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30% of lottery winners bankrupt within 5 years- so what's your investment advice for them

Topic closed. 66 replies. Last post 7 years ago by ginkostinko.

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joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

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Posted: June 2, 2010, 12:56 am - IP Logged

30% of lottery winners bankrupt within 5 years ,

so what's your investment advice for a muti-million jackpot winner

 

real estate

stock market

business ideas

 

lets have a meeting of the minds!

 

 

edit- source of 30%

give or take a few %, due to ones that hide their win so no one really knows spot on %

http://www.youtube.com/watch?v=FqSeyBcIrIY

a news report less then a week old

    Coin Toss's avatar - shape barbed.jpg
    Zeta Reticuli Star System
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    Posted: June 2, 2010, 1:06 am - IP Logged

    The statistic I saw was 50% go broke within five years, not 30%.

    That being the case, I don't think the problem is investments, more likely lack of investments, or that some winners never get around to making investments. 

    I think the more likely a person is to "flash" their winnings ythe less likely they are to keep them.Remember the guy that said, "You can't fix stupid?" One of the first things he did was take an entourage with him to Vegas.

    No one neds a dozen or more cars, for example. Yet on the Lottery Changed My Life and The Curse of the Lottery programs buying a personal fleet seems to be common.

    As for the investments in the OP, we've seen what can happen with real estate and stocks, and as for business ideas if you've won multi-millions what's going to match that? Statistically 95% of all new business fail.

    Personally I think the best "investment" someon who wins that much can make is keepimg a very low profile.

    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

    Lep

    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

      rdgrnr's avatar - walt
      Way back up in them dadgum hills, son!
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      Posted: June 2, 2010, 6:35 am - IP Logged

      I think conventional wisdom is out the window or at best in a holding pattern on investments for the time being.

      I think it's all based on your faith in the dollar given our current fiscal policy with this government.

      Do you stay in (cash) or get out, that's the question as far as I'm concerned.

      If there aren't big changes in November I would rather have something more tangible than faith in the clowns leading us down this dead end road we're on now.


                                                   
                           
                                               

       

       

       

       

                                                                                                         

      "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                  --Edmund Burke

       

       

        THRUST's avatar - f35l

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        Posted: June 2, 2010, 6:57 am - IP Logged

        Having a diverse portfolio is key...don't want all your eggs in one basket. The best thing is talk with a handful of advisors and do some homework...it's your money, if you don't want to lose it, be smart.

        $1,000,000

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          Posted: June 2, 2010, 8:15 am - IP Logged

          Live off the interest and keep the principle.

            Raven62's avatar - binary
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            Posted: June 2, 2010, 8:54 am - IP Logged

            You have to ask yourself: Why didn't the other 50% go broke: They took the Annuity and didn't Sell It to the Money Sharks!

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

              sully16's avatar - sharan
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              Posted: June 2, 2010, 9:50 am - IP Logged

              we got a 750 lb. gun safe that will hold that money just fine. I no longer trust banks, or brokerages...key word...you'll be broke and you can bank on it.

               HyperBe Happy.

                Raven62's avatar - binary
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                Posted: June 2, 2010, 10:20 am - IP Logged

                we got a 750 lb. gun safe that will hold that money just fine. I no longer trust banks, or brokerages...key word...you'll be broke and you can bank on it.

                What will be the Safeguard when they replace Cash with Digital Currency?
                Thinking of...

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

                  Coin Toss's avatar - shape barbed.jpg
                  Zeta Reticuli Star System
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                  Posted: June 2, 2010, 10:25 am - IP Logged

                  we got a 750 lb. gun safe that will hold that money just fine. I no longer trust banks, or brokerages...key word...you'll be broke and you can bank on it.

                  Well said sully16, and sounds just like something Yogi Berra might have said!

                  Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                  Lep

                  There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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                    Posted: June 2, 2010, 10:30 am - IP Logged

                    I agree, keep a low profile, minimize the leech factor.  If you bring attention to yourself by being flashy, if/when you fail, you will be a famous failure. Not someone I would aspire to be.

                    Don't put all your eggs in one basket.

                    All of the investments mentioned are good investments, only in moderation.  It's like having a bad headache, you take the recommended dose of aspirin and the head starts to feel a little better....you don't take the rest of the bottle to make it all go away....go eat something, get some fluids, get some fresh air....Too much of anything can be poison.  Just because an investment is a good one (or bad one) today, doesn't make it the same next year. There are going to be good times and bad, you just have to hang on when it gets uncomfortable and be prepared to get rid of it if it gets too high (never invest with emotion)

                    A fleet of cars or boats or houses is ridiculous, especially if there is upkeep or taxes or both involved.  I like cars, there are some collectibles that I would love to have(A 59 Cadillac Coupe, 65 Mustang cp or cvt with 289, 65 Buick Skylark convt. and an 87 Buick GNX)  but instead of them being "toys" in the garage, I would work on them myself and show them....if someone comes along and wants to buy it for more than what I put into it...sold.  I wouldn't mind going on cruises or to a car club national meet as a vacation in one of these cars... Would I buy a Ferrari? I like them, but the upkeep would be killer.  I would keep my current vehicles as my daily drivers...no need for the Big Benz or BMW. I like low key....

                     

                    I can only keep up with one house at a time, why have two? It's like the Joe Walsh song..."I have a mansion, forget the price, Ain't ever been there...they tell me it's nice."  Who cuts the grass at all of these houses, who pays the taxes? who cleans them?  If you don't, somebody will and they will need to be paid to do so....so why bother?

                    I am not sold on the annuity payout for me personally. I'll take the cash now, put it into an account that would generate income that I could live off of and invest some of this agressively.  I am an agressive investor, however living off the interest and investing the interest earnings is like having my cake and eating it too.

                    Low key.....how low can you go?

                      taxijohn's avatar - odometer444
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                      Posted: June 2, 2010, 10:30 am - IP Logged

                      Buy gold and silver. Can't embezzle, go on expensive vacations, be sued, go bankrupt, give $20 million dollar bonuses or be taken over by the Government. It's universal worldwide, it's in your hands (safe). enough said.

                      GOD is great, beer is good and people are crazy! Crazy

                      "I don't look for the numbers, the numbers look for and sometimes find me..."

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                        Posted: June 2, 2010, 10:53 am - IP Logged

                        Gold and silver and any other precious metals or commodity, in moderation is a good investment.  The problem is that these investments can experience wilder price fluctuations than the stock market.  There was an article last week about gold where it is at $1200-$1300 per oz and could go to $5k to $10k per oz in a few years....this is speculative, would I bet my house on this? No. Would I consider a portion of my winnings as an investment?  yes.  4 yrs ago people were saying the same things about real estate, now look at the picture today....where are these people that were touting the virtues of real estate?

                         

                        It's all about MODERATION...the dose can be the poison if you let it.

                        Too many stocks, too many bonds, too much gold, too much real estate, too many expensive cars...too much/many {insert investment type} will cause you to lose or risk a lot more.

                        Where would I keep my gold, if I want it to be safe from theft?  I wouldn't mind having bars of gold, but I don't own Fort Knox either.

                        A balanced "diet" of "various investments will keep you out of trouble.

                        Being able to say "no" to the leeches will help too.

                          sully16's avatar - sharan
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                          Posted: June 2, 2010, 11:01 am - IP Logged

                          What will be the Safeguard when they replace Cash with Digital Currency?
                          Thinking of...

                          interesting, cash is king, even if we go digital I will still have time to deposit.

                           HyperBe Happy.

                            sully16's avatar - sharan
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                            Posted: June 2, 2010, 11:03 am - IP Logged

                            Well said sully16, and sounds just like something Yogi Berra might have said!

                            Thank you coin, Yogi is one of a kind.

                             HyperBe Happy.

                              hearsetrax's avatar - 0118

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                              Posted: June 2, 2010, 12:01 pm - IP Logged

                              Roll Eyes personally am curious as to how many are actually prepared for winning as opposed to just talking out our respective hats ??