Biggest reason for Lottery Winners going broke soon? :/

Reply #49

lakerben — Sat, 18 Feb 2023 04:34:15 GMT

Yes. It may happen. This will force players to thr casinos where they would go broke. I don't spend much because I win.

Reply #48

cottoneyedjoe — Sat, 18 Feb 2023 00:40:34 GMT

I saw that in the news. Pretty crazy! You should PM a news item tip to Todd.

Reply #47

lakerben — Fri, 17 Feb 2023 20:53:29 GMT

The New Mexico lottery maybe shut down by politicians who think people spend too much. We will find out soon enough.

Reply #46

GiveFive — Fri, 17 Feb 2023 12:52:42 GMT

People can call me crazy if they want, but I play the lottery not so much because I want to be a millionaire rather I play because I have fun doing it and I play the types of online games that if I won a jackpot it wouldn't be all that life changing. All my life I've been an average middle class guy that never had millions of dollars in the bank. Therefore I've no clue what it's like or what it takes to manage big money. All I really do know about it is that it's not as easy as many people belie... [ More ]

Reply #45

Stack47 — Fri, 17 Feb 2023 06:53:59 GMT

Back in the day most of the $1 million lotto jackpot prizes were annuities paying 20 payment of $50,000 before taxes. Nice prize but didn't last very long after purchasing big ticket items on credit. Not every winner went broke, but an extra 40 grand a year convince many of them to retire.

That's because they never had much money to practice with in the first place.

And why many people lost and are still losing bit coin investments. Have you noticed the how will you spend your winnings... [ More ]

Reply #44

GiveFive — Thu, 16 Feb 2023 13:46:19 GMT

Because of that lack of controlled spending, people spend money at rates their winnings cant keep up with.

The key words in that sentence are controlled spending . Here's an example of uncontrolled spending.

A woman who had won the lottery appeared on The Phil Donahue Show. (How long ago was that???) What she had really won was a before tax annuity of $150,000 per year for 20 years. (No lump sum option back then) She spent so much money during the first year of the annuity that she cou... [ More ]

Reply #43

eddessaknight — Thu, 16 Feb 2023 02:13:08 GMT

AMEN TO THAT, ARTIST

Reply #42

Artist77 — Thu, 16 Feb 2023 02:09:07 GMT

So true! People like Cynthia Stafford thinking she was going to buy her way into the Hollywood elite and be a big movie producer.

Reply #41

eddessaknight — Thu, 16 Feb 2023 02:00:58 GMT

100% CT

Reply #40

Stack47 — Wed, 15 Feb 2023 04:57:09 GMT

Read the same statistic ,

The jackpot winners haven t really practiced managing money, said Robin Henager, an associate professor of economics and finance at Whitworth University. Because of that lack of practice with controlled spending, people often spend money at rates their winnings can t keep up with.

Lots of people here say they won't get their ticket validated until after they assemble a team of trust lawyers, tax experts, and financial advisers. Wonder how many of them will forg... [ More ]

Reply #39

Coin Toss — Wed, 15 Feb 2023 01:45:58 GMT

Neun und neunzig luft balloons!

///////////////////////////////////

Bigest reasom for lottery winners going btoke soon?

Cupidity

and no, it has nothing to do with Cupid of Valentine's Day

Reply #38

Artist77 — Sat, 04 Feb 2023 15:51:49 GMT

Lol. Too funny. I am not up on my Axl Rose or his fan fiction

Reply #37

GiveFive — Sat, 04 Feb 2023 15:18:49 GMT

Most people think that having a lot of money will solve all of their problems, but along with having a lot of money comes a different set of problems'. Although most probably think that possessing a fortune is a good problem to have, they are problems none the less, and they could result in a wealthy person losing it all. .

If you've never had great wealth, then you've never experienced those particular problems and are very likely not equipped to deal with them. From fraudsters to your own... [ More ]

Reply #36

db101 — Sat, 04 Feb 2023 15:08:57 GMT

Pretty sure it's an Axl Rose quote.

Reply #35

Artist77 — Sat, 04 Feb 2023 14:39:03 GMT

Never heard of this saying. Do you have a website link

Reply #34

Lotto fanatic — Sat, 04 Feb 2023 14:25:51 GMT

There is a saying that goes something like, If you are poor and suddenly win multiple millions in the lottery, your subconscious will work to make you eventually go back to being poor since poor is what you are at your heart, soul, and core.

Reply #33

eddessaknight — Fri, 03 Feb 2023 23:05:42 GMT

Those who have little money believe a lot of money will solve all their problems, however it only changes their money problems from too little to having too much, that they are, UNFORTUNETLY, not prepared for the major life changing occurrence

Reply #32

GiveFive — Fri, 03 Feb 2023 14:49:47 GMT

Not easy to keep .

That's what most people fail to understand about having a lot of money. It's hard work to manage a large sum of money so as to be able to keep it. It takes a lot of formal education to be sophisticated enough to handle it competently. Most people that suddenly become very wealthy do not have the skills required to manage it. G5

Reply #31

Soledad — Thu, 02 Feb 2023 14:22:15 GMT

Your tax bracket would probably change for jackpot winners. Obviously they buy expensive things. And then people talk too. And let's be real, people are people, you can't change them from who they are or who they've become, they will do whatever they want regardless. It usually takes years and years maybe a lifetime to build 500 million dollars. The lotteries give it overnight. How would you all of a sudden think about that and deal with that? It's not so easy. It's not easy to get, not easy to... [ More ]

Reply #30

Artist77 — Mon, 16 Jan 2023 00:15:12 GMT

I know. Not you. Lottery Fanatic aka Tasha aka Karan Nathan.

Reply #29

PrisonerSix — Mon, 16 Jan 2023 00:06:52 GMT

If you're referring to me, I'm not a woman. That's the problem with the 'net, you can't always tell.

Reply #28

Artist77 — Sun, 15 Jan 2023 23:38:15 GMT

Odd to see a woman promoting women stripping. Better ways to spend jp money and not cause harm to women.

Reply #27

PrisonerSix — Sun, 15 Jan 2023 22:41:45 GMT

Because they make money.

Reply #26

db101 — Sun, 15 Jan 2023 20:15:06 GMT

Lol good one.

Reply #25

db101 — Sun, 15 Jan 2023 20:14:21 GMT

Wow how did I miss this post? What are you smoking Tasha

Reply #24

Artist77 — Fri, 13 Jan 2023 11:02:42 GMT

The correct term is women not females. Why invest in strip clubs and promote women demeaning themselves? Would you want your daughter to strip? Perhaps start a foundation to help women not to have to work in strip clubs and help them get a degree.

Reply #23

Lotto fanatic — Fri, 13 Jan 2023 10:27:41 GMT

The Female Wrestling thing is something that sounds good on paper, but in actuality is a bad idea. A huge amount WWE Fans said that females wrestling is actually their least favorite part of WWE and they use that time to make a sandwich or use the bathroom. If he had invested in a strip club where only females strip, it could have been a huge success. People pay good money to watch a beautiful woman wearing nothing but a panty and bra dance suggestively and to give them lap dances. He could even... [ More ]

Reply #22

KY Floyd — Fri, 13 Jan 2023 05:05:10 GMT

You are guaranteed to remain rich for 30 years.

J.G. Wentworth says Guess again.

Or the winner themselves has an idea for a business that doesn't work out and it goes broke.

I think a pretty good rule of thumb is that if you couldn't make living from running your own business before winning the lottery trying to do it with your lottery winnings is a bad idea. The only difference the lottery money will make is that you can lose a lot more before you have to give up.

Reply #21

PrisonerSix — Fri, 13 Jan 2023 03:11:08 GMT

There could be some truth in that. Someone comes up with a crazy business idea and then asks a lottery winner to invest in it and it of course loses money. Or the winner themselves has an idea for a business that doesn't work out and it goes broke. There was one who invested in a female wrestling TV show that failed and he lost a lot money as a result.

I do know most businesses fail in the first 5 years and some ideas work well while others, not so good. Everyone must be careful investing, e... [ More ]

Reply #20

Artist77 — Fri, 13 Jan 2023 00:49:34 GMT

LF, I would be less concerned about someone stealing your potential lottery win (that you always obsess about or someone asking you for money or pointing out stupidity in other lottery winners) vs developing an understanding of basic tax law , etc. You have big gaps in your basic knowledge vs what the typical lp member possesses. For example, thinking you are taxed twice which is illogical. Take a look at the Federal and your state tax brackets.

Reply #19

Lotto fanatic — Fri, 13 Jan 2023 00:30:17 GMT

There was a case where a man chose the annuity for a multi Million Jackpot prize and spent the first check frivolously and the next month, he was expecting another check and when it didn't come, he complained to the lottery that he didn't get that month's check. The Lottery told him that his next check would come next year. He assumed an annuity meant monthly, not yearly. He was lucky he chose the annuity because he most likely would have blown a lump sum just as frivously as he spent that first... [ More ]

Reply #18

Lotto fanatic — Fri, 13 Jan 2023 00:24:10 GMT

Like a woman named Peggy who was entrusted to help Athletes keep their money, but instead, she stole money to fund a lavish lifestyle for herself. The red flag there was that the athletes in the Peggy case weren't charging her any money to manage their money for her, she was managing their money for them for free supposedly out of the goodness of her heart. Someone is managing your millions for you free of charge and she's not your family or friend? Big red flag. She looked like a crazy Vanessa... [ More ]

Reply #17

PrisonerSix — Thu, 12 Jan 2023 21:07:32 GMT

That is interesting. Most pro athletes don't have log careers, so they need to save. My mother had a neighbor who played for the local NFL team and his mother was helping him manage his money.

He got a monthly $4k allowance and the rest was saved and invested. He was lucky to have someone he could trust helping him. Many so called advisors may not be trustworthy, so one must be careful.

Reply #16

AdamGalas — Thu, 12 Jan 2023 20:35:44 GMT

I just learned on Bloomberg that 70% of lottery winners spend or lose all the money within 5 years.

Even $500 million jackpot winners.

So smart move for most people is to take annuity option.

You are guaranteed to remain rich for 30 years.

Naturally I would still take the cash option but I'm a hedge fund manager who lives my life via spreadsheets.

The only thing I buy if I win is a 2023 Toyota Prius prime.

1% goes to charity and family and friends and 99% minus a Prius go... [ More ]

Reply #15

GiveFive — Thu, 12 Jan 2023 14:53:40 GMT

Brand new (rookie) professional athletes that sign multi-million dollar contracts are very susceptible to blowing it all and going broke.

I know of one pro sports team that had what they called a Player Development Coach. That particular coach's job (he was a former star athlete that had played for the team) had nothing whatsoever to do with the players athletic ability on the playing field. Instead the Coach's job was to try help new players not to squander their brand new fortune.

Whe... [ More ]

Reply #14

jjtheprince14 — Thu, 12 Jan 2023 13:59:43 GMT

Even if you were to win the 1.35 bil MM jackpot. It's best to just be frugal and maybe live an upper middle class lifestyle at best. If you buy 4 mansions, 20 cars, a private jet, a yacht, etc. you're gonna go broke quick no matter how much you win.

Reply #13

urrutiap — Thu, 12 Jan 2023 09:30:52 GMT

Lotto Fanatic happen to watch that recent Dr Phil episode about the Lottery Curse

Reply #12

Stat$talker — Thu, 12 Jan 2023 04:52:34 GMT

most lottery winners go broke from investing in an Axl Rose themed burger joint called Buns n Roses.

Yeea joe ..that Burger joint wuz right next door to dat Chocolate-covered Crickets store...started by..Ole Allen Butthead ...

Reply #11

cottoneyedjoe — Thu, 12 Jan 2023 03:56:59 GMT

I saw a video on YT that said most lottery winners go broke from investing in an Axl Rose themed burger joint called Buns n Roses.

Reply #10

wander73 — Thu, 12 Jan 2023 00:44:20 GMT

Someone aren't really lottery winners, their part of it

Reply #9

Lotto fanatic — Thu, 12 Jan 2023 00:25:06 GMT

That happened to Callie Rogers, Britain's youngest Lottery Winner at 16. She had lots of Friends, when she had her roughly $2 Million, and they dumped her as soon as most of the money was gone. She said she felt she was supposed to live her life up with the $2 Million and that's why she blew that roughly $2 Million. Interesting that she said something like, I'm not going to be one of those Idiots who blow through their huge Lottery wins I'm going to be wise with the money, and ended up blowing t... [ More ]

Reply #8

Artist77 — Wed, 11 Jan 2023 22:43:08 GMT

The book-The Millionaire Next Door- says the same thing. Generational wealth lasts 2-3 generations at best and when it gets to a generation that has never worked for anything , the $ goes quickly.

Reply #7

GiveFive — Wed, 11 Jan 2023 20:57:50 GMT

Would it surprise anyone reading this thread that a wealthy Grandpa's money usually never makes to his grandchildren? It doesn't make much difference as to how Grandpa made his fortune, statistics have shown that more often than not, Grandpa's children will burn through the money they inherited from their father and have little to no money to pass on to their own kids when they die.

The same thing happens with people that are fortunate enough to receive a windfall of cash. Odds are that lot... [ More ]

Reply #6

PrisonerSix — Wed, 11 Jan 2023 20:13:33 GMT

I think some of it is giving money away to people thinking they are friends then when the money is gone, the friends are gone. Some people the winner helps will keep coming back for more money again and again.

Some winners also buy big ticket items like mansions, supercars, etc. that have high upkeep/maintenance costs, that also eat away the money.

A lottery win can act as a magnifier for a person, increasing the good and bad in their lives, but it can be used to conquer those bad thing... [ More ]

Reply #5

Ranett — Wed, 11 Jan 2023 19:26:41 GMT

They blow it...........for numerous different reasons.

Reply #4

Stack47 — Wed, 11 Jan 2023 17:48:26 GMT

There seems to be a misconception about going broke . Don't know what the average number of tickets each player buys, but I doubt most people go broke buying tickets for one drawing.

Single filer prize winners with a total income of up to $170,050 are in the 24% tax bracket so they shouldn't owe very much if anything because of the withholdings. If the total income is $539,901 or more, they could another 13% in taxes. There probably are people that spend the majority of their prizes only to... [ More ]

Reply #3

CDanaT — Wed, 11 Jan 2023 17:06:28 GMT

LF...... For the PB and the MM

Lottery winnings of $600.01 and over are subject to Federal Withholding tax. For winnings of $600.01, up to and including $5,000, you will be issued a W-2G form to report your winnings on your federal income tax form. For winnings of $5,000.01 and over, your state's Department of Revenue removes the 24% federal withholding before you receive your winnings check (or, if it is an annuity, from each winnings check). You then receive a W-2G form with each check to... [ More ]

Reply #2

Artist77 — Wed, 11 Jan 2023 14:29:05 GMT

I agree. LF does not seem to understand taxation. The lottery withholds less than the full amount of taxes due so you will owe the rest of the taxes. If you invest any if the winnings, whether it is cd interest, savings accounts, etc., you will owe taxes on the earnings. You are not being taxed twice.

Many lottery winners go broke from stupidity, greed, and thinking they will be a superstar or they start a business where they have zero expertise.

Reply #1

zephbe — Wed, 11 Jan 2023 11:57:37 GMT

Give me an example of a person who won a jackpot and went broke from taxes on the winnings. What it sounds like you are saying is the taxes on a jackpot are more than the amount won--and that is not true.

Biggest reason for Lottery Winners going broke soon? :/

Lotto fanatic — Wed, 11 Jan 2023 09:24:39 GMT

Now, I remember thinking that the biggest reason for Lottery Winners going broke soon was because of giving money to a bunch of people who ask them for money, such as Friends and Family, but it actually turns out that the biggest reason for Lottery Winners going broke soon is actually tax problems. I remember thinking you only get taxed once and then never again, but you actually get taxed twice. A lot of Lottery Winners assume that they only get taxed once and are stunned when they get taxed ag... [ More ]