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Do you see yourself broke in 10 years should you win a jackpot worth $40 million?

Topic closed. 42 replies. Last post 3 years ago by OldSchoolPa.

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noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
Bay Area - California
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Posted: September 7, 2013, 12:19 pm - IP Logged

No, I think I'll be OK, I Remember when I got my current Job, it more than doubled what I was making over the old one.

My oldest sister said "oh, let the partying begin" but I said "no, I'm not gonna do that, and I maintained the the same lifestyle,

except that I worked as much overtime as they would allow.

w/in 18 months I bought 2 trucks (used) tools and equipment for a side business, and a house.

Well if you know you will be okay- that's Great Bud.

    noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
    Bay Area - California
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    Posted: September 7, 2013, 12:21 pm - IP Logged

    I think if you're bad at budgeting then it's possible you would go broke in 10 years. Those who already handle their finances wisely won't have a problem.

    I am a pretty thrifty fellow; I majored in business and economics in college and when I make a financial decision (other than playing the lottery Wink) I usually choose the most mathematically optimal option. For example I saved $300-500 dollars a year just by selecting an electricity provider different than the major one. I used to drive luxury sedan but sold it, invested the money, and bought an older vehicle that has low upkeep cost and insurance costs.

    I used to buy a lot of things when I was younger but finally realized it is better to wait or just not buy it at all.

    So for instance, asking the question "Do I really want this?" when buying something is not so wise versus asking "Do I really need this?"

    Yeah maybe I really want that Ferrari but I don't need it as a function of life.....instead of spending a million on one car I could invest it/build a business/etc and within a few years buy that car AND a house (after all, what good is money if you can't use it for something).

    $40 million or $400 million does not make much a difference to me....I think wasting any amount of money that could be applied more optimally is just bad.

    I guess what I'm trying to say is money only amplifies what qualities you already possess. It may make your life better but if you don't know how to handle it then it can make your life worse.

    Savvy response LM- l agree.

    Party

      noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
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      Posted: September 7, 2013, 12:23 pm - IP Logged

      I'll say no, mainly because I'm not into mansions, upscale cars, and bling.

      I am into grunge but then one of my definitions of self realization (Maslow) is when your closet only has blue jeans and tee shirts.

      As always- Keen insight CT...what's wrong with Jeans & T-shirts,  that's a major part of my weekend wardrobe. .
      Hyper

        Elizabeth03's avatar - cat anm.gif
        Nova Scotia
        Canada
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        Posted: September 7, 2013, 12:28 pm - IP Logged

        I am in Canada and hope that I would have common sense with a jackpot,

        I would buy what I want or need within reason..

         

         And I would buy 1 or 2 houses; and travel to all the places that I have wanted to go, and help people and animal's along the way..

          noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
          Bay Area - California
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          Posted: September 7, 2013, 12:41 pm - IP Logged

          You never know what life holds in store for you.

          Personally, I'm fairly easy to please, I don't ask for much, nothing upsets me too much.

          And if in 10 years after winning I were to be found lying in the gutter in a pool of vomit, my only hope would be that it was my own and not someone else's.

          Cuz that would be lame.

          Sage advice there Ridge- always laced with humor to boot.

            noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
            Bay Area - California
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            Posted: September 7, 2013, 12:49 pm - IP Logged

            Me too. My home is pretty empty cause I hardly buy anything. Bascially a couch and a TV and that's it. I'm not cheap it's just that  I don't really care for material objects. But I have an okay job.

            Good point Greg- the more things you have the more things you worry about.
            Which reminds me of something l once read- the late Steve Jobs had an annual salary of $1.00- apart from his investment & stock in the company. I believe Oracle's owner gets a buck a year as well. What we already know is that these guys are Billionaires nonetheless.

              mikeintexas's avatar - tx avatar-1.gif
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              Posted: September 7, 2013, 3:00 pm - IP Logged

              Since only you know your present spending habits, do you foresee a spent bank or close enough or do you think the only way that would happen is if there is a major financial collapse with you being a casualty of it?

              * Have a Great Weekend People.

              I couldn't see it, at least not for me.  I don't do drugs, seldom drink and don't have any desire for a mansion or loads of adult toys.  I'm sure I'd spend a fair amount on the things I've always wanted and couldn't afford, but even spending a quarter of the jackpot I bet I could live off the interest from the rest.

              My math might be wrong, but to blow through 40 million in ten years would require spending nearly $11,000/day and that's not considering interest on what you're not spending...unless you're keeping the money in your mattress (or ten or twenty mattresses).  It blows my mind when I read about people that have gone through their huge windfall.  Some have lost it due to drugs, but I would wager that most tried to play the big shot and/or didn't say "NO!" to friends and family.  I've already decided that, if I do hit the lottery, I'll give most of my family the maximum amt. per year ea. (14k, I believe) that's not subject to taxes.  I will have already paid millions on my jackpot and won't want to pay any more.  If they get their feelings hurt, then that's too bad...they prob. won't get a check the next year if they complain.  I expect they'd feel the same way if any of them were in my shoes. 

              A financial collapse would be my main worry or govt. confiscation of my bank accounts or a goodly portion thereof.   I used to frequent some survivalist forums and they were always talking about the best investments such as gold or silver.  Those aren't "bad" investments for any time, but if the SHF, I can think of a lot better ones.  Oh, I suppose you could always find someone to sell you a can of Spam for a gold coin, but I wouldn't swap my Spam for a gold coin...they're kind of hard to chew and not very nutritious.


              A people that elect corrupt politicians, impostors, thieves and traitors are not victims...but accomplices.
               - George Orwell

                savagegoose's avatar - ProfilePho
                adelaide sa
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                Posted: September 7, 2013, 3:10 pm - IP Logged

                i can see myself broke after 10 years of playing lotto. ok 10 more years. ive aready done a 20 year stretch of not winning any jackpot.

                2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                  Jill34786's avatar - Lottery-006.jpg
                  Windermere, FL/Franklin, TN
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                  Posted: September 7, 2013, 3:41 pm - IP Logged

                  I'm not sure if your $40 millions is the advertised annuity amount or take home, but I expect to have at least some of my winnings until I'm about to die of old age. I think I could have $5 million right now and make it last until then.

                  In 10 years, I couldn't imagine getting close to spending everything unless I won well under $1 million. And even then I think I would just budget better.

                   

                  Past the bills for the typical items/services, I really don't spend much money as it is now. Mainly what would increase is I'd buy a high end gaming PC every 2-3 years and upgrade my HDTV maybe every 5. Other than that I don't see myself spending any excess money.

                   

                  Of course, how many past winners who have gone broke thought they would go broke? I'm sure most figured they were good for life. I think a lot of people on here though are likely to keep their winnings. With all the resources discussed on here there's really no excuse.

                  ttech10- you bring up a valid point on whether or not the $40 million is an annuity or take home amount. Chances are the OP is referring to a PB $40 million annuity jackpot and if the cash option it chosen would end up netting the winner roughly $12-13 million after all Federal and state taxes are factored in.

                  I feel the majority of LP members are well grounded and will do just fine even with the smaller net figure.

                  On the other hand, I find it hard to believe that anyone would stick with their frugal way of life. No matter how wealthy you are there will always be higher expectation or goals that one desires. Growing your wealth and enjoying life with friends and loved one while being able to help those in need is what it's all about.

                  ** Some people fulfill their dreams by receiving entitlements from the Government while others wake up and work hard for it! **

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                    Marana AZ
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                    Posted: September 7, 2013, 4:55 pm - IP Logged

                    mikeintexas - The current gift allowance without tax is $14,000 per person per year. If you're married, you and your wife could each give $14,000, for a total of $28,000 per recipient. If the recipient is married and/or has kids and you gave the max to each, it quickly adds up and you could give the family of each relative a goodly amount of cash without tax consequences to you or them.

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                      Posted: September 7, 2013, 5:00 pm - IP Logged

                      I would say no, because I saw how hard my father work . My mother died when I was a kid and he never remarry raise me  by not giving me not giving me what all my friends were getting at the time.    Yes, I do like good things because I did 't have them growing up , but I do know not to get stupid.

                        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
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                        Posted: September 7, 2013, 5:18 pm - IP Logged

                        I would say no, because I saw how hard my father work . My mother died when I was a kid and he never remarry raise me  by not giving me not giving me what all my friends were getting at the time.    Yes, I do like good things because I did 't have them growing up , but I do know not to get stupid.

                         Like my Dad used to say " Its not what you make, or win: Its what you Keep.

                        Lots of sound advice from all. My thinking is this, if one did win $40 mil and one does have some weird spending habits at present, take ( $25-$30 mil) and put it away in low risk investments, Mutual funds,Govt Bonds etc and watch it grow. With $10- $15 mil, one could live comfortably off the interest and that also allows one to have a house and prob 2 cars.

                         The idea that one has to own 5 houses and 10 cars is ridiculous to me. Who the heck needs that many cars? One can only live in One home at a time....unless one is in the Witness Protection Program.

                         

                        No Thank You- l do not think that turning my driveway into a parking lot is a great idea.

                          mikeintexas's avatar - tx avatar-1.gif
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                          Posted: September 7, 2013, 5:40 pm - IP Logged

                          mikeintexas - The current gift allowance without tax is $14,000 per person per year. If you're married, you and your wife could each give $14,000, for a total of $28,000 per recipient. If the recipient is married and/or has kids and you gave the max to each, it quickly adds up and you could give the family of each relative a goodly amount of cash without tax consequences to you or them.

                          Yes, I knew that.  Not married, don't have any kids.  I have some kinfolk I'd give money to, others I wouldn't.   I have some friends I'd give money to, also.  I'd offer to put my younger kinfolk through college - that's tax-free, as long as the money is given directly to the school.  I'd also pay for any dental or other medical for my relatives, that's tax-free, too.

                            Artist77's avatar - batman14

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                            Posted: September 7, 2013, 6:15 pm - IP Logged

                            I plan to blow the $40 million in one year, eat bon-bons and crepes and weigh 1200 lbs. The I will get my own reality tv series, lose the weight and write a NY Times best seller on how I lost the weight and will make the $40 million back. I hope you all will contribute to my support when I am low on funds.

                            J'aime La France.

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                              Posted: September 7, 2013, 6:24 pm - IP Logged

                              I plan to blow the $40 million in one year, eat bon-bons and crepes and weigh 1200 lbs. The I will get my own reality tv series, lose the weight and write a NY Times best seller on how I lost the weight and will make the $40 million back. I hope you all will contribute to my support when I am low on funds.

                              Lol Green laughdon't forget your own talk showBig Grin

                              I Love Pink & Green 1908