Survey: Many investors would make questionable decisions after winning the lottery

Comment #31

music* — Fri, 29 Dec 2017 22:25:09 GMT

OldSchoolPa, I have learned that I am an emotional person. I would not do well in the Stock Market. So, I have real estate and CDARS/ICS to invest in. Even if I used a Professional Trader I might interfere with him/her picking stocks.

I think that I can use CDARS/ICS for the first $100,000,000.00 Then buy a really nice home with lots of land. Charity will not be far behind.

Comment #30

OldSchoolPa — Fri, 29 Dec 2017 17:55:27 GMT

An irresponsible person will end up broke whether he or she chooses the lump sum or annuity. The annuity does give a person the chance to recover from earlier stupid mistakes, but there are those who dig themselves into such a deep hole that they sell off the remaining annuity at a fraction of what they would have received for cash now. That is the reason I say that the payment option alone will not keep an irresponsible person from bankruptcy.

A responsible person with a game plan would do w... [ More ]

Comment #29

OldSchoolPa — Fri, 29 Dec 2017 17:28:12 GMT

I have never been surveyed. I also find it interesting that people still get jacked up about the amount of the Powerball or Mega Millions lotteries, as if the jackpot amount makes it more likely they will get lucky and win. I play for the fun and the knowledge that even though I am throwing away $2 each drawing, it is my discretionary $2 that I chose to squander for a minuscule chance to win something more. I don't hang my hopes for riches on winning the lottery. If I were to win, I would make p... [ More ]

Comment #28

NJJim — Tue, 26 Dec 2017 15:13:21 GMT

I'd be so bad at saying no to anyone willing to beg hard enough. Seven years is a long time. If I'm lucky enough to be alive seven years from now, I'd be satisfied if I'm broke, if I had taken care of my family's financial futures and done some good in the world somewhere.

Comment #27

music* — Tue, 26 Dec 2017 13:29:17 GMT

As a friend of the late lottery winner William Bud, Post said, He had never been a millionaire before . May he RIP.

Comment #26

KY Floyd — Sat, 23 Dec 2017 15:33:28 GMT

An immediate 30-40% loss

Which means that you get 60 to 70% right away. With the annuity you get about 1.5%. A year later you get a bit less than 1.6%. Another year later you get about 1.66%.

If you wait patiently you'll get that 60 to 70% that you could have had right away in 22 to 25 years.

Comment #25

One-Day — Fri, 22 Dec 2017 23:53:20 GMT

What about inflation? I'm attracted to the annuity as well. I'd say that if you know you have a chance of being irresponsible with the money or think the professionals somehow will somehow take advantage of you and leave you broke, or that it will be too much stress to handle such a big windfall all of the sudden, then take the annuity, even if 90 years old. Nobody needs more than the first year's payment to live or do their thing anyway. Like Craig at Craigslist said once after being asked why... [ More ]

Comment #24

makawecki — Fri, 22 Dec 2017 15:00:13 GMT

I know many people disagree with me, but how is taking the lump sum a smart choice? An immediate 30-40% loss plus the chance to lose it all in less than 8 years. I'd rather take the annuity.

An excerpt from TD ameritrade - With the lump sum, taxes would actually be paid twice -- on the initial lump sum and on any money made each year from investing it. The winner wouldn't be taxed on investment income with the annuity because Powerball is actually the one investing the money and it doesn't p... [ More ]

Comment #23

hearsetrax — Fri, 22 Dec 2017 13:48:11 GMT

http://thelotterylawyer.com

Comment #22

Soledad — Fri, 22 Dec 2017 11:11:49 GMT

The answer is simple, although people commonly say save for themselves. Let's be real, you need $5 million to say not work, $15 million if you're say a party animal. I honestly could never think of having $15 million dollars at once. Who the heck needs $15 million dollars? What the heck is anybody gonna do with that. So, the amount of the windfalls creates a mirage for these winners, however money is nothing new in life so it should not come as a surprise in how to think about. Once again for yo... [ More ]

Comment #21

music* — Thu, 21 Dec 2017 17:32:36 GMT

Be aware of frivolous lawsuits. They could have you in court a lot longer than you want to be.

The Lottery Lawyer's name is Jason Kurland. Find him on YouTube and you can follow his advice

Comment #20

fwlawrence — Thu, 21 Dec 2017 15:48:38 GMT

I would avoid lawyers altogether. They will write things up where they get the most benefit

Comment #19

dpoly1 — Thu, 21 Dec 2017 13:51:05 GMT

I have never had this problem .........

Comment #18

Rexer90 — Thu, 21 Dec 2017 05:37:51 GMT

First person I'd be speaking with would be that lottery lawyer bloke mentioned in the article

Comment #17

One-Day — Wed, 20 Dec 2017 20:57:05 GMT

This is what I'd do. I'd buy a barrel of gold coins and fake ones too (from Alibaba - for decoy). Maybe $15 million. Buy a mountain property through some trust or any other mechanism that will hide my name. Bury the darn things there and then invest the rest of my millions in interesting tech. startups that could potentially be swallowed by other tech giants. Also start my own Shark Tank company, invest in the stock market, and real estate (rent). I'd park outside technology universities and ask... [ More ]

Comment #16

lejardin — Wed, 20 Dec 2017 17:24:30 GMT

Hey Sully, Dont forget the arm and the leg!

Best of luck to all who play these growing games. They may not be record breaking jackpots but way more than I need.

Merry Christmas

Comment #15

CDanaT — Wed, 20 Dec 2017 16:48:19 GMT

Lol... you go girl...... Most of us on here are reasonable and would spend on some goodies(House-cars-toys-girlie stuff-man cave stuff)

Should someone who won a PB or MM jackpot actually lose that kind of cash due to frivolous spending ?

Well......................

You just can't fix gormless

Comment #14

Bleudog101 — Wed, 20 Dec 2017 15:53:35 GMT

Sounds like a good idea to me.

Let me win the big one and I'll post the results of my own survey.

Sully 16 still have about a month left on Michigan's Powerball and Mega Millions. Your is the only state of all that I played that doesn't have a beginning and end date for the multi draws. I did six months in July...suggest they change it...LOL.

Comment #13

rcbbuckeye — Wed, 20 Dec 2017 15:36:07 GMT

Sully....

if you're doing student/parent loans, have fun with the FAFSA. It's worse than doing tax returns.

Comment #12

sully16 — Wed, 20 Dec 2017 10:47:05 GMT

My son starts College next year, winning the lottery would be much better then selling a kidney.

Comment #11

sully16 — Wed, 20 Dec 2017 10:45:09 GMT

I'd claim it as fast as I could, I need a housekeeper, Chef, personal shopper, asap. LOL

Comment #10

KY Floyd — Wed, 20 Dec 2017 07:05:11 GMT

The survey tells us what people think they would do. History tells us what winners really do.

As for the 70% figure, I'd like to know what happens to the people who have won MM or PB in the last 5 years or so. There are still plenty of people who clear a million or two, or even $5 million if they win state games, but the majority of PB and MM winners end up with a really big chunk of change. I know that some people have managed to squander $100 million or more, but you can spend pretty reckle... [ More ]

Comment #9

BigJonStud — Wed, 20 Dec 2017 04:46:19 GMT

with a large jackpot (more than 10 mil) i'd have to shift some into owning physical gold. 2008 happens all over again and they say oopsie and im sure that the national debt will never be decreasing.

Comment #8

weshar75 — Wed, 20 Dec 2017 04:33:04 GMT

Good luck to you on powerball tomorrow music I hope you win a cool million even in California.-weshar75

Comment #7

lejardin — Wed, 20 Dec 2017 04:32:38 GMT

On the What Consumers Say they Would Do list, I would do four out of the five right off. Leave saving and investing for last. In that I would be Sully2. A home, a car, travel to find my location and depending how much the win is, helping sons and brothers would also be on my Bliss List .

Such fun winning would be even with the horrible odds. No annuity at my age. And taxes suck regardless.

Comment #6

music* — Wed, 20 Dec 2017 04:23:26 GMT

There are no loans for retirement. I hope that the generation who will not see Social Security benefits will prepare themselves for retirement.

After I die will be the time for the charities of my choice to receive benefits. I will include them in my will. But my family will come first.

Comment #5

music* — Wed, 20 Dec 2017 03:35:04 GMT

sully16, You remind me of the British woman who said, I will spend, spend, and spend . She shopped till she dropped. She did not win the lottery but did win in a sports betting game back in the early 1960's.

Here in California, we have to wait six weeks before we get the check. That will be plenty of time to hire financial advisers, accountants, attorneys, and lawyers. We can wait for a full year to claim the jackpot.

Will you claim before the New Year or after January first, 2018

Comment #4

sully16 — Wed, 20 Dec 2017 03:08:36 GMT

I've been saving my whole adult life, I would spend like a crazy lady.

Comment #3

gatorsrok — Wed, 20 Dec 2017 01:03:09 GMT

In truth, we are making questionable decisions by playing the lottery at all.

The reason so many go broke after winning is because they had poor money management skills before winning and after winning their skills did not improve.

Comment #2

noise-gate — Tue, 19 Dec 2017 19:39:26 GMT

.. The sudden wealth syndrome kicks in the minute the thought of millions of dollars starts to marinate mentally. Some winners don't want to be told anything, sound advice is completely ignored. One has to have a brain that actually functions, before thinking about savings the future. ....

...and yes, The last Jedi sucks more than a dyson.

Comment #1

Raven62 — Tue, 19 Dec 2017 17:48:23 GMT

Survey seems to Contradict what Jackpot Winners actually do!

Nearly 70% of all Jackpot Winners end up broke within seven years.

Survey: Many investors would make questionable decisions after winning the lottery

Lottery Post — Tue, 19 Dec 2017 14:18:24 GMT

The odds of winning the Powerball jackpot are a slim 1 in 292,201,338; the Mega Millions is 1 in 302,575,350. But that doesn't stop people from dreaming about how they'd handle a big-ticket lottery win.

Asked to allocate a multimillion-dollar lottery win, consumers said they would put roughly two-thirds into savings saving an average 52 percent of the prize for themselves and 16 percent for others, according to a new survey from TD Ameritrade provided exclusively to CNBC.com. Of the remaining... [ More ]