Lottery winner demonstrates the right way to claim a big jackpotPrevious TopicNext Topic

   WTG!!

When the woman who won the $91 million while still living at the Econo Lodge was on Oprah, she was told on camera  (by Oprah) "Don't let anyone sign your checks but you.  I took that to mean that she should have the final say on anything regarding her money....period."

But she still should have someone helping her....Yes, Oprah does sign her checks...and nothing gets done without her permission..............but she STILL has advisors.

I don't recall ever seeing anything that said that the funds are earning interest that will increase the amount paid to the winner when they get around to claiming it. The Ohio lottery website has some detailed info on the cash amount here:
     http://www.ohiolottery.com/howtoplay.stm
At least with MM, the annuity appears to be purchased immediately, and the cash value comes from the sale of the securities that have been purchased. The site linked specifically says that the risk of loss in value lies with the winner. The cash value of government securities depends on interest rates. If interest rates go up before the securities are sold, their cash value will go down. OTOH, if rates go down the value will go up.

What really happens depends on timing, and how much rates change. Since the fed just reported a 3/4 point reduction, the cash value of securities purchased just before the cut could potentially increase substantially. More typically, interest rates won't change rapidly, and therefore the value won't change. Still, a minor loss of value while making plans could be insignificant compared to the possible risk of rushing ahead with poor planning.

"Most stars who have filed bankruptcy did so because they allowed a team of experts to handle their funds, and skim in the process."

There's no question that people with money are often taken advantage of by those with access, but what really matters is the likelihood of that happening. If 90% of people with money have advisors then 90% of people who had money and file for bankruptcy have advisors, but that doesn't mean that a lot of people with advisors are victimized. Most rich people have ups and downs, but few suffer major losses. Having advisors is a major benefit to virtually anyone who doesn't already have the knowledge and skill to do it themselves. Your chances of being victimized are largely related to your personal involvement. If you don't pay attention to what's going on, you won't know about problems until they're really big problems.

Here's a statistic that's far more useful than how many celebrities have  been vistimized by their advisors: Nearly 100% of lottery winners who went bankrupt either didn't have advisors or didn't listen to the advice they were given.

I'd love to see a legitimate reference to a law in a single state that says you have to flee so as not to harm an intruder. Self defense laws in some states do prohibit the use of deadly force when you can safely avoid danger by fleeing, but that's very different than your claim. Some states allow deadly force almost any time there is an intruder in your home, while others only allow deadly force when you have a legitimate reason to believe that you are in danger and must use deadly force to protect yourself. There is no state that prohibits deadly force when it is necessary to defend yourself from severe or mortal danger.

IF YOU ENTER MY HOME BY FORCE, I DEFINITELY CONSIDER YOU A THREAT TO ME!!!  Now let's do this for those sickos who think that we should flee.  Let the intruder flee from my rabid pitt bulls!!!!!!!!!

I am assuming that the attorneys schooled her/him on how to skirt the requirements to divulge her information.  Does anyone know of anyone who was able to do the same thing and not reveal who they were to collect their winnings in states that do not allow annonymity?

BRAVOooooooooooo!!!!!!  for being a very smart lady

Smart to wait and get things in order befor claiming prize.  I know a lot of people who say that they would be at the lottery office the next day to claim their money (before the office is open). It would not be smart to think you can just stick all that money into a checking and savings account; that's as far as most folks assets are right now.  Your money is only FDIC insured up to a max amount.  Trust me, if this lady had a credit card back in college that she did not pay off, I assure you creditors will be trying to come after her some 25 yrs later trying to collect  with accumulated finance charges. Never mind if they are able to collect---this is where all the frivelous law suits and other crap would come in. On another note--she is a pharmacist and she is making GOOD money---surely not living pay check to pay check. My cousin's wife, his wife's brother, his wife's sister-in-law and his wife's cousin are pharmacists and they are banking!

wishes thar was more like her

This was the point I was trying to make (thank you Perfect Timing and KYFloyd as you were right on point).  Have your advisors available AND utilize them, but in the end YOU make the final decisions and the actionable decisions.

I said in an earlier post in regard to someone who said they were poor: "If the average income is just about where you are now, I highly recommend that you change your circle of friends...IMMEDIATELY!!!"

Stack 47 replied:  Somebody spends a lifetime making good friends and your suggesting your friends are no longer good enough for you because you hit the jackpot. Good luck with making new friends at the Country Club that has a group of people that accumulated wealth. Ever hear of the Jed Clampett syndrome?

My reply to Stack47: You missed the point I was trying to make...and it wasn't referring to someone who hit the jackpot (see my opening sentence in this post).  Sure I have good friends that in all likelihood I will probably remain good friends with in the future, but that is largely because their goals for prosperity are congruent with mine.  However, if I had a set of good friends that were just fun to be around but not in line with some of my important goals, then yes I would probably stop associating with them at some point in time (not necessarily just after "making it", but more than likely before that point).  People change.  Life throws you situations in which you must change or get left behind (just look at what Tiger Woods is doing...and he has accomplished all he has largely through several swing changes/improvements).  And as a person grows in life, it only makes sense that his/her circle of friends should change to reflect that growth (again, Tiger Woods started out being coached by his father, then he had a few other instructors, then he worked with Butch Harmon, and now he is working with Hank Haney).  I never said to change friends just because of some superficial reason like outward appearances or trying to fit in.  That is perhaps just as bad as trying to hang on to friends you simply have outgrown (just ask anyone who is trying to break a bad habit like drinking or smoking...do you think the successful ones continue to hang around friends who still are habitual users of those substances they themselves had addictions to?).  Stack you interpolated way too far when you responded to this point...because you missed the point I was trying to make by a country mile.  But have a nice day.

Remember, each individual is different.  For the pharmacist, waiting three months to claim her prize -- was right for her. 

New Mexico has a 90-day window -- if you do not claim your prize within 90 days, you forfeit your winnings because there is not a six-month waiting period, here.  However, I am  not sure if you can form a LIMITED PARTNERSHIP in New Mexico.  Nevertheless, New Mexico does not require a press conference (although the lottery personnel would like you to do so), but you are required to give your name and the city (not your address) for the record.

On the other hand, I would agree that a winner should hire an attorney: there are legal issues involved which must be resolved: 

1.  Do you have a LAST WILL and TESTAMENT in place. If so, revisit and revise. Your financial status has changed.  Who is going to be the executor or the executrix (a woman who is in charge of your estate?) 

2.  How will your children or heirs be provided for (if a winner has children or heirs)? 

3.  Do not forget your funeral plans. I am not trying to spook anyone!  Everyone should have discussed his or her plans prior to winning (we might assume that a 21-year old winner might not have initiated that conversation). Of course, as family members die, you will hopefully have the security in knowing your final wishes have been carried out by a remaining family member, loyal friend, or a significant other.

4.  Do you have a DECLARATION OF RIGHT TO DIE CONSENT in place?  People do get sick.  Do you want to be kept alive by unusual artificial means, heroic measures, or extraordinary medical or related procedures as such means, measures or procedures may be available at that time?

5.  If a winner continues to work, INSURANCE CLAIM FORMS from his or her job may have to be changed, especially if a winner is now separated, divorced, or widowed.

Personally, I do not have a problem with anyone who collects immediately because there are some people who hate their jobs so much that they literally drag themselves to work, everyday: mental and physical stress can  take a physical toll on one's health.  Nevertheless, if one chooses to go to the lottery office the next day to claim his or her winnings, but in the meantime, seek legal advice and/or financial advice after submitting his or her claim form, then...who am I to say he or she is wrong.

Notwithstanding, unless the financial advice is free...why pay for it?  For everyone of the financial advisors -- who are advising the winners -- those advisors should be filthy rich themselves. Check out their portfolios! 

In the meantime -- exercise some common sense by:

1. Changing your phone or not answering it. If you are the sole support of an ailing family member, you might want to assign a certain ring number. For example, a sick aunt might ring twice -- and hang up -- and then ring again. That is up to you?

2.  Utilizing an answering machine. You definitely can shut that off.

3.  Keeping your mouth tightly sealed: it is none of anyone's business. Now, if a winner lives in a very small town, that is virtually impossible. I think city dwellers have a better opportunity of shielding their identity. For example, if a winner lives in Chicago, New York City, Dallas Texas, other major hubs, they can whistle Dixie.  We have a New Mexico winner living in a small town -- but he refuses to leave -- and he gets bombarded with requests for money. So, a hint to the wise!

4.  Depositing your winnings in safe investments: savings, checking, mutual funds, and treasury notes until you can decide what you want to do. Remember, you are only F.D.I.C. insured (savings) -- $100,000. Therefore, you must disperse your funds at different banks...unless you have confidence in the government that your deposits in the millions (savings), in the same bank, will be secured -- no next depression -- although we are slightly in a recession, now. Overall, a winner should have a diversified portolio, not putting his or her winnings in one investment, only.

For the curious. I am not an attorney or even a lottery winner, yet...but I read, listen, and learn from others. Yes, I do have a/an:

1.  LAST WILL & TESTAMENT

2.  POWER OF ATTORNEY

3.  RIGHT TO DIE STATEMENT

4.  OBITUARY

5.  FUNERAL SERVICE

6.  INSURANCE CLAIM FORMS FOR MY BENEFICIARY

7.  BIRTH CERTIFICATE

Finally, since I am single with no children (and I do not want to be married or have children),  I felt that I should have the above documents on record! 

That IS a smart lady! I honestly doubt that the lady pictured is actually the lady that won.

"You say that you are poor now...hmmm, take a look at the people with which you surround yourself...take their incomes and divide it by the number of people involved to arrive at an average.  If the average income is just about where you are now, I highly recommend that you change your circle of friends...IMMEDIATELY!!!"

The topic is "Lottery winner demonstrates the right way to claim a big jackpot" and your opening sentence was "Actually it is a misconception that wealthy people manage their money on their own".  I compared accumulated wealth to over night wealth. How is that statement about "poor people" related to how wealthy people manage their money?

I assumed because most people that believed they were poor would need to do much more than to just change their circle of friends to improve their income, it had to apply to winning a jackpot.

"And as a person grows in life, it only makes sense that his/her circle of friends should change to reflect that growth (again, Tiger Woods started out being coached by his father, then he had a few other instructors, then he worked with Butch Harmon, and now he is working with Hank Haney)."

Accumulating golf skills and accumulating wealth are comparable. I can buy a lottery ticket and become wealthy overnight; where can I buy a ticket and win Tiger Woods' golf skills overnight? 

"Stack you interpolated way too far when you responded to this point...because you missed the point I was trying to make by a country mile." 

There is nothing strange about being in a circle or friends who average about the same income whether it is $10K a year or $200K a year. Was your point that somebody in the lower income bracket can greatly increase their income by doing nothing more than changing their circle of friends?

How is that point related to claiming a jackpot or how wealthy people manage their money?