Virginia lottery winner badly in debt

Comment #11

JAP69 — Tue, 04 May 2004 22:49:42 GMT

This kind of story makes the news because they are lottery winners. People use up their savings everyday in this country for those unexpected emergencies . It could be a small amount or a large amount from saving for years and years. Get wiped out in a skinny minute.These stories go untold in the news media.

Comment #10

CASH Only — Tue, 04 May 2004 16:28:44 GMT

mayan:There was no cash option when she won .

Comment #9

mayan27 — Tue, 04 May 2004 04:51:49 GMT

One thing lottery players should realize is, Big companies always promise what can never be given to you without ripping you off some way or the other.I think the best thing to ever do is take a lumpsum payment of whatever your windfall is and invest wisely.Do not rely on Lawyers or financials advisers to manage you asset cuz all they're ever do isgoing to enrich themselves and not you.Had she taken cash over annuity,she wouldn't had come crashing down so early.I have seen cases where people sta... [ More ]

Comment #8

hypersoniq — Tue, 04 May 2004 00:46:16 GMT

I doubt I would quit working for anything less than $4,200,000 AFTER taxes... I may work closer to home or take a lower paying job doing what I like, but I would work for the health insurance, AND the max contribution (company matched) to the 401k...The MINIMUM amount for not working...1. Pay off ALL debts and replace aging vehicles with RELIABLE transportation and get the kids hooked up for any college they want (no Ferraris in the mix)... $ varies by personal situation... for Me, about $310,00... [ More ]

Comment #7

DoctorEw220 — Mon, 03 May 2004 22:53:05 GMT

it just goes to show you that there's no such thing as financial security.

Comment #6

tg636 — Mon, 03 May 2004 18:21:04 GMT

The story is murky on why the son in law had $1 million in medical bills in 2003 when they won the lottery in 1993. Did they not care to buy insurance they could easily afford? Why didn't they pool their winnings to pay the bills? Like going to the loan company, it seems like another example of their lack of brainpower. It's very seldom bad luck alone that brings lottery winners down - it takes some stupidity too.

Comment #5

golotto — Mon, 03 May 2004 17:43:27 GMT

a middle aged person can get a single health insurance policy from top notch companies with a high $7,500 annual deductible and a (more than adequate) coverage total of around $4,000,000.00 for about $75-$100 (or even less) per month in premiums. this would have seemed perfect for her and her son-in-law since they could easily pay the first $7,500 per year in fees. unless it was a unique prior illness of her son-in-law that prdvented him from getting insurance...i can't understand why they didn... [ More ]

Comment #4

CASH Only — Mon, 03 May 2004 16:26:22 GMT

There was no cash option in Virginia in 1993.

Comment #3

tg636 — Mon, 03 May 2004 16:12:46 GMT

Yes, you would have to pay taxes on income made by investments, but not on the original money you invested, since you already paid taxes on that.>Can someone tell me about the taxes on lottery? For instance, if you 3million, you pay federal and state taxes and then you decide to invest the money which will you give a return of 3%. Do you continue to pay taxes on the money that you invested and the return ? Thank you.

Comment #2

NNB1980 — Mon, 03 May 2004 16:02:17 GMT

Can someone tell me about the taxes on lottery? For instance, if you 3million, you pay federal and state taxes and then you decide to invest the money which will you give a return of 3%. Do you continue to pay taxes on the money that you invested and the return ? Thank you.

Comment #1

tg636 — Mon, 03 May 2004 15:07:01 GMT

Another case study in what not to do if you win. You can't do anything about illnesses or medical expenses, but you can do something about dealing with predators like People's Lottery Foundation , belatedly taking the lump sum and then defaulting once you realize what a fix you got involved in.$47,000 a year for 20 years is what seems like a borderline amount to me. It seems to be enough to quit your job, but it really isn't - if you do you are just replacing job income with lottery income, t... [ More ]

Virginia lottery winner badly in debt

Lottery Post — Mon, 03 May 2004 13:43:56 GMT

Suzanne Mullins used her lottery winnings as collateral for a loan in 1998Eleven years after becoming a millionaire through the lottery, a Roanoke, Virginia woman has seen her fortune turn to debt.A circuit court judge ruled last week that Suzanne Mullins owes $154,146.50 in defaulted payments to a Florida company that gave her a loan six years ago with her lottery winnings as collateral.It seems an unlikely outcome for someone who once purchased a lottery ticket worth $4.2 million.But as with o... [ More ]