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

New Topic New Poll

GASMETERGUY

NASHVILLE, TENN
United States
Member #33,371
February 20, 2006
1,044 Posts
Offline

Jun 2, 2010, 12:17 pm

I know not what course others will take, but as for me, I will buy gold coins and farm land. Gold will never be worth nothing and land can not be destroyed (devastated, maybe, but not destroyed).

If you base your finanacial decisions on what is "hot" today, you will suffer. What is hot today will be cold tomorrow. What is cold today will be hot tomorrow. Do not allow the fluctuations of any market to influence your decisions. Fluctuations come and go.
drhymes74

United States
Member #85,335
January 13, 2010
143 Posts
Offline

Jun 2, 2010, 12:59 pm

Quote: Originally posted by GASMETERGUY on Jun 2, 2010
I know not what course others will take, but as for me, I will buy gold coins and farm land. Gold will never be worth nothing and land can not be destroyed (devastated, maybe, but not destroyed).

If you base your finanacial decisions on what is "hot" today, you will suffer. What is hot today will be cold tomorrow. What is cold today will be hot tomorrow. Do not allow the fluctuations of any market to influence your decisions. Fluctuations come and go.

Your last paragraph briefly sums up what I said in more words....

I do agree that gold will never be worth nothing, however you could end up with something worth less at a later time when you need it the most.

As far as land not being able to be destroyed. There are ways in which its value could be destroyed....environmental disaster (technically land is destroyed if it is within a red zone of a nuclear powerplant or an oil pipeline ruptures and contaminates the water table), eminent domain . There are cases of this that would hurt ones wallet not just in value, but in terms of legal protection. I realize that these are remote chances....but are chances, just like winning the lottery. One problem with land is what we are seeing now. If the majority or 50% of your investments/net worth are in land and you needed access to the value....due to catastrophic illness of you or a family member, is the real estate "liquid" enough for you to cash it in or will you need wait it out. THe other aspect of land is th insuance and taxes on the land and any legal representation you might need (say someone intrudes on your property and they get hurt, they unfortunately will try to sue you, as dumb as this may be.)

I don't know if they accept gold coins for payment if my transmission needs replaced on my car (as I said, I wouldn't want to get rid of my daily driver, just because I won the jackpot.)

I don't want to offend anyone as I am playing devil's advocate because I think that a lottery winner needs to see both sides of the coin as far as what they could do with their money. I hope that someone here does win and make the best use of their winnings. Reading all of the bad stories goes to show that there wasn't careful consideration before an investment was made.

I wouldn't bank on one investment class, be it stocks, cash, bonds, precious metals, real estate, futures, commodities. The best portfolio takes into account your immediate and future needs and investment decisions and divisions are based on that.
drhymes74

United States
Member #85,335
January 13, 2010
143 Posts
Offline

Jun 2, 2010, 1:16 pm

This isn't a jab but I was wondering what ways do you mean "actually prepared for winning"? I can think of several ways this can go. What is your take?

A couple of ways that I thought of to be prepared:

Investment/Financial (self explanatory)

Legal- protecting the money from leeches/frivolous lawsuits

Physically- Where to live. protecting family from the excessive unwanted attention. Keeping yourself physically in shape so that you can enjoy this.

Mentally/Emotionally/Psychologically- the "decision free zone" is probably the first thing that I have heard about.....saying "no" and not feeling guilty, knowing when too much is too much.....

The curse of the lottery winner almost plays out like VH1s "Behind the Music:" Meager and humble beginnings, work hard, get first break, rise to fame and fortune, excessive behavior, the fall, then either death, destruction or redemption. Usually with the lottery winner it is death and destruction and no redemption.
pumpi76

Honduras
Member #20,981
August 29, 2005
4,715 Posts
Offline

Jun 2, 2010, 2:55 pm

if you want, only if you want...Move to another country or have a home in another country where you can spend: 4 or 5 months out of the year or move down south or parts of the midwest, you know the Midwest is PART OF THE USA TOO...I think the reason these happens is because people live in big cities like: New York city, los Angeles, in big cities and life in big cities is very expensive...A good chunk of the population lives in Big cities...

The Forex trades: 1.6 Trillion dollars EVERY day, that´s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases¨
Coin Toss

Zeta Reticuli Star System
United States
Member #30,469
January 17, 2006
11,788 Posts
Offline

Jun 2, 2010, 4:03 pm

Pumpi, yes and no on big cities vs smaller towns. In a small town, a real small town everything is everybody's business. If someone in such town hit a jackpot they'd never have any peace. People in rural areas don't have much of a concept of privacy, especially in the South and Midwest. Might be different somewhere like New England, Maine, up around "Bah Hahbah". (Bar Harbor)

Big cities are more expensive, yeah, but if someone won a jackpot, so what.

Those who run the lotteries love it when players look for consistency in something that's designed not to have any. So many systems, so many theories, so few jackpot winners.

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.
pumpi76

Honduras
Member #20,981
August 29, 2005
4,715 Posts
Offline

Jun 2, 2010, 5:05 pm

you will not see anyone in a big city with a: 2003 or 2002 Honda Accord (is not the actual fact but the symbolism)...What i am trying to say??? Nobody uses older car models in big cities, that´s living in the fast lane....

changing a: 30,000 car every 6 years: that´s 60,000 + wife and kids= and surrounding families...comes out to like: $400,000 dollars (i am talking to lottery winners)...

houses in the country side you might find many for: $200,000 in the City every houses is: $500,000 or $600,000 (the crapy regular home) and up...

The Forex trades: 1.6 Trillion dollars EVERY day, that´s more than the GDP of the Carribbean Central America, COMBINED. Enough to feed every crook out there for centuries...To all Geniuses & Powers Countries of the World the Planet needs breakthroughs in all Medicine, Veterinary, Biology related fields, Psychology, Population Psychology/Sociology..They need to genetically ingeneer new plants species/types to give more variety of plants and thus have more resources for combating diseases¨
drhymes74

United States
Member #85,335
January 13, 2010
143 Posts
Offline

Jun 2, 2010, 5:35 pm

Quote: Originally posted by Coin Toss on Jun 2, 2010
Pumpi, yes and no on big cities vs smaller towns. In a small town, a real small town everything is everybody's business. If someone in such town hit a jackpot they'd never have any peace. People in rural areas don't have much of a concept of privacy, especially in the South and Midwest. Might be different somewhere like New England, Maine, up around "Bah Hahbah". (Bar Harbor)

Big cities are more expensive, yeah, but if someone won a jackpot, so what.

When I saw this post, I immediately thought of Warren Buffet "the Oracle of Omaha." Wealthy and does not live in a city with a major financial market.

If I won the jackpot, I would definitely not look to the most expensive place to live, nor would I look for some small podunk town that isn't near a major Metro area to save a few bucks. There has to be some balance between the two; one that will allow you to lay low, blend in without suspicion, not be someone else's gossip and allow you to have access to what you need to enjoy yourself and not go broke doing it. Sounds like a bunch of contradictions.....

New England can be pretty expensive too, lots of old, established money. Lived there, not my cup of tea due to the expense of living... You can blend in with a nice big house, A Bimmer or Benz in the driveway and a membership to the CC, but it costs $$ to be part of the old boys' clubs. Even with a jp, who wants to spend their way only to find out they are broke trying to keep up with the WASPs? L.A., San Diego are nice as are alot of places in CA, but the expense would definitely drive me up a wall. I might have the anonymity, since everyone has that kind of money, but it wouldn't go as far as I would like.

I suppose there are mid-western cities that one could live in where the cost of living isn't the highest in the land. Although Pittsburgh isn't technically mid-West, it has ammenities that most cities have, you could blend in. Chicago might be suitable....not as expensive NY/New England or LA, but still some type of ability to blend in and not go broke.

If you move to some small town near a big city.....say Outside of Philly (Lehigh Valley or somewhere near Amish country), Baltimore (between Owings Mills and Western Md) somewhere in the country you may get the best of both worlds. Living in the the country or out in the sticks, but near amenities you could put you where you need to be. Plenty of big shots that work in the city have nice homes in the country....the key is you don't necessarily have to commute. NY has places like that, Mt Kisko, Chappaqua....again you're in a place where you have to pay twice as much to insure your property or fuel up your car. Yes, you won the jackpot, why not make it last longer? The idea is not to go bankrupt

Since laying low is key.....find a place that has what you need to safeguard you and your money (financial institutions, legal services) that has the necessities to take care of you and family (healthcare, shools) but can give you the privacy you need and not cost you an arm and a leg. Chances are these places will exist. A college town and surrounding areas comes to mind, places like Raleigh Durham (plenty of other businesses have located down there, some old money, some new money.

Moving out of the country may be like going from the fryin' pan and into the fire. Being a stranger in a different country could open a can of worms every time you need to do business like access funds. If you don't speak the language fluently enough, you could get taken advantage of.

I may not agree with him politically but, one closing thought that I agree with from Warren Buffet:"I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing".

Just some ramblings....I'll shut up now.
rdgrnr

100

The Hall Of The Mountain Kings Tennessee
United States
Member #73,902
April 28, 2009
15,378 Posts
Offline

Jun 2, 2010, 6:15 pm

Quote: Originally posted by GASMETERGUY on Jun 2, 2010
I know not what course others will take, but as for me, I will buy gold coins and farm land. Gold will never be worth nothing and land can not be destroyed (devastated, maybe, but not destroyed).

If you base your finanacial decisions on what is "hot" today, you will suffer. What is hot today will be cold tomorrow. What is cold today will be hot tomorrow. Do not allow the fluctuations of any market to influence your decisions. Fluctuations come and go.

I like that first half of your first sentence, GMG. Its got a ring to it. .
Coin Toss

Zeta Reticuli Star System
United States
Member #30,469
January 17, 2006
11,788 Posts
Offline

Jun 2, 2010, 6:43 pm

drhymes74,

You made good points. I mentioned New England and Maine especially because of the tendency to consider you "new" if you didn't move there less than 100 years ago!

I used to live in a town called Evansville, Indiana, known as the largest city in America that most people don't know where it is. Pretty decent place in fact, most of the amenities of a larger city without the country bumpkin nosey neighbor aspects of a small town. Even has a Frontiwr league baseball team that plays in the oldest in use ball park in America, Bosse Field, one that was seen in A League of Their Own.

Those who run the lotteries love it when players look for consistency in something that's designed not to have any. So many systems, so many theories, so few jackpot winners.

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.
tiggs95

United States
Member #47,419
November 4, 2006
3,930 Posts
Offline

Jun 2, 2010, 7:43 pm

tiggs is a tad old..He's going to put the money in his wallet and travel till he dies..
rdgrnr

100

The Hall Of The Mountain Kings Tennessee
United States
Member #73,902
April 28, 2009
15,378 Posts
Offline

Jun 2, 2010, 9:12 pm

Quote: Originally posted by tiggs95 on Jun 2, 2010
tiggs is a tad old..He's going to put the money in his wallet and travel till he dies..

You should move first, tiggs.

You don't want to be going around the country with Kentucky tags on the Winnebago.

Everywhere you go, everybody will be thinking you're going to steal something.
petergrfn

United States
Member #26,329
November 16, 2005
330 Posts
Offline

Jun 2, 2010, 9:23 pm

Quote: Originally posted by joshuacloak on Jun 2, 2010
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

I'm not an investment manager so I can't really give good advice except....Find someone to watch your investments that you TRUST....Trust is more important than credentials....Second I wouldn't invest with family.
CajunWin4

100

Louisiana
United States
Member #90,212
April 24, 2010
15,347 Posts
Offline

Jun 2, 2010, 9:30 pm

Get your self a Good Lawyer,Financial Advisor,CPA,Form a LLC. (Trust Fund) ,Gold,Silver,Diamonds,Precious Gems....Get a P.O. Box ,Keep a Very Low Profile ,Don't give out your new cell to any 1 not even family .You will have relatives come out of the wood work and every crazy person with in 3000 miles.....
Dollar419

Huntersville, NC
United States
Member #71,157
February 20, 2009
654 Posts
Offline

Jun 2, 2010, 9:58 pm

Quote: Originally posted by joshuacloak on Jun 2, 2010
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

Real Estate seems to be the key answer although I am not qualified to give out sound investment advice regarding the stock market. Everyone needs a roof over their head and buying or investing in real estate could provide a solid profit if it is invested correctly. That is what I'm planning to do when I win my jackpot lottery--BUY A BRAND NEW HOUSE!!
tiggs95

United States
Member #47,419
November 4, 2006
3,930 Posts
Offline

Jun 2, 2010, 10:17 pm

Quote: Originally posted by rdgrnr on Jun 2, 2010
You should move first, tiggs.

You don't want to be going around the country with Kentucky tags on the Winnebago.

Everywhere you go, everybody will be thinking you're going to steal something.

Yeah thanks for the heds up ridge..Will you help tiggs..You can shine his shoes empty tiggs garbage and wash the Winnebago every 5,000 miles..Pay is good plus you'll be working for tiggs $$$$$$$$$$$$$..OH YEAH BABY!!!...