The following is just (1) article of (8) discussing lottery winners and their fates due to bad decisions made before and after coming into sudden wealth. Ellen Goldstein, Bankrate.com wrote the articles. Also, on MSN Money an article called "You're Suddenly Rich...Bummer" can be found which also goes into great detail regarding lottery winners and how their families and lives are affected...good and bad.
Everybody wants to win but, are you really ready for it? Can you REALLY HANDLE SUDDEN WEALTH? These (8) people thought they were and, now, are all completely broke. I see people here who make some good, sound replies about handling their business the right way. I also see people who'd be broke rather quickly for obvious reasons regarding their posts. Yeah, some may say, "That's only (8) people out of how many that have the lottery."
True...very true. However, to come into millions of dollars, and, the one lady (Evelyn Adams of New Jersey) won TWICE, and all still ended up BROKE. Your money managing skills will be challenged to the fullest and you must be able to separate the HYPE from the HUMBLE...the BUSINESS from the BULLSH*T.
I'm only trying to help anyone who'll listen here...no arrogancy or knowing it all etc. Just good sound reading to help someone not end up like these (8) people did. It can and will happen if you're not ready and disciplined with your current money skills. Just as I said that we have (180) days to claim the money and get ready for it, Goldstein says here to "park the money" for (90) days and gather yourself. It's no coincidence that I speak the same language as people like her...just as sensible others here do. The actual link is articles.moneycentral.msn.com/8lotterywinnerswholosttheirmoney
__________________________________________________________________
To offset some bad early decision-making and the inevitable requests of friends, relatives and strangers, Bradley recommends lottery winners start by setting up a DFZ or decision-free zone.
"Take time out from making any financial decisions," she says. "Do this right away. For some people, it's smart to do it before you even get your hands on the money.
"People who are not used to having money are fragile and vulnerable, and there are plenty of people out there who are willing to prey on that vulnerability -- even friends and family," she cautions.
"It's not a time to decide what stocks to buy or jump into a new house purchase or new business venture.
"It's a time to think things through, sort things out and seek an advisory team to help make those important financial choices."
As an example, Bradley says that people who come into a windfall will typically put buying a house as No. 1 in list of 12 choices, while investing is No. 11.
"You really don't want to buy a new house before taking the time to think about what the consequences are.
"A lot of people who don't have money don't realize how much it costs to live in a big house -- decorators, furniture, taxes, insurance, even utility costs are greater. People need a reality check before they sign the contract," she says.
Evelyn Adams, the N.J. lottery double-winner, learned these lessons the hard way.
"There are a lot of people out there like me who don't know how to deal with money," laments Adams. "Hey, some people went broke in six months. At least I held on for a few years."
(For more information on dealing with a sudden change in your fortunes, read "You're suddenly rich? Bummer," on MSN Money.)
L.L.