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What If someone wins and doesn't invest at all .

Topic closed. 27 replies. Last post 6 years ago by badboy00z.

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Kentucky
United States
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February 14, 2006
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Posted: February 25, 2011, 10:44 pm - IP Logged

First of all - where are you going to put that much money? Most banks insure their individual/private accounts up to a maximum of $250,000 (that is insurance against the bank failing). So most banks are not going to want to deposit a check for a jackpot amount of money. You'd need a special type of banking arrangement to hold on to the money safely for you. AND I can not think of any bank who could or would cash a check of that size - do you know how big a volume of space you'd need to store a jackpot amount of money and even providing you had a space big enough how would you secure it?   If you do not want to risk the money by investing in the stock market there are  other options available but you'd need some one savvy about such things to help you choose what would be right for you and set it up.

Unless you yourself are a financial expert - or have a family member who is - why would you NOT want to consult with someone who is an expert?

For starters, I'd open an account with the same bank the lottery uses and then shop around for the best place to invest the bulk of the winnings.

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    Milwaukee, WI
    United States
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    December 27, 2003
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    Posted: February 26, 2011, 2:19 pm - IP Logged

    I'll invest it in  Bear Stearns.....

    Opps, they're out of business...

    Ok, then how about Lehman Brothers....

    Oops, they're gone too...

    Ok, I know one sure bet...

    I'll invest it with Madoff! He pays 12%  every year!

    Yeah, invest with the experts....

    How about GM stock?

    Now that $184,000,000 will be toilet paper when the Demos and the Repubs get done destroying the country.

    Nest year is 2012 when then end of the world comes....

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      United States
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      May 16, 2008
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      Posted: February 26, 2011, 5:12 pm - IP Logged

      I'll invest it in  Bear Stearns.....

      Opps, they're out of business...

      Ok, then how about Lehman Brothers....

      Oops, they're gone too...

      Ok, I know one sure bet...

      I'll invest it with Madoff! He pays 12%  every year!

      Yeah, invest with the experts....

      How about GM stock?

      Now that $184,000,000 will be toilet paper when the Demos and the Repubs get done destroying the country.

      Nest year is 2012 when then end of the world comes....

      Not all investments are bad just like not all investments are good.  The key is to figure out what the good investments are and to know when to cut your losses on those that don't work out. 

       

      I guess a lot of people on here think investing isn't a smart thing to do.  However, many wealthy people would say the same thing about playing the lottery.  In reality neither one of them is bad as long as you educate yourself and understand the risks and odds.

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        NH
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        December 5, 2009
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        Posted: February 26, 2011, 6:09 pm - IP Logged

        Keeping large sums of money at home in a safe is a good way to not only get yourself killed, but also go broke. You would be the talk of the bank for leaving with that kind of money. No way I could ever trust a bank employee with my life and personal information. I don't care how big the safe is at home i'm keeping it in.

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          NY
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          October 16, 2005
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          Posted: February 27, 2011, 11:30 pm - IP Logged

                  What happens if someone wins the powerball or mega millions and they don't invest the money

                    doesn't hire an financial advisor , then what happens??????

          My best guess? They'll get their 15 minutes of fame in a future episode of "Curse of the Lottery".

            Colt45ML's avatar - 4eyes
            Jawja
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            February 25, 2010
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            Posted: February 28, 2011, 12:59 am - IP Logged

            Here's what will happen, the federal reserve will print more money to bail out wallstreet and debt-ridden states like California, Illinois and New Jersey and as a result, make your dollars almost worthless.

            You sir are one of the few folks out there who actually has an IQ above room temprature.

            Be sassy and be happy.

              ttech10's avatar - blobdude
              Texas
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              Posted: February 28, 2011, 4:02 pm - IP Logged

              Not getting all the hate about not investing your money or needing a financial advisor.

               

              Give me $10 million (after all taxes have been taken out) and I won't invest any and will still be living good when I die.

              If you're married and win millions, in just one bank you can insure up to $1,500,000 insured (single accounts for husband/wife, joint account which will insure up to $250,000 for each for a combined $500,000 and then two revocable trust account for both the husband and the wife). Divide your winnings up among several different banks and that's a lot of insured money that you'd have even if the bank went under. Last I saw the current $250,000 is guaranteed until 2013 but would't be surprised if that changes again or becomes permanent.

              Or you can always get a custom built bank vault in your home where you keep all the money so you never have to worry about keeping it in banks.

               

              Not investing doesn't mean you'll run out of money in a few years, just don't spend millions per year, or even hundreds of thousands. Make a budget of how much you can spend a year for x amount of years, but still try to stay well under that. I don't plan on investing if I won and I've never looked back on that idea and seen it as a bad move. If you're not good with money to begin with, then yea getting a financial advisor to help you out may be a good idea, but it's not like not having one will make you broke. If you're good with money, don't go throw all logic out the window just because you now have millions.

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                NY
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                Posted: March 1, 2011, 1:56 am - IP Logged

                I don't think you're seeing hate, so much as a consensus that not investing the money may suggest that the winner isn't making particularly smart choices. You also may be confused about what investing means, since you start by talking about putting the money in  bank accounts. Just because it's called a savings account (or CD) doesn't mean it's not an investment.

                Even if it isn't invested and never earns any interest, you're right that somebody who clears $10 million has a reasonably good chance of having the money last for the rest of their life, but that's only a reason why they don't have to increase the value of the principle. It's definitely not a reason to avoid investing.

                There's always a chance that you could just pack twenties into cardboard boxes in your garage, pull out a couple of hundred of them every few weeks and never have a problem, but I doubt that anyone considers that safe enough. A good safe in a fireproof building is much safer, but still far from a guarantee. I'm not nearly as worried about having the lottery release my name as some people,but I think anyone who keeps $1 million cash on hand is a moron.  OTOH, there's extremely little risk if you invest the money in a wide assortment of conservative areas. There's a chance that some major upheaval will make your investments worthless, but upheavals of that sort would almost certainly do the same to a pile of cash.

                  sully16's avatar - sharan
                  Ringleader
                  Michigan
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                  Posted: March 1, 2011, 9:39 am - IP Logged

                  The Federal reserve bank is a private business, they print money they can't back, and loan it to the US Government at outrageous interest rates.

                  Did you exchange a walk on part in the war ?

                  For a lead role in a cage?

                   

                                                              From Pink Floyd's " Wish you were here"

                    Jani Norman's avatar - fiftyways
                    OHIO
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                    March 27, 2004
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                    Posted: March 1, 2011, 9:57 am - IP Logged

                            What happens if someone wins the powerball or mega millions and they don't invest the money

                              doesn't hire an financial advisor , then what happens??????

                    "WOW" it gives you chills just thinking about anyone being that stupid...

                    but we never know............. do we...

                     

                    Hit With Stick

                    "I am what I am by the grace of God."

                    Kitfany

                    http://www.ohiolottery.com/

                      four4me's avatar - gate1
                      MD
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                      June 18, 2003
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                      Posted: March 1, 2011, 4:34 pm - IP Logged

                              What happens if someone wins the powerball or mega millions and they don't invest the money

                                doesn't hire an financial advisor , then what happens??????

                      An just so you'll know the bank doesn't insure your investments neither does the feds. So if you do invest it will be at your own risk.

                      Big John says. You don't hit the number. The number hits you!!!!

                                     I'm not Big John, I'm Four4me, Big John's a friend.
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                        Milwaukee, WI
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                        December 27, 2003
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                        Posted: March 7, 2011, 11:15 pm - IP Logged

                        The NASCAR #23 Truck Racing team is owned buy somebody who won Mega Millions in VA.....

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                          CA
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                          December 26, 2009
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                          Posted: March 8, 2011, 3:30 am - IP Logged

                          IMO if you win a large enough amount, there really isn't a need to invest (earn interest and get taxed) at all. You get taxed even before you get the money and you have to file income tax for the whole amount but if you don't earn interest after that, you won't have to file income tax again.

                          What's the biggest bank in the world or even just the US anyways? And what are the chances that that bank will go down? IMO idealy I would want to have all my money in one bank so that it is easy to manage.

                          Another question I have is if you open joint accounts with people, do you still have to pay a gift tax if the other person uses the money? Would a bank red flag you if you have multiple joint accounts with different poeple?