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Arizona Lottery winner shows what not to do with $6.7M

Topic closed. 21 replies. Last post 10 years ago by dvdiva.

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San Jose, California
United States
Member #42003
June 26, 2006
206 Posts
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Posted: July 20, 2006, 12:03 am - IP Logged

$6.7 million is not that big of a jackpot to be doing the things he wanted to do so he paid the price for it. 

The odds of winning the lottery are bad enough, so if you do play make it worth it, make sure the cash value of the jackpot is a good $20-$30 million atleast 

So you are saying don't play until the cash value is at least $20 million (aprox. $40 million jackpot)?
I don't agree with that. Even $10 - $12 million is worth the dollar ticket!  But if you win a few million (this guy won less than $7 million) -- just thank the Lord and don't go crazy.  If you don't screw it up, you've got a nice retirement and then before that a comfortable lifestyle.  But, you aren't RICH.  Some CEOs make that in one year,  many movie stars make $20 million or more per film and they 2 or 3 films per year.  So, don't go trying to buy a dozen Porsches like you are Jerry Seinfeld (he's a big Porsche fanatic).  You aren't in that league.  God blessed you once with a few million -- now take care of it!  Make it last, even make it grow some, but don't go crazy thinking you are some smart businessman.  Know your limitations -- and be thankful you don't have to work in the factory anymore.

this guy he is not a smart businessman. He makes several mistakes.

1st buying beachfront houses - real estate people love to sale this type of properties (who else Donald Trump "Trump bought bankrupt health care mogul Abe Gosman's estate at auction for about $41 million. The estate has been gutted and renovated, and still has a few months of work left. But Trump has already stuck a price tag of $125 million on." He jacks up the price 200% from the original price with some touch. Don't buy this property, unless you want to turn it into a resort to generate incomes in order to cover the cost of maintainance. When you have a big bank account to buy a beachfront properties, you will pay overprice 100%. For me, I don't like the beach very much anyway. Two times out the beach, sunburn two times. I don't like big waves (tsunami).

 2nd got the wrong education. He wants to do business. But he graduates in polical science, studies law. Seriouly, he should get Business Administration - learn to do the Balance Sheet, and Cash Flow, Run a good business at least.

 

3rd Rule of Thumb- diversity of investment. 4 Shell gas stations. (If I were him 1 Shell gas station, 1 food restaurant, 1 auto repair shop, the rest bonds and stocks.) Balance out investments, get income from many sources.

 

I don't know whatelse he did wrong. Maybe there are some more.

It's just my opinion. I am not a financial guy. 

    Avatar
    metro Atlanta area
    United States
    Member #4122
    March 23, 2004
    49 Posts
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    Posted: July 20, 2006, 2:45 am - IP Logged

    He screwed up when he bought that ticket. There was no such thing as a cash option 18 years ago.

    All his problems began when he did cash out that ticket.  Read the story again.  He found a company willing to give him cash -- which he blew on more houses, cars and bad business decsions.  Until then, no matter how he screwed things up, each year he got $350,000.  That annuity was his safety net.  He should have learned to live in half and invest the rest in stocks, bonds, more annuities to keep the revenue stream going after the 20 years. 

    Instead he tried to cash out his winnings.  You can see why "cash only" thinking is a mistake for most people. 

     

     

      Avatar
      Coastal Georgia
      United States
      Member #2653
      October 30, 2003
      1866 Posts
      Offline
      Posted: July 20, 2006, 1:45 pm - IP Logged

      He screwed up when he bought that ticket. There was no such thing as a cash option 18 years ago.

      All his problems began when he did cash out that ticket.  Read the story again.  He found a company willing to give him cash -- which he blew on more houses, cars and bad business decsions.  Until then, no matter how he screwed things up, each year he got $350,000.  That annuity was his safety net.  He should have learned to live in half and invest the rest in stocks, bonds, more annuities to keep the revenue stream going after the 20 years. 

      Instead he tried to cash out his winnings.  You can see why "cash only" thinking is a mistake for most people. 

       

       

      I Agree! Good point, CM. A very good point from a fellow Georgian...

      ..DD

       

                                     

                    

       

       


        United States
        Member #379
        June 5, 2002
        11296 Posts
        Offline
        Posted: July 20, 2006, 1:52 pm - IP Logged

        He screwed up when he bought that ticket. There was no such thing as a cash option 18 years ago.

        All his problems began when he did cash out that ticket.  Read the story again.  He found a company willing to give him cash -- which he blew on more houses, cars and bad business decsions.  Until then, no matter how he screwed things up, each year he got $350,000.  That annuity was his safety net.  He should have learned to live in half and invest the rest in stocks, bonds, more annuities to keep the revenue stream going after the 20 years. 

        Instead he tried to cash out his winnings.  You can see why "cash only" thinking is a mistake for most people. 

         

         

        I Agree! Good point, CM. A very good point from a fellow Georgian...

        ..DD

        There was no cash/annuity choice for The Pick when he won. Just like there is no cash option for GA winners in Lose for Life.

          Avatar
          metro Atlanta area
          United States
          Member #4122
          March 23, 2004
          49 Posts
          Offline
          Posted: July 24, 2006, 1:32 am - IP Logged

          He screwed up when he bought that ticket. There was no such thing as a cash option 18 years ago.

          All his problems began when he did cash out that ticket.  Read the story again.  He found a company willing to give him cash -- which he blew on more houses, cars and bad business decsions.  Until then, no matter how he screwed things up, each year he got $350,000.  That annuity was his safety net.  He should have learned to live in half and invest the rest in stocks, bonds, more annuities to keep the revenue stream going after the 20 years. 

          Instead he tried to cash out his winnings.  You can see why "cash only" thinking is a mistake for most people. 

           

           

          I Agree! Good point, CM. A very good point from a fellow Georgian...

          ..DD

          There was no cash/annuity choice for The Pick when he won. Just like there is no cash option for GA winners in Lose for Life.

          "There was no cash/annuity choice for The Pick when he won. Just like there is no cash option for GA winners in Lose for Life."

           

          Then whoever wins "Win For Life" will never go broke, will they?  They'll always have $1,000 a week for the rest of their life. 

           

          Sure, that does't sound like much when we've been discussing MILLIONS, but still that's a mortage payment and two very nice car payments each month. ($ 4,000 per month for the rest of your life).  Why can't you take it and just say thank you?

            justxploring's avatar - villiarna
            Wandering Aimlessly
            United States
            Member #25360
            November 5, 2005
            4461 Posts
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            Posted: July 24, 2006, 5:55 am - IP Logged

            "Then whoever wins "Win For Life" will never go broke, will they?  They'll always have $1,000 a week for the rest of their life."  ChazzMatt

            I Agree!  Looks as if GA has a "real" Win For Life game. Some states don't pay for the person's entire life, which has always been an issue for me. If it's not "For Life" then they shouldn't advertise it as such. But I went to the GA web site and they describe it as a lifetime payment. If most cases when a winner dies, the payments are guaranteed to the beneficiary for up to 20 years (ex: the winner lives for 12, the heirs get the other 8)  Anyway, $52,000 a year would make a nice retirement package! I wouldn't complain.

              dvdiva's avatar - 8ball

              United States
              Member #2338
              September 17, 2003
              2063 Posts
              Offline
              Posted: July 24, 2006, 1:23 pm - IP Logged

              Financial idiots winning lucky for life games will just borrow against their winnings. There is no saving people from themselves.