ex-Lottery winner now on food stamps.

[dquan97]

interesting article. I'd also open a trust to handle the $$

 

[SuperTool]

First thing I'd do is move most of the money offshore somewhere it can't be collected in a lawsuit.

 

[Zeeky Boogy Doog]

if i won it, i'd put it all in a bank account and then upgrade my computer a whole ton, buy a car, not a fancy one, just a car, car insurance, and save the rest for later, such as college, and a house, then i would make it very clear that if i were to die, all my money goes to my cat, and if my cat dies, i'm giving it to the government, they'll think im crazy, and then leave me alone, it cant fail

 

[Mayfriday0529]

I like the section, on "if you win" what to do, good point because i'm going to win friday.

 

[ITJunkie]

This really is sad. I watched my brother-in-law blow a huge settlement on crap and now has very little to show for it.

 

[ragazzo]

if i were to win $5.5M, buy a $500k house, buy a $35k hybrid car, pay off families' debts and then put the rest in trust funds. no one can bitch about me not helping anyone heh

 

[rh71]

have any of you used trainers in games that gave you a $#!Tload of credits/money, etc. ? Did you spend it wisely ? Didn't think so.

It's too easy not to spend it on everything you've ever wanted. Putting some aside is alright, but what you spend it on, isn't what you SHOULD spend it on. And if you are stingy with handing it out or even spending it, people will call you the worst name in the book - CHEAP. Unfair but true.

 

[Eli]

If I won a large sum of money(1m+), the first thing I would do is hire a financial advisor attorney dealiebob.

I saw it on Oprah... lol

A show about exactly this problem, broke lottery winners.

 

[TranceNation]

it's amazing how most of you guys think that you could keep it a secret if you have won... being realistic, how do you plan on hiding the fact that the lotteries list out the winners each week on their site? Sure you can hide it from your friends out of state but anybody who plays the lottery can easily look it up and see who won, etc.
You have a better chance hiding your secret love affairs from your spouse than winning the lottery.

It's a shame on how most of these people blew off their winnings. The lesson learned here is to be very critical of all finicial decisions, ie, no you shouldn't hire a limo/jet to goto xxx place.

 

[TranceNation]

Originally posted by: Eli
If I won a large sum of money(1m+), the first thing I would do is hire a financial advisor attorney dealiebob.

I saw it on Oprah... lol

A show about exactly this problem, broke lottery winners.

it's a good idea but only if you can find one who you can trust... who's to say that your financial advisor won't be out to screw you like the next joe?

 

[Mayfriday0529]

Mega Millions in NY state and participant states is at 149 million on friday don't forget to play.

I like to see a 149 million dollar winner mess it up.

 

[Eli]

Originally posted by: TranceNation

Originally posted by: Eli
If I won a large sum of money(1m+), the first thing I would do is hire a financial advisor attorney dealiebob.

I saw it on Oprah... lol

A show about exactly this problem, broke lottery winners.

it's a good idea but only if you can find one who you can trust... who's to say that your financial advisor won't be out to screw you like the next joe?

Yes, that's true... but you would hope that most in that profession are decent and good at their jobs.

You could say the same thing about almost any "service" provider, really, heh.

I suppose it also relies on the idea that I'm not completely braindead and would be able to work with him...

I dunno, I could probably do it myself actually. I would just have to educate myself about that stuff.

If I won a large sum of money, I wouldn't be stupid with it. Modest house, car, belongings.. and put the rest away . Maybe invest in some realestate.. different things. There's just no way I could go out and buy a 500k house or whatever, I'm way too much of a forward thinker. I'm good at budgeting.. If I have the opportunity or want to buy something, but I know it will effect say, the ammount we'll have for groceries for the 2nd half of the month, it is easy for me to see that and avoid spending the money. Or something.

I'm sure a lot of people that are bankrupt have said that, but it's true damnit.. lol

 

[kranky]

Originally posted by: TranceNation

it's amazing how most of you guys think that you could keep it a secret if you have won... being realistic, how do you plan on hiding the fact that the lotteries list out the winners each week on their site?

Before you claim the money, you hire a lawyer to establish a blind trust, and let the trust be the legal winner. You still control the money, but legally the lottery winner is "TISATAAFL Trust" or something. And the lawyer is bound by lawyer-client privilege to not reveal your name.

Not that I'll ever be in that position, but if I ever did win the lottery, I know I could keep it a secret. The desire to keep my life normal would far outweigh any desire I would have to brag about winning.

 

[dragonballgtz]

Mega Millions in NY state and participant states is at 149 million on Friday don't forget to play.

I like to see a 149 million dollar winner mess it up.

I can't wait till tomorrow. I bought 10 tickets, 5 easy pick and 5 my choice.

Knowing me I will probably blow it all on stupid sh!t.

 

[Mayfriday0529]

Originally posted by: dullard

Originally posted by: lnguyen
honestly, if at all possible, i wouldn't tell a soul I won any money. I'd be too afraid of all the leeches out there, and you'd never know who your true friends are.

Unfortunately most lotteries have the fine print that the winner MUST be known to receive their payment. The must have their picture taken with the large check and be in all the newspapers and TV news shows. Why? Free advertizing for the lottery.

According to NY state lottery if you win you get a choice to show up on the newspaper or on their website to keep your private life somewhat but they still get to show that you won the money.

Second, from the day that you claim that you won, it could take 4-6 week until you get your money and after you get you money you would get your picture on the paper or website... so you got a very small window that you could go on without telling anyone and hide the money or make sure its well invested.

 

[Mayfriday0529]

Originally posted by: dragonballgtz

Mega Millions in NY state and participant states is at 149 million on Friday don't forget to play.

I like to see a 149 million dollar winner mess it up.

I can't wait till tomorrow. I bought 10 tickets, 5 easy pick and 5 my choice.

Knowing me I will probably blow it all on stupid sh!t.

I will only buy 1 quickpick and one of my choice, 2 dollars in all.
It only takes 1 dollar to win.

 

[tk149]

We have a bunch of "settlement check" clients - people who have won a lawsuit and deposit their one BIG check into an account here. It's sad to see their newfound wealth dwindle away quite quickly. Some are broke within a year or two.

 

[gsellis]

Neal Boortz says it all the time, "the poor will continue to do things that will keep them poor. The rich will continue doing things that will make them rich." The 'hard luck' examples just show that this may be true.

 

[nakedfrog]

HTF has this thread gone this far without a "two chicks at the same time" joke?
I'm disappointed in each and every one of you.

 

[OS]

Originally posted by: dullard
I've heard of many more stories just like those. I heard of one study that showed that people who suddenly got a huge amount of money are almost the most likely of all to become bankrupt (there are some groups with greater chance, but not too many). The article hinted at some of the reasons why.

The plain truth is that a million dollars really isn't that much anymore. A family of two teachers, or a good engineer, or a semi-successful small buisness owner, etc should all expect to earn a million dollars over their career. Thus if you suddenly get $2 million (~$1 million after tax) you should expect to live a life of an engineer. But no. They live lives of Donald Trump thinking they are rich with $1 million in the bank account.

Suppose you got $2 million in a lottery when you are 30. If you take the lump sum and have good investments that should give you ~$75,000 a year for the length of a normal life (80 years). $75,000 a year really isn't much. In many places in the country that won't even be able to get you a decent house. Yet they take that $1 million lump sum and don't invest it all. They quit their job, buy a $500k house, blow $200k immediately for fun, and then invest the $300k that is left. Well the $300k that is left will only net you maybe $11k a year with good investments. How many people here can live on $11k a year even if there was no mortgage? Not many. Especially when you think the property tax on that house is probably $8k-$10k. That leaves this "millionaire" with $1000 to $3000 a year to live on. Bankruptcy soon follows.

Yeah I ran some numbers for my 401K recently and I suspect it will take me ~20 years to accumulate $1 mil for retirement, since my employer matches generously. Like you say, a mil is not a whole lot for a lifetime these days. Lifetime sum is a good approach for lottery scenarios since if you win the lottery, it's almost certainly gonna be only once anyways.

 

[OS]

Originally posted by: nakedfrog
HTF has this thread gone this far without a "two chicks at the same time" joke?
I'm disappointed in each and every one of you.

I had something with that mindset but more scandalous posted earlier. Then I decided I probably shouldn't pollute the forums with my dirty ass mind.

 

[Goosemaster]

My dad made $90,000 from selling a house and called me the other,l out of the blue, not having spoken to me in almsot 6months, asking for money

<--makes $200/week as a math tutor.

Some people jsut don;t know how to handle money.

 

[sciencewhiz]

Originally posted by: SuperTool
First thing I'd do is move most of the money offshore somewhere it can't be collected in a lawsuit.

I thought you would move it off shore so the government couldn't collect the money for all the social programs you support.

 

[TitanDiddly]

There ought to be a law against that.

 

[Syrch]

Unbelievable.