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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 6 years ago by ginkostinko.

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victorl3ichiban's avatar - georgemichael
san jose
United States
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July 20, 2007
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Posted: June 8, 2010, 7:24 pm - IP Logged

watch this video about a lotto winnner who is losing money on investment:

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

    ttech10's avatar - blobdude
    Texas
    United States
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    June 5, 2010
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    Posted: June 8, 2010, 8:31 pm - IP Logged

    yeah they probably are extra cars for if in case the main one or second to the main one go broke...Nobody with a: 1 million dollar home is going to drive an: 80´s car unless is a classic...and if it was a classic they will not drive it everyday....

    SPECIALLY in a big city, unless there was a big recession...

    Not saying the cars are owned by the people with the million dollar homes, just that you can get a good condo in a good part of NY and still drive older model cars. Most likely it belongs to someone with a lower priced home in the area (or another area). I guess I didn't word that as well as I could have when talking about the cars and the price of homes.

     

    The point I was trying to get to is that many people live in big cities and don't have the best cars. Actually, Conan O'Brien drove (don't know if he still does) an old Ford Taurus and he lived in a condo that sold for $29.5 million (and I don't know how much he's worth, but Zac Efron drives a '99 Oldsmobile Alero). I know a few people that live in various cities (LA, Dallas, Houston, NY and Chicago) and they've lived there while having an older model car (granted they now have nicer vehicles).

     

    Another thing with being in big cities is that you don't necessarily need a car and actually just paying for parking can be more expensive than the car itself. One person I know lives in Water Tower Place in Chicago and the annual cost for the parking garage is way more than her car is worth. If I were in her position I think I'd just take public transportation or a town car, since her job isn't far from where she lives.

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      New Member

      Australia
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      Posted: June 9, 2010, 12:32 am - IP Logged

      TRUE! 100% especially do NOT loan to cousins etc

      I would help only parents, brother/sister and in moderation, telling them my new business is doing OK.

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        New Member

        Australia
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        Posted: June 9, 2010, 12:34 am - IP Logged

        Unfortunately: "The video you have requested is not available...."

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          Norfolk,VA
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          Posted: June 9, 2010, 2:53 am - IP Logged

          5 words ,  DO NOT LOAN MONEY OUT !!!!

          I Agree!  Blackie......this will most definitely insure that you will go broke or bankrupt in 5 or less years.....

          ''YOU CAN PAY FOR SCHOOL BUT, YOU CAN'T BUY CLASS''Thumbs Up

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            Norfolk,VA
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            December 2, 2009
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            Posted: June 9, 2010, 2:55 am - IP Logged

            Buying a franchise is a good idea...I would buy a Papa John's or Subway.

            Being low key is good...it is best to move out of the area you live in and move and blend in with people who have alot of money too.

            Paying off all debts should be a top priority.

            The reason why i would buy a couple of 7-11 franchises is because the start up cost is pretty low......like around 150k-200k

            ''YOU CAN PAY FOR SCHOOL BUT, YOU CAN'T BUY CLASS''Thumbs Up

              Blackie's avatar - Norfolk 20Sunrise%20Nov%2016.jpg
              Norfolk , Va
              United States
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              Posted: June 9, 2010, 11:26 am - IP Logged

              Thanks Grave!!!

              Another thing to consider,

              Buying real estate property and renting it out.

              Unless you are extremely lucky, your tenants  are likely to tear up everything and every room in your property , not pay rent on time or at all at times , and chances are good they will move out in the middle of the night leaving you to clean out any of their unwanted trash and paying the city to come and pick up that huge amount of unwanted trash.
                  A large majority of renters do not take care of someone else's property.
                     And yes, I have been through the nightmare a couple of times.  Sold the property to get away from the headaches.

               

               Good Luck,

              Blackie.                           

                Coin Toss's avatar - shape barbed.jpg
                Zeta Reticuli Star System
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                Posted: June 9, 2010, 6:57 pm - IP Logged

                Perhaps some people are destined to blow it whether they invest or start a business or not.

                Probably one of the best things to do would be to keep a very low profile and not live an extravagant lifestyle.

                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.

                  Blackie's avatar - Norfolk 20Sunrise%20Nov%2016.jpg
                  Norfolk , Va
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                  Posted: June 9, 2010, 7:03 pm - IP Logged

                  Perhaps some people are destined to blow it whether they invest or start a business or not.

                  Probably one of the best things to do would be to keep a very low profile and not live an extravagant lifestyle.

                  Coin Toss,

                  I agree with all of that!!

                   

                   Good Luck,

                  Blackie.                           

                    THRUST's avatar - f35l

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                    Posted: June 9, 2010, 7:09 pm - IP Logged

                    The reason why i would buy a couple of 7-11 franchises is because the start up cost is pretty low......like around 150k-200k

                    That is pretty good...you just don't want your 7-11 to be near a Wawa. I seen a few convenient stores shut done in the past few years after a Wawa was build near by.

                    $1,000,000

                      ttech10's avatar - blobdude
                      Texas
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                      Posted: June 9, 2010, 7:09 pm - IP Logged

                      Perhaps some people are destined to blow it whether they invest or start a business or not.

                      Probably one of the best things to do would be to keep a very low profile and not live an extravagant lifestyle.

                      Yea one of the most popular suggestions I've seen about lottery winners going bankrupt is "well they most likely couldn't properly handle money in the first place", which likely could be true. I can see how they get that reasoning, it's mainly lower class people who play the lottery and their lower class so they obviously can't handle money (which that thought isn't my own and don't consider it true, some people just can't earn enough money).

                       

                      Of course I also think it has to do with the winners - the ones who come from lower class society - don't truly know how far $1 can go. They expect to be able to just blow it on cars, houses and friends and still have a lot left over. Even just buying a ~$250,000 house they think that $1 million will last forever.

                       

                      Think about when you were a kid, one million sounded like the biggest number ever, you couldn't comprehend it. I imagine that's how some winners feel. Definitely agree though, low profile and a modest lifestyle.

                        THRUST's avatar - f35l

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                        Posted: June 9, 2010, 7:36 pm - IP Logged

                        The reason why i would buy a couple of 7-11 franchises is because the start up cost is pretty low......like around 150k-200k

                        http://www.entrepreneur.com/franchises/toptenlists/index.html

                        7-Eleven $40,500 - $775,300

                        Subway$84,300 - $258,300

                        H&R Block $26,427 - $84,094

                        Many options with franchises.

                        $1,000,000

                          TheGameGrl's avatar - character catafly.jpg
                          A long and winding road
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                          June 10, 2005
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                          Posted: June 9, 2010, 7:48 pm - IP Logged

                          Sully  nailed it early on. Scroll back.

                          You cant lose that which no one can take. Save wisely , Spend thriftly.

                          WOuldnt touch the stock market or listen to any investment company ....Real estate - NO thanks! Give more real estate taxes for a meager write off???

                          Here is what can be vested in : your time to a good cause, children, and community hardships. Rich or poor one has skills to invest in the community. Can only go bankrupt by being to tired to help.  :)

                          ~~Is it true, Is it kind,Is it necessary. ~~~

                          christmas holly jolly numbers: 255,303,6911, 474,477 silver:47,gold:79.


                            United States
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                            Posted: June 10, 2010, 3:14 am - IP Logged

                            I don’t have millions and made over 40% last year on one plan and didn’t know it until last month. I am not big on gold. Everyone from Alex Jones to that guy on the 700 club is pimping gold. It’s like what happened to the morons who bought pallets of the stuff never happened in the 70’s and 80’s. It’s happening again and you have to look around at who has the resources to get gold,... and is and is not getting.

                            Pork bellies, coffee and tobacco. Anything consumable is what people want. Too bad the fools went bust after having millions but putt’n on the dog can only go on as long as you got resources. There is no hedge against stupid and we have seen that living outside of your means is acceptable. A woman told me today that kids are being taught that it is normal for a person to go bankrupt three times in their life. For most, the more you have the more you spend.

                            Food is the stuff. It is the reason for the carbon tax thing that failed. Sadly, GM foods will dominate and if you don’t have license to grow, you cannot have. The crisis will be overpopulation, dead oceans and wasted farmlands. There is no hedge against that. Watch the gold bubble burst after China, India and every greedy moron is all in. I saw Europe and the US take turns recently in price swings. It's a big joke. The dollar is the global currency, at least until the capstone on the back of a dollar is  set.JMHO

                            DD

                              savagegoose's avatar - ProfilePho
                              adelaide sa
                              Australia
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                              April 11, 2006
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                              Posted: June 10, 2010, 4:12 pm - IP Logged

                              say you won 16 mill, and are 40 years old.  16M / 60 years equals $266k

                              so you could easily spend $200k a year till you where 100 years old, no investing no risks no businesses. no stress. even so where to put the money so its safe until you need it?

                              also of course with inflation your dollars will buy less, and 200k a tyear in 60 years may well not buy you a coffee. so an inflation indexed investment would be in order.

                               

                              dunno how tax over there looks at inflation, ssavings bank rates are what %1 and inflation %2 does that mean your dollars are losing %1 a year in puirchase power and still you have to pay tax on the interest you earned?

                              i would look for something that or a mix of things tht after tax is taken out still increases at least with inflation.

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