30% of lottery winners bankrupt within 5 years- so what's your investment advice for them

Reply #66

ginkostinko — Thu, 17 Jun 2010 04:10:51 GMT

I used to think that it is just unbelievable that lottery winners can become bankrupt, but I realize how I burn through my paycheck every month. Now imagine having more money to spend--more money than you know what to do with! I think the mistake lottery winners make is that they believe they can rest on their laurels--I mean, their money--for the rest of their lives. If I won a load of money, I'd invest in CD accounts to put away for a rainy day; I'd invest in property to rent so that you keep... [ More ]

Reply #65

pumpi76 — Wed, 16 Jun 2010 22:21:06 GMT

eat right,

ONCE YOU become a millionaire or multimillionaire i think you have to eat right and the reason is that you will be eating all the time since you got money you can eat all you want as many as you want making you very fat and what better way to get fat but get fat from the right food...You see people who are not millionaire or well off dont eat right but they dont eat too much, a millionaire will and has the capacity to eat more because he/she is rich, he can eat whenever he/she want... [ More ]

Reply #64

TheGameGrl — Tue, 15 Jun 2010 23:22:00 GMT

BobMc,

yup I am one of (DARE i SAY IT??) THOSE that entrusted in the stock market and got burnt, one does not recover from years of investment and the huge retirement loss's. It took years to accumulate and just a few days to go bust, so spare me how GREAT the stock market is. It is not for anyone who is not long from retirement and has not the time of YEARS to recover. Sometimes you learn not to play with fire when you get burnt. ANd yes I was foolish enough to think like you and think... [ More ]

Reply #63

savagegoose — Tue, 15 Jun 2010 12:24:32 GMT

nice entry bobomac. i agree with you.

Reply #62

adb788 — Mon, 14 Jun 2010 20:14:21 GMT

Dont spend it.

Reply #61

BoBoMcQuickfeet — Mon, 14 Jun 2010 19:48:25 GMT

I had this posted in another forum when the discussion turned to David Edwards. These are my general rules for after I win.

https://www.lotterypost.com/news/161361

That David Edwards is quite a story. We should be able to look at his life, and the lives of other jackpot losers, and come up with a set of general rules to live by should we win.

1. Invest for income and live within a budget. Let's say Edwards had 27 million after taxes and everything. If he had invested it, dr... [ More ]

Reply #60

grave — Fri, 11 Jun 2010 04:20:30 GMT

thanks for this..... this gives me ideas...

Reply #59

savagegoose — Thu, 10 Jun 2010 20:12:08 GMT

say you won 16 mill, and are 40 years old. 16M / 60 years equals $266k

so you could easily spend $200k a year till you where 100 years old, no investing no risks no businesses. no stress. even so where to put the money so its safe until you need it?

also of course with inflation your dollars will buy less, and 200k a tyear in 60 years may well not buy you a coffee. so an inflation indexed investment would be in order.

dunno how tax over there looks at inflation, ssavings bank rates... [ More ]

Reply #58

Delta Draw — Thu, 10 Jun 2010 07:14:07 GMT

I don t have millions and made over 40% last year on one plan and didn t know it until last month. I am not big on gold. Everyone from Alex Jones to that guy on the 700 club is pimping gold. It s like what happened to the morons who bought pallets of the stuff never happened in the 70 s and 80 s. It s happening again and you have to look around at who has the resources to get gold,... and is and is not getting.

Pork bellies, coffee and tobacco. Anything consumable is what people want. Too bad... [ More ]

Reply #57

TheGameGrl — Wed, 09 Jun 2010 23:48:02 GMT

Sully nailed it early on. Scroll back.

You cant lose that which no one can take. Save wisely , Spend thriftly.

WOuldnt touch the stock market or listen to any investment company ....Real estate - NO thanks! Give more real estate taxes for a meager write off???

Here is what can be vested in : your time to a good cause, children, and community hardships. Rich or poor one has skills to invest in the community. Can only go bankrupt by being to tired to help.

Reply #56

THRUST — Wed, 09 Jun 2010 23:36:19 GMT

http://www.entrepreneur.com/franchises/toptenlists/index.html

7-Eleven $40,500 - $775,300

Subway$84,300 - $258,300

H R Block $26,427 - $84,094

Many options with franchises.

Reply #55

ttech10 — Wed, 09 Jun 2010 23:09:59 GMT

Yea one of the most popular suggestions I've seen about lottery winners going bankrupt is well they most likely couldn't properly handle money in the first place , which likely could be true. I can see how they get that reasoning, it's mainly lower class people who play the lottery and their lower class so they obviously can't handle money (which that thought isn't my own and don't consider it true, some people just can't earn enough money).

Of course I also think it has to do with the w... [ More ]

Reply #54

THRUST — Wed, 09 Jun 2010 23:09:12 GMT

That is pretty good...you just don't want your 7-11 to be near a Wawa. I seen a few convenient stores shut done in the past few years after a Wawa was build near by.

Reply #53

Blackie — Wed, 09 Jun 2010 23:03:27 GMT

Coin Toss,

I agree with all of that

Reply #52

Coin Toss — Wed, 09 Jun 2010 22:57:47 GMT

Perhaps some people are destined to blow it whether they invest or start a business or not.

Probably one of the best things to do would be to keep a very low profile and not live an extravagant lifestyle.

Reply #51

Blackie — Wed, 09 Jun 2010 15:26:24 GMT

Thanks Grave!!!

Another thing to consider,

Buying real estate property and renting it out.

Unless you are extremely lucky, your tenants are likely to tear up everything and every room in your property , not pay rent on time or at all at times , and chances are good they will move out in the middle of the night leaving you to clean out any of their unwanted trash and paying the city to come and pick up that huge amount of unwanted trash.

A large majority of renters do not tak... [ More ]

Reply #50

grave — Wed, 09 Jun 2010 06:55:17 GMT

The reason why i would buy a couple of 7-11 franchises is because the start up cost is pretty low......like around 150k-200k

Reply #49

grave — Wed, 09 Jun 2010 06:53:16 GMT

Blackie......this will most definitely insure that you will go broke or bankrupt in 5 or less years.....

Reply #48

dolar475 — Wed, 09 Jun 2010 04:34:30 GMT

Unfortunately: The video you have requested is not available....

Reply #47

dolar475 — Wed, 09 Jun 2010 04:32:28 GMT

TRUE! 100% especially do NOT loan to cousins etc

I would help only parents, brother/sister and in moderation, telling them my new business is doing OK.

Reply #46

ttech10 — Wed, 09 Jun 2010 00:31:12 GMT

Not saying the cars are owned by the people with the million dollar homes, just that you can get a good condo in a good part of NY and still drive older model cars. Most likely it belongs to someone with a lower priced home in the area (or another area). I guess I didn't word that as well as I could have when talking about the cars and the price of homes.

The point I was trying to get to is that many people live in big cities and don't have the best cars. Actually, Conan O'Brien drove (d... [ More ]

Reply #45

victorl3ichiban — Tue, 08 Jun 2010 23:24:34 GMT

watch this video about a lotto winnner who is losing money on investment:

http://www.youtube.com/watch?v=VMuMejCNjYA

Reply #44

Blackie — Tue, 08 Jun 2010 22:44:10 GMT

5 words , DO NOT LOAN MONEY OUT

Reply #43

pumpi76 — Tue, 08 Jun 2010 22:41:46 GMT

yeah they probably are extra cars for if in case the main one or second to the main one go broke...Nobody with a: 1 million dollar home is going to drive an: 80 s car unless is a classic...and if it was a classic they will not drive it everyday....

SPECIALLY in a big city, unless there was a big recession...

Reply #42

THRUST — Tue, 08 Jun 2010 15:22:55 GMT

Buying a franchise is a good idea...I would buy a Papa John's or Subway.

Being low key is good...it is best to move out of the area you live in and move and blend in with people who have alot of money too.

Paying off all debts should be a top priority.

Reply #41

grave — Tue, 08 Jun 2010 11:30:37 GMT

pay off any and all outstanding debts..... then i would buy maybe 1 or 2 7-11 franchises and then the treat to myself would be a NISSAN GT-R. i would still live life the same. low key and outta sight outta mind....

Reply #40

johngreek — Tue, 08 Jun 2010 10:31:18 GMT

The advice is pretty simple

Pay off all debts if any

Live off half the interest..save the other half to keep up with inflation( bank rate is around 5-6% around here not bad at all)

Make tax effecient decisions

Invest in books and interesting travel destinations and don't buy things that lose their value fast like show off cars expensive consumer electronic devices etc....be a smart consumer in general

Reply #39

ttech10 — Tue, 08 Jun 2010 09:01:07 GMT

Umm... sorry, but there's many older model cars in the big cities. I was looking through Google StreetView in an area where homes can go upwards of $1,000,000 and there are many cars out front that look like '80s-'90s models (the Cooper Square area).

With homes, you can get a good house for that price ($500,000-$600,000). Look on Corcoran/Douglas Elliman/CORE and you can find nice condo's for under $450,000. Sure they aren't the high class condo's with amazing views but they're far from... [ More ]

Reply #38

dolar475 — Tue, 08 Jun 2010 04:00:11 GMT

I would buy real estate as in houses that mum and dads can afford to pay rent, also entire blocks of flats 6 to 8 packs easy to manage. Buy an existing business or 5, that has loyal customers (not fast food). No need to maintain much have it managed by professionals. Keep plenty cash in term deposits for just in case you need urgently to save some investments going to the edge so that the vultures will not take advantage of .... If money grow above the inflation rate and have a nice life and man... [ More ]

Reply #37

badboy00z — Thu, 03 Jun 2010 21:30:02 GMT

I personally would invest in real estate as you can always rent it out and make money off of that. The rest of the money after I splurge will going into CD accounts.

Lottery winners who go broke are just dumb...

Reply #36

time*treat — Thu, 03 Jun 2010 03:17:26 GMT

That $3 heist was funny.

It would've helped if they had said what the average lottery win amount was, for the 30% stat.

Reply #35

tiggs95 — Thu, 03 Jun 2010 02:58:13 GMT

That's where we are headed first to jrosinas place..Beddy bye time..night all..

Reply #34

sully16 — Thu, 03 Jun 2010 02:50:59 GMT

you know we gotta bring rosie.

Reply #33

tiggs95 — Thu, 03 Jun 2010 02:46:27 GMT

sully your invited too..Come one come all....

Reply #32

sully16 — Thu, 03 Jun 2010 02:40:47 GMT

you 2 do know the world is flat and you'll fall off, unless you got some really good rum cake to help navigate.

Reply #31

tiggs95 — Thu, 03 Jun 2010 02:36:46 GMT

That's what tiggs is talking about!!..You got the job..Heading norteast at first then who know where after that..

Reply #30

rdgrnr — Thu, 03 Jun 2010 02:27:16 GMT

Sounds good to me! As long as you have plenty of Jack on board. I'll have them shoes spit shined so you can see yourself in em

Reply #29

tiggs95 — Thu, 03 Jun 2010 02:17:45 GMT

Yeah thanks for the heds up ridge..Will you help tiggs..You can shine his shoes empty tiggs garbage and wash the Winnebago every 5,000 miles..Pay is good plus you'll be working for tiggs $$$$$$$$$$$$$..OH YEAH BABY!!!...

Reply #28

Dollar419 — Thu, 03 Jun 2010 01:58:51 GMT

Real Estate seems to be the key answer although I am not qualified to give out sound investment advice regarding the stock market. Everyone needs a roof over their head and buying or investing in real estate could provide a solid profit if it is invested correctly. That is what I'm planning to do when I win my jackpot lottery--BUY A BRAND NEW HOUSE

Reply #27

CajunWin4 — Thu, 03 Jun 2010 01:30:50 GMT

Get your self a Good Lawyer,Financial Advisor,CPA,Form a LLC. (Trust Fund) ,Gold,Silver,Diamonds,Precious Gems....Get a P.O. Box ,Keep a Very Low Profile ,Don't give out your new cell to any 1 not even family .You will have relatives come out of the wood work and every crazy person with in 3000 miles.....

Reply #26

petergrfn — Thu, 03 Jun 2010 01:23:58 GMT

I'm not an investment manager so I can't really give good advice except....Find someone to watch your investments that you TRUST....Trust is more important than credentials....Second I wouldn't invest with family.

Reply #25

rdgrnr — Thu, 03 Jun 2010 01:12:26 GMT

You should move first, tiggs.

You don't want to be going around the country with Kentucky tags on the Winnebago.

Everywhere you go, everybody will be thinking you're going to steal something.

Reply #24

tiggs95 — Wed, 02 Jun 2010 23:43:45 GMT

tiggs is a tad old..He's going to put the money in his wallet and travel till he dies..

Reply #23

Coin Toss — Wed, 02 Jun 2010 22:43:38 GMT

drhymes74,

You made good points. I mentioned New England and Maine especially because of the tendency to consider you new if you didn't move there less than 100 years ago!

I used to live in a town called Evansville, Indiana, known as the largest city in America that most people don't know where it is. Pretty decent place in fact, most of the amenities of a larger city without the country bumpkin nosey neighbor aspects of a small town. Even has a Frontiwr league baseball team that plays in... [ More ]

Reply #22

rdgrnr — Wed, 02 Jun 2010 22:15:04 GMT

I like that first half of your first sentence, GMG. Its got a ring to it. .

Reply #21

drhymes74 — Wed, 02 Jun 2010 21:35:46 GMT

When I saw this post, I immediately thought of Warren Buffet the Oracle of Omaha. Wealthy and does not live in a city with a major financial market.

If I won the jackpot, I would definitely not look to the most expensive place to live, nor would I look for some small podunk town that isn't near a major Metro area to save a few bucks. There has to be some balance between the two; one that will allow you to lay low, blend in without suspicion, not be someone else's gossip and allow you to have... [ More ]

Reply #20

pumpi76 — Wed, 02 Jun 2010 21:05:25 GMT

you will not see anyone in a big city with a: 2003 or 2002 Honda Accord (is not the actual fact but the symbolism)...What i am trying to say??? Nobody uses older car models in big cities, that s living in the fast lane....

changing a: 30,000 car every 6 years: that s 60,000 + wife and kids= and surrounding families...comes out to like: $400,000 dollars (i am talking to lottery winners)...

houses in the country side you might find many for: $200,000 in the City every houses is: $500,000 or

Reply #19

Coin Toss — Wed, 02 Jun 2010 20:03:55 GMT

Pumpi, yes and no on big cities vs smaller towns. In a small town, a real small town everything is everybody's business. If someone in such town hit a jackpot they'd never have any peace. People in rural areas don't have much of a concept of privacy, especially in the South and Midwest. Might be different somewhere like New England, Maine, up around Bah Hahbah . (Bar Harbor)

Big cities are more expensive, yeah, but if someone won a jackpot, so what.

Reply #18

pumpi76 — Wed, 02 Jun 2010 18:55:08 GMT

if you want, only if you want...Move to another country or have a home in another country where you can spend: 4 or 5 months out of the year or move down south or parts of the midwest, you know the Midwest is PART OF THE USA TOO...I think the reason these happens is because people live in big cities like: New York city, los Angeles, in big cities and life in big cities is very expensive...A good chunk of the population lives in Big cities...

Reply #17

drhymes74 — Wed, 02 Jun 2010 17:16:12 GMT

This isn't a jab but I was wondering what ways do you mean actually prepared for winning ? I can think of several ways this can go. What is your take?

A couple of ways that I thought of to be prepared:

Investment/Financial (self explanatory)

Legal- protecting the money from leeches/frivolous lawsuits

Physically- Where to live. protecting family from the excessive unwanted attention. Keeping yourself physically in shape so that you can enjoy this.

Mentally/Emotionally/Psychological... [ More ]

Reply #16

drhymes74 — Wed, 02 Jun 2010 16:59:40 GMT

Your last paragraph briefly sums up what I said in more words....

I do agree that gold will never be worth nothing, however you could end up with something worth less at a later time when you need it the most.

As far as land not being able to be destroyed. There are ways in which its value could be destroyed....environmental disaster (technically land is destroyed if it is within a red zone of a nuclear powerplant or an oil pipeline ruptures and contaminates the water table), emi... [ More ]

Reply #15

GASMETERGUY — Wed, 02 Jun 2010 16:17:10 GMT

I know not what course others will take, but as for me, I will buy gold coins and farm land. Gold will never be worth nothing and land can not be destroyed (devastated, maybe, but not destroyed).

If you base your finanacial decisions on what is hot today, you will suffer. What is hot today will be cold tomorrow. What is cold today will be hot tomorrow. Do not allow the fluctuations of any market to influence your decisions. Fluctuations come and go.

Reply #14

hearsetrax — Wed, 02 Jun 2010 16:01:13 GMT

personally am curious as to how many are actually prepared for winning as opposed to just talking out our respective hats

Reply #13

sully16 — Wed, 02 Jun 2010 15:03:43 GMT

Thank you coin, Yogi is one of a kind.

Reply #12

sully16 — Wed, 02 Jun 2010 15:01:28 GMT

interesting, cash is king, even if we go digital I will still have time to deposit.

Reply #11

drhymes74 — Wed, 02 Jun 2010 14:53:00 GMT

Gold and silver and any other precious metals or commodity, in moderation is a good investment. The problem is that these investments can experience wilder price fluctuations than the stock market. There was an article last week about gold where it is at $1200-$1300 per oz and could go to $5k to $10k per oz in a few years....this is speculative, would I bet my house on this? No. Would I consider a portion of my winnings as an investment? yes. 4 yrs ago people were saying the same things about re... [ More ]

Reply #10

taxijohn — Wed, 02 Jun 2010 14:30:53 GMT

Buy gold and silver. Can't embezzle, go on expensive vacations, be sued, go bankrupt, give $20 million dollar bonuses or be taken over by the Government. It's universal worldwide, it's in your hands (safe). enough said.

Reply #9

drhymes74 — Wed, 02 Jun 2010 14:30:33 GMT

I agree, keep a low profile, minimize the leech factor. If you bring attention to yourself by being flashy, if/when you fail, you will be a famous failure. Not someone I would aspire to be.

Don't put all your eggs in one basket.

All of the investments mentioned are good investments, only in moderation. It's like having a bad headache, you take the recommended dose of aspirin and the head starts to feel a little better....you don't take the rest of the bottle to make it all go away....go ea... [ More ]

Reply #8

Coin Toss — Wed, 02 Jun 2010 14:25:25 GMT

Well said sully16, and sounds just like something Yogi Berra might have said

Reply #7

Raven62 — Wed, 02 Jun 2010 14:20:41 GMT

What will be the Safeguard when they replace Cash with Digital Currency

Reply #6

sully16 — Wed, 02 Jun 2010 13:50:20 GMT

we got a 750 lb. gun safe that will hold that money just fine. I no longer trust banks, or brokerages...key word...you'll be broke and you can bank on it.

Reply #5

Raven62 — Wed, 02 Jun 2010 12:54:39 GMT

You have to ask yourself: Why didn't the other 50% go broke: They took the Annuity and didn't Sell It to the Money Sharks

Reply #4

fronjan — Wed, 02 Jun 2010 12:15:04 GMT

Live off the interest and keep the principle.

Reply #3

THRUST — Wed, 02 Jun 2010 10:57:26 GMT

Having a diverse portfolio is key...don't want all your eggs in one basket. The best thing is talk with a handful of advisors and do some homework...it's your money, if you don't want to lose it, be smart.

Reply #2

rdgrnr — Wed, 02 Jun 2010 10:35:03 GMT

I think conventional wisdom is out the window or at best in a holding pattern on investments for the time being.

I think it's all based on your faith in the dollar given our current fiscal policy with this government.

Do you stay in (cash) or get out, that's the question as far as I'm concerned.

If there aren't big changes in November I would rather have something more tangible than faith in the clowns leading us down this dead end road we're on now.

Reply #1

Coin Toss — Wed, 02 Jun 2010 05:06:50 GMT

The statistic I saw was 50% go broke within five years, not 30%.

That being the case, I don't think the problem is investments, more likely lack of investments, or that some winners never get around to making investments.

I think the more likely a person is to flash their winnings ythe less likely they are to keep them.Remember the guy that said, You can't fix stupid? One of the first things he did was take an entourage with him to Vegas.

No one neds a dozen or more cars, for example.... [ More ]

30% of lottery winners bankrupt within 5 years- so what's your investment advice for them

joshuacloak — Wed, 02 Jun 2010 04:56:59 GMT

30% of lottery winners bankrupt within 5 years ,

so what's your investment advice for a muti-million jackpot winner

real estate

stock market

business ideas

lets have a meeting of the minds!

edit- source of 30%

give or take a few %, due to ones that hide their win so no one really knows spot on %

http://www.youtube.com/watch?v=FqSeyBcIrIY

a news report less then a week old