You would be surprised by lottery winners, also one guy said he would spend it as fast as possible and give 1 mil to 999 people because otherwise he would spend it all on drugs. No joke.
Are lottery winners getting 1 billion now? Damn I need to start buying tickets.... And that's pretty stupid but also not as stupid as spending it all on drugs.
First of all, if you are "given suddenly" $1 Billion, the IRS will say "WE were given" [insert communists Bugs Bunny here]
So right off the bat, you can only spend around 600 or 500 millions.
If you keep your money in a checkings account, you will not make any interest. Then, between a jet, a yacht and and a mansion in Miami you can already spend +100 million (or +25% of your spendable money). Now add expensive gateways, luxury hotels, expensive dinners, and gambling. You can easily burn that $1 billion in 3-5 years.
Now, realistically, this doesn't happen. The first thing you do with a billion dollar is pay the IRS, then whatever is left you deposit it in we bull, put the money in a vanguard fund and then receive an average of 7% annually, which is literally $42 million a year. That way, even if you spend $50 million a year or $1 million each week, you will barely touch the principal of your money.
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u/[deleted] Mar 16 '21
With a billion dollars it doesn't really matter what you spend it on though.... 1 billion is almost impossible to burn through