Brad Duke, who managed 5 Gold's Gyms in Idaho, won a $220 million Powerball jackpot in 2005, which translated to an $85 million lump sum payment after taxes. He assembled a team of financial advisors before claiming the prize, and set a goal of turning that $85 million into $1 billion in the next 15 years. Here's what he's done with the money so far:
Investments:
$45 million in low-risk investments such as municipal bonds.
$35 million in aggressive, high-risk investments such as real estate, oil, and gas.
Donations:
$1.3 million creating a family foundation.
Debt retirement:
$125,000 to pay off his mortgage (on a 1,400 sf house he still lives in)
$18,000 to pay off student loans
Purchases:
$65,000 on bicycles, including a $12,000 BMC road bike
$14,500 on a used VW Jetta
Gifts:
$12,000 annual gift to each member of his immediate family
Splurge:
$63,000 on a trip to Tahiti with 17 friends
The result so far--he's turned $85 million into $128-$130 million.
The article says $1.3 million for family foundation. What does the foundation do?
ReplyDeleteAnyhow, it is nice to see he is not blowing his money on strippers, drugs, or charity since he is focused on his goal of getting to $1 billion.
Thanks for the correction.
ReplyDeleteMy guess is that he just set up a foundation to give charitable gifts to causes he and his family support, to get the tax deduction up front without actually giving away all that money immediately.