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Lottery winner lost money after investing funds

Topic closed. 63 replies. Last post 7 years ago by Littleoldlady.

Page 4 of 5

United States
Member #171
April 7, 2002
181 Posts
Posted: January 23, 2010, 2:11 pm - IP Logged

One more danger in the market is black box trading, trades done automatically by computer programs with no human intervention, even the fund managers are well aware of this danger to the stocks in their funds. Did anyone read the article about the Goldman Sachs super computer? It sees what trades are being made a few seconds before they go through, and trades accordingly. What can the average investor do about that?  Individual stock buying today carries too many risks, if you make money you are lucky, just like in the casino.

    dpoly1's avatar - driver
    United States
    Member #66141
    October 16, 2008
    1679 Posts
    Posted: January 23, 2010, 2:59 pm - IP Logged

    If I ever win, I will do my own investing. I will certainly diversify my investments. As for the Stock Market, I would start out small with on-line trading. If my research and strategy works I would continue. I have had a long time to think about what I would do and would welcome the chance to try some investing.


    I would not buy an American car because of the way GM and Chrysler screwed their investors and took care of the unions!


    I hope the young man does well!


    Come on Powerball !  Cool


      United States
      Member #171
      April 7, 2002
      181 Posts
      Posted: January 23, 2010, 3:35 pm - IP Logged

      dpoly1:  Do yourself a favor and learn from my mistakes, I traded stock, mutual funds, options, etc. for years and without some of the pitfalls today's market has, I had some successes, but the financial losses were greater. A talented trader who showed me the ropes eventually lost every penny he ever made and started asking me if he could borrow cash so he could continue trading and make back his money ( I changed my phone number), very few traders are successful.  Invest in dividend payers, use the monthly checks to spend some and reinvest, and let it grow slowly, you will make much more money that way.  Don't forget, trading on-line means paying brokerage commissions, short term capital gains taxes, etc.  I wish I knew several years ago what I know today.

      My neighbor lost $20,000 in 2009, because his broker day traded his account and put him in 3X bull (Long) and (short) bear funds, now my neighbor is looking to sue the broker.  I warned my neighbor not to let his broker do it, but he didn't listen to me.


      LETS GO JETS!!!!!!

        joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

        United States
        Member #32537
        February 12, 2006
        698 Posts
        Posted: January 23, 2010, 5:17 pm - IP Logged

        am going to be the jerk here, and say he didn't invests the money fairly wisely

        "investing" in the stock market for Capital Gains is flat out gambling,"then again he got lucky once, so why not try it again LOL"


        now if you invested into companys THAT PAY a high dividend yield, that have little debt, lots of cash on hand, , and are their just to get money back to their owners"share holders"  NOW THATS investing,


        take a stock  that is risky on capital gains, WWE, 

        its track record is up and down, however has a high dividend around 10% must of the past years

        in 2008,  it hit a high point of 18 bucks per share

        inless then a  year form that high,

          it hit a low point of 10 bucks per share,OH

        However,its dividend sure was high  AT ITS LOWEST point, if you was their for real "investment" owning a part of the companys profits

        hell when it hit LOWS it was a even BETTER DEAL to buy , my parents made a killing buying Low price stocks with high dividends ,

        now wwe stock back up to 15 buck range,  sure not recovered to its high in 2008, but who cares, its making a killing for its investers


        so even if the price goes up and down, if your sure getting a nice income form it in dividend checks, THATS  wise invement


        remb, "good investments" are solid returns in the form of dividend checks

        , if the company has little debt, lots of cash on hand, has a high dividend , Now thats a wise investment

        ,      people who play the stock market for Capital Gains alone are fools,and deserve to lose in the long run

          onless you got insider trading info, then  go at it, its like card counting, now the odds are on their side LOL


        hell when  people like in the above  storie was in disappear at stock market crashing and burning to record lows

        my family was making a killing on buying under priced, Great high dividend stocks

        hell i wish the stock market would crash and burn to record lows more often!, 

        NO BAILOUTS, we want free market where i live LMAO CEASE it makes smart people even  richer

          sully16's avatar - sharan
          United States
          Member #81740
          October 28, 2009
          41977 Posts
          Posted: January 23, 2010, 9:24 pm - IP Logged

          I feel bad for this kid , he thought he was doing right. he's a little wiser now and i think he'll go far.

           HyperBe Happy.

            Velocity's avatar - Gin
            United States
            Member #63548
            August 1, 2008
            25 Posts
            Posted: January 23, 2010, 11:05 pm - IP Logged

            You know, I have to say, it's easy for Warren Buffet to say invest your savings when he has $50 billion dollars, and he can lose $20 billion and not bat and eye, he doesn't have to worry about having gas money for the week or worry that he has all of his money in the stock market.  My point is, I'm not investing my money in the market for others to play with, their big thing isn't to make YOU money, it's to make THEMSELVES money and even if the price of the dollar falls, at least you know that you have your currency in your safe at home. I may not make money by investing, but when the market crashes again, and it WILL, and people lose everything, at least I will have my savings at home, it definitely makes me feel better.   People win the lottery, then invest it in the stock market-to grow more money-doesn't make sense to me.

              fja's avatar - gnome1

              United States
              Member #91
              January 19, 2002
              12008 Posts
              Posted: January 24, 2010, 8:41 am - IP Logged

              70% of lottery winners go bankrupt within 5 years?

              Whoa, I never heard that one before.

              It's a number that has been around for awhile...What they don't tell you is what makes up that number.  Could be a very high % of small winners....what do you think the definition of "lottery winner" is?


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

                rcbbuckeye's avatar - Lottery-043.jpg
                United States
                Member #55889
                October 23, 2007
                5751 Posts
                Posted: January 24, 2010, 9:18 am - IP Logged

                It's a number that has been around for awhile...What they don't tell you is what makes up that number.  Could be a very high % of small winners....what do you think the definition of "lottery winner" is?


                I always thought or assumed it was regarding jackpot winners, though I suppose it could be any "winner". I cant remember ever hearing or reading 70%, that seems a little high.

                fja, my definition of lottery winner is one who wins more than he or she spent. If I spend $1000 in one year on the lottery, and I "win" $500, I lost, if I "win" $1000, it's a wash, if I "win" $1001 or more, who hoo!!! I won! LOL. That hasn't happened.

                CAN'T WIN IF YOU'RE NOT IN

                A DOLLAR AND A DREAM (OR $2)

                  time*treat's avatar - radar

                  United States
                  Member #13130
                  March 30, 2005
                  2171 Posts
                  Posted: January 24, 2010, 3:29 pm - IP Logged

                  Investing with Buffett just got easier. The 'baby' Berkshire shares just did a 50-1 split.

                  Stocks, bonds, res. & comm. real estate, metals, farmland all get their day in the sun. Just not every day.

                  In neo-conned Amerika, bank robs you.
                  Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

                    Urbandale, IA
                    United States
                    Member #8624
                    November 11, 2004
                    115 Posts
                    Posted: January 24, 2010, 4:32 pm - IP Logged

                    Again...70% of lottery winners go bankrupt within 5 years of winnng the money?


                    Another shocker is that the "financial advisor" quoted in the article said you'd do better to take the annuity then to take the lump sum - I've never heard that before.


                    Please enlighten me.

                    That saying is simply "moralist" propoganda.  It is an invented statistic.  Like the common but nonsense statment that we only use 10% of of brains, or only poor an uneducated people play the lottery, etc.  Over 70% of Americans have played the lottery.  It makes no sense that over 70% of Americans have gone bankrupt (nearly everyone is a winner of some amount at some time).

                    The annuity option is the best choice for MOST people.  Imagine that someone gives you $100 million in cash.  You have two offers.  One is to invest $100 million and have a 100% guaranteed return payout over a period of years (generally long-term).  In Powerball it is even a graduated annual payment, going up by 4% a year to match inflation.

                    Or you can take the $100 million and pay about 45% of it in taxes.  So you then take the remaining $65 imllion and invest it in something, taking some risk that you will lost it all.  You can control your risk somewhat, of course, generally by accepting a lower rate of return.

                    In case you missed the big secret.  There is a BIG difference in the earnings you can make investing $100 million versus investing $65 million.  The lottery can invest the cash jackpot amount before taxes.  That's why U.S. lotteries offer the annuity - THEY CAN INVEST IT BEFORE TAXES.  It is rare that a "finanicail advisor" recommends taking the annuity.  There are a lot of fees to be racked up by them investing that money.

                      Urbandale, IA
                      United States
                      Member #8624
                      November 11, 2004
                      115 Posts
                      Posted: January 24, 2010, 4:57 pm - IP Logged

                      The stock market is not gambling. You are buying part of a company. Take Coca-Cola for example. I own a very small part of that company. It may not always do well, but the company is still there. Gambling takes place in a casino. You go into a casino pretty much expecting to lose money. You are paying for the experience, not so in the stock market.

                      Life is gambling.  The stock market is gambling for the big boys.  Have no doubt, the advantage in the stock market is that it takes longer.  It takes longer both to lose it and to get rich.  There is no such thing as making "smart investments".  Darts do just as well (better, in fact, in studies) than "experts".  It takes years to move the money out of your pocket over to the big boys' pockets.  In good times, they take their share, leaving you with a little more return than you pay out for your mortgage; not as much as you pay to your credit card.  In bad times; they take it all, but they always get their take.

                      Most folks don't think of the stock market as gambling.  Odd that I can lose six figures in the stock market (along with most of America) and no one suggests counselling.  Lose a tenth that much at the craps table and counseling would be mandatory.

                      Oh, and Coca-Cola can go away.  Perhaps from the future lawsuits for fructose harm (obesity); perhaps something else.  Then the stocks are worth the same as last week's lottery ticket.

                      Enjoy playing both games.  Just don't fool yourself about what you are doing.

                        myzeus's avatar - Apollo
                        United States
                        Member #59677
                        March 24, 2008
                        78 Posts
                        Posted: January 24, 2010, 7:54 pm - IP Logged

                        I would have put the majority of the money into real estate and would have stayed far away from the stock market.

                        I was in Houston, Texas during the oil bust....so many houses and real estate in foreclosure....it was like it is now. If I had had the money during the oil bust to buy cheap real estate in Houston, Texas....I'd be sitting pretty right now because property values did increase but it took a few years.

                        If I won the lottery, the majority of it will go into real estate. The stock market is too shaky right now to invest into, so I would not invest in the stock market at all.


                          Bondi Junction
                          Member #57242
                          December 24, 2007
                          1102 Posts
                          Posted: January 25, 2010, 2:41 am - IP Logged

                          First, he should sit tight and wait for the market to rebound.


                          Second, he should stop talking to the media about his finances, it is a private matter; unless he is paid for the interview.

                          We all get a lot out of lotteries!

                            charmed7's avatar - Lottery-013.jpg
                            United States
                            Member #65282
                            September 22, 2008
                            2006 Posts
                            Posted: January 25, 2010, 8:43 pm - IP Logged

                            Smart kid, Bad idea off investing large sum of money in the market, its too risky now days.

                            He's young enough to regain  his losses.

                              savagegoose's avatar - ProfilePho
                              adelaide sa
                              Member #37136
                              April 11, 2006
                              3315 Posts
                              Posted: January 27, 2010, 6:33 am - IP Logged

                              i got my numbers wrong 3.25% was a busines sloan, interest on savings is only 1.25%!!!


                              330k at 1,25% = $4k a year!!!!


                              on 1 mill 12.5k a year!!!

                              2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

                              keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318