With more money, more problems? Managing a windfall

Comment #35

dk1421 — Mon, 24 Jan 2011 02:44:15 GMT

That sounds great! You and Todd should start one up!

In fact, if I do win an obscene amount of money, I like the idea of hiring Todd to go do my press conference. :-) Then he can do free promo's for his sites.

Comment #34

savagegoose — Fri, 21 Jan 2011 15:47:11 GMT

lol dphillips

i made a suggestion here about having a pocket full of $1 tickets if i wona jackpot, then when peopple came a begging id give em a $1 ticket and wish em luck. a lot of people here thought i was being too generous.

Comment #33

dphillips — Thu, 20 Jan 2011 21:46:37 GMT

For me, the stock market would be out of the question, Bernie, anyone? Unless, those investments are pretty conservative with little nor no loses. Although CDs, most money markets, mutual funds, and bank interests are not yielding high returns, at least they are conservative investments.

As far as financial planners are concerned, I might consult a couple -- but it does not mean I would take their advice. Most banks will be glad to give you that advice free or can refer you to someone, especi... [ More ]

Comment #32

JWBlue — Thu, 20 Jan 2011 00:58:24 GMT

Comment #31

waltoy — Tue, 18 Jan 2011 15:53:11 GMT

I'm am going ot be happy because i'll be the nex lottery winner soon and very soon and my

favorite word will be Thanks You Lord!!!

For mY Blessings.

Comment #30

fwlawrence — Wed, 12 Jan 2011 18:03:16 GMT

You forgot to also say takes the cash option and doesnot have problems later in life .

Comment #29

ttech10 — Wed, 12 Jan 2011 14:51:53 GMT

Haven't read the article as I need to get out the door soon, but wanted to write this real quick (pertaining to the 'more problems' bit.

This is the reason I wouldn't mind winning a smaller jackpot over a big one, but don't get me wrong... I'd LOVE winning a huge one a lot more than a small one, but in a way it'd be nicer to win a smaller one. With the current Lotto Texas jackpot it's up to $8.9 million cash value which is about $5.8 million after all taxes. I'm actually hoping I win thi... [ More ]

Comment #28

HaveABall — Wed, 12 Jan 2011 04:42:24 GMT

Maybe in the 1990s, yet not this decade.

Comment #27

savagegoose — Wed, 12 Jan 2011 03:42:51 GMT

im sure a line of credit from a bank or credit union would become available for the weeks you are without cash.

Comment #26

HaveABall — Wed, 12 Jan 2011 01:36:43 GMT

Great plan, I think I'll use it by not telling anyone that I have obtained a windfall of money when it occurs soon. I'll be the anamous giver who isn't traced! No fear, simply common sense think-before-I-speak or write communications.

Comment #25

HaveABall — Wed, 12 Jan 2011 01:31:05 GMT

Might be a poor choice, since after winner submits lottery claim it takes up to 4 weeks to receive the electronic transfer of some or all lottery monies.

It really depends on if a person has enough money to float themself and/or family for a month without receiving any more paychecks from their current employer. I understand a lot if people feel it is acceptable to work a job that produces income spent quickly from hand-to-mouth each pay period ... these folks don't have a 3-6 months emergenc... [ More ]

Comment #24

HaveABall — Wed, 12 Jan 2011 01:23:21 GMT

$85K a month is a return of .53% a month or 6.36% annually! That would be wonderful to collect on the FDIC invested portions of the windfall (funds earmarked to pay one enough monthly income, from interest, to cover basic needs and leisure needs in retirement mode for proper decades you and yours choose to remain alive for).

Comment #23

Coin Toss — Tue, 11 Jan 2011 23:07:29 GMT

There is such thing as Kidnap Ransom insurance, probably a real good idea for jackpot winners.

I've joked about this before, but it really is time for some lawyers and financial gurus to get together and form a Jackpot Winners Protection Program (a take off on the Witness Protection Program).

They woluld represent the winners at the press conference, handle correspondence, etc...all tghe while insualting the winners from the inevitalbe hassles, please for money and such.

If such a thing... [ More ]

Comment #22

sirjake — Tue, 11 Jan 2011 22:13:11 GMT

DIVIDENDS are great and probably positive thing..but I just would follow warren buffet and his style...HE STILL lives in the modest home he purchased in the 60's and drives an older model vehicle..Heres a man that lives WELL within his means..and has BILLIONS

Comment #21

ressuccess — Tue, 11 Jan 2011 20:58:12 GMT

Congratulations to the winners. I hope the winner in Postfalls, Idaho steps forward before it expires.

Comment #20

rundown99 — Tue, 11 Jan 2011 16:49:59 GMT

This article is another reason why lottery winners should remain anonymous when winning a jackpot prize.

Comment #19

ellardfam — Tue, 11 Jan 2011 15:05:00 GMT

I hear ya visiondude....my biggest fear would be that my kids could possibly become targets of some a**hole that is too lazy to work for a living.When you win a huge sum like the folks recently,you even have to take out enormous amounts of insurance because there are scammers that will provoke you to do or say things and then sue you for it.People always say, Don't let the money change you man! Of course I'm gonna change,otherwise,why have it?It's HOW you change that matters.As for fear.....you... [ More ]

Comment #18

visiondude — Tue, 11 Jan 2011 04:30:06 GMT

there is no way an event like this would change my life's perspective.

i would perform the cursory / necessary exercises one has to that intially protects oneself legally, but after that, the last thing i will ever do is live in fear of anyone or anything.

since i don't place my worth in things , why would i expend the rest of my remaining days worried about people attempting to extract it from me?

if there is anything that i do have control over, it's my current peace and strength, an... [ More ]

Comment #17

ameriken — Tue, 11 Jan 2011 04:20:42 GMT

Financial decisions such as setting up a separate bank account for the money and, in the case of a lottery, how to handle all the attention must be made quickly. Work, for at least a day or two, may need to wait.

The above quote from the article...I literally stopped and lol'd out loud at that sentence in bold.

Work may need to wait a day or two? Win a hundred million and work may have to wait a day or two? I figured my first phone call to work would be buh-bye .

Comment #16

ellardfam — Tue, 11 Jan 2011 03:53:06 GMT

Great article! I would keep a lot of things the same,but of course I would make changes.I would have a nice house and a few cars.I would basically be the same me but just more fun hahaha!I'm bookmarking this page for when I win.The financial advisor...James Gibbs....he told that guy from Kentucky to invest 16 of his 27 million and he could make him 85k a month.Sounds like a good friend to make.But truthfully...nobody knows EXACTLY what they would do if they won.

Comment #15

savagegoose — Tue, 11 Jan 2011 02:38:22 GMT

tks cloak

nice sum up of the concerns and plans to maintaining your wealth after hitting the big one.

even reading your post, shows there are worries ahead for any lotto winning newb.

sure banks aint the best plan, but i always work out interest at bank account rates just to see what sort of lifelstyle a major win could produce with money in the bank.

take that 15 mill, at %2 thats $300k a year.

or $5k a week. you gotta think trying to live on under $5k a week could be p... [ More ]

Comment #14

JWBlue — Tue, 11 Jan 2011 01:52:51 GMT

I agree with this statement for the most part. 99% of financial advisors don't have your interests first. Thankfully, I found one that does put the clients interest first.

Comment #13

sully16 — Tue, 11 Jan 2011 00:14:09 GMT

Both are great stories Todd, thanks.

Comment #12

Todd — Tue, 11 Jan 2011 00:10:48 GMT

Aw, it doesn't bother me. Without them playing the lottery too, the jackpot wouldn't be as big. And having them win sometimes reminds me of just how random it all is. I love it.

Comment #11

luisM — Tue, 11 Jan 2011 00:04:37 GMT

Thank you for sharing this story with us. I hate it when Doctors and millionaire CEO's win the Lottery.

Comment #10

Todd — Mon, 10 Jan 2011 22:19:02 GMT

Yes, his story was posted on Lottery Post.

Comment #9

socalgal — Mon, 10 Jan 2011 20:46:24 GMT

Focus on wealth building while managing your assets wisely. Control spending and avoid impulse buying.

They might want to move to a house on a hill with a high fence and a few guard dogs. Security cameras all over the area. Keeps everyone from coming over.

Comment #8

butterflykt — Mon, 10 Jan 2011 20:18:05 GMT

I agree about Financial Advisors. Most of the money would be put into the CDARS Program (The Certificate of Deposit Account Registry Service).

Comment #7

dpoly1 — Mon, 10 Jan 2011 20:02:11 GMT

Financial Advisers make money taking your money!

No wonder they recommend using a Financial Adviser!

I'll take care of it on my own with tax advice from a CPA!

I will have plenty of time to do research on my own

Comment #6

joshuacloak — Mon, 10 Jan 2011 19:49:07 GMT

any problems are self created by the winners 100%, that's why they never get sympathy ever again! so i agree with savagegoose

its like giving a homeless man money, only to find out he spent it on boozes!

you can't fix stupid with money, nor take a pill for it

as one comedie said so wisely

i sure think the best way to prevent all bad ending is

buy stocks that pay Very nice dividends, and hold onto them forever

Dividends are payments made by a corporation to its sh... [ More ]

Comment #5

gy65 — Mon, 10 Jan 2011 19:49:02 GMT

Then there's the story of Jim Gatzke.

Comment #4

C0w Pi3 — Mon, 10 Jan 2011 18:39:51 GMT

Yeah, that was on one of the episodes of How the lottery changed my life . I would try and keep my friends, I really wouldn't want a luxury car, or even a HUGE house, i'd want life to stay the way it is except maybe a few nice purchases here and there, like a nice fancy restaurant once in awhile.

Comment #3

freeobama — Mon, 10 Jan 2011 18:08:37 GMT

I will be very happy to except the windfall, hire a couple bodyguards and my favorite word will become NO

Comment #2

JWBlue — Mon, 10 Jan 2011 17:16:46 GMT

There are absolutely negatives to winning the lottery.

However, the positives FAR outweigh the negatives.

I was watching a show about a lottery winner who lost her best friend since childhood after she won. Her best friend said that the winner was in a different place now than her and could no longer be friends with her.

That is almost understandable in a way.

Comment #1

savagegoose — Mon, 10 Jan 2011 16:56:12 GMT

one thing about winning lotto, you'll never get sympathy ever again

With more money, more problems? Managing a windfall

Lottery Post — Mon, 10 Jan 2011 16:43:41 GMT

A chance to split a $380 million jackpot. Where's the problem in that?

Sure the money will change the lives of the Mega Millions lottery winners, but it's imperative that they have a sound financial plan. Failure to map out a strategy for their winnings could lead to misery.

A retired man in Washington, Jim McCullar, claimed his prize on Thursday, while the Idaho ticket holder has yet to surface.

The delay in coming forward after Tuesday's drawing means the winners are likely following... [ More ]