What Would You Do With $10M?

$1 million dollars represented in a hundred $10,000 cash bundles

As reported on www.nationalnews.com, From Dh15 ($4.08) to Dh15m ($4,087,193): Indian resident of Dubai becomes lottery millionaire overnight.

Ajay Ogula was a driver for a jewelry company before hitting the Emirates Draw mega-million jackpot. His words, as reported in the article,

“Dh15 million? What will I do with so much [money]?”

The excerpt is taken directly from the article:

“Mr Ogula first plans to bring his family to the UAE for a holiday after he arranges passports and flights.”

“I also want to buy a house for my mother and sister. They will come here, and we will discuss what to do.”

“He is also taking a small break from his job, but has no other plans for now, but helping others. His generosity runs deep, and he has previously helped less-fortunate people in his village and now plans to do even more to help those who need it most.”

A Red Flag That Will Take Him From Riches To Rags

He said nothing about growing or investing the money.

Only spending the money.

By all means, help people, but establish a plan to consistently create wealth so the money well will not run dry.

A wise man once said, “The faster the money comes, the faster it will go.”

If you were to find yourself in Mr. Ogula’s situation…

Financial Sumari is the genius behind this article. The excerpt below is taken directly from the original article:

“But what if 10 million dollars after taxes just fell into your lap? Would your life really change if you didn’t have a day job, or loved your day job, and had enough food, clothing, and shelter? I’m not so sure anything would change at all!” says the author.

I, on the other hand, will travel and navigate the world in style, class, and comfort. My desire is to live a leisurely, luxurious, and lavish lifestyle as a rich housewife with entrepreneurial aspirations. Before upscaling our lifestyle, I will put in place some financial strategies to grow our money so we can achieve F.I.R.E. (financial independence, retire early).

I think we all should give this some thought. Nowadays, it’s so easy for people to come into a boatload of money and still end up broke. For instance, lottery winners. According to the National Endowment for Financial Education, 70% of lottery winners end up broke, and a third go on to declare bankruptcy. In addition, Fox Business reports 78% of professional athletes go broke after three years of retirement.

Why do most go from riches to rags?

I believe it’s due to poverty or a lack of mindset. They handle the millions and billions the same way they handle hundreds and thousands. The individuals did not have a plan to grow their money. They were thinking short-term and not long-term.

I don’t want my family to be a statistic. Here is how we are investing our $10,000,000.

1/ Create a Wealth Building Team (Private Wealth Management Firm, Tax Attorney, etc.)

Private Wealth Management Firms specifically target high-net-worth individuals (HNWI). Depending on the firm, individuals may be required to maintain minimum investable assets between $250,000 to $3 million. The firms charge around 1% of the assets they are managing. Simultaneously, we will consult with and hire a tax attorney to set up trusts, corporations, and LLCs for high-net-worth individuals to minimize our tax liability. The first thing we would do is develop a plan to shelter and grow our money for our children, their children, and future generations. Spent: $100,000. Remaining: $9,900,000

2/Pay Tithes & Establish Trust for Mothers, Widows & Orphans

We are practicing Christians, so we will set up a $1,000,000 trust to donate to a charity for widows and orphans, based on the returns generated from the principal. We would do the same thing for our mothers – a $500,000 trust for each. I got this idea from Financial Samurai, too. Spent: $2,000,000 Remaining: $7,900,000

3/Buy Raw Land

We would invest 12.68% of the remaining balance into raw land. I prefer low-maintenance investments that generate passive income. In Georgia, tax incentives were available to rural landowners who could generate income to pay taxes from farming, solar farms, hunting leases, and other activities. Therefore, our wealth management team will help us locate land worldwide that builds wealth and minimizes our tax liability to zero. Spent: $1,000,000 Remaining: $6,900,000

4/Buy Precious Metals

To further diversify the remaining funds, we would purchase gold and silver to hedge against inflation. We will buy $750,000 worth of gold and $250,000 worth of silver. Spent: $1,000,000 Remaining: $5,900,000

5/ Buy Stocks & Municipal Bonds

We invest $1,500,000 in stock and municipal bonds: 50% in growth stocks, 25% in dividend stocks, and 25% in municipal bonds. This mix supports both growth and our annual living expenses. Spent: $1,500,000 Remaining: $4,400,000

6/Private Equity Investor

We will provide capital to businesses or startups in exchange for a 15-25% equity stake.

Spent: $400,000. Remaining: $4,000,000

7/$10 Million Term Life Insurance Policy

In the event, something happens to either of us the life insurance policy ensures our new lifestyles are maintained. Therefore, we will purchase two $10M life insurance policies with an annual premium of around $5,000 each. Spent: $10,000 Remaining: $3,990,000

8/Architect

We will hire an architect to design our estate. Spent: $20,000 Remaining: $3,970,000

9/Personal Business Ventures

Starting several business ventures. I read a lot of financial books, and the most common thread is that business ownership is the yellow brick road to “lots and lots of money.” Spent: $1,000,000 Remaining: $2,970,000

10/Apartment Building for Short and Long-term Rental

These properties are another form of passive income. Spent: $1,000,000 Remaining: $1,970,000

11/Cash on Hand

Spent: $1,500,000 Remaining: $470,000

12/Travel & Blow Money

Spent: $470,000 Remaining: $0