|Posted: October 10, 2009, 10:59 am - IP Logged|
Double sigh. Seems like the old adage applies: more money, more problems. Must have been lots of "smart lottery winning investorsj" that lost a ton of money, especially those who took that lump sum payment. Between the federal, state (if you are so blessed to live in a taxing state) and the taxes you spend on the mansion and fleet of new cars, you can be down to relative peanuts in no time. Add in the global recession/depression on all investments that even Warren Buffett took a "buffeting", and you got serious headaches for just about anyone, except those who had serious inside information/knowledge of where to sell short and take that money and run.
Blind trust, a reputable, honest lawyer (oxymoron), being low key (new money shouts, old money whispers), stay out of the topless joints and out of the gambling joints. Some places you are just asking for trouble. And if you buy a new car(s), drive something less conspicious, a flashy red Ferrari is cool, just don't drive it through the old 'hood and around caberets, you're asking for a DWI and a carjacking, both of which are life threatening. Also, before you buy that Riva or Azmith or Fearless yacht, lease one for a week or two, to see what the cost to own an maintain one really would be.
And for financial advisors: they are sharks too, lots of times they and the lawyer are the ones who end up with all your money because of all the fees they charge churning your accounts. Besure to look up their professional licenses and any court filing they've had recently, Bernie Madoff was under the radar for decades, nobody is immune or perfect.
Real estate, you got me. Location, location, location, phooey. It's a crap shoot, buy low, sell high, just find something you like and can affordably live in, more than likely, you'll be stuck with it, and your neighbors. If you aren't comfortable and safe in your own home, all the money in the world isn't worth squat. Make your bed and lay in it, hopefully you have nice bedmates!
Me, don't have that big hit yet, but I've learned a lot seeing and hearing about the problems others have had. I wouldn't do anything too drastic for the first year or two; do some traveling, order a couple of expensive cars and scout out places to build a modest house to retire to. I'm getting older, so long-term investments won't excite me, but I'll be sure to take care of family and give something to local charities that truely help others in need. Gambling casinos won't see me, and those lapdancers that turned their nose up at my "precious $20's) won't feel any differently even though you got millions 'cuz they won't see any of 'em!