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Wealth accumulation

Topic closed. 10 replies. Last post 2 years ago by music*.

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Happy California
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Posted: April 3, 2015, 6:24 pm - IP Logged

 For most of our lives we are in a wealth accumulation phase. Then we retire and are in a wealth management phase.

With a lottery win we will be in the highest tax bracket and annual tax audits by the IRS.

 Personally I will be surprised and astounded when I win. I will not do a Press event. I will ask for minimal publicity here in California.

Because , I ask myself "How would I like turning over my photo and personal information that can be found on the internet to a criminal. ?"

Good Luck to all Lottery Post Members and Staff !!

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    Posted: April 3, 2015, 6:38 pm - IP Logged

    Have a plan in mind if you win.  My plan is to buy a house in a gated community, set-up a budget,  set aside property taxes for 41 years ( that is for me ), buy and pay-off all your cars and final, live a normal life.

      music*'s avatar - nw bookeep.jpg
      Happy California
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      Posted: April 3, 2015, 6:48 pm - IP Logged

      bigbear29, Thank You for your sage advice. I will go online and look at gated communities where I want to live. Setting up a budget is easy to say but I must be diligent with it . And I will live a normal and happy life.

      Party

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
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        Posted: April 3, 2015, 7:45 pm - IP Logged

        Some Sage advice from the Past ...

        Several days after his monumental win, Mr. Edwards and Maddux stood before television cameras at the Louisville Slugger Museum, where Mr. Edwards received a ceremonial check. Reporters grilled Edwards about his past, which included a stint behind bars for the armed robbery of a convenience store 20 years earlier and repeated parole violations that kept sending him back to prison.

        Mr. Edwards acknowledged that he'd made some mistakes in his life, but he said that was all behind him. He also said he planned to put his newfound fortune to the best and wisest use he possibly could.

        "I didn't want to accept this money by saying I'm going to get mansions and I'm going to get cars, I'm going to do this and that," he said. "I would like to accept it with humility. I want this money to last, for me, for my future wife, for my daughter and future generations."

        Then, in practically the next breath, he said he planned to buy himself a Rolls-Royce and that Maddux wanted a Ferrari.

        In November 2001, Mr. Edwards and Maddux moved into a 6,000-square-foot, $1.5 million home in Palm Beach Gardens, Fla. The couple married in Maui on New Year's Day 2002.

        During his time in Florida, Mr. Edwards amassed a fleet of exotic cars, for which he paid more than $1 million. He also told NBC News that he paid $78,000 for the gold-and-diamond watch on his wrist and $159,000 for the ring he wore. He also boasted of having 200 swords in his collection of replica medieval weapons, and a plasma TV he said set him back $30,000.

        Mr. Edwards also bought a $600,000 house in Palm Springs, Calif., his own limo company, a $1.9 million Lear jet, three racehorses and a fiber-optics installation company, which he acquired for $4.5 million. A year after he'd won the lottery, he estimated that he'd spent $12 million.

        David Lee Edwards, who went from unemployed ex-con to Powerball millionaire and whose life became a testament to the seductive and destructive powers of sudden wealth and fame, died Saturday in Community Hospice Care Center in Ashland.

        Mr. Edwards was 58. The cause of his death was not immediately known, but he had been widely reported to have been in failing health in recent years.

        Mr. Edwards also had been out of the public eye since returning to the Ashland area in 2007 after being kicked out of his mansion in an exclusive gated community in Florida.

        It is my wish that it Never again happens to anyone fortunate enough to win either Jackpot.

        People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

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          Posted: April 3, 2015, 8:16 pm - IP Logged

          I would expect this guy to lose his lottery money, ex-con to lottery winner.  He was not very bright, spend, spend, spend.  I think this is the guy who also had an aid to follow him around.  No brains and no budget.

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            NYC
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            November 17, 2014
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            Posted: April 3, 2015, 9:45 pm - IP Logged

            Some Sage advice from the Past ...

            Several days after his monumental win, Mr. Edwards and Maddux stood before television cameras at the Louisville Slugger Museum, where Mr. Edwards received a ceremonial check. Reporters grilled Edwards about his past, which included a stint behind bars for the armed robbery of a convenience store 20 years earlier and repeated parole violations that kept sending him back to prison.

            Mr. Edwards acknowledged that he'd made some mistakes in his life, but he said that was all behind him. He also said he planned to put his newfound fortune to the best and wisest use he possibly could.

            "I didn't want to accept this money by saying I'm going to get mansions and I'm going to get cars, I'm going to do this and that," he said. "I would like to accept it with humility. I want this money to last, for me, for my future wife, for my daughter and future generations."

            Then, in practically the next breath, he said he planned to buy himself a Rolls-Royce and that Maddux wanted a Ferrari.

            In November 2001, Mr. Edwards and Maddux moved into a 6,000-square-foot, $1.5 million home in Palm Beach Gardens, Fla. The couple married in Maui on New Year's Day 2002.

            During his time in Florida, Mr. Edwards amassed a fleet of exotic cars, for which he paid more than $1 million. He also told NBC News that he paid $78,000 for the gold-and-diamond watch on his wrist and $159,000 for the ring he wore. He also boasted of having 200 swords in his collection of replica medieval weapons, and a plasma TV he said set him back $30,000.

            Mr. Edwards also bought a $600,000 house in Palm Springs, Calif., his own limo company, a $1.9 million Lear jet, three racehorses and a fiber-optics installation company, which he acquired for $4.5 million. A year after he'd won the lottery, he estimated that he'd spent $12 million.

            David Lee Edwards, who went from unemployed ex-con to Powerball millionaire and whose life became a testament to the seductive and destructive powers of sudden wealth and fame, died Saturday in Community Hospice Care Center in Ashland.

            Mr. Edwards was 58. The cause of his death was not immediately known, but he had been widely reported to have been in failing health in recent years.

            Mr. Edwards also had been out of the public eye since returning to the Ashland area in 2007 after being kicked out of his mansion in an exclusive gated community in Florida.

            It is my wish that it Never again happens to anyone fortunate enough to win either Jackpot.

            Cocaine is helluva drug. What a waste.

              Piaceri's avatar - sarsony1
              Republic of Texas
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              Posted: April 4, 2015, 11:12 am - IP Logged

              Have a plan in mind if you win.  My plan is to buy a house in a gated community, set-up a budget,  set aside property taxes for 41 years ( that is for me ), buy and pay-off all your cars and final, live a normal life.

              Exactly.

              Have that plan by the time you collect, made with the advice of financial experts. They can tell you how much to expect in earnings off your win and help with a budget. You have to determine your life expectancy and how much if any do you want to leave your family when you pass, along with what inheritance taxes will take from that or how to avoid inheritance taxes.

              I've already decided that unless I have $10m in the bank after taxes, setting myself up with new house & car, and gifting certain family members; I will continue to work at least another year or two to see how well managing the balance of the funds pays out. Is there enough to maintain my new home with at least weekly housekeeping and lawn care? Is there enough to pay for my health care, insurances, utilities, and daily cost of living? Is there enough to take a couple of nice vacations, travel to see my kids, and treat my family to nice gifts and dinners out? Is there enough to replace my car every couple of years? Since my family is not wealthy, is there enough treat for family vacations, too?

              Unless you are going to pocket tens of millions right off the bat, these are things you need to think of when  making your plan.

              face

              singlewinnersinglewinnersinglewinner   

                music*'s avatar - nw bookeep.jpg
                Happy California
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                Posted: April 4, 2015, 1:26 pm - IP Logged

                 Ditto Piaceri,  I am reading Juan Truqui's booklet, "Manual for surviving the Lottery Curse".  Your course is set correctly.    Juan quotes Edmund Burke,"Those who don't know history are doomed to repeat it"  I will apply this wisdom to past Lottery winners and where,how, and why they lost it all.

                Blue Angel

                  HoLeeKau's avatar - YheaShea
                  Idaho
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                  July 17, 2010
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                  Posted: April 4, 2015, 3:33 pm - IP Logged

                  I do not understand big winners who buy a new house with a loan, then can't make the payments after they squander millions of dollars and end up foreclosed on with nowhere to live.  If you win more than a million after taxes and can't afford to pay cash, then you can't afford the house. 

                  I'm with the earlier poster who said buy your house and cars with cash.  Put aside a few hundred grand for emergencies to be used ONLY for real emergencies - housing, taxes, medical.  Hands off for any other purpose.  Get professional advice on investing the rest.  I personally would live off the income from the investments and leave the principal because I don't know how long I'm gonna live. 

                  My father died in his early 60's, my mother in her mid 90's.  I assume I'll die in that range, but if I get an annuity or some other investment that the principal will be gone when I'm 70, well 20 - 25 years is a long time to live on nothing but social security.  It definitely won't support living in an upscale home or an upscale nursing home. 

                  If I can't live off the investment income, then I can't afford that expensive of a home.  I'd look at something less expensive, so I would have lower taxes and upkeep and be able to invest a little more.

                  If I were a smaller winner, I'd definitely move if I were to win more than a couple hundred grand, but it would be to a very modest home that I could afford to pay for and keep up (repairs, taxes, etc.) with my current income.

                    CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
                    TX
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                    Posted: April 5, 2015, 9:42 am - IP Logged

                    Exactly.

                    Have that plan by the time you collect, made with the advice of financial experts. They can tell you how much to expect in earnings off your win and help with a budget. You have to determine your life expectancy and how much if any do you want to leave your family when you pass, along with what inheritance taxes will take from that or how to avoid inheritance taxes.

                    I've already decided that unless I have $10m in the bank after taxes, setting myself up with new house & car, and gifting certain family members; I will continue to work at least another year or two to see how well managing the balance of the funds pays out. Is there enough to maintain my new home with at least weekly housekeeping and lawn care? Is there enough to pay for my health care, insurances, utilities, and daily cost of living? Is there enough to take a couple of nice vacations, travel to see my kids, and treat my family to nice gifts and dinners out? Is there enough to replace my car every couple of years? Since my family is not wealthy, is there enough treat for family vacations, too?

                    Unless you are going to pocket tens of millions right off the bat, these are things you need to think of when  making your plan.

                    Great points Pia. While I am looking at something in the 5-6 million range( after buying house/vehicles/furnishings and paying all taxes for me would suffice ) I would have to re-evaluate my expenses for other family members/charities/vacations in the future. Even at 3-5% on the returns($150K - 300K estimated) per year. Good ooooollllllle Uncle Sugar is going to come calling with his hand out and take a huge chunk,no telling what the cost of living will create in 20+ years( food, insurance- medical & vehicle & home, interest income tax, services for maintenance of your nest egg, house/property taxes, vehicles, house repairs(put on new shingles 3 years ago on my old house-$8800.00).....I understand that some of my list created is not every year BUT... It does comes along.....
                    At $10 Million +, then the concerns would dwindle considerably..yet.. you still have to pay attention to spending habits. After all, the nest egg is not infinite.

                      music*'s avatar - nw bookeep.jpg
                      Happy California
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                      Posted: April 5, 2015, 6:05 pm - IP Logged

                       I am just learning how to view my life in perspective by rewinding it from last day to the present. Of course I do not know the day or hour of my passing but with some medical advice and life expectancy tables I can guess closely. No one wants to run out of money before they pass.

                       So, Budget will be my key word.   I will also include the words, Inheritance, Not anymore, & daily average. I am studying a booklet by author Juan Truqui who wrote the "Manual for surviving the Lottery curse."

                       Yes, I will also pay an attorney for Estate & Trust planning. 

                      Thank You all for your contributions to my Lottery Post forum.Party