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Don't Spend Your Jackpot!

Topic closed. 26 replies. Last post 8 years ago by Uff Da!.

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tiggs95's avatar - Lottery-036.jpg

United States
Member #47420
November 4, 2006
3930 Posts
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Posted: August 10, 2008, 5:55 pm - IP Logged

Maybe if your young you might want to strech it out but at my age it's spend spend spend!!!

    GamerMom's avatar - tails

    United States
    Member #60535
    April 21, 2008
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    Posted: August 10, 2008, 6:20 pm - IP Logged

    I would be afraid I would kick the bucket before my year was over!!! what a tragedy it would be to be so cautious with your winnings you never get to enjoy them. I'm the kind of person that would claim the next day because i have so much debt and need the money badly.  I'm not sure why anyone that wins 20 mil after taxes is concerned about over spending; i don't think I could spend 20 million in my lifetime but i'm paranoid about spending $$ anyway.

      GamerMom's avatar - tails

      United States
      Member #60535
      April 21, 2008
      460 Posts
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      Posted: August 10, 2008, 6:43 pm - IP Logged

      I wouldn't be able to wait a week after claiming and getting the money, let along a month or a year, I'd just try not to over spend which to me would be 5% or 1 million in the first year would be more than enough and I struggle to think of what I'd spend a million dollars on in what interest me. I wouldn't be buying a huge, mansion like house or an expensive car or cars though I'd certainly be moving, I wouldn't be hitting Vegas and going nuts with gambling and I'm not much of a traveler though there are at least a few places I'd want to visit. I'm sure if my relatives knew they'd know exactly how to squander it which is one reason why moving is near the top of my list. I'd not about being able to say "no" it's just about getting away so they can't even ask.Big Smile

      I would say, well my financial planner has all of my $$ tied up at the moment and I can't touch it, sorry.

        BobP's avatar - bobp avatar.png
        Dump Water Florida
        United States
        Member #380
        June 5, 2002
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        Posted: August 10, 2008, 7:00 pm - IP Logged

        It really depends on how much you win and how you take the money.

        If you take the 20 year anunity you might as well take the checks as they come, as income.

        If you take the cash option and it's a relatively small prize and you want to live off the interest without touching principle you might want to wait a year for that interest to build to become your first payment.

        If the prize is more than you will ever be able to spend, why worry for a year?  You might not be alive a year from now and you will just have made your last year a poor one.

        There are times when it is best to spend money while it still has value. Buy a home before it costs twice as much.  Buy some gold.  A car that doesn't need a trunkload of money to buy gas or replacement batteries.   A year's worth of food and ammo?  Is that nuts or just smart the way things are going? 

        BobP

          four4me's avatar - gate1
          MD
          United States
          Member #1701
          June 18, 2003
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          Posted: August 10, 2008, 7:04 pm - IP Logged

          Almost every article on "What to do if you win a jackpot" tells you to put the money away and to not make any rash purchases.  Some even say to wait a year before touching it. 

          My question to you all is:  Would you be able to DO NOTHING for a year with your jackpot? 

          If you take the cash option the you already lose more than half the jackpot. In this case you might as well continue spending your win anyway you want.

          If you take the annuity then it might be a good idea to sit on your first check for a year. However if you decide to quit your job then you need to put enough money in an account to live off of.

          The only reason for doing this in my opinion is so you always have a check in escrow so to speak if you decide on a big purchase it would be a money cushion so to speak.

          If you were able to live off the income you already received before you won then you can still live off that income for a year.

          I haven't worked out the figures for doing this but the interest alone you get by not spending the first check should be pretty good.

          It will always depend on a persons needs, wants, and desires.

          I know a couple guys who took the annuity on a small win under 5 million and went through the first check in a few months leaving them looking for work.  

          Big John says. You don't hit the number. The number hits you!!!!

                         I'm not Big John, I'm Four4me, Big John's a friend.
            savagegoose's avatar - ProfilePho
            adelaide sa
            Australia
            Member #37136
            April 11, 2006
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            Posted: August 11, 2008, 12:49 am - IP Logged

            I meant the lotto ticket in a  deposit box, but a check is even better. 


            i looked at ING direct savings 3.4% so 34k a year on a  mill, thats like an average wage. being a millionaire isnt what it used to be obviously.

            but im just using that as an example .  bottom line , for me i could last a month while i wait for the check to come.

            2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

            keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

              sirbrad's avatar - Lottery-062.jpg
              PA
              United States
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              October 6, 2005
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              Posted: August 11, 2008, 2:52 am - IP Logged

              It depends on the jackpot size, and living conditions. Actually most say not to touch it for 3-6 months or spend just 10% and don't touch the rest, and invest it in short-term CDs'. All I would get is a new car and a nice house filled with some goodies. Then figure out the rest later.

                DC81's avatar - batman39
                MI
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                August 31, 2007
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                Posted: August 11, 2008, 5:11 am - IP Logged

                That's probably what I'd mostly do though I think for 24M (cash option minus 25% Federal and 4.35% State taxes going by the current MM JP)  I'd have no problem living off just interest after my first year though I don't think I'd want to just leave it in CDARS for more than three to six months. That'd just give me enough time to get things more straightened and figured out for my next steps in investing.

                But definitely a new car, health insurance (along with a full check up) and later a house though I still might wait for prices to go down more and just rent while working with someone to assist in making plans for a new house in a nice, hopefully a safe, sink hole free area of Florida. So long and good riddance Michigan!

                I really don't like annuities since it seems to benefit the state more than the winner. I'm sure I could turn the winnings into a greater amount than the advertised jackpot and do it in a lot less time than 25 or 26 years where I'd have to keep paying state taxes during that time even if I don't live in the state anymore and not to mention that they'll probably be rising, potentially by a significant amount in that time. I'd just rather get it over with now, they're not going to get any lower.

                Anyway, I don't know how anyone could stand sitting on a winning jackpot that long. Even if one is well off and didn't need the money.

                You can't predict random.

                  CowboysFan's avatar - Cowboys
                  Sunny California
                  United States
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                  August 8, 2008
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                  Posted: August 11, 2008, 2:12 pm - IP Logged

                  NO WAY! I would take my girlfriend of almost 4 years to Bora Bora and get married. After that I would buy my girlfriend and I a condo in San Diego and after that I would just help my other family members out. Most of my time would be spent volunteering to help the homeless and underpriviledged children. If I'm not volunteering I would just be watching the Cowboys steam roll their opponents en route to their 6th Super Bowl victory.

                    justxploring's avatar - villiarna
                    Wandering Aimlessly
                    United States
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                    November 5, 2005
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                    Posted: August 11, 2008, 2:46 pm - IP Logged

                    NO WAY! I would take my girlfriend of almost 4 years to Bora Bora and get married. After that I would buy my girlfriend and I a condo in San Diego and after that I would just help my other family members out. Most of my time would be spent volunteering to help the homeless and underpriviledged children. If I'm not volunteering I would just be watching the Cowboys steam roll their opponents en route to their 6th Super Bowl victory.

                    Probably best to fly to Vegas first so you are legally married in the United States.  Then go on a honeymoon to Bora Bora if you wish and have a small ceremony on the beach.  People get married in exotic places all the time like Fiji, but it might get complicated later on if papers aren't filed properly.  By the way, I like your plan. 

                      One2Adore's avatar - butterfly2
                      Maryland
                      United States
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                      March 8, 2007
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                      Posted: August 11, 2008, 3:19 pm - IP Logged

                      Go Cowboys!!

                      Living on Earth is expensive, but it does include a free trip around the sun every year.

                        Uff Da!'s avatar - InCelebration 001.jpg
                        Washington State
                        United States
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                        February 26, 2006
                        347 Posts
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                        Posted: August 11, 2008, 3:58 pm - IP Logged

                        NO WAY! I would take my girlfriend of almost 4 years to Bora Bora and get married. After that I would buy my girlfriend and I a condo in San Diego and after that I would just help my other family members out. Most of my time would be spent volunteering to help the homeless and underpriviledged children. If I'm not volunteering I would just be watching the Cowboys steam roll their opponents en route to their 6th Super Bowl victory.

                        Ah yes, what a wonderful place to honeymoon on Bora Bora!  It's been years since I was there but should I ever win the lottery, I might just go back even though I'm not all that excited about travel in general.  Whenever I do relaxation exercises I close my eyes and picture a certain scene on Bora Bora, palm trees framing a sailboat and the turquoise waters inside the lagoon.  Peace!

                        It was funny.  When we went to Bora Bora the airline lost my late husband's suitcase.  He only had the few things that he'd packed in my suitcase.  The only store on the island at the time was a little general store.  And the suitcase didn't catch up to us until the last day of the trip - day 16!  But we discovered one really doesn't need a lot of clothes on Bora Bora!