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if you won the Big One- how would you prevent yourself from ending up penniless?

Topic closed. 38 replies. Last post 4 years ago by New York.

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Kunming
China
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January 23, 2008
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Posted: May 28, 2013, 8:26 pm - IP Logged

Simple. Live as if you're still poor. That way you won't overspend.

Play to win!

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    NY
    United States
    Member #23835
    October 16, 2005
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    Posted: May 28, 2013, 8:37 pm - IP Logged

    I'd only have half as many swords in my collection as David Edwards.

      mk123's avatar - Lottery-050.jpg
      California
      United States
      Member #126316
      April 7, 2012
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      Posted: May 28, 2013, 8:59 pm - IP Logged

      Very Simple - STOP playing lottery...

      Good Luck


        United States
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        July 25, 2012
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        Posted: May 28, 2013, 9:22 pm - IP Logged

        News stories abound of poor unfortunate souls who won millions only to end up a statistic. What measures would you take to prevent this happening to you & your loved ones ?
        Do you see yourself creating friendships with people who come out of the woodwork, how about your old ex  flame from high school, looking out for your best interests- must count for something. .right?

        Hmmm look at people like Billy Bob Harrell, Jack Whittaker, David Lee Edwards, and of course Victoria Zell....and I'd do the opposite of what they done...or better yet dont do anything near  the type of things they did

          PlayToWin47's avatar - Lottery-041.jpg
          Joplin MO
          United States
          Member #138489
          January 28, 2013
          190 Posts
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          Posted: May 28, 2013, 9:25 pm - IP Logged

          I've always been able to manage my money and live within my means, even when friends and family around me didn't.  Since I don't have any desire to be extravagant and wasteful, I think I would be just fine.

          I would give myself a weekly or monthly allowance, similar to my paycheck now ... maybe give myself a raise if I won enough.  For the most part, the only difference would be that the money would be coming from some sort of interest bearing account instead of from a job.

            redhot7's avatar - SetforLifeLogo
            California
            United States
            Member #112364
            June 17, 2011
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            Posted: May 28, 2013, 11:33 pm - IP Logged

            By learning how to say the simplest word in the English language.

            The word: NO Poke

              noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
              Bay Area - California
              United States
              Member #136477
              December 12, 2012
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              Posted: May 29, 2013, 12:33 am - IP Logged

              I Agree!

              l recall reading about Edwards blowing $200,000 in a week or two with his wife or gf in Vegas right after he won- his attorney who got him the advance  said l knew right " there and then " Here was someone who would have a hard time handling Money"...

               

              In response to Coin Toss's post...

              "

              How about by avoiding the things that other winners who have gone broke have done?

              An immediate trip to Vegas? Vegas offers very few payouts that can compare with a lottery win. Unless one is a complete attention monger and wants to play hi-roller, which is still reidiculous.

              Taking an entourage with you is even more ridiculous.

              Nobody needs a fleet of cars or multiple mansions.

              Nobody needs to walk around with more bling than most people are worth.

              Etc...etc...ad nauseam.

              As for people coming out of the woodwork, didn't know them then (before the win), don't know them now (after).

                joshuacloak's avatar - Money Swim-uncle-scrooge-mcduck-35997717-677-518.jpg

                United States
                Member #32537
                February 12, 2006
                698 Posts
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                Posted: May 29, 2013, 5:56 am - IP Logged

                Simple, spend less than you earn or have.

                u sir win right thinkin award!

                even mega rich who get richer ever year live by that rule

                yes the filthy RICH  spend millions folks, but they have "millions" more coming in then going out via investments

                lottery winners who go broke/poorer ever year

                #1 Don't invest will

                #2 always spend more then they have coming in

                i think they should limit spending to 4% of total wealth per year,  if your muti-millioner that is

                how u would go broke then i love to see!

                 

                to show u the math

                take 100 million cash jackpot

                after 39.6% full fed tax rate -60,400,000 million

                save 1.4m for whatever u need first year

                so say 59 million invested at 7% "not even trying to beat the market rates , just match near it for safe returns"

                 

                so  59m earning at 7%= 4,130,000 before tax income , so that be "dividend income tax" at max rate of 23.8% for 2013  would be 3,147,060

                again, only spending 4% total spending of 59m would be 2,360,000 , far below the 3.1m , so jsut reinvest the rest

                that's why i say only spend 4% of total wealth u have"total wealth being investments u have", not homes/car whatever values

                4% rule  is good, if your earning 7% a year  atfer tax's

                that's how someone could be total moron , waste millions a year"2.3m" in this math and sure be safe

                 

                if any lottery winner spending far above 4%  ya there is good chance of risking the wealth LONG term

                i seen people get away with spending  5% and be okay long term! , but them are folks who have brain cells, any layman off the streets, 4% spending should be limit ,leaves room for error!

                and let a great  investment firmGroup Hug  who handle millions aready help you grow  it

                btw they must be fee only, not % of your money  investment people,  the people who charge in % are ripoffs for the lazy folks

                not  to bad, must only charge 1%, but its far to much compared to fee only folks who help u do same thing!

                 

                i don't see how any decent size jackpot winner could go broke. or poorer ever year, the income form millions worth of investments should cover  the ever desire, onless u want to own a sports team or something big

                follow your dreams by all means, live the good life , just plz remb math has laws, never spend MORE then u earn ever year, or you be poorer ever year

                onless investments have u covered, your  draining the wealth by spending larger amounts then u have coming in

                No bees, no honey.

                  dager's avatar - vampireteeth100x98
                  New Member
                  New Orleans
                  United States
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                  May 29, 2013
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                  Posted: May 30, 2013, 9:47 am - IP Logged

                  The local news here asked a similar question recently.

                  It's always interesting how many people win who have no idea how to manage money.  The first thing I would do is contact a close friend who runs an investment firm, and has a background in law to find out what the taxes were going to be, and what I can donate right off the bat to minimize taxes I have to pay, and possibly get a return.  From what I understand (at least in my state) there is a certain amount of gambeling proceeds a person can give to family members before taxes to lessen the tax burden.

                  Even if all you win is a $50,000,000 Powerball jackpot (without having to share it) you should have somewhere around $20,000,000 after taxes (in my state) without donating a cent which would be enough to buy a nice house, a nice car, and  throw $5M of that in an account even yeilding only 1% annual interested which would bring  you $50k/year living expensives which is enough for single people who aren't trying to live a party lifestyle.   Even after this set up you'd still probably have around $10,000,000 that hasn't been touched yet to invest in other ways.

                  The trick is not going overboard.  You don't need a $10,000,000 home.  You don't need to go out everynight and live like a rockstar.  Sure all of that may be fun, but you'll go broke quickly.  Be smart, and you'll never have to worry (about finances) again.

                  A good investment (although it can be a little risky) is to find an area in a city that is going through the gentrification process and pick up property while it is still cheap.

                   

                  Of course this isn't what I told the local news.  I decided to mess with them a bit and told them I'd cash it all out of the bank and buy a large building to use as a vault so I could swim in the money.  When I'm done swimming I'll go take a cold shower and run to the window and howl like a wolf because I'm a rich !@#$%!


                    United States
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                    May 20, 2013
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                    Posted: May 30, 2013, 9:48 am - IP Logged

                    News stories abound of poor unfortunate souls who won millions only to end up a statistic. What measures would you take to prevent this happening to you & your loved ones ?
                    Do you see yourself creating friendships with people who come out of the woodwork, how about your old ex  flame from high school, looking out for your best interests- must count for something. .right?

                    I never won!!!!


                      United States
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                      February 13, 2011
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                      Posted: May 30, 2013, 10:03 am - IP Logged

                      Just live a normal middle class lifestyle, that what I would do.

                      Even if I won a $50,000,000+ JP after taxes, I would still only buy a car that cost no more than about $35,000, or a home that costs no more than about $300,000.  I have no need for Ferraris or a home on Fisher Island in Miami.  That kind of stuff really is for BILLIONAIRES, not mere millionaires.

                      The problem is that people think that anything over about $10,000,000 is "rich."  It's not, it's upper middle class.  I don't consider anyone to be truly "wealthy" until they hit a net worth of around $250,000,000 and that is because of the COL here in the US.  If you live in some country like Ecuador, then yeah $10,000,000 is surely rich.

                        dager's avatar - vampireteeth100x98
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                        New Orleans
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                        Posted: May 30, 2013, 10:09 am - IP Logged

                        Just live a normal middle class lifestyle, that what I would do.

                        Even if I won a $50,000,000+ JP after taxes, I would still only buy a car that cost no more than about $35,000, or a home that costs no more than about $300,000.  I have no need for Ferraris or a home on Fisher Island in Miami.  That kind of stuff really is for BILLIONAIRES, not mere millionaires.

                        The problem is that people think that anything over about $10,000,000 is "rich."  It's not, it's upper middle class.  I don't consider anyone to be truly "wealthy" until they hit a net worth of around $250,000,000 and that is because of the COL here in the US.  If you live in some country like Ecuador, then yeah $10,000,000 is surely rich.

                        I completely agree with that sentament about $10,000,000 vs $250,000,000.

                         

                        In my opinion you only truly reach millionaire status if you have a continuing income.  A one time lotto win doesn't cut it. 

                        So you won $60,000,000?  So what?  Create residual income with it, and then you'll be a true millionaire.


                          United States
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                          Posted: May 30, 2013, 10:17 am - IP Logged

                          I completely agree with that sentament about $10,000,000 vs $250,000,000.

                           

                          In my opinion you only truly reach millionaire status if you have a continuing income.  A one time lotto win doesn't cut it. 

                          So you won $60,000,000?  So what?  Create residual income with it, and then you'll be a true millionaire.

                          Very true, it's really all about the income you can create with it without even having to touch or dip into your pinciple.  I would almost consider $60,000,000 rich if someone could earn 10% per year on that kind of investment.  10% would net you $500,000/month before taxes which is really enough money to do a lot with.  You wouldn't need to work, could take vacations anywhere, and could purchase most anything (within reason).  Problem is that it's pretty much impossible to earn 10% on anything nowadays.


                            United States
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                            September 7, 2011
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                            Posted: May 30, 2013, 10:22 am - IP Logged

                            News stories abound of poor unfortunate souls who won millions only to end up a statistic. What measures would you take to prevent this happening to you & your loved ones ?
                            Do you see yourself creating friendships with people who come out of the woodwork, how about your old ex  flame from high school, looking out for your best interests- must count for something. .right?

                            I will give a house and car to everyone I know from my past. How many do you think will end up hating me?

                              dager's avatar - vampireteeth100x98
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                              Posted: May 30, 2013, 10:30 am - IP Logged

                              There is a firm down here  that I have used for a long time ran buy a guy I know personally, and have full trust in, and he was offering a plan with 5% (guaranteed)  annual for 10 years, but it locks the money up that period as well, and I doubt he can offer that to new clients at thsi point in the US economy.