Who Wants to be A Pentamillionaire?
Now it’s time to play the “what if ” game as in, what if someone walked up to your front stoop tomorrow morning and unloaded $5 million in cash. No questions asked, no taxes to pay. What would you do with the loot?
Deborah Belgum
Pat Haden, former USC and Los Angeles Rams quarterback, attorney and partner in the venture capital firm Riordan, Lewis & Haden:
“One of my favorite quotes as a kid was what Socrates said walking through the marketplace. ‘Look at all the things I don’t need.’
“I would probably take $1 million and create an endowment for scholarships at two inner-city schools, Verbum Dei High School in South Central Los Angeles and St. Mary’s Academy in Inglewood. They are two good schools that are under-funded.
“I’d give $1 million to the University of Southern California. It would be an unrestricted donation because those are the rarest kinds of gifts that universities get. I would give it to the College of Letters, Arts and Sciences because I graduated with a major in English literature.
“The rest, $3 million, I would invest with professional money managers from Capital Guardian and Trust Company of the West, both well-respected money management firms.”
Gayla Dodson, 27-year-old student at UCLA’s Anderson School of Business graduating in June:
“Regardless of whether it makes sense, given interest rates, potentials in the market, etc., I would prepay my graduate school loans, $75,000. Arguably not the best priority but the peace of mind graduating without any debt would be well worth it.
“I am moving to New York City and would love to own a place in Manhattan if I could find one I thought was a good investment for $1 million.
“While my immediate thought is to find a tax shelter, with two years of hard studying behind me and a future career with long hours ahead of me, I would set aside a vacation fund of $200,000 for the two months between graduation and starting work. It would cover a few of my closest friends as we head off to see as much as possible in the summer months.
“I would have to donate a portion of it, $250,000, to the MBA program at UCLA.
“I have an interest in the real estate market and given current interest rates and the state of the economy, I would use $1.25 million to start looking for commercial or industrial deals where I thought an infusion of equity could turn a good profit.
“With $2.25 million, I would turn to the ventures that some of the Anderson Graduates are intent on pursuing.”
Jeffrey Kavin, owner of Greenblatt’s deli on Sunset Boulevard:
“First I would go into shock. Then I would think about buying a house on the Westside. Not a crazily priced neighborhood, but maybe Westwood. Nothing too outrageous, maybe something that costs around $800,000. I would spend another $100,000 on furnishings because I don’t want to sleep on the floor.
“I would probably put $20,000 into a mad money account and spend it on some indulgence, like a new stereo system. I don’t need a new car because I have one.
“For my business, I would take some money and buy a new computer system and granite countertops for the dining room.
“Whatever is left I would temporarily park in some cash type of instrument and look for some opportunities in the real estate market. I would look at maybe apartments first or some prime commercial real estate.”
Steven Ehrlich, of Steven Ehrlich Architects in Culver City:
“First, I’d set aside $500,000 to get my three daughters through college. I don’t need a new pair of shoes or anything like that, just getting my daughters’ college education paid for would be considered enough mad money for me.
“Next, a $2 million gift to help finance the construction of the Kirk Douglas Theater for Center Theater Group in Culver City.
“Another $1.5 million to create a scholarship fund that would allow every graduate of a Los Angeles-area architecture school to live in a developing country for six months.
“Finally, for frazzled commuters stuck on the freeway: $1 million to install huge video screens so that everyone can watch the Lakers.”
Frank Mula, TV writer:
“First I’d buy a large house overlooking the ocean and staff it with a cook and permanent pet sitter. It would have a separate wing for relatives escaping winter or the law I want my loved ones near me, I just don’t want to know about it. I’d furnish the house with quality art, emphasizing struggling new talent.
“I’d take four cruises a year to exotic destinations in the best suites. On the whimsical side, I’d take $100,000 to Las Vegas and spend freely, without guilt, until I was broke. I’d also buy a second car that was totally impractical. I have my eye on the new Ford retro Thunderbird, if saying that here will get me a discount.
“On the ‘Let’s build up some good karma’ side, I’d set up a foundation that would give small business loans in poor areas of the U.S. and Third World.
“I’d also keep a wad of $100 bills in my pocket so that next time I’m behind an elderly person anxiously counting out their pennies at the grocery, or hear someone talking about their car breaking down and not having a way to work, a hundred could magically appear beside them.”
Merry Norris, an art consultant to private collectors, institutions and public entities:
“I need a new car more than you know, but I wouldn’t buy one. Instead I would set up a $200,000 account at Neiman-Marcus. It is my shoe source and my primary clothing source.
“I would spend $2 million purchasing contemporary art as an investment.
“I would give $2 million to the Southern California Institute of Architecture to initiate an endowment for the school because after 30 years, the school has no endowment.
“The remaining $800,000 I would distribute equally among four cultural institutions, the Museum of Contemporary Art, the Los Angeles County Museum of Art, the Pasadena Museum of Art and the UCLA Hammer Museum.”
