Turning a Lottery Win Into $2 Billion
Brad Duke, 34, of Star, Idaho, wants to make his $125-million Powerball winnings grow to $2 billion.
By Elizabeth Ody, Associate Editor
From Kiplinger's Personal Finance magazine, April 2007
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KIPLINGER'S: How long will it take to become a billionaire?
DUKE: My plan is to turn my winnings into $1 billion over 12 years. I took the $125-million lump sum instead of the $220-million annuity, which would have been spread over 30 years. I had to pay $40 million in taxes, so I started with $85 million.
Can you earn an annualized return of nearly 23%?
I'm a little behind. I've reached nine figures, so I made more than $15 million in just over a year. I want to reach $2 billion by the time I'm 55.
What's your investing strategy?
I have a financial team of three people who work for me full-time. Two of them have a lot of experience building real estate empires, so we're focusing part of the money on buying raw land and building commercial and residential developments.
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What are you doing with the rest of the money?
Some is in conservative investments, and the rest I use to run my two companies. Synergy Fitness Group is my health-club consulting business, and the Duke Speed Academy helps kids be better athletes.
Why do you want to be so rich?
I've always had a drive for success. I want to be able to provide future generations of my extended family with three things: an education, a job in one of my companies (if they need one) and enough financial backing to be able to pursue their dreams.
Has the money changed your lifestyle?
I'm still single, I live in the same house, and I still work for Gold's Gym. I had a chef for a while, but now I'm back to eating cheese straight from the fridge. I have traveled a bit and bought a few mountain bikes.
What's your advice to people who come into sudden money?
Remember the value of a dollar. It's easy to forget when you're making checks out for millions, but 15 bucks will still buy you a pizza.