Welcome Guest
Log In | Register )
You last visited January 24, 2017, 8:11 am
All times shown are
Eastern Time (GMT-5:00)

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.

Page 5 of 5
41
PrintE-mailLink
Avatar
Norfolk,VA
United States
Member #83225
December 2, 2009
757 Posts
Offline
Posted: June 11, 2010, 12:20 am - IP Logged

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.

thanks for this..... this gives me ideas...

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

    Avatar
    New Member

    United States
    Member #79116
    August 27, 2009
    7 Posts
    Offline
    Posted: June 14, 2010, 3:48 pm - IP Logged

    I had this posted in another forum when the discussion turned to David Edwards.  These are my general rules for after I win.  Smile 

    http://www.lotterypost.com/news/161361

     

      That David Edwards is quite a story.  We should be able to look at his life, and the lives of other jackpot losers, and come up with a set of general rules to live by should we win.  

     

    1.  Invest for income and live within a budget.  Let's say Edwards had 27 million after taxes and everything.  If he had invested it, drawn off 3% for income, he'd have an income of over $800,000 a year, plus his investments would have grown to match inflation and increase in value.  Are you telling me that 800k a year is not enough to live on?  

    2.  You are not financially responsible for friends and family.  There's a difference between one time gifts and regular gifts.  If you give someone money and they squander it on beer, hookers, and donuts, then come back with their hand out, you're doing them no favor by giving them more.  I know people with huge massive credit card debts.  There's no way I'd bail them out.  They need credit counseling, not cash.  If you must gift, give once and learn to say no.  

    3.  If you hire a financial advisor, listen to their advice.  It seems Edwards had only one person in his life who was looking out for his best interests, and he mocked that person and ignored their advice.  Get your financial advice from a large, renown company.  He used Morgan Stanly.  But Vanguard, Blackrock, these types of companies deal in trillions of dollars.  If you're worried about them embezzling your money, you're just paranoid.  Your few millions will be piddling compared to their total assets.  It's the little guys you have to watch out for.  This Chandler guy that Edwards hired, who did he work for?  Himself?  He was better at lining his pocket than managing money.  Abraham Shakespeare trusted some woman who just showed up and offered to help him.  No.  The real professionals don't come to you, and they certainly don't need your money.   

    4. Appreciate the value of money.  A $78,000 watch?  A $34,000 watch?  A $159,000 ring?  If a watch costs 78k, the thing better shoot laser beams and be able to stop time.  He bought cars, but had no place to store them.  If his neighbors were complaining that his home looked like a car lot, it was because the cars were setting in the driveway, not the garage.  Buying a one hundred thousand dollar car is a splurge, having a million dollars worth of auto in the driveway is a waste.  Let's don't even mention the jet.  That's just craziness.  

    5.  Drugs are bad, mmmkay.  If I had millions of dollars and a drug addiction, I'll be in nicest rehab facility in the world.  If I had an income of 800k a year, I'd hire a big Samoan* to travel with me everywhere, slap the drugs out of my hand, and sit on my head every time I even think about doing drugs.  I'll learn.  *I'm partial to Samoans, really nice, honest people, but I guess any large muscular person would do.   

    6.  If you weren't a business expert before you won the lottery, you will not magically be one after.  Edwards bought a limo company, a fiber optics company, and three racehorses.  What made him think he had the business sense to know if any of these things were good investments?  His financial advisor would have put the kibosh on all three.     

    7.  Get a hobby that doesn't require spending tons of money.  You need something to fill your time.  Off and on over the years, I've dabbled in drawing, painting, playing music, and writing.  If I didn't have the nine-to-five, I know exactly how I'd be spending my time.  You need some hobbies, especially if you're a recovering addict (boredom and druggie friends would probably be the greatest threat to your sobriety).  

    ******************

      The people who talk about not trusting the stock market or investment companies, you might be paying too much attention to the scare mongers.  It's true that people recently lost gazillions of dollars in the stock market, but the economy went into the crapper.  What did you think was going to happen?  Few people prosper during hard times.  But it will recover, the market will rise again.  That's what it does.  The global economy shifts and grows, shrinks, flexes, always moving.  If the maxim is true, "Buy low, sell high," then isn't now is a good time to buy?  

      If we're talking about multiple tens of millions of dollars to invest, then, yeah, I'm putting a small portion of that in index funds.  I'll ride the market waves, because I don't think the current recession will last forever.  But the bulk is going into government and corporate bonds, t-bills, and other relatively safe investments, because I'm not a high risk investor.  

      As for the people who talk about buying gold, I say, "Turn off Glen Beck."  Buying and holding gold is traditionally not a good investment.  Motley Fool has some articles on the subject.

      Avatar
      ottawa. Ontario
      Canada
      Member #65758
      October 5, 2008
      400 Posts
      Offline
      Posted: June 14, 2010, 4:14 pm - IP Logged

      Dont spend it.

        savagegoose's avatar - ProfilePho
        adelaide sa
        Australia
        Member #37136
        April 11, 2006
        3316 Posts
        Offline
        Posted: June 15, 2010, 8:24 am - IP Logged

        nice entry bobomac. i agree with you.

        2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

        keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318

          TheGameGrl's avatar - character catafly.jpg
          A long and winding road
          United States
          Member #17084
          June 10, 2005
          4582 Posts
          Offline
          Posted: June 15, 2010, 7:22 pm - IP Logged

          BobMc,

           

          yup I am one of (DARE i SAY IT??) "THOSE" that entrusted in the stock market and got burnt, one does not " recover " from years of investment and the huge retirement loss's. It took years to accumulate and just a few days to go bust, so spare me how GREAT the stock market is. It is not for anyone who is not long from retirement and has not the time of YEARS to recover. Sometimes you learn not to play with fire when you get burnt. ANd yes I was foolish enough to think like you and think things would get better, but they didnt...we hit another market snaffu and my money was planted nicely in a shoe box where its growing fonder each day as I see it not go to waste thru corporate loss's :) .  Lesson #1- Never give your money to an entity that will squaller it at the drop of a hat. Keep it in your hat and it will always be there.

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

          pa:888,4445,6132,4444,8008

            Avatar

            Honduras
            Member #20982
            August 29, 2005
            4715 Posts
            Offline
            Posted: June 16, 2010, 6:21 pm - IP Logged

            eat right,

            ONCE YOU become a millionaire or multimillionaire i think you have to eat right and the reason is that you will be eating all the time since you got money you can eat all you want as many as you want making you very fat and what better way to get fat but get fat from the right food...You see people who are not millionaire or well off dont eat right but they dont eat too much, a millionaire will and has the capacity to eat more because he/she is rich, he can eat whenever he/she wants....

            if you dont eat right and you are eating accelerated you might be dead in 3 or 4 years before seeing the fruits of your bussiness flourish...

            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¨


             


             


             

             


              Avatar
              New Member
              Montara, CA
              United States
              Member #92593
              June 10, 2010
              18 Posts
              Offline
              Posted: June 17, 2010, 12:10 am - IP Logged

              I used to think that it is just unbelievable that lottery winners can become bankrupt, but I realize how I burn through my paycheck every month.  Now imagine having more money to spend--more money than you know what to do with!  I think the mistake lottery winners make is that they believe they can rest on their laurels--I mean, their money--for the rest of their lives.  If I won a load of money, I'd invest in CD accounts to put away for a rainy day; I'd invest in property to rent so that you keep money coming in; if I were to start a business, I'd take seminars or classes so that I don't jump into the business venture blindly; and of course, I find a good cause I can contribute to (I've always dreamed that I can give to Operation Open Smile, Ronald McDonald's House, St, Jude's Children's Hospital, etc.).  I've been working since my teens and I don't plan to stop working until my body won't let me anymore.  Winning the lottery won't stop me from working--I just won't be working for my money, but I'll let my money work for me!

              Best,

              GinkoStinko