How ordinary Kiwis would spend $38 million Lotto win

Tuesday, 15 October 2019

OPINION: The Powerball jackpot has hit $38 million, and if struck, it would be the second biggest prize won in New Zealand.

We asked our readers what they would do if they won Lotto and how they would the spend their millions. Here's what they had to say.

Felicia Gwynne: If I won that much money I would be over the moon. I know exactly what I would do and the order I would do it in.

Firstly, I would pay off all my debt. I don't want any hanging over my head like the sword of Damocles now that I can do something about it.

* The one (number) that got away, what it feels like to nearly win the lotto

* Powerball jackpot not struck, rolls over to $38 million in Wednesday's draw

* The Kiwis with the golden tickets: NZ's biggest ever Lotto Powerball wins**

Secondly, I would find a financial consultant I can trust and work out how to invest and keep my money safe and growing. Thirdly, I would give out portions of the winnings to help my family and the community.

I'd sit back for a while to let it sink in before any spending is done, says Barb Tyson.

My fourth act would be to travel extensively and modestly, in relative comfort but not extravagantly. Lastly, I would settle in Norway and study as there are no tuition fees for any universities and I am a lifelong learner.

I think if I didn't do something after all that wanderlust - I love how travelling brings about a new adventure each day - I would go crazy. I would need another plan but educating myself for free in Norway to figure out the next plan would be a great next step.

I'll be able to establish myself as a freelance travel writer, dependant on no one and completely free. That's the ticket isn't it? The freedom to do what you want without worry, that is what I want.

Simone Whitlow: I often think about what I would do with a big win - I buy a ticket each draw to give myself licence to daydream on a slow day. While I do have a few things in mind if I won the big one, I think the biggest gift a big lottery win would buy you would be the freedom and opportunity to do exactly what you wanted in life, followed by being able to give to friends and family. The biggest drawbacks could well be dealing with the Diderot effect, and the envy of others.

I would buy a house - I am one of many Aucklanders locked out of the housing market at present - and I probably would buy myself something a little extravagant. Quitting the day job, to me, would be a no brainer - I currently spend a lot of my free time running a history blog and a podcast. To have the financial security to write full-time, and build my base, free of the interim concerns of the breadline would be the biggest gift I could give myself.

Would I want to take a holiday? Yes. Upgrade the car? Possibly, it isn't that old. Pay off all my debts? Definitely. Would I give a significant portion to my family? Of course. Outside of that there are a handful of causes I would like to help support.

I wouldn't say a thing to anyone, outside of my closest friends and family. For now I've escaped the rat race as it is. I would just let people think I've got a little bit more cash coming in, and have decided to move somewhere a little nicer.

Good luck to the eventual winner. I have no doubt it will change your life for the better.

Barb Tyson: If I won the big $38 million I would definitely keep quiet about it. I'd sit back for a while to let it sink in before any spending is done. I would eventually tell my immediate family and would dearly love to help out my four children in any way I could.

We would secretly gift small amounts to special people in our lives over a number of years, writes Claude Piggot.

Each daughter would be required to give at least 10 per cent to a cause close to their hearts, and to seek advice from a finance expert, writes Frances Hinlopen.

It would probably be a good idea to get advice from a financial advisor as well. After a while of sitting on the big win my first purchase would be a new car as mine desperately needs updating but it would be a small and economical, maybe like a Suzuki Swift or Toyota Corolla J.

Then, I'd like to take my family on a big holiday which we would all plan together. I would donate a considerable amount to SPCA, which I donate to monthly now. I'd also donate to any other animal places plus cancer research and other notable causes.

I hope it's a syndicate of maybe 10 people or so that wins – everyone can get a chunk of the money so it's not such a big shock to one person.

Claude Piggot: Keeping quiet about the win is paramount. Life will continue as normal, as our self-employed work commitments are impossible to walk away from or quit just like that! We would need this time to let the big win sink in so we would just carry on, albeit with a bit of a smile.

Giving is important to us so I'd set up a charitable trust with $6m. This should generate approx $140,000 annually to gift to various charities.That money will always be there for us and our children and their children to continue the legacy of giving.

I have imagined having millions of dollars in my account so that when I receive it, I will know what to do with it, writes Elsie Liki.

We would secretly gift small amounts to special people in our lives over a number of years. I've set aside $1m for this. My four kids will have $1m trust fund each that they can't touch until they are 25. Then, I'd put $7m into an interest bearing account. This interest will provide us with our spending money - approx $1,000 after tax each a week for both my wife and I. We are not extravagant people so we would happily live on the interest.

I'd invest about $13m in my own businesss. I'd probably spend $4m building a beautiful home to live in and a place at the beach, and buy some really cool cars I've always wanted. It would be great to take the kids around the world.

It's exciting to dream about it - the impossible! It will happen to someone, hopefully us.

I would do is ensure absolutely no one knows about my newly won lavish lifestyle, writes Luca van Gorkom.

Frances Hinlopen: I would contribute 50 per cent to the town where I live, Paeroa, Hauraki, with the money to be put towards an indoor sport facility including swimming pool, basketball, and squash courts. Excellent sports facilities are vital for all ages, but in particular for our youth.

The remainder would be divided between my three adult daughters and me, to assist with housing. As a condition, each daughter would be required to give at least 10 per cent to a cause close to their hearts, and to seek advice from a finance expert.

Handled with thought and care, I believe the above can work.

I would have no expectations in terms of a radical life change. My only expectation would be to see the funds put to good use.

Elsie Liki: Winning the $38 million would be a dream come true. It's probably an amount that will never show in our bank accounts for most of us who are in the rat race. I have imagined having millions of dollars in my account so that when I receive it, I will know what to do with it.

I thought about it so that I will not go crazy with the money and do something that I will regret for the rest of my life. Money is not everything, but it is something that makes most of the transactions in life very much easier, be it purchases, studies, settlements, applications, relocation, relationships, etc.

With money to spare, I can visit my family back home over the other side of the globe,anytime I want for their birthdays, newborns celebrations, funerals, or New Year reunions.

It is a dream to help my family and friends in ways I could not right now. Let's be honest, a large sum of money is luxury, I will definitely splash a part of the prize on something I want, and do what I cannot do before, because of financial limitations.

I will get myself a beautiful, luxurious and comfortable car. I could look for a house or build one according to my lifestyle. I want a laid-back, comfortable life with the least thought of what could go wrong. I never want to get back in the rat race because there is simply no point to it when I have over $30 million dollars.

I want to make a better me, go travel the world and experience life that I have never seen or touch. I want to make a better daughter, a better wife, a better friend, a better stranger, for the better world.

Luca van Gorkom: The first and most important thing I would do is ensure absolutely no one knows about my newly won lavish lifestyle. As soon as someone catches on, I'm in the s*** as everyone who knows me will be begging and then envious and bitter when I refuse to give in until I have everything sorted out. Relationships could get fried and people could get sour. So best to keep it undercover.

Secondly, I'd find someone that I can actually trust with money. Preferably, someone I've never met, and someone who has a legitimate interest in ensuring I get the best out of my new situation as possible. Also, someone who is willing to stop me from making rash buying decisions without thinking everything through.

In the long term, I'd look at investing in the safest options, rather than the riskier options, as I'd want to just have a way to keep the money away but growing steadily rather than actively 'control freak' my money. The less I see of it, the less I'd want to spend it. I'd want to keep as much for the long term as possible - I much like the appeal of knowing I have large amounts of money available, rather than having lots of expensive things.

Lastly, I'd pay off any debt that I have, and perhaps make sensible decisions about a nicer house and nicer cars. Travelling would be on the agenda, in reasonable comfort, but not outright luxury. New experiences would also be part of it, but keeping a part-time job, or trying new careers without the fear of not having a pay check in between.