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5 Reasons You Don't Really Want to Win all that Lottery Money

Topic closed. 30 replies. Last post 5 years ago by time*treat.

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Coin Toss's avatar - shape barbed.jpg
Zeta Reticuli Star System
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Posted: March 31, 2012, 5:36 pm - IP Logged
Along with the 20/20 Lotto Fenzy program last night this was on Yahoo finance. Nothing that anyone here doesn't know but I thought it does mention a few things to think about, especially 5 below, lawsuits and scams.
 
5 Reasons You Don't Really Want to Win all that Lottery Money By Gina Roberts-Grey | CreditCards.com – Thu, Mar 29, 2012 3:00 PM EDT

Do you find yourself dreaming of the day your lucky lottery numbers are called? Or fantasizing about what numbers lurk under the silver bar of that scratch-off ticket you impulse-bought while gassing up?

The lure of "Mega Millions," "Powerball" and other lottery jackpots has millions in search of, well, millions. And while it's fun to daydream about what having more money than you can count would be like, winning the lottery might not be all it's cracked up to be.

[Related: World record $540 million lottery drawing]

A windfall of widely publicized winnings that finally allows you the luxury of affording a trip around the world, a fancy car or flat-screen TVs for every room in your house just might ruin your life.

Here's a look at the ugliness landing all that loot can bring to your life. And a reminder that being mega rich isn't all that it's cracked up to be.

1. Your friends will take advantage

Once word gets out that you had the winning ticket, you can expect everyone to try to cozy up to you, from the college roommate you haven't heard from in 20 years and the kid who tortured you on the kindergarten playground, to fellow carpool parents and "friends" you barely recognize. It's common for lottery winners to see a flood of online and in-person friend requests that range from wanting to share a meal to suggesting a weekend getaway to relax or catch up. Of course, these "buddies" all hope that you'll ultimately pick up the tab for their good time.

After she was one of a pool of 12 people who won the Missouri Powerball in 2006 and split $224 million, Sandra Hayes had to rethink her social network. "It became necessary to be careful about who I make friends with because some people can be cruel and have alternative motives for befriending you. Some feel that just because you have money, you owe them money," she says.

"When I would hang out with friends and we would stop to get something to eat, they would order their food and then announce they did not have the money to pay, which happened a few times," says Hayes. She quickly figured out her friends' plan and stopped going to eat with them. "I eventually stopped hanging out with them altogether."

Lottery winners get pleas from pals and hopeful BFFs in need of a personal bailout, too.

Hayes says one of her friends even expected her to rescue their family from their serious financial woes. "I did not rescue them thanks to the advice of my financial adviser, who told me if I bailed them out they would continue to sponge off me. If I did not draw the line, I would go broke," she says.

[Related: 7 Things You Could Do If You Winthe Mega Millions Jackpot]

2. Your relationship could fail

Money woes can put a strain on a relationship . But those who come into big windfalls find coming into a lot of money all at once can also overtax a relationship.

Alexey Bulankov, a certified financial planner who's worked with a family who won a lottery jackpot saw this devastation firsthand. "Following a string of unfortunate financial decisions, the family fell apart," he says. Bulankov says the husband, who was emotionally unprepared for the enormous responsibility and pressure of winning the lottery, took to gambling and womanizing to deal with the troubles adjusting to his new lifestyle. When his wife found out, she retaliated with vindictive shopping.

Eventually, they talked and sorted it out, says Bulankov. "Needless to say, the level of trust was not the same and the fighting and blame-placing for the squandering of their fortune became routine occurrence in this once tightly knit family," says Bulankov.

3. You'll have an increased risk of bankruptcy

Given the fact that you'd have enough dough to clear up your debt, bankruptcy seems a long shot after winning the lottery. But experts say lottery winners actually are at greater risk of bankruptcy.

"Winners suddenly have significantly more credit available to them than they ever had. That makes them more likely to make purchases on credit, rather than use cash," says Scott Dillon, a senior bankruptcy attorney at Tully Rinckey in Albany, N.Y. "Winners are much more likely to make significant impulse purchases far beyond their previous means. So the purchase amounts will be much higher, making the interest accrued on those credit cards much higher. And because they don't stop to think the money could run out, winners don't generally think they need to create or live by a monthly budget."

"While it may be counterintuitive, a large influx of wealth without proper planning can easily cause people to forget the need to save for the future," adds Dan White, founder and president of Daniel A. White & Associates, a financial planning firm in Glens Mills, Pa., that specializes in asset protection and transitional and retirement planning.

4. You'll have to fight off a host of long-lost family members

Jeff Motske, a financial planner and president of Trilogy Financial Services, headquartered in Huntington Beach, Calif., says lottery winners often become targets for long-lost relatives who knock on the door with one hand and hold the other palm up. Somehow they think when one family member wins the lotto, the whole family wins the lotto. "A family member who wins the lottery will appear as a better option than a bank for fast cash that comes with the price tag of little to no interest paid and no application process," says Motske.

So many winners find themselves fielding pleas for help with a pile of credit card or medical debt, foreclosure or car repairs.

"The majority of my family members treated me the same as they did before I won the lottery, however, there were those family members who suffered the entitlement syndrome," says Hayes. "A few of my family members with whom I did not have a previous relationship with before winning the lottery came out of the woodwork and started calling me to butter me up just for money."

[Related: Charitable Donations: What You Need to Know]

Hayes says she faced her share of bad experiences, including family members borrowing money that they felt they didn't have to pay back. "Some family members I gave a monetary gift for a special occasion thought I should have given more," says Hayes.

5. You'll be a target for a litany of lawsuits and scams

Hoping to carve out a chunk of your fortune, Motske says lottery winners are often targets for bogus lawsuits because everyone starts to come after them. "If the winnings are public knowledge, winners can bet their phone will never stop ringing. Winners hear from investors, reputable firms and scammers, and every planner/schemer under the sun," he says.

They also need to be wary of people who purposely "slip and fall" on their property, including claims of winners rear-ending them and so on. That includes contractors, babysitters, friends and family who visit you, borrow your car, etc.

Hayes says she endured some less-than-honest business deals. "Some people I dealt with were honest, but others were not. I experienced contractors changing their work bids to a higher price after they found out I won the lottery," she says. "Now I will only work with people who have been referred from trusted associates, friends or family."

http://finance.yahoo.com/news/5-reasons-dont-really-want-190000583.html

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.

    dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
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    Posted: March 31, 2012, 6:05 pm - IP Logged

    good info CT...Thumbs Up

    I Love Pink & Green 1908

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      Posted: March 31, 2012, 6:11 pm - IP Logged

      #5 is the only legit reason for me, but it comes with the territory. Can't control what other people do, but I'd rather face that than to not have the money at all.

        Stormiela's avatar - 170px 051Dugtrio.png
        Phoenix, AZ
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        Posted: March 31, 2012, 6:59 pm - IP Logged

        Very interesting info, thanks for posting. But I still want to win, hehe. Knowledge is power though, it's good to read this kind of stuff in case those lucky #'s come in... and I guess it helps that you can remain anon here in AZ....

          SergeM's avatar - slow icon.png
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          Posted: March 31, 2012, 7:09 pm - IP Logged

          Ah, I consider these articles as a demotivation. You go bankrupt, the money went to hookers and booze. You crash five cars. You loose all your cash investing in funds. Some freak is stalking you. Somebody kidnapped your niece, who now is on druggs because you gave her cash. You receive hundreds of letters of people with some disease and only and expensive treatment can save them. All the people who treated you like trash, suddenly are your best friends. ...
          Than the reporters are on your heals. A camera team suddenly appears out of nowhere holding a microphone in your face. ...

          If you really win it, get official consultants and a body guard, at least for the time that you get your feet back on the ground. That is what I think.
          Stay out of pubs, night bars, druggs, booze and dangerous places. Try a healthy lifestyle and live in a modest way.
          With one million, you maybe can buy a house and a car, than the money already can be up. House and car also cost money.

          Money makes happy, when you use it wisely.

            Artist77's avatar - batman14

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            Posted: March 31, 2012, 7:12 pm - IP Logged

            When I did not win the super megamillions, I felt kind of relieved. It was just too much money but I would not have hesitated to tell the hangers on to go away.  When you are an artist or designer (and some other jobs), people are always expecting something free from you and you'd be amazed as to how many people tell me it is not a "real job" as I work 60 plus hours or more a week. When they say this, I ask them for the name of other artists and designers who have done free work for them or anyone they know.  They have no answer of course. If they are real obnoxious, I will sometimes ask if they will work as my housekeeper for free in exchange for my time. They huff and go away (an unpaid servant is an unpaid servant) lol There is a percentage of the general population that will always want and expect something for nothing.

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
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              Posted: March 31, 2012, 7:35 pm - IP Logged

              Always Artist77, always.

              Re: The slip & fall scam, this is kind of funny.

              A couple playing on an Illinois riverboat casino lost a few hundred bucks and decided they were going to have the casino give them their money back, and then some. (These people did not have a clue about surveillance). They went to the secoind deck and the guy put a banan peel on the deck, then knocked on a door that let out to the deck. His wife came out and faked a fall. Then they called for security and a EMT.

              Security beought them into their office and had them fill out statements. They asked them several times if that's the story the were sticking to. Then they showed them the surveillance films. When the film showed the guy setting the banan peel on the deck they asked him, "This isn't you?" Then they asked them if they still wanted to sue the casino.

              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.

                haymaker's avatar - Lottery-012.jpg
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                Posted: March 31, 2012, 7:36 pm - IP Logged

                When I did not win the super megamillions, I felt kind of relieved. It was just too much money but I would not have hesitated to tell the hangers on to go away.  When you are an artist or designer (and some other jobs), people are always expecting something free from you and you'd be amazed as to how many people tell me it is not a "real job" as I work 60 plus hours or more a week. When they say this, I ask them for the name of other artists and designers who have done free work for them or anyone they know.  They have no answer of course. If they are real obnoxious, I will sometimes ask if they will work as my housekeeper for free in exchange for my time. They huff and go away (an unpaid servant is an unpaid servant) lol There is a percentage of the general population that will always want and expect something for nothing.

                yea, everyone should be payed for their work,some think if you love your work it ain't work, thats bull$h**.

                NFL players love their work, look at what they make,

                2 of my sisters are artists 1 makes a living from it, the other combines it w/ her photography skills,

                myself i do pinstripe & lettering on vehicles as a hobby, not good enough to charge for it.

                when i win the JP I'll have more time for it,

                thats what the win is for me, at least 44 hours a week that now goes elsewhere.

                Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

                  Artist77's avatar - batman14

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                  Posted: March 31, 2012, 7:41 pm - IP Logged

                  Always Artist77, always.

                  Re: The slip & fall scam, this is kind of funny.

                  A couple playing on an Illinois riverboat casino lost a few hundred bucks and decided they were going to have the casino give them their money back, and then some. (These people did not have a clue about surveillance). They went to the secoind deck and the guy put a banan peel on the deck, then knocked on a door that let out to the deck. His wife came out and faked a fall. Then they called for security and a EMT.

                  Security beought them into their office and had them fill out statements. They asked them several times if that's the story the were sticking to. Then they showed them the surveillance films. When the film showed the guy setting the banan peel on the deck they asked him, "This isn't you?" Then they asked them if they still wanted to sue the casino.

                  wow I am amazed as to how someone could even think something up like that!  What is the thought process? lol  They went to a casino where the odds were they would lose money, and they did so they then "deserved" to get their money back??? The casino should have went after them for fraud. You know they will try something like this somewhere else.

                    Artist77's avatar - batman14

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                    Posted: March 31, 2012, 7:43 pm - IP Logged

                    yea, everyone should be payed for their work,some think if you love your work it ain't work, thats bull$h**.

                    NFL players love their work, look at what they make,

                    2 of my sisters are artists 1 makes a living from it, the other combines it w/ her photography skills,

                    myself i do pinstripe & lettering on vehicles as a hobby, not good enough to charge for it.

                    when i win the JP I'll have more time for it,

                    thats what the win is for me, at least 44 hours a week that now goes elsewhere.

                    That is a very cool hobby!

                      haymaker's avatar - Lottery-012.jpg
                      Egg Harbor twp.south Jersey shore
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                      Posted: March 31, 2012, 8:04 pm - IP Logged

                      Always Artist77, always.

                      Re: The slip & fall scam, this is kind of funny.

                      A couple playing on an Illinois riverboat casino lost a few hundred bucks and decided they were going to have the casino give them their money back, and then some. (These people did not have a clue about surveillance). They went to the secoind deck and the guy put a banan peel on the deck, then knocked on a door that let out to the deck. His wife came out and faked a fall. Then they called for security and a EMT.

                      Security beought them into their office and had them fill out statements. They asked them several times if that's the story the were sticking to. Then they showed them the surveillance films. When the film showed the guy setting the banan peel on the deck they asked him, "This isn't you?" Then they asked them if they still wanted to sue the casino.

                            CT, hows it going, you reminded me of when i got called to jury duty way back over 15 years.

                      a guy from Iraq pulled a fake S&F, surv. had him on video as he staked out the spot,one of those standing ashtrays w/ the pink sand,

                      after walking past it a few times he scooped some of the sand on the floor, then laid down and started yelling for help,

                      i recall it cause i was called on the jury,told the judge i worked in a casino and know what goes on in the security ofc.

                      the judge said, you're outta here, i followed the story in the newspaper, he was found guilty of fraud and deported back to iraq.

                                                      sorry for long post.

                      Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

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                        Posted: March 31, 2012, 8:52 pm - IP Logged

                        Is it just me or does anyone else find the story behind reason #1 petty? I can only speak for myself but if I won millions a 60$ bill at a resturant would be nothing to me . Whats the point of having a whole lot of money if you dont have people to share it with ? I totally understand not wanting friends to become mooches but thats the responsiblity of the person that has the money to draw the line. Idk Im a pretty generous person so if I ever won some big money my real friends would be pretty much set.

                          Artist77's avatar - batman14

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                          Posted: March 31, 2012, 8:55 pm - IP Logged

                          Is it just me or does anyone else find the story behind reason #1 petty? I can only speak for myself but if I won millions a 60$ bill at a resturant would be nothing to me . Whats the point of having a whole lot of money if you dont have people to share it with ? I totally understand not wanting friends to become mooches but thats the responsiblity of the person that has the money to draw the line. Idk Im a pretty generous person so if I ever won some big money my real friends would be pretty much set.

                          But that woman's friends were deceptive and disrespectful.....they claimed they forgot their money.  However, if you start paying all the time for anyone, even a good friend, it will cause problems at some point.  These people were her friends also.

                            ameriken's avatar - 33ojew2
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                            Posted: March 31, 2012, 8:57 pm - IP Logged

                            I'm not worried about 2 or 3, and 5 looks par for the course, but just thinking about 1 and 4 really digusts me.

                            Give someone a fish and feed them for a day. Teach them to use the internet and they won't bother you for weeks. 

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                              Posted: March 31, 2012, 8:59 pm - IP Logged

                              Reason 6: Your personality. Would it change? Can you still be the same person you were when you only had $10 bucks in your pocket? 

                              I also think of "personal" safety. Wouldn't you always feel as if someone were watching you...that everyone knew you're this big winner? (even if they don't, you may feel self-concious) That alone gives me the creeps. Maybe I'm just paranoid,lol. I might have to hire me a big ole hunky bodyguard. (Kevin Costner...are you free?)