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Twelve things not to do if you win the lottery

Topic closed. 126 replies. Last post 3 years ago by fastball 9.

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Zeta Reticuli Star System
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Posted: August 27, 2013, 11:35 pm - IP Logged

Good article, a lot of common sense, I'm just not sure about this:

  • Automatically decide to take the up-front cash. Supposedly some 70% of lottery winners end up broke again, many within a couple or few years. If you get $172 million up front, it may sound better than having to receive a payout of $300 million slowly over the course of a lifetime. After all, it is instant empire-making money. Go see a tax pro and a legitimate investment advisor at a top money management firm, a theme you will see here throughout, before you automatically make this decision about a lump-sum or annuity option.

_______________________________________

As someone's sig used to say, you can always buy a better annuity. That and I'm sure there have been jp winners that have taken the annuity and for one reason or another went to one of those structured settlement companies and settled for a dime on the dollar.

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.

    mikeintexas's avatar - tx avatar-1.gif
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    Posted: August 27, 2013, 11:56 pm - IP Logged

    I Agree! and make some copies so you can show everyone Hurray!

    I had a friend who won $10,000 on a scratch ticket and called to tell me.  I told him I was proud for him and appreciated his trust in me, but I would advise him not telling any other people.  He then said he didn't want to pay taxes on the winnings, but I told him that wasn't an option since it would be reported to the IRS AND 25% taken out when they gave him the money.  He didn't like that, but I told him he would most likely get a chunk of that back since he had other income and deductions.  I also told him he should sign the ticket, then make a photocopy of both the front and back of the ticket.  He thanked me, then said he was going to go do that right then and ended the call.   He called me back the next day, saying he had gone to the post office to use their public copier, made the copies I had recommended, then went back to his truck and started back home to call his boss and say he was taking the next day off in order to go claim his money...then realized he had left the ticket in the machine!   He said he did a u-turn worthy of a Hollywood movie right in the middle of traffic and sped back to the P.O.  Thank goodness the ticket was still there!

      miracleplay5's avatar - web
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      Posted: August 28, 2013, 12:01 am - IP Logged

      I had a friend who won $10,000 on a scratch ticket and called to tell me.  I told him I was proud for him and appreciated his trust in me, but I would advise him not telling any other people.  He then said he didn't want to pay taxes on the winnings, but I told him that wasn't an option since it would be reported to the IRS AND 25% taken out when they gave him the money.  He didn't like that, but I told him he would most likely get a chunk of that back since he had other income and deductions.  I also told him he should sign the ticket, then make a photocopy of both the front and back of the ticket.  He thanked me, then said he was going to go do that right then and ended the call.   He called me back the next day, saying he had gone to the post office to use their public copier, made the copies I had recommended, then went back to his truck and started back home to call his boss and say he was taking the next day off in order to go claim his money...then realized he had left the ticket in the machine!   He said he did a u-turn worthy of a Hollywood movie right in the middle of traffic and sped back to the P.O.  Thank goodness the ticket was still there!

      That was a great story.thanks for sharing.as I read I was really into the story...if you dont already...writing may be an added ticket to your money making life..this is a short yet good read.See Ya!

      Pay less, win more & world peaceSee Ya!

      "No one cares how much you know until they know how much you care"-Theodore Rooosevelt

        golfer1960's avatar - Lottery-003.jpg
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        Posted: August 28, 2013, 12:19 am - IP Logged

        12 things I will do with my lottery ticket/winnings

        1.) Sign the back of my ticket once I find out I won, 2.) Be in Tallahassee, Florida within five minutes of them opening up the next morning. 2.) Claim my money but have on a disguise 3.) choose the annuity. 4)no press conference 5.)Tell my best friend once the money hit my account 6.) Pay my tithe 7.) give my church an additional 5% of my winnings 8.) give my top ten family members&friends some money 9.) start a chain of Fast food vegan restarants 10.) Give a few million to an organization for a cure for cancer research 11.) Donate millions to cancer patients&their families. 12.) open up the world largest homeless shelter that will help not enable people to get back on their feet or begin a successful life as a productive member of society(non profit)...HyperThose are my top 12 do's..oh I feel the win coming soonHyper

        You're very generous miracleplay. Bravo!!

          mikeintexas's avatar - tx avatar-1.gif
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          Posted: August 28, 2013, 12:49 am - IP Logged

          Why, thank you!  Such a nice thing to say!  I try to write, but am not very good at it. (I used to write really bad poetry and share it until I finally developed some shame)  For the last several years, I've been trying to write a book about the Hank Skinner murders in Pampa, Texas.  (he came within 20 minutes of being executed a few yrs. back)  At first, I thought he might very well be innocent, but after hundreds of interviews and hours and hours spent going over the evidence and testimony, I've reached the conclusion that he's guilty as charged.  The case is still important, though, what with the Supreme Court ruling that - in a nutshell -  he has a right to have tested some of the other DNA evidence collected at the scene.   I think the DNA will implicate him further, though.  Several YouTube videos of him, if you're interested.

            helpmewin's avatar - dandy
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            Posted: August 28, 2013, 12:52 am - IP Logged

            I had a friend who won $10,000 on a scratch ticket and called to tell me.  I told him I was proud for him and appreciated his trust in me, but I would advise him not telling any other people.  He then said he didn't want to pay taxes on the winnings, but I told him that wasn't an option since it would be reported to the IRS AND 25% taken out when they gave him the money.  He didn't like that, but I told him he would most likely get a chunk of that back since he had other income and deductions.  I also told him he should sign the ticket, then make a photocopy of both the front and back of the ticket.  He thanked me, then said he was going to go do that right then and ended the call.   He called me back the next day, saying he had gone to the post office to use their public copier, made the copies I had recommended, then went back to his truck and started back home to call his boss and say he was taking the next day off in order to go claim his money...then realized he had left the ticket in the machine!   He said he did a u-turn worthy of a Hollywood movie right in the middle of traffic and sped back to the P.O.  Thank goodness the ticket was still there!

            Green laugh

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              Chief Bottle Washer
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              Posted: August 28, 2013, 5:56 am - IP Logged

              Good article, a lot of common sense, I'm just not sure about this:

              • Automatically decide to take the up-front cash. Supposedly some 70% of lottery winners end up broke again, many within a couple or few years. If you get $172 million up front, it may sound better than having to receive a payout of $300 million slowly over the course of a lifetime. After all, it is instant empire-making money. Go see a tax pro and a legitimate investment advisor at a top money management firm, a theme you will see here throughout, before you automatically make this decision about a lump-sum or annuity option.

              _______________________________________

              As someone's sig used to say, you can always buy a better annuity. That and I'm sure there have been jp winners that have taken the annuity and for one reason or another went to one of those structured settlement companies and settled for a dime on the dollar.

              It's actually pretty difficult to find any guaranteed investment that pays off better than the one you'll get from the lottery.  Jackpot size directly drives sales volume, so it is a primary mission of the lottery to get that annuity rate as high as it can, which makes the jackpot larger.

              Lots of people make the mistake of thinking that the cash value is derived from the advertised annuity, when in fact it is the opposite.  They start with the cash amount that they have in-hand from the previous jackpot, then they add the cash that they believe they will derive from sales over the next few days until the drawing, and that becomes the estimated cash value.  Then the annuity jackpot is estimated based on the highest interest rate the bank will guarantee.  I believe they may have several banks that compete for the business, so the rate is very good.

              There are also tax reasons that gives the lottery a leg-up on what you could do with the cash.  Chuck Strutt (Director of MUSL) posted about that last year:  http://www.lotterypost.com/news/253037/2790065.  (Interest rates have come up since he wrote that, so his advice in the second part of his post may have changed since he wrote it.)

              He also wrote about it in March of 2012:

              Makes for great reading.

               

              Check the State Lottery Report Card
              What grade did your lottery earn?

               

              Sign the Petition for True Lottery Drawings
              Help eliminate computerized drawings!


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                Posted: August 28, 2013, 6:13 am - IP Logged

                (13) Tell your ex-wife

                  Abdi's avatar - Lottery-008.jpg
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                  Posted: August 28, 2013, 6:27 am - IP Logged

                  very educative replies............i have learnt many thinks! keep them  coming in before this article is taken over by events!

                  I Agree!

                  There are no born heroes or winners........it takes a hammer a chisel,a vision and a will to suffer the blows and be carved into one!..........

                    miracleplay5's avatar - web
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                    Posted: August 28, 2013, 9:16 am - IP Logged

                    Why, thank you!  Such a nice thing to say!  I try to write, but am not very good at it. (I used to write really bad poetry and share it until I finally developed some shame)  For the last several years, I've been trying to write a book about the Hank Skinner murders in Pampa, Texas.  (he came within 20 minutes of being executed a few yrs. back)  At first, I thought he might very well be innocent, but after hundreds of interviews and hours and hours spent going over the evidence and testimony, I've reached the conclusion that he's guilty as charged.  The case is still important, though, what with the Supreme Court ruling that - in a nutshell -  he has a right to have tested some of the other DNA evidence collected at the scene.   I think the DNA will implicate him further, though.  Several YouTube videos of him, if you're interested.

                    Don't give up on writing. I belive from your above sample and the short story you told about your friend were good and shows the potential of you being a best seller writer. I was enagaged from start to finish without rushing your thoughts in my head. I write and without tooting my own horn.lol.I will say that I write poetry/spoken word pretty good, HOWEVER I can't write an actual song. I am a composer but can't write a song..lol..so don't allow your inability to write good poetry determine your success in writing altogether. " until I finally developed some shame)" that was funnyROFL we are our own worst critic.Maybe it was the crowd not everyone is into poetry. There so many different types of poetry too. Maybe I am just over confident. When I read myself poetry to friends before a show, if I hear crickets, I laugh and say "tough crowd". Then I get on stage; and my poetry and I are received very well. Anyway I think you are a very good writer. You are the kind of writer that will publish a book, and it become a best seller world wide and an in one sitting read. Well money making wishes to you. I can't wait to read your book on winning a lottery jackpotSee Ya!

                    Pay less, win more & world peaceSee Ya!

                    "No one cares how much you know until they know how much you care"-Theodore Rooosevelt

                      olplugger's avatar - moon2
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                      Posted: August 28, 2013, 9:17 am - IP Logged

                      Imagine becoming vastly wealthy overnight. Being a winner of a multimillion dollar lottery has to be incredible. It certainly is going to be a life-changing event for almost every single lottery winner. But what about when the prize is an astronomical sum of $100 million, $200 million or $300 million? If you happen to be lucky enough to win a lottery, please avoid some of the simple mistakes, and complex mistakes, that have taken other lottery winners into bankruptcy.

                      Imagine being Joe Somebody and turning into Sir Joe the Magnificent overnight. Now imagine the unthinkable that Sir Joe could become Joe the Village Idiot in a very short time. Supposedly most lottery winners end up broke again. That just doesn't seem right at all.

                      24/7 Wall St. has decided to offer up 12 key things not to do if you are a lottery winner. We have looked around at many research papers and other articles on the matter about those who land in instant riches against all odds. It seems too cruel to imagine that many winners become losers. There is a saying that you should only have to get rich once. Some people just cannot help themselves in avoiding the pitfalls of instant wealth.

                      While many lists exist on what you should do if you win, it is surprising how few actual warnings are out there that can be used a scare-tactic guide that makes lottery winners do the right thing. Did you know that you might become a target if you are a lotto winner? Some people find instant enemies, and some people turn out to be their own worst enemy. It might have been very hard to spend $30 million in 30 days in "Brewster's Millions" during the mid-1980s, but that could be done easily and perhaps just in a single day now.

                      Some points may overlap or seem redundant, but there are many pitfalls which snag lottery winners or those who find themselves incredibly wealthy in a very short period.

                      Here are 12 things not to do if you win the lottery:

                      • Forget to sign a ticket or report it to the state. After doing some research, we find this is apparently the simplest and easiest error to make. Can you imagine losing a lottery ticket? Then imagine what can happen if someone else snags your ticket and shows up to collect the prize. Fighting over this is no simple task. In a way, lottery tickets are the last form of bearer bonds that anyone collect on if they show up with the coupons and bonds.
                      • Tell everyone you know. If you win this much money, chances are high that you will to want to brag about it. How could you not? The problem is that telling everyone you know before you collect puts you in danger, and in more ways that just one. Everyone who has ever done anything for you now may come with their hands out asking for something, or worse. You probably have heard of kidnap and ransom insurance before. One recent lottery winner even became the victim of what appears to be murder. If you can manage it, and if your state allows it, try to remain anonymous for as long as humanly possible. How you became vastly wealthy will be found out in time anyway, but there is no need to hurry that along.
                      • Automatically decide to take the up-front cash. Supposedly some 70% of lottery winners end up broke again, many within a couple or few years. If you get $172 million up front, it may sound better than having to receive a payout of $300 million slowly over the course of a lifetime. After all, it is instant empire-making money. Go see a tax pro and a legitimate investment advisor at a top money management firm, a theme you will see here throughout, before you automatically make this decision about a lump-sum or annuity option.
                      • Think that you are the smartest person to manage your money and finances. If you go from living paycheck to paycheck, does it sound right that you will know the best things to invest in and the best tax and asset protection strategies? Your drinking buddy might not be the best choice either. Having a solid and respectable team in place will act as your buffer that protects your assets now and in the future. Do you know how to protect your assets against all threats and know exactly how to protect your estate in case you die or become incapacitated? If you answered yes, you probably did not bother playing the lottery.
                      • Let your debts remain in place. If you get the "I'm rich and don't have to pay anymore" bug, you might be dooming yourself. Whether you take the lump-sum or the annuity option, if you have a single penny of debt in the immediate future and distant future, then something is seriously wrong. For that matter, you should not have a single debt ever again. If you manage to go broke down the road and still have a mortgage, car payments, student loans, credit card debt and personal bills, all of your friends and family members should get to spank or ridicule you every day for the rest of your life.
                      • Become the generous high-roller, living the life. If you go from living a simple life to instantly being able to spend hundreds of thousands of dollars (or more) per week, what do you think happens to your expectations in life ahead? Chances are high that you will want more of the same. If you start gambling in Las Vegas and are not happy until you are gambling with hundreds of thousands of dollars (or more) per play, you are dooming yourself. Wait until the real con men find you. Taking you and your favorite 50 people on a luxury cruise around the world can become very expensive, very fast.
                      • Buy everything for everyone, or even for yourself. Do not go out and buy dozens of cars, followed by houses and whatever else, for you and your friends and family members. This will start you on a bad path, and you could easily become the next friends and family personal welfare department. If you start buying everything for everyone, chances are high that they might expect that to last forever. You do not have to be a cheapskate, but after hearing a personal story of someone buying more than 30 cars and multiple houses in three months it is just crazy.
                      • Say to hell with a budget. Maybe it sounds crazy that you have to live within means when you get empire-making money. After all, you are now wealthier than everyone you know combined. This also goes back to having advisors and being prudent, but at the end of the day you do still have a finite sum of money. Chances are very high that you will make some serious purchases and your lifestyle will be changed forever. Without setting limits for yourself and for what you do with others is a recipe for disaster. Again, most lottery winners go broke.
                      • Become the business backer for all your friends and family. One common theme that has come up with lottery winners (and judgment winners) who suddenly get vast sums of cash is that their friends and family start pitching them on endless business ideas. Sure, some will sound great and some will sound crazy. If someone has no knowledge of a particular business and does not know what it takes to actually run a business, will they do better because a lottery winner who lucked into vast wealth gave them money to start it? If your answer is yes, you seriously need to protect yourself (from yourself).
                      • Give away the whole enchilada. This is probably not the case for the vast majority of lottery players, but some people might want to give away just about all of their money to a charity or to their religious institution. You can be generous without doing the unthinkable. Imagine what you will feel like down the road when a serious crisis arises in your life or your family's life, knowing that you no longer had the means to change it. Should you be charitable? Absolutely! Should you give it all away? Absolutely not!
                      • Get celebrity and athlete envy. Keeping up with the Jonses is bad enough, but definitely do not try to keep up with the Kardashians or other celebrities. It may seem cool to own a 200-foot yacht. It may seem practical that certain celebrities have an entourage, or to have a film crew following you around. It may seem cool owning castles in Europe. Owning an original Picasso painting sure sounds impressive. Having a big new private jet makes sense for a lot of people. Trying to dodge taxes might even sound appealing to misguided people. Now go add up the price tags of these things, plus the cool cars and houses and the rest of it. You can go broke real quick. Just ask people like Nicolas Cage, Wesley Snipes, MC Hammer, Evander Holyfield and many other famous people who had it all and ended up broke how they feel about things.
                      • Think that laws and decency standards no longer apply. It is true that the wealthier you get, the better attorneys and legal defense you can afford. That being said, living a reckless life without concerns about the laws of the land will not keep you from going to prison (or worse). Movies often glamorize scoundrels, but what good does it do you if you are incredibly wealthy and such a pariah that no one will associate with you? Remember, you don't get to take any of it with you.

                      Thanks so much for the great advice!  Thumbs Up

                      "Whatever the human mind can conceive and believe it can achieve."

                      Napoleon Hill, Author of "Think & Grow Rich"

                                                                                                                                                             

                        rdgrnr's avatar - walt
                        Way back up in them dadgum hills, son!
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                        Posted: August 28, 2013, 11:06 am - IP Logged

                        (13) Tell your ex-wife

                        Perish the thought.

                        Oh, the humanity...

                          helpmewin's avatar - dandy
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                          Posted: August 28, 2013, 11:07 am - IP Logged

                          Perish the thought.

                          Oh, the humanity...

                          Green laugh


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                            Posted: August 28, 2013, 1:17 pm - IP Logged

                            Perish the thought.

                            Oh, the humanity...

                            Thumbs Up

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                              Posted: August 28, 2013, 3:30 pm - IP Logged

                              Its unfortunate that nobody, even talks about taking the annuity, instead of the lump sum anymore. If you are young, and the jackpot is large enough, taking the annuity route might actually be a wise choice. At least you have 26-30 years, before you actually go broke. Most people outgrow their stupidity within the first five years. Better than paying some SUIT AND TIE, you don't know, thousands of dollars to manage your money. Hmm maybe I should take the annuity and use my drinking buddies. To each his own.Yes Nod

                              First, taking the annuity requires that you trust the government running the lottery to be both willing and able to make those payments. I do not believe those funds are set aside outside the governments control. Maybe someone here can counter that if it's not true. There are too many examples out there of states making ex post facto changes to laws for me to trust them not to do so for nearly three decades, or to determine way down the road that your funds would be better used for the "public good". That $600M lottery win could start to look awfully tempting to politicians who want to hire a new teacher or two and get re-elected. Call me cynical, but I'd much rather have my funds in my hand. If I want to put them in an annuity, I can do that myself. It's all about risk and reward.

                              Second, one clever idea I heard about sounds to be a fair compromise (although my first point still rules). A couple both claimed the prize, but one took the lump sump for half the payout and the other took the annuity. If that's possible to do, and you're dealing with a big enough jackpot, sounds like a tempting solution.

                              …but I still think I'd rather have control over all those funds myself.

                              And when you get that financial advice, make sure you're paying by the hour. Don't give your advisor a percent of anything. Get your advise from one source and invest with another source to remove any perverse incentives. I thank James Dines for that advice. And I heard Rush Limbaugh say a long time ago that he signs every single check. There's no financial manager allowed to do that on his behalf. Sounds like smart business to me.