For some lottery winners jackpot is a 'nightmare'Previous TopicNext Topic

Not a nightmare for the newest Mega Millions winner-reports say he chose CASH...

Well, I dunno if its a nightmare BUT If they let me win a couple of millions then I will come back on this forum in a couple of months and let you guys know how everything is going.   lol

It really would be simple...

A. Have a plan beforehand

B stick to it.

That's it.

Consider what it means to live within your means, then plan on extending that into retirement... doing that could set you up for life as you know it minus a job... Also consider retirement, and healthcare... I had looked into comprehensive plans that would run you 1,600 a month as a family, but would be 100%, not the 80/20 split most employers offer.

Once you have been around the block, you can ask yourself how much fun it would be to have to clean a 10 bedroom mansion... don't get more house than you need, and it doesn't have to be "NEW" to make you happy... I have my eye on a really nice lakefront nearby that is well under even a half million...

I base my strategy on the base PB jackpot, anything else is extra that can be invested long term because it wasn't planned for. I like the idea of tax free municipal bonds... just watch the rating for the particular municipalities you plan to invest in.

There is really no desire for me to have a new car, 1 or 2 years old would be fine if it was in great shape... you would save a bundle.

The big shift will be from Making money to Keeping money... no need to alter your frugal ability to live on your current salary, you would just be given all that time that you would spend working. Of course there would be extra money, but it doesn't need to be spent.

My goal is simple, secure income for 35 years then secure retirement and security for the kids... I can pull that off with the base PB jackpot (lump sum after taxes)...

gotta have a plan and the discipline to stick to it. Also the freedom to go about life without hounding... MUST establish that personal property trust to claim anonymously... or buy tix in delaware ;-)

Zzzzzzzzzzz...old news...

Hypersoniq:

Excellent post!

I'm happy to see that someone understands that winning a jackpot and then managing that wealth has less to do with knowing "the value of a dollar" than living within your means.

Your two-step plan, while simple, embraces the millionaires' code of frugality; millionaires don't become millionaires by spending money. That's not meant to suggest that all wealthy people are tight-fisted, but the majority will complain about the price of almost anything they buy. Ask any waitress, and she'll tell you that most of her income comes from the people who can least afford it (generally speaking, the working poor tip more often, and better, than rich people do).

Like you, I would be just as happy with a two-year-old car as I would with a new one, since the older model would get me from point A to point B and back again. It just wouldn't be as impressive to the pedestrian traffic, but then, I don't care to impress them. I don't need a mansion, nor the enormous responsibility that comes with such an ostentatious purchase. Living in a mansion advertises the fact that you have a lot of money, so unless you win enough to cover the cost of round-the-clock security, in addition to property taxes, upkeep and maintenance, staff salaries (gardeners, housekeepers, etc.), insurance (homeowners' and general liability), bodyguards and a battery of lawyers, you're much better off buying an existing home in another city, state or, at the very least, a different neighborhood.

You've obviously put a lot of thought into your plan but, if I may take the liberty, I'd like to point out that Step One will involve many sub-steps, such as speaking with a financial planner or investigating and keeping current on the ever-changing rates of various investment vehicles (municipal bonds, CD's, commercial bonds, REITs, mutual funds, etc.). You'll need this knowledge when you win, so it makes sense to acquire this information before you need it. 

Studying this now will give you the confidence to rely on your own knowledge, without being at the mercy of some attorney who's going to try to get every dime you have anyway. Unfortunately, you'll need an attorney, because when word gets out that you've won the jackpot, some people will want to sue you for any reason they can think up. Given the litigious attitude that's prevalent in America these days, you could find yourself in court if your girlfriend breaks a nail while opening your beer, or if your dog chews up your boyfriend's favorite Levi's (these are real lawsuits, although I have no idea who won in either case).

So, where does this leave us? Should you be afraid of winning an obscenely large amount of money? I wouldn't think so, provided you've properly prepared for it. What should scare you is the likelihood that you won't be able to hold onto your money if and when you win the jackpot. Having more money than you've ever seen fall into your lap can be very intimidating, but it doesn't have to be that way. Spend some of your spare time studying your current finances. Figure out, to the penny, how much it costs you to live week-to-week, month-to-month, year-to-year. When I did this, I discovered I was spending over $1700.00 a year on cigarettes, and another $1430.00 a year on Starbuck's coffee. That's $3130.00 a year, or nearly $261.00 a month on coffee and cigarettes. I quit smoking, and now I drink Folger's, so I have an extra two hundred bucks a month in my pocket. For those of you who care to indulge, I think you'll find some similar surprises.

Hypersoniq, it appears that you've prepared yourself for the big win. Now all you need is the jackpot, and I believe your preparation in that area is probably quite substantial as well. I'm sure you've spent several hours, if not days, in selecting your numbers for tonight's drawing. I've said before (actually, someone else said it first) that luck is the point at which preparation and opportunity meet. You've taken care of the preparation, and I have no doubt that opportunity will find you soon.

Thanks for an outstanding commentary, and the best of luck to you in the upcoming draws.   

Quote: Originally posted by CASH Only on November 22, 2004

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Not a nightmare for the newest Mega Millions winner-reports say he chose CASH...

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Quote: Originally posted by hypersoniq on November 27, 2004

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ask yourself how much fun it would be to have to clean a 10 bedroom mansion... don't get more house than you need, and it doesn't have to be "NEW" to make you happy. I have my eye on a really nice lakefront nearby that is well under even a half million. The big shift will be from Making money to Keeping money.

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Yeah easier said than done. Granted these folks have no discipline but how could you not spend money on those around you?  That'd be hard...

Quote: Originally posted by jim695 on November 27, 2004

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I don't need a mansion, nor the enormous responsibility that comes with such an ostentatious purchase. Living in a mansion advertises the fact that you have a lot of money, so unless you win enough to cover the cost of round-the-clock security, in addition to property taxes, upkeep and maintenance, staff salaries (gardeners, housekeepers, etc.), insurance (homeowners' and general liability), bodyguards and a battery of lawyers, you're much better off buying an existing home in another city, state or, at the very least, a different neighborhood.   

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