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AnimeSpirit 03-22-2007 09:31 PM

Lottery Winner & Bankrupt?!
 
http://articles.moneycentral.msn.com...rMillions.aspx

I thought I'd drop a thread about this. A lot of people seriously don't know just how fast money can go when you don't know how to manage large sums of it.

Most lottery winners lose their fortunes through various common means. The biggest way to lose your mills is by going out on the first day to buy a house, new car, a boat, and let the taxes eat you alive because Uncle Sam WILL get his share even though he already got some when you collect your prize.

Another method to rob you of your treasure is not learning how to say NO to the vultures who come knocking at your door when everyone learns you hit the big one. It takes a whole 24 hours or less before you start seeing the palms of every deadbeat you've ever met.

Among the first things you wanna do with your fortune is remind yourself that your money is not going to be limitless if you don't be careful with it. You must set spending limits for yourself and have the self-control to stick to it! The first thing you'll be tempted to do is quit your job. Quitting work entirely is never advisable. It would be best to either continue working a less demanding (or more enjoyable) job. If you know anything about business management, you may want to open a business of your own with your winnings. This can serve as a fair investment if you know what you're doing.

Secondly, you'll want to pay off ALL of your current and past debts which is great and advisable. The smart spender will then take a considerable amount of the winnings (between 1/4 and 1/2) to put into a long-term investment program of some kind. This has become your nest egg to invest in your long-term future.

Now, the first rule of investing is diversity. Invest in several programs of varying degrees of risk and payoff. If you are the type, you may want to donate some to charity. This gives you a tax credit and it's just the nice thing to do. Be CAREFUL!!! Active charity programs WILL be pestering you on the phone and by mail. If you want to donate to charity, pick one or two of your favorite charities and donate a small, but generous, sum to them. Do not be afraid to tell all other charities who contact you, "Sorry, but I have already donated everything I am prepared to donate to charity." and tell them that it is not necessary to contact you any further. Do not let them strike your conscience because you didn't donate to them all! You are not obligated to prove to everyone that you are charitable beyond reason.

After all of this, you can then begin to do some fun things with your money. Open a mortage on a house with a reasonably long duration on it (10-15 years or more), but do NOT pay it off right away. You're asking for tax problems if you do. If you want a new car too, do the same thing there! Remember that you are also keeping your spending limits in mind, so you should NOT be able to do ALL of this in one day or even one week.

These are simple tips and much of it is common sense. I am no financial expert, but I think these are good tips to keep in mind should you ever hit the big one! :peace:

Isabella 03-22-2007 11:39 PM

:clap: You are very wise for your age.

Al Swearengen 03-23-2007 02:06 AM

As a general rule, I think everything Anime said makes sense. But what course of action to take would in large part be determined by exactly how much money you've won. A million bucks?... ya might wanna keep that job, maybe scale your hours back, and enjoy having a different attitude about work. Ten million or more?... life is too short to spend even another millisecond doing something you DONT want to do... which in my case would pretty much be anything other than having an absolute BLAST with friends and family, so go ahead, quit the damn job, and become a man, or woman, of leisure. You can afford it. You're free now to pursue your dreams. Improve yourself, body and mind. Devote your time to becoming cultured and traveled, learning new things and helping others. And you can afford to be generous now, so keep your eyes peeled for someone who works their ass off but just cant seem to catch a break, and "make their day"...what could be more fun than that? As long as you're sensible about it and dont try to spend it all in a lifetime, there should still be plenty of money left for your grandchildren to inherit. How many houses do you need? How many cars? See what Im gettin at here? As for the "vultures", just get yourself a personal assistant (butler) to screen your calls, do your bidding, and act as a buffer between you and the world, then ya dont have to worry about it. Or, you could just pick up and move where-ever ya want, not tellin anyone until you're there, give your unlisted phone number out to only the people you want to have it, and take it easy!:cool:

Isaac-Saxxon 03-23-2007 06:44 AM

The problem with having to much money
 
Isaac (opinion) ! We work hard all week and only have a small amount of time for ourselves. Then one day the big winner hits and we are rich. We have everything we want we think. Then all this extra time to do as we please and that includes much time to think about bigger things in life such as health and love and death. I have seen very nice people with to much time and to much money become very unhappy people. Not enough money not good :nono: what is enough is different for everybody. What I am saying that some where in the middle and working each day and feeling like hey I did this today and I am better off for it. I may be tired but this I have done. So while we all are waiting on easy street and some may be there just beware of the mind game it can play on you. Be careful what you wish for you just might get it :eek:
Words from Isaac

LateNight 03-23-2007 06:57 AM

reminds me of the Homeless guy who won the lottery some years back. This guy was living in a brokedown car with his dog. Then won some big lottery.

Reporters asked him: "Is this going to change your life?"

Homeless guy: "Uhh, Hell yes it's gonna change my life. I've been living in my car!"

AnimeSpirit 03-23-2007 07:11 AM

Quote:

Originally Posted by Isabella
:clap: You are very wise for your age.

Thanks! :D I've never hit the jackpot myself yet, but I know pretty well how to manage money. I went into debt while I was in the military and after thorough reflection and a serious change in strategy, I learned how to better manage my finances. I wrote my own budgeting system on my computer about 2 years ago and it hasn't failed me yet. I am slowly repairing my credit, I'm hoping to be completely out of debt by the end of this year.

I have spoken to my sister before what I would do if I ever won the lottery. What I would do is just about everything I discussed above, except for buying a boat (not really interested in that). I'd pay off all of my debts, but I probably wouldn't get an expensive sports car, just one that looks nice and runs efficiently. I'd definitely buy a house because I'm renting right now.

However, I'm a fairly experiences investor. Show $50,000 of spare cash lying around and I'll show you the nearest mutual fund. I know about mutual funds because I once worked for an insurance firm that also dealt with mutual fund accounts. I also play the Foreign Currency Exchange. Given the extra funds, I'd probably play the stock market too. Also, CDs (certificates of deposit) can be very profitable if you know how to deal with them. I've also had college training in business management and would start a business here in Shreveport in a heartbeat given the funds to do so.

It's a funny thing too. Most people don't know that you can hire an attorney and give him an "allowance" and he will invest that allowance for you in any way you request him to. This is the best route for people who know nothing about investing. For them, I'd highly advise screening your attorneys BEFORE you committ to hiring one for this purpose. Soem of them should not be trusted with so much of your money, so take care here! After you hire one, don't let him do ALL of the work. Have him walk you through everything he is doing with your money.

By investing a fraction of your winnings, you stand a far better chance of having money for the rest of your life than if you just go out and spend it all. :peace:

joepole 03-23-2007 09:10 AM

People that play the lottery aren't, by definition, very savvy so why would it be surprising that they don't know how to handle their business?

Isaac-Saxxon 03-23-2007 09:35 AM

Joe have you ever purchased a lottery ticket ???
 
Quote:

Originally Posted by joepole
People that play the lottery aren't, by definition, very savvy so why would it be surprising that they don't know how to handle their business?

Your difinition of not savvy ?

joepole 03-23-2007 09:42 AM

Not particularly bright or wise.

AnimeSpirit 03-23-2007 09:42 AM

Quote:

Originally Posted by joepole
People that play the lottery aren't, by definition, very savvy so why would it be surprising that they don't know how to handle their business?

I agree. People who do not know how to properly manage money are the ones who end up broke and playing the lottery. The ones who win continue managing their money the same way and end up broke again. That's basically how it tends to work.

joepole 03-23-2007 09:46 AM

There are exceptions, though. My mom is a relative smart lady who was playing $5 Caribbean Poker at one of the casinos and got a royal flush that paid $130,000. About a year later she got another one for $380,000.

Casinos aren't as bad as lottery tickets, thought, because at least casinos provide entertainment fr your money.

Isaac-Saxxon 03-23-2007 09:54 AM

Joe have you ever purchased a lottery ticket ???
 
Quote:

Originally Posted by joepole
There are exceptions, though. My mom is a relative smart lady who was playing $5 Caribbean Poker at one of the casinos and got a royal flush that paid $130,000. About a year later she got another one for $380,000.

Casinos aren't as bad as lottery tickets, thought, because at least casinos provide entertainment fr your money.

Joe have you ever purchased a lottery ticket ???

AnimeSpirit 03-23-2007 10:26 AM

Quote:

Originally Posted by joepole
There are exceptions, though. My mom is a relative smart lady who was playing $5 Caribbean Poker at one of the casinos and got a royal flush that paid $130,000. About a year later she got another one for $380,000.

Casinos aren't as bad as lottery tickets, thought, because at least casinos provide entertainment fr your money.

That is to say that she is considerably lucky, but that say nothing for her ability to manage money. But yes, there are exceptions. Some people who win the lottery are people who know exactly how to manage money, but were merely down on their luck. Such people shouldn't have much trouble after winning the lottery.

joepole 03-23-2007 10:29 AM

The vast majority of lottery tickets are bought by people that shouldn't be buying lottery tickets. It's basically a tax on people that are bad at math.

I have bought lottery tickets before. I didn't win.

AnimeSpirit 03-23-2007 10:51 AM

Quote:

Originally Posted by joepole
The vast majority of lottery tickets are bought by people that shouldn't be buying lottery tickets. It's basically a tax on people that are bad at math.

I have bought lottery tickets before. I didn't win.

I don't buy them regularly, but I have before. The chances of winning are, indeed, astronomical, yet people still cling to hope. I guess you can't always blame them.

Neo 03-23-2007 11:10 AM

I think I saw an equation get solved between sir IS and Joepole.

A+B= not very wise

Isaac-Saxxon 03-24-2007 05:38 AM

I think you are right there Neo
 
Quote:

Originally Posted by Neo
I think I saw an equation get solved between sir IS and Joepole.

A+B= not very wise

Nice avatar. Sure did take you a while to get it right. I take it you and Joe are both very good at higher math :laugh: I wounder what the odds are of winning the lottery ? Why would someone good at math play those kind of odds by buying a lottery ticket :rolleyes: :rolleyes:
Isaac

AnimeSpirit 03-24-2007 09:24 AM

http://www.powerball.com/powerball/pb_prizes.asp

The odds of winning Powerball are posted here. Those odds are fairly astronomical. :freaky: I think they are on the back of the ticket slips you fill out to buy tickets too.

Isaac-Saxxon 03-24-2007 09:29 AM

So it is true Joe
 
Quote:

Originally Posted by AnimeSpirit
http://www.powerball.com/powerball/pb_prizes.asp

The odds of winning Powerball are posted here. Those odds are fairly astronomical. :freaky: I think they are on the back of the ticket slips you fill out to buy tickets too.

I think this "sums" it up doe it not ?
A+B= not very wise
Isaac

Al Swearengen 03-25-2007 07:58 PM

Quote:

Originally Posted by joepole
People that play the lottery aren't, by definition, very savvy so why would it be surprising that they don't know how to handle their business?

Ya lost me on that one, Joe. Playing the lottery is no indication whatsoever of a person's business savvy. In fact, I'd say that just the opposite would be closer to the truth. Where else does one stand a chance, however remote, of becoming rich beyond one's wildest dreams for the price of a ticket? NOT PLAYING seems a hell of alot less savvy when ya think about it.

joepole 03-25-2007 10:29 PM

I rest my case.

Al Swearengen 03-25-2007 10:39 PM

Quote:

Originally Posted by joepole
I rest my case.

Hate to say it Joe, but in the words of Bill Handel, "you have NO case"!

joepole 03-26-2007 10:04 AM

You seriously believe "NOT PLAYING seems a hell of alot less savvy when ya think about it." is true. You weren't joking?

Start sending me dollar bills. After you send me 100 million of them I'll send 20 million of them back to you.

Al Swearengen 03-26-2007 06:12 PM

Quote:

Originally Posted by joepole
You seriously believe "NOT PLAYING seems a hell of alot less savvy when ya think about it." is true. You weren't joking?

Start sending me dollar bills. After you send me 100 million of them I'll send 20 million of them back to you.

Ofcourse I believe it! And apparently so do about 200 million other people. Guess WE're all wrong and you're right...silly me. Look, everyone understands all too well that the odds of winning are astronomical, but the potential reward makes the small losses worth it, ok? Its just that simple. What, its not worth it to you, losing a buck or three here and there that you'd just end up spending on a coffee at Starbucks anyway, against the possibility of becoming richer than Midas? Nothing ventured, nothing gained! People DO win, and life gets a whole lot more interesting for them. And ya cant win if ya dont play! But go ahead, Joe, sip your coffee at Starbucks, with the smug assurance that YOU are no sucker!

Isaac-Saxxon 03-26-2007 06:32 PM

Now is the pot calling the kettel black
 
Quote:

Originally Posted by joepole
The vast majority of lottery tickets are bought by people that shouldn't be buying lottery tickets. It's basically a tax on people that are bad at math.

I have bought lottery tickets before. I didn't win.

Now Al when you win the world as you now know it will never be the same and more like a long vacation. You have put in your time and served your country maybe your number is coming up. I think that joepole is not happy his "tickets" did not pay :eek: :eek: Joe you did buy lottery tickets so you are part of the lottery matrix. :laugh: :laugh:
Isaac

joepole 03-26-2007 09:44 PM

I don't know how to respond. I am genuinely stunned to learn that somebody who thinks the lottery is a good investment is also able to own and operate a computer.

So, just to get this straight, you honestly think spending money on a 1/150M chance to win ~$20M is a smart thing to do?

Al Swearengen 03-26-2007 09:58 PM

Quote:

Originally Posted by joepole
I don't know how to respond. I am genuinely stunned to learn that somebody who thinks the lottery is a good investment is also able to own and operate a computer.

So, just to get this straight, you honestly think spending money on a 1/150M chance to win ~$20M is a smart thing to do?

Who said it was a "good investment"? Not I. You originally made the comment that people who play the lottery are lacking in financial savvy, or words to that effect, yes? Now, for the last time (and you question MY ability to own and operate a computer? I'd say your ability to comprehend written english is what's seriously in question here), the answer is YES, I honestly think that spending money on a 1/150M chance to win ~$20M is a smart thing to do, and apparently, Im not alone. Me and 200 million other folks are wrong, but YOU're right? What are the odds of that? You're the math prodigy, you tell me!

Al Swearengen 03-26-2007 10:52 PM

Now that I have JoePole squirmin in the grip o reason, I'll deliver the "coup de grace" to his argument and bring the debate to a timely conclusion! (WARNING:THE WEAK OF STOMACH AND FAINT OF HEART ARE CAUTIONED TO AVERT THEIR GAZE)

If memory serves, Joe, werent you one of the winners in the SBLive Ipod Drawing? Now granted, it didnt cost you anything to enter, and the whole thing was obviously done on a much smaller scale than a state lottery, but there were still enough entrants in the drawing to make the odds of winning suffiently remote enough to render the whole deal an exercise in pure luck, right? And yet, Lo and Behold, YOU WON! Hell, even if it had cost you $1.00 to enter, you still would've come out way ahead, right? Not to mention that your own MOTHER has won more than half a million bucks at a casino, but you think spending a buck or two on a lottery ticket is foolish? Talk about lookin a "gift horse" in the ass! You might want to reconsider...from where Im standin, your luck aint half bad...which is fortunate for you, since you seem to have been shortchanged upstairs. If ya cant be smart, good lookin, or rich, you'd damn sure better be LUCKY. One out of four aint bad, right Joe?

Oops...looks like Joe just got chopped off at the ankles by the "Sword O Logic", wielded by Your's Truly...and "dour pragmatism" wont stop the bleeding! Medic...MEDIC!:eek:

Isaac-Saxxon 03-27-2007 07:33 AM

Joe your showing your age
 
You are dealing with a very wise person that has a good education in life. You are young with a new family and even though you think you got it nailed you tend to talk in circles and disagree with yourself. Do not worry the years will teach you about life and so will your beautiful children when they come of age. There is more to life than higher math :rolleyes:
Isaac

rhertz 04-09-2007 11:55 AM

Jack Whittaker in the news again
 
Powerball Winner Says He's Cursed by His Jackpot

"But as Whittaker celebrated his good fortune, he had no way of knowing that he was embarking on a journey that would lead to tragedy and the loss of everything he held dear."

AnimeSpirit 04-09-2007 02:21 PM

Wow! That's quite a story and I totally believe it. If I were Jack, I would've brought that $2k/week allowance to his granddaughter to a screeching halt the first time I heard the word "drugs."

For the most part, the smartest thing you can do when you win the lottery is keep it to yourself! It is fun to hold that big check up in front of the camera and smile for the tv audience of millions of potential vultures looking for a piece of your exceptionally large pie. Unfortunately, it may cost you your privacy for the rest of your life because the dumb requests will never stop.

If you want to build churches, GREAT! Donate anonomously! It is not necessary to make it so publically known that YOU built that nice church on the corner. Dedicating it in person only makes you a target. It also helps to wait many months before doing something that big with your money. Give the rumors of your newfound wealth time to fade into memory (while simultaneously waiting for the vultures to set their eyes on some lottery winner other than you).

People suing you left and right because you're suddenly rich? That's a tough one to beat without totally keeping your wealth a secret, which isn't a bad idea. I'm with Jack on that one. People are GREEDY!!! They will sue if you sneezed in their direction because you have money and they want some of it and they will try to get the legal system to make you fork it over! Take care who knows about your money, but the best thing you can do is tell NO ONE.

One of the first things I'd do after winning the lottery (as I discussed before) is getting a nicer home. Make a suitable down payment and get a decent mortgage rate for it. Do NOT leave a forwarding address from your old home. Just let all of your friends know what your address is yourself. This will make it harder for the vultures to bug you by mail. Remove your name from the telephone listings because you're practically a celebrity now. If you go out in public, don't dress like a million bucks. That just makes you a mugger's target. Wear comfortable stuff and give yourself the appearance like you just got off the night shift.

Also remember, lottery gaming records are NOT private. Anyone can look up who the winners of each drawing are. Ignorance of this fact will filter out SOME of the less intelligent vultures.

This is all crazy stuff that lottery winners shouldn't have to do, I know. But Jack's story is one we should learn from. It's funny how people who earn their millions naturally (business owners, entertainers, etc.) rarely have as much a problem, but some have adjusted to it and live fairly normal lives.

Santabot 04-25-2007 06:06 PM

Quote:

Originally Posted by Isabella
:clap: You are very wise for your age.

I don't believe this is a well-deserved comment from somebody who simply quoted a news article. This is not to say that Anime is not intelligent himself, but you seem to be a very open and baseless cheerleader of these forums for your friends, just over minuscule posts they make. Sorry but I had to interject.

I enjoyed the article, though, makes a lot of sense, there isn't too much money management being had by especially the youth of America, but that's not to say anybody needs lectures or courses on it, it's their own situation to seek advice and information regarding money matters, just like education or anything else, in my eyes. A fool and his money are deservingly parted, so let it happen. This is how America has been continually holding a large hose that siphons their wallets by corporations.

AnimeSpirit 04-25-2007 07:01 PM

I posted a link to an article when I posted this thread. However, I merely glanced over when I found it to confirm it had the info I needed. I never actually read the article myself, so I couldn't actually quote from it. The first post I dropped when I started this thread was full of accumulated knowledge and common sense tips that I've come across over my years. But I, technically, did not quote anyone in writing it.

Santabot 04-25-2007 07:03 PM

Quote:

Originally Posted by AnimeSpirit
I posted a link to an article when I posted this thread. However, I merely glanced over when I found it to confirm it had the info I needed. I never actually read the article myself, so I couldn't actually quote from it. The first post I dropped when I started this thread was full of accumulated knowledge and common sense tips that I've come across over my years. But I, technically, did not quote anyone in writing it.

Oh, my mistake, I thought you posted the source and quoted the information below, I didn't click the link for the article because I saw a large block of text under it.

Then I agree with your post, rather than the (what I thought was an) article.

AnimeSpirit 04-25-2007 07:06 PM

Very mature of you to agree. I suppose you could call it an article if you like. I wrote it on the fly because someone mentioned lottery winners going broke in another thread and I thought it would be a useful thing to post.

I've worked in casinos before so I've been edcuated on gambling habits and basic financial management.

Santabot 04-25-2007 07:08 PM

Quote:

Originally Posted by AnimeSpirit
Very mature of you to agree. I suppose you could call it an article if you like. I wrote it on the fly because someone mentioned lottery winners going broke in another thread and I thought it would be a useful thing to post.

I've worked in casinos before so I've been edcuated on gambling habits and basic financial management.

Well I am agreeable to a lot of things, you know, haha.

It's just that like I've said in my address, I've been selecting posts to participate in, and those have mostly been those to which I'll start flame wars or discredit people's information. As long as people don't try to wreck me because they see my name and avatar anywhere I post, I'll be more consistent in positive and negative comments to others :)


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