What Would You Do With $8.5 Million If You Won The WSOP?
Tonight’s the night we find out who wins the World Series of Poker Main Event! The showdown is between Darvin Moon with 59 million chips and Joe Cada with 136 million chips. Despite the chip differential, players know that things can turn quickly in heads up poker. Anybody with enough patience, and a good amount of luck can win!
I’ve imagined winning the WSOP countless times. Each time I ask myself two questions:
1) If I had to choose between winning and only getting the WSOP bracelet or losing but receiving the prize money, which would I choose?
2) What would I do with $8.5 million bucks?!
The answer to question #1 is easy. I’d take the money for sure! I’d then use $10,000 of the prize money to have a jeweler craft an exact same replica. It must feel unreal walking around as the champ, but I’d rather have financial security any day.
The answer to question #2 is a little bit harder, but much more fun! First of all, we can painfully reduce the $8.5 million by 50% to get our after tax proceeds. $4.25 million is still a lot of money, but gosh darnit, that sure sounds a lot less than $8.5 million!
WHAT I’D DO WITH $4.25 MILLION:
* $100,000: Fly 10 of my closest friends down to Vegas and we’d all stay at the penthouse suite at either The Palms or The Encore for a week long party. We’ll eat at the finest restaurants and have bottle service every night at the clubs. Hopefully, we’ll have such a good time we won’t remember a thing!
* $150,000: Remodel my parents house by installing new double paned windows, remodel their master bathroom and guest bathroom, and update the kitchen with new appliances. I’d also get them a killer home theater system for $10,000 since they still have a tube TV with no cable.
* $50,000: During the 2 month remodeling process, my parents will cruise the world in a penthouse suite on one of the great luxury liners.
* $80,000: My parents have a beat up 1991 Camry that makes funny noises every time it goes. A new Lexus LS450 would do, although they’d probably be just as happy with a $28,000 Honda Accord since they’re so low key.
* $50,000: Host a week long family gathering at Auberge du Soleil in Napa during crush month (September). There’s something eating grapes picked right off the vine.
* $50,000: Travel for a month with the wife to Amsterdam, Prague, Athens, Rome, and the south of France. This trip will be next year, since we just had a great time partying it up in Vegas!
* $20,000: Keep cash in a safe somewhere at home and practice “making it rain”!
* $0: Pay off no debt. What you say? It’s all accounting really. When you have more cash than debt, why would you ever tie it up in a house? Debt helps keep me motivated to work and secure my financial future. Without any debt at my age, I’m afraid I’ll turn into a slacker!
* $125,000: Donate to a local organization such as The Omega Boys Club which helps educate inner city kids and keeps them off the streets.
* $3,600,000: Buy a stable value fund with a 4% yield and collect $150,000/yr in gross interest income.
With $3.6 million in the bank, I still won’t quit my job. In fact, I think I’ll enjoy my job more because of the new found financial security. Spending 15% of the winnings and saving the other 85% sounds like a good balance. Who knows, I may end up giving it all away. But for now, it’s best to lock the remaining money up to avoid temptation, and let reality sink in before spending any more. Besides, $150,000/yr in interest income is good enough, for now!
Readers, what would you do if you won $8.5 million dollars?!
Financial Samurai – “Slicing Through Money’s Mysteries”
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