gives us that account that is not taxes at all.
Because as of 2024 you can only put $95k in it and they have more than 4x that amount.
Don’t let anyone manage your money they will charge a fee and over time will take most of your returns. Even a 1% fee can cost you over 30% of your returns over time
Agreed.
I might consider investing a minimal amount so they can teach me some stuff. If they don't enjoy teaching you about the basics then find a different one.
Not if it's 1% of the profit. That would be 1% of your returns. If the advisor is charging you a percentage regardless of portfolio performance, that's not an advisor, that's a thief.
My vote is for investing. Of course, if this is in the US, I'd park some of that money in an index fund.
With regard to real estate, one question to be asked is how do they feel about being a landlord. My first experience was negative (long story), and after getting out from under that, I was done.
But are they safe?
Good news is: You won the lottery. Bad news is: You won the lottery.
I’d find a fiduciary financial advisor if I really didn’t know what to do
high yield savings account is an oximoron
5% risk free is pretty damn good, no?
@@2k3SteedaGTsounds all right but how long will that last?
@@jamisojo likely until the federal funds rate decreases. HYSAs have paid 4%+ for over a year now.
I’d protect the principal now that they have all their debt paid off. Invest and use interest and dividends from those investments if you need to, otherwise let that grow
They should fill up their TFSA account (each person can put in up to $95 000). This is an account where the interest earned is tax free. They could earn close to $10k a year tax free with no risk (using GICs).
$1000 CAD/what? insurance on $550kCAD for 4% p.a. interest definitely helps to balance the cost
IIRC, California also doesn't tax lottery winnings. They tax everything else though 😅
Buy 3 rentals and you’ll save up enough for the new house in no time. Don’t waste it on a big fancy house that doesn’t help your future at all.
Rachel,
Canada is also in America. 😂😍
North America the continent yes but not United States of America which is what Rachel is referring to
As a Canadian, we 100% do NOT claim America like that. We are a separate country within America.
Imagine making 10% annually on 1 million and could’ve cash flow all of this through interest alone
Invest it! Chances are you will never receive a windfall like this. Invest in a well-diversified portfolio. Otherwise it may get pissed away.
Just sit tight and buy a $1MM for $100K on the courthouse steps in 2025.
CASH only sales.
@@aolvaar8792good luck with that plan. 😬
Gosh, now that we have more money, and we paid our debts, we should get in big debt.
Being landlord to a single tenant is an awful situation. I’d go with the husband’s plan but NEVER place $500K with a “reputable” financial advisor. Buy 4-6 solid index funds a la Buffett and spend a few years learning how to evaluate companies not stocks, the companies for further investment. Don’t start thinking you are rich.
No Rachel, don't move to Canada lol.
Bloody hell, let her talk man
Why would you sell the paid off house
You know, back in the day, Wall Street moguls and big finance guys would splurge on the Las Vegas Strip, dropping serious cash on private dances, casinos, and other indulgences during lunch breaks." Instead of blowing one’s savings, you guys ever think of investing like the rich and use gambling as a side attraction?
I would leave Canada immediately with that kind of money.
*leave North America immediately
And go where?
First get a hold of a tax council and accounting firm to advise you what to do before any thing don’t tell relative of ??????? Or friends who knows how they will act about this. Pay off any mortgage car bills and so on if there’s nothing left you now will be cut all the loans off the monthly bill
Give it to me!! 🎵
Finally a couple who seem very grounded and intelligent!!!!
Little surprised on there reply. Often they are like yeah.. go buy that house! This is just me. But I don't think putting in a lot of money into your own home is actually worth it. It is in the sense of if it's something you enjoy. More like a hobby or recreational vehicle. I like working on houses so for me it's a hobby. But that money just doesn't go anywhere. It gets locked up in your house. Which your not going to sell. The only way you can really get at that money. Even a small part of it is downgrade. Like a smaller house or moving back into an apartment. Or a gift to your kids. You'll never really benefit from it. I mean, I do agree that ideally, you should have a paid for house. And buy doing it, it may free up a lot of your income to make actual investments. So for that sure. But having your portfolio heavy into your own home and basing your wealth off of that I think is a terrible idea. Your better off putting money into a 401k or ira or brokerage. Or a rental property. Those are investments. Your house is a toy.
Yes. I agreed. I would use their new baby wealth to make money. Not have a cooler home.
Please listen to what they recommend. Their way has over 30 years that work. THEY MUST B E DOING SOMEONE RIGHT...
That's about 730K in US dollars untaxed. Pretty lucky break. Buying a rental property is probably a solid strategy.
No
@@BT-mc2yd Very thorough response. I'll entirely concede. Are you a lawyer?
@@blaketrent8548 No lol but my dad is
@@blaketrent8548lol.
I personally wouldn't get into real estate because I don't like the hassle and I am comfortable investing in the market.
I do understand that if you invest well in real estate you will probably make more money. It sounds like these guys are going to learn a lot of lessons before they are able to make a lot of money though.
I’d live in the house I paid off & invest the rest so I can retire early. What’s the point in blowing all the money on a dream home if you gotta keep working just to cover taxes and maintenance?
I mean, I've heard of people paying 40% taxes or more in Canada. But sure, if you win the lottery you'll keep it.
I'd YOLO it all in Nvidia for one year. By then, it will have doubled. Then they can take half out, buy their dream home, and keep the rest invested.
the lady has a good idea but she’s not looking at this risks involved in owning property even dave said being landlord is not worth the hassle and money, especially the things going on in canada rn
just invest it and see where it takes you i doubt you can get anything half decent for 600k not to meantion especially in canada which i’m assuming would be around 2-3million
Any Canadians, help me understand (maybe I’m missing something)…
Contributing any of the winnings to an RSP seems like a bad move. Unlike regular income, these winnings aren’t taxable (benefit of an RSP is being able to contribute pre-tax income), but they’ll be forced to take withdrawals and pay taxes on the funds (contributed to the RSP) when they hit retirement age.
Had they just taken those funds and invested in an index fund or target date fund (via a regular brokerage account, not within an RSP), they’ll never be “forced” to sell/pay taxes and any taxes they do pay in the future will be capital gains taxes (aside from dividends), not income taxes (which would be the case with the RSP).
Any contributions made to RRSP is considered a deduction on income so if they made 100K in the year and contributed 25K, they will only be taxed on 75K for the year.
Hold onto the money and diversify it in retirement and saving accounts. Keep the home if you plan on having kids, rent out a smaller apartment if you don't.
Apartments are not fit for human habitation.
Lifestyle inflation creeping up lol 😂
They need to be careful to not let this money get them into trouble. They didn’t win enough to stop working, but it’s enough to cause a wealth effect that could cause them to inflate their lifestyle and increase their expenses. If they leverage up trying to make investments it could end even worse if one of them implode because their day job salaries won’t be enough to save them.
4% APY = 4%/12mo = .033%/mo.
Dame no taxes on lottery winnings in Canada.
Just put it on compund interest with good bank + some in index funds + some to other investments and forget it. Now they will go broke again 1 year
GLORY!!!!'m favoured, $140K every 3weeks! I can now give back to the locals in my community and also support God's work and the church. God bless America 🇺🇸❤️
God bless you more abundantly for your generosity
Big thanks to Renee Marie Harrison
Her top notch guidance and expertise on digital market changed the game for me
Please how can I get connected with her
I'm really interested please
Everytime I hear of someone managing money they make risky investments and lose the money! Real Estate is risky, buy mutual funds!
I agree with the husband.
Same
crazyy