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who know the statistics of lottery winners who go broke

Topic closed. 17 replies. Last post 6 years ago by Coin Toss.

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bend
United States
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April 15, 2008
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Posted: April 15, 2008, 11:56 am - IP Logged

i am tired of my wife pulling unverified stats out of thin air and this one particularly bothers me.  she said "70 % of all big lottery winners go broke quickly".  i have tried to research  this and all there seems to be are strories with anecdotal examples of people who have blown their windfalls.

maybe she is right, but i have seen everyting from 1/3 to 90%.  i am getting worn out by the quickness of people to throw facts around that are dubious and who cannot/will  not ever verify them on their own.

 

anybody know some sources of concrete stats on this?  also, seems like it would make a good film.  i am a documentary filmmaker and not sure this has been done. 

thanks

greg

bend, oregon

    MillionsWanted's avatar - th 39059_moneyman_122_80lo.jpg

    Norway
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    December 10, 2004
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    Posted: April 15, 2008, 12:07 pm - IP Logged

    I can't help you, but there has been written a few books about the life of lottery winners and how they coped. Check on Amazon.com if there is any books which got the information you need.

      RJOh's avatar - chipmunk
      mid-Ohio
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      Posted: April 15, 2008, 12:18 pm - IP Logged

      People who inherit their wealth go broke all the time, it's just that only those who get their wealth from a lottery win make the news. People who win lotteries aren't any smarter about handling their money than the general public so they probably go broke about the same as those in the general public.

      * Thoses who can, do * 
      * thoses who can't, just talk *
      Roll Eyes 

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        San Diego, CA
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        Posted: April 15, 2008, 12:56 pm - IP Logged

        money burns fast.

          Raven62's avatar - binary
          New Jersey
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          Posted: April 15, 2008, 1:41 pm - IP Logged

          An Internet Search on: Windfall Bankrupt :Revealed an article that will go along way to answering the question you posed to the LP Members:

          http://www.eagletribune.com/punews/local_story_301015837.html

          The article may also answer some questions you didn't ask, or it may generate new questions, either way it's a good read for anyone that may become the recipient of a windfall.

          A mind once stretched by a new idea never returns to its original dimensions!

            fja's avatar - gnome1

            United States
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            Posted: April 15, 2008, 1:43 pm - IP Logged

            Nearly one-third of lottery winners become bankrupt.

            “The CFP Board made an offer to the National Association of State and
            Provincial Lotteries to provide the organization's members with
            information to distribute to winners. The Investment News article
            highlighted the lack of financial guidance many winners receive from
            state lottery agencies; estimates show that nearly one-third of
            lottery winners become bankrupt.”

            Source: Certified Financial Planner Board of Standards, Inc

            Or you can google "lottery winner statistics"

            "Everybody has to believe in something...I believe I'll have another beer!"   = W.C.Fields                      

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              Kentucky
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              Posted: April 15, 2008, 4:30 pm - IP Logged

              Nearly one-third of lottery winners become bankrupt.

              “The CFP Board made an offer to the National Association of State and
              Provincial Lotteries to provide the organization's members with
              information to distribute to winners. The Investment News article
              highlighted the lack of financial guidance many winners receive from
              state lottery agencies; estimates show that nearly one-third of
              lottery winners become bankrupt.”

              Source: Certified Financial Planner Board of Standards, Inc

              Or you can google "lottery winner statistics"

              Winning a moderate jackpot raises their credit line and I'll bet while some don't go bankrupt, they have very little to show for their winnings. I've read about people that took annual payments and owed more than they would collect in the next 5 years.

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                San Diego, CA
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                Posted: April 15, 2008, 5:40 pm - IP Logged

                I don't understand why "friends" think they are entitled to one penny of someone elses windfall.  If a friend of mine won the lottery, I wouldn't think of asking for money from them.

                  hearsetrax's avatar - 78638c467ef281febf24383e126f74b6

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                  Posted: April 15, 2008, 6:57 pm - IP Logged

                  I don't understand why "friends" think they are entitled to one penny of someone elses windfall.  If a friend of mine won the lottery, I wouldn't think of asking for money from them.

                  Roll Eyes dunno ethier and nethier would I ask for help

                  if they wanted to help I wouldn't say no ethier LOL

                  infact I just got into a debate with a friend of mine about that ...hard enough finding decent friends... but geeze H xmas

                    Coin Toss's avatar - shape barbed.jpg
                    Zeta Reticuli Star System
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                    Posted: April 15, 2008, 7:09 pm - IP Logged

                    On one of the Discovery Channel lotto programs it said that half of all jackpot winners declare bankruptcy within five years.

                    I'm not sure if that's 100% accurate, but we can say that they get a lot more press than the ones who just keep the money, a level head, and enjoy it.

                    I'm starting to think a jackpot winners actions the first two weeks or so koinf of ses the pace for qhat will happen.

                    David Edwards- hits a jackpot and takes an entourage of friends and family to Las Vegas - oh yeah, brilliant move.

                    "The bigger the desire for flash, the shorter lived the cash"

                    -Coin Toss

                    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                    Lep

                    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                      JackpotWanna's avatar - squiz

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                      Posted: April 15, 2008, 7:16 pm - IP Logged

                      My guess is 40% or lower go broke but higher than the general public.  The trick is not to tell anyone that you won.

                        mylollipop's avatar - Trek STLOGO6.png

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                        Posted: April 17, 2008, 11:25 pm - IP Logged

                        An Internet Search on: Windfall Bankrupt :Revealed an article that will go along way to answering the question you posed to the LP Members:

                        http://www.eagletribune.com/punews/local_story_301015837.html

                        The article may also answer some questions you didn't ask, or it may generate new questions, either way it's a good read for anyone that may become the recipient of a windfall.

                        Very good article indeed.

                          Coin Toss's avatar - shape barbed.jpg
                          Zeta Reticuli Star System
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                          Posted: April 18, 2008, 9:09 am - IP Logged

                          Raven62

                          Excellent article, excellent find.

                          Should be required reading for all lottery players.

                          Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                          Lep

                          There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.


                            United States
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                            Posted: April 18, 2008, 1:22 pm - IP Logged

                            I would imagin, of those who no idea of which direction the sun rises, the losses would be above 90%.  If you don't plan to win, then you, in turn, do not plan to spend.  Thus you go broke.  If you have made no plans on who to contact for advise, odds are tremendous that you will pick some one who will rip you off.  Its like walking into an automobile dealship. Go in unprepared, come out loosing more then you imagined. Those who think, will probably be 90% profit makers.  People who think they one  $10M, and don't prepare for taxes and expenditures on what they buy will go broke.  Know what you have, and you have a better chance to keep it!  Getting advise has a risk, especially when you are blinded by the shiney little lure!

                              ThatScaryChick's avatar - AbnSTiA

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                              Posted: April 18, 2008, 3:25 pm - IP Logged

                              I don't understand why "friends" think they are entitled to one penny of someone elses windfall.  If a friend of mine won the lottery, I wouldn't think of asking for money from them.

                              I think it's because, they see a lottery win as not really being earned. I don't agree with that train of thought, but I think many people feel that way, so they don't see anything wrong in begging for other peoples money if they win the lottery.

                              "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."