×

Money Action Plan: The Millionaire Doorman

Imagine this: getting fired and winning the lottery at the same time. That’s exactly what happened to Richie Randazzo, a 44-year-old New York City doorman who just hit the jackpot.

Richie’s life as a Park Avenue doorman took quite a turn when he scratched off a winning instant lottery ticket and won one of the biggest scratch-off prizes ever: $5 million.

Even though Richie wanted to stay at his job, he got laid off shortly after scratching off the winning ticket. Luckily, he’s got a quarterly pre-tax payment of $65,000 for the rest of life – or roughly $14,00 a month take home.

Richie still needs a plan. After all, one-third of lottery winners end up in bankruptcy, but Carmen isn’t going to let that happen to him. Here’s what she mapped out for the millionaire doorman:

-Richie can afford a mortgage around $500,000 based on his monthly earnings. He can save a 10% down payment within a year, although 20% would be better.

-Because he doesn’t need to save for retirement, he can stretch his housing costs to 38%.

-Thanks to the lotto winnings working as a quasi-pension, Richie can consider himself quasi-retired. Carmen budgeted 22% for trips and vacations he wants to take.

-He should sock away 6% of his earnings toward healthcare, making sure to buy a medical/dental insurance plan.

-Even without saving for retirement, Richie should be planning to take care of his parents and/or a future family of his own. Taking 10% every month and putting it in individual retirement accounts is a good way to do that.

-Finally, Carmen even set apart 6% for Richie to enjoy his hobby: gambling in Atlantic City.

Most importantly, Richie should not deal with anyone offering lump-sum payouts, annuities or any other financial product, Carmen said. With his own plan in place, he doesn’t need their help.


Carmen: You did a great job with the investment/break down for Richie. He is planning to spend 22% on travel...tell him to look at my website - he can get commissions back from his travel.. it would also be a write off for him as a business. He could go to Italy and see family; get money back from traveling and then write it off..how cool is that! Check out travelthebeachbusiness.com and click on the company presentation and/or check out obtainfinancialfreedom.com. These are 2 great reference tools to check out. --Lori, CEO of Travel the Beach