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Why some jackpot winners blow it

Topic closed. 33 replies. Last post 10 years ago by mylollipop.

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SirMetro's avatar - center
East of Atlanta
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Posted: July 2, 2007, 1:26 pm - IP Logged

PETA: People Eating Delicious Animals

Slight correction:

People Eating Tasty Animals

    SirMetro's avatar - center
    East of Atlanta
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    Posted: July 2, 2007, 1:33 pm - IP Logged

    Actually, I think the question itself is a misnomer.

    Consider this, those who are hit with a financial windfall and then go thru it all. They don't blow it. They merely continue a lifestyle they are accustom to, but at a larger scale. There are those out there whose way of life is debt. They do not know how to live their life within their financial means. Be it they earn $50 K a year or a Million.

    Its not a lack of knowledge, but more of a refusal to accept responsibility. How many times did you hear those who lost all of their money step up and declare "I am broke and it's my fault"? None and you will not hear it. What you will hear is about the pandering or lavishness.

    But hey, life is about choices. May the choice you make in life make you happy.

    Sir Metro

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      Georgia
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      Posted: July 3, 2007, 2:43 pm - IP Logged

      Animal Liberation Army?

        hypersoniq's avatar - 8ball
        Pennsylvania
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        Posted: July 3, 2007, 10:56 pm - IP Logged

        Jackpot winners tend to "blow it" because they cut off their Income Stream . Think about it... Bill Gates could have done nothing but relax after the first few hundred million.

        You need to keep making money, you just have to figure out how to do it on YOUR terms. I would NOT work for someone else... but I would find a stream of income, be it investments... my own business (a skatepark with unique safety features), something.

        I would save a TON of money initially by paying in full the cost of a new house... not a $10,000,000 mansion... but one for $1,000,000 or less that is small enough not to have to hire a staff to maintain. I am my own "groundskeeper" now... that wouldn't change (but the riding mower would be a welcome addition ;-)  unless I go for the beach house).

        Gotta think beyond getting the check...

        Playing more than one ticket per game is betting against yourself.

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          Westerose
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          Posted: July 4, 2007, 1:54 am - IP Logged

          Animal Liberation Army?

          No not them. However they are classified as a terrorist organization by the FBI.

           

          I am talking about HSUS. Who also collect funds posing as people's local Humane Societies. However they don't actaully use any of the money they collect to help animals. The use the money to do more fundraising and spread an "Animal Rights" and "Vegan" idealogy. Which I guess would be okay if they were honest to people about doing that. However they are not.

          It's important that people understand that when they donate to "Animal Rights" organizations the money doesn't actually help animals it goes to spreading that politicial and philosphical idealogy.

          If people want to donate money to actually help animals they should donate to "Animal Welfare" Organizations instead. As they actually spend money helping animals.

          Many people are unaware of this distinction in terms and are thus decieved when they donate money to certian organizations.

          Animal Lovers should stick to donating to local animal charities if they are so inclined where they can actually know what is being done with the money.  Or if globally things like Polar Bear and Tiger Adoptions where you actually get updates from the researchers and workers at game reserves.

          You live a life of abundance! You have won the lottery! Belief creates reality! Believe!

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            Westerose
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            Posted: July 4, 2007, 1:59 am - IP Logged

            Jackpot winners tend to "blow it" because they cut off their Income Stream . Think about it... Bill Gates could have done nothing but relax after the first few hundred million.

            You need to keep making money, you just have to figure out how to do it on YOUR terms. I would NOT work for someone else... but I would find a stream of income, be it investments... my own business (a skatepark with unique safety features), something.

            I would save a TON of money initially by paying in full the cost of a new house... not a $10,000,000 mansion... but one for $1,000,000 or less that is small enough not to have to hire a staff to maintain. I am my own "groundskeeper" now... that wouldn't change (but the riding mower would be a welcome addition ;-)  unless I go for the beach house).

            Gotta think beyond getting the check...

            that is sound advice.....      people think they can sit back and live off from interest whilst spending and playing santa claus...... it's just not the way it is.  You have to make your money work to get more if you wanna play santa claus....

            If you have a small family and not give to others and live within the means of the Jackpot win you can live off the interest for the rest of your life. But only by keeping your winnings intact.

            from what I have seen people posting on here.... some of them would need to barrow money to fullfill their own expectations of what they could do with even 100 Million Dollar after taxes windfall.

            You live a life of abundance! You have won the lottery! Belief creates reality! Believe!

              hypersoniq's avatar - 8ball
              Pennsylvania
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              Posted: July 4, 2007, 2:49 pm - IP Logged

              One step to getstarted is to figure out how much you will actually be getting.

              MANY winners get burned on taxes. The bottom line right now is you owe 35% on anything you earned in excess of $311,000... The lottery withholds 25% even on millions.

              Grab a calculator and...

              step one... enter the jackpot amount (assume a cash game like match6) $1,000,000

              step 2... multiply by 0.75, this is what you have when you get the check... $750,000

              step 3... enter the jackpot again, multiply by 0.65 then subtract from step2 to see what you owe the irs... $100,000

              you net $650,000 on each $1,000,000.00 and you pay the IRS $100,000 for each million to make up what they(the state) didn't withhold on the 1099g form...

              Traps like this are why you need a tax specialist when you win.

              Also, when planning how much interest you will be living off of, remember that interest income is also taxable, so you won't make as much as you think!

              I know it's difficult, but try to plan for 10 years after the win... just to see what the reality is... you will definitely re-consider that big tithe or that ferarri.

              Playing more than one ticket per game is betting against yourself.

                LuckyLilly's avatar - savy chick.png

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                Posted: July 4, 2007, 3:04 pm - IP Logged

                One step to getstarted is to figure out how much you will actually be getting.

                MANY winners get burned on taxes. The bottom line right now is you owe 35% on anything you earned in excess of $311,000... The lottery withholds 25% even on millions.

                Grab a calculator and...

                step one... enter the jackpot amount (assume a cash game like match6) $1,000,000

                step 2... multiply by 0.75, this is what you have when you get the check... $750,000

                step 3... enter the jackpot again, multiply by 0.65 then subtract from step2 to see what you owe the irs... $100,000

                you net $650,000 on each $1,000,000.00 and you pay the IRS $100,000 for each million to make up what they(the state) didn't withhold on the 1099g form...

                Traps like this are why you need a tax specialist when you win.

                Also, when planning how much interest you will be living off of, remember that interest income is also taxable, so you won't make as much as you think!

                I know it's difficult, but try to plan for 10 years after the win... just to see what the reality is... you will definitely re-consider that big tithe or that ferarri.

                And don't forget, many states take their share too, so ya gotta subtract that.  That's almost another 8% for my state Scared so my net is only $598k on each million.

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                  Georgia
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                  Posted: July 5, 2007, 1:05 am - IP Logged

                  Animal Liberation and PETA were the ones that I knew from the news. My way of giving is to adopt a pet at the Humane Society or the local vets office.

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                    Georgia
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                    Posted: July 5, 2007, 1:08 am - IP Logged

                    The tax system is definitely messed up when you are receiving less than 600,000 out of a million. Fairtax.org

                      justxploring's avatar - villiarna
                      Wandering Aimlessly
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                      Posted: July 5, 2007, 1:28 am - IP Logged

                      The tax system is definitely messed up when you are receiving less than 600,000 out of a million. Fairtax.org

                      I agree that the tax system needs to be changed, but the so-called 23% "Fair Tax" is not the way to do it.  It isn't fair at all.  It's robbing the American people even more.  It would ruin this country. 

                      (Actually, I shouldn't complain since I never spend any money anyway.)  Smiley 

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                        Georgia
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                        Posted: July 5, 2007, 8:48 pm - IP Logged

                        Have you been to the website? The Fair Tax is very fair. You only pay the 23 percent on purchases; no income tax and then tax on everything else. Notice the chart, at the end of the month most people will get a rebate of a certain percent. Right now, under the current tax system, you are being taxed on income, food, clothes, gas, etc. Payroll tax alone is almost 7 percent!!

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                          Georgia
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                          Posted: July 5, 2007, 8:51 pm - IP Logged

                          I apologize, I am not trying to preach or yell. One last thought, under the current tax system most individuals are losing 50 percent or better to taxes.

                            JackpotWanna's avatar - squiz

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                            Posted: July 5, 2007, 9:55 pm - IP Logged

                            Taxes and not saying no to handouts.   

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                              Posted: July 5, 2007, 9:59 pm - IP Logged

                              hmm no excuse for going broke on a big jack 5% tbill rate for 6 months  umm  heck every 6 months you can get a killer check  just on intrest  lets not forget the law of large figuresWink