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A Model for What to do with the Jackpot You just Won

Topic closed. 22 replies. Last post 10 years ago by guesser.

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Raven62's avatar - binary
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Posted: March 25, 2007, 8:39 am - IP Logged

Brad Duke, a manager for five Gold's Gym franchises in Idaho, pocketed a lump sum of $85 million after winning a $220 million Powerball jackpot in 2005.

He spent the first month of his new life assembling a team of financial advisors.

His Goal: to use his winnings to become a Billionaire.

The Story

PS: He had developed a little numbering system which ultimately: Paid Off.

A mind once stretched by a new idea never returns to its original dimensions!

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    New Member
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    Posted: April 4, 2007, 11:38 pm - IP Logged

    That was a great article. Thanks!Smile

      emilyg's avatar - cat anm.gif

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      Posted: April 5, 2007, 12:02 am - IP Logged

      great story.

      love to nibble those micey feet.

       

                                   

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        md
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        Posted: April 5, 2007, 8:03 am - IP Logged

        This is what we all need more of, successful winners!

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          Posted: April 5, 2007, 9:23 am - IP Logged

          How come we don't come up with a number system here on LP?

            LuckyLilly's avatar - savy chick.png

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            Posted: April 5, 2007, 4:48 pm - IP Logged

            I love that he's not afraid to say that money has made him happier.  Readingabout some other winners saying money was the cause of all their woes just bugs the crap outta me.  They need to get a clue and budget their money.  Even if they have 100 million bucks, many people need to budget exactly how much they're going to give away each year, how much they can spend on houses, cars, etc.  All they have to do is talk to their financial advisors about their goals, think about the future, then listen to their financial advisors and follow the budget, and they too can be happier with money than without.

            But then doing that would require them having a clue in the first place, and too many of them just don't. 

              guesser's avatar - Lottery-017.jpg

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              Posted: April 10, 2007, 10:20 am - IP Logged

              Not everybody can be, or wants to be, like him.

              If I've won a large jackpot, then I HAVE money, and I'm going to preserve what I need, and do whatever with the rest, but I'm not about to make it my lifelong goal to make MORE money, I don't need the headaches.  Most folks play the lottery so they DON'T have to 'work' anymore. 

                RJOh's avatar - chipmunk
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                Posted: April 10, 2007, 10:33 am - IP Logged

                Not everybody can be, or wants to be, like him.

                If I've won a large jackpot, then I HAVE money, and I'm going to preserve what I need, and do whatever with the rest, but I'm not about to make it my lifelong goal to make MORE money, I don't need the headaches.  Most folks play the lottery so they DON'T have to 'work' anymore. 

                I Agree! A lot of the jackpot winners are up in age and retired, their goals would be lot different than a younger person and even some younger persons might no want to have a lifelong goal of just accumulating wealth.

                 * you don't need to buy more tickets, just buy a winning ticket * 
                   
                             Evil Looking       

                  justxploring's avatar - villiarna
                  Wandering Aimlessly
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                  Posted: April 10, 2007, 10:48 am - IP Logged

                  This article has been discussed before on LP.  Here is one link if you want to read several additional posts.

                  http://www.lotterypost.com/thread/151919/785637?q=brad+duke

                   

                  I agree with other posters here that everyone has a different plan.  I've taken big risks and I've made tons of money and I've lost tons of money.  There is a percentage you invest when you're young in each risk category (high, medium, low) but security becomes more important as you get older.  If I took annual payments, just enjoying my life, helping others, and knowing every year I'd get a big check would be very comforting.  I've never had any desire to become a billionaire.

                    OldSchoolPa's avatar - Lottery-057.jpg
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                    Posted: April 10, 2007, 11:34 am - IP Logged

                    Not everybody can be, or wants to be, like him.

                    If I've won a large jackpot, then I HAVE money, and I'm going to preserve what I need, and do whatever with the rest, but I'm not about to make it my lifelong goal to make MORE money, I don't need the headaches.  Most folks play the lottery so they DON'T have to 'work' anymore. 

                    If you're not making MORE money, then you are losing money...literally and to inflation.  I actually don't think age is the sole determining factor in investing style; yes, it plays a part, but I can tell you that I know of many "elder" people who are still invested moderately to just slightly less than aggressive as they want to 1) ensure that their cash pot lasts their lifetime, 2) have a nice sum to pass on to deserving children, grandchildren, and charities, and 3) always outpace inflation.

                    I know of people who have retired with about $1M in retirement investments (yes, there is a big difference between investments and savings) and now have over $3M after having spent over $800K over a period of time.  So I would be like them, and Brad Duke in growing my money.  Having a specific goal like Brad Duke is a very good way to ensure that you don't end up like Jack W. and all the other jackpot lottery winners who never implemented any specific goals and now blame winning the lottery for all their problems.  The problem isn't the lottery; the problem is not having a plan...and that applies to you whether or not you win the lottery.  And having a plan as to what one wants to accomplish and how to invest jackpot lottery winnings is the best way to ensure that you never have to work another day in your life...instead your money will be working for you!

                    Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

                    The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!

                      LuckyLilly's avatar - savy chick.png

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                      Posted: April 10, 2007, 1:03 pm - IP Logged

                      If you're not making MORE money, then you are losing money...literally and to inflation.  I actually don't think age is the sole determining factor in investing style; yes, it plays a part, but I can tell you that I know of many "elder" people who are still invested moderately to just slightly less than aggressive as they want to 1) ensure that their cash pot lasts their lifetime, 2) have a nice sum to pass on to deserving children, grandchildren, and charities, and 3) always outpace inflation.

                      I know of people who have retired with about $1M in retirement investments (yes, there is a big difference between investments and savings) and now have over $3M after having spent over $800K over a period of time.  So I would be like them, and Brad Duke in growing my money.  Having a specific goal like Brad Duke is a very good way to ensure that you don't end up like Jack W. and all the other jackpot lottery winners who never implemented any specific goals and now blame winning the lottery for all their problems.  The problem isn't the lottery; the problem is not having a plan...and that applies to you whether or not you win the lottery.  And having a plan as to what one wants to accomplish and how to invest jackpot lottery winnings is the best way to ensure that you never have to work another day in your life...instead your money will be working for you!

                      I agree with ya that ya can't just squirrel a few million away in a non-interest bearing checking account and deplete the account every year without making more.  And I agree that you've gotta have a plan.

                      But I agree with previous posters that not everyone wants to have a ton of money and not everyone is willing to wait on getting nice things for a decade until they have a huge amount in their investment account.  I'm a few years older than Brad Duke, and I'm very aware of my mortality.  I could drop dead tomorrow and I'd want to have a nice home, and do some traveling before I do drop dead. 

                      So my plan would be, if I win the powerball tomorrow, I'd have about 6 mil after taxes.  I'd give half a mil to charity.  Invest 3.5 mil.  Spend 1.2 mil on a house and decorating and furnishings.  Put 200k in a 5% savings account to pay my bills.  Spend some on medical and dental, spend a whole bunch on travel, and I'd still have half a million to just blow if I wanted to.

                      I wouldn't need that 3.5 mil I invested for awhile so it would grow for at least a year, probably 2, and even at just 10% I'd be making 350k minus taxes each year which would be more than enough to support the lifestyle I wish to live.  I could even afford a smaller home in a warmer climate to spend winters.   I'd never have to touch the principal, and I could leave a nice nest egg to charity, or to a boyfriend if I live long enough to find one who'll put up with me.

                      Yep, you definitely gotta have a plan no matter how much money you have, be it $1,000 or $100,000,000 but my plan doesn't have to be the same as Brad Duke's to be a GOOD plan and to work for my wants and needs. 

                        justxploring's avatar - villiarna
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                        Posted: April 10, 2007, 1:25 pm - IP Logged

                        OldSchoolPA writes:

                        "If you're not making MORE money, then you are losing money...literally and to inflation.  I actually don't think age is the sole determining factor in investing style" 

                        I agree completely that if you are not making more money, you are indeed losing.  I never said not to invest your money wisely.  Imagine having $10 million just making an average of 8%.  That's $800,000 a year!!  That money also earns interest, since it is compounded.  However, even if you "only" put $2 million in a 10 year fixed annuity earning 5.5%, in 10 years you'd have about $3.5 million which would continue to grow.

                        I really don't think when someone wins the kind of money we're talking about, inflation is a major issue.  It can be a problem for people who don't get cost of living raises and are depending on social security and/or pensions and a small nestegg. I guess it could be a big issue if one's lifestyle changes dramatically and a person spends wildly, but that isn't really inflation. 

                        Of course we should all have a plan.  I was only saying that not everyone has the same goals. 

                          justxploring's avatar - villiarna
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                          Posted: April 10, 2007, 11:37 pm - IP Logged

                          I had to rush out when I wrote the above post.  I just want to add that, although I agree that age isn't the only determining factor in determining one's investment portfolio, it certainly plays a big part.

                          The younger a person is, the higher his/her ability to take risk, because that person can usually afford to wait out any temporary erosion in the value of his investment. 

                          Well, I need to shut down because we're having an electrical storm. It boggles my mind that so many people on this board don't think a few million is a lot of money. 

                            guesser's avatar - Lottery-017.jpg

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                            Posted: April 10, 2007, 11:46 pm - IP Logged

                            If you're not making MORE money, then you are losing money...literally and to inflation.  I actually don't think age is the sole determining factor in investing style; yes, it plays a part, but I can tell you that I know of many "elder" people who are still invested moderately to just slightly less than aggressive as they want to 1) ensure that their cash pot lasts their lifetime, 2) have a nice sum to pass on to deserving children, grandchildren, and charities, and 3) always outpace inflation.

                            I know of people who have retired with about $1M in retirement investments (yes, there is a big difference between investments and savings) and now have over $3M after having spent over $800K over a period of time.  So I would be like them, and Brad Duke in growing my money.  Having a specific goal like Brad Duke is a very good way to ensure that you don't end up like Jack W. and all the other jackpot lottery winners who never implemented any specific goals and now blame winning the lottery for all their problems.  The problem isn't the lottery; the problem is not having a plan...and that applies to you whether or not you win the lottery.  And having a plan as to what one wants to accomplish and how to invest jackpot lottery winnings is the best way to ensure that you never have to work another day in your life...instead your money will be working for you!

                            My point (for ME) was that I am not going to make it my life's goal to double or triple my money, not in a 9-5 everyday environment like the guy in the story seems to have.

                            I have NO problem with what anyone else wants to do with their winnings - it's THEIR money, they can do with it as they please.

                            Yes, I will invest wisely - I've said that before, but I'm going to have fun, and I'm not going to babysit it every single minute of the day, the point of winning a jackpot is so you do not have to 'work' every day.

                            Hopefully one of these days one of us will be able to put our plan into effect - we should be so lucky. 

                              RJOh's avatar - chipmunk
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                              Posted: April 11, 2007, 12:07 am - IP Logged

                              I for one will worry about how to handle a multi-million dollars lottery jackpot after I win one.  Unless I get lucky or come up with a better system for picking my numbers, it's unlikely such an event will ever effect me.

                               * you don't need to buy more tickets, just buy a winning ticket * 
                                 
                                           Evil Looking