The never ending question of; “What would you do if you won a $1 million dollars?” seems to bring a lot of thoughts and different ideas to our head. Would your life be changed forever? Probably! But money being the root of all evil’s, can change your life for better or for worst. Hopefully the winnings would never change the person you are and everything you believe in, but that’s not the case with most of us. Years ago, my goal of what I would do with the million dollars would have been very different than what they are today. My perspective on money has changed drastically within the last year. My current perspectives on money is to live debt free, save for the future, invest for the future and invest in my self.
Here is what I would do with $1 million dollars:
1.Pay off my debt – $6,000
2. Pay off the remainder of my mortgage – $110,000
3. Pay off the remainder of my parents mortgage – $165,000
4. Purchase a new home – $475,000
5. Purchase a new car - $35,000
6. Deposit money into RRSP (Retirement Savings) – $70,000
7. Give away money (family & friends) – $25,000
8. Donate to charities – $10,000
9. Investments (Stocks, ETFs & Index Funds) – $85,000
10. Leave the remainder in cash (vacation(s) & day to day living) – $19,000
11. Continue working – $0
12. Never change who I am and my perspective on money – $0
TOTAL – $1,000,000
Due to winning $1 million dollars and the way I would distribute my money, here is the scenario I’d be left after all the money was distributed:
1. Investment Property
I would have one investment property paid off. Due to this investment property being paid off, I would have an additional $1,200 monthly in extra income.
2. Paid off primary residence
Since my primary residence would be paid off, I would have the full equity of the home.
3. Retirement
I would have roughly $76,000 in my retirement fund (RRSP) to use towards my retirement, while continuing to contribute to it regularly.
4. Investments
By investing money in the stock market, ETFs & Index Funds, I would have over $88,000 invested (liquid.
5. Total Liquid Value of Investments
$160,000 – Rental property (current value of condo)
$475,000 – Primary residence (home paid in cash due to winnings)
$88,000 – Investment portfolio (total value, if it did not drop due to market)
$77,000 – Retirement fund
$25,000 – Cash
TOTAL – $ 825,000
What would you do if you won $1 million?
I don’t know if you are aware of it, but the million dollars you won is not tax free. Generally speaking you would net approx. $500K. That presumes it is a lump sum payment versus paid out over 25 years.
Since I have no debt, I would invest it for future.
In Canada lottery wins are tax free and paid in lump sums….just a friendly FYI
First off, Canadian lottery taxing laws are AWESOME. :) Here’s how I’d spend my whole million, though, sadly, I could have that baby spent really fast.
I’d pay off my parents’ mortgage. Maybe that would be $300,000
I don’t have any student loans, but I’d pay for my sister’s schooling (she’s doing her undergrad, currently), pay off a couple of my close friends’ student loans and then give a few lump sum gifts. $80,000
I’d buy, fix up and furnish a house. $500,000 (I live in Toronto, so this would *not* be a lot of house for the cost.)
I’d buy a new car, a VW Rabbit. $35,000
I’d do some travelling. $10,000
Donate to charity. $10,000
Invest in my RRSPs and TFSAs. $25,000 (I’m still in the beginning of my career, so this amount would max out both accounts)
Invest in other things (???) $25,000
Keep cash liquid for other day-to-day expenses associated with my new house/car that I might not be expecting. $15,000
And then, once I did all that, I’d go back to my job and continue working business as usual. No way could I stop working if I won a million dollars, though I wouldn’t want to. :)
Yes Canadian lottery laws are awesome! Aren’t we lucky? I think so! :)
Either way, that’s a fairly compact way of how you’d spend your money. I like that you will continue working, save for retirement and seem fairly giving. Good job!!