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Lottery Winners who make their money grow

Topic closed. 21 replies. Last post 1 year ago by DELotteryPlyr.

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NY
United States
Member #23835
October 16, 2005
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Posted: July 27, 2015, 1:55 am - IP Logged

**So in 10 years or since 2005, Brad has given away $2 mil to charity- at this pace, its $4 mil in 20 years, $8 mil in 40 years and so on and so forth.. 

As near as I can tell, the other thing that happened in the intervening 10 years is that Duke hasn't come anywhere near his supposed goal of increasing his principal by over 1000 percent. That's actually a good thing, because it shows that he's not stupid enough to accept the risk that would be necessary to get that kind of return. Even if you don't spend a dime or pay any taxes on ROI turning $85 million into a billion dollars in 20 years would require a consistent return of about 13.5%. That's possible, but not without risking the complete loss of your investment.

As far as I'm concerned, clearing millions of dollars in the lottery and ending up broke because of investments with too much risk isn't any less stupid than what Edwards did. There's nothing wrong with fantasizing about turning $100 million into a billion in 10 or 20 years, but actually trying to do it without setting aside a safe reserve is a very risky idea.

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    homestead
    United States
    Member #158182
    August 14, 2014
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    Posted: July 28, 2015, 11:24 am - IP Logged

    **So in 10 years or since 2005, Brad has given away $2 mil to charity- at this pace, its $4 mil in 20 years, $8 mil in 40 years and so on and so forth.. 

    As near as I can tell, the other thing that happened in the intervening 10 years is that Duke hasn't come anywhere near his supposed goal of increasing his principal by over 1000 percent. That's actually a good thing, because it shows that he's not stupid enough to accept the risk that would be necessary to get that kind of return. Even if you don't spend a dime or pay any taxes on ROI turning $85 million into a billion dollars in 20 years would require a consistent return of about 13.5%. That's possible, but not without risking the complete loss of your investment.

    As far as I'm concerned, clearing millions of dollars in the lottery and ending up broke because of investments with too much risk isn't any less stupid than what Edwards did. There's nothing wrong with fantasizing about turning $100 million into a billion in 10 or 20 years, but actually trying to do it without setting aside a safe reserve is a very risky idea.

    There are ways to turn $100 Million into $1 Billion through investing in an investment portfolio of Blue-Chip Stocks like Nike and Disney and setting aside $40 Million into Preferred Stocks that pays a set dividend that could be used as investment income that could be put into short term corporate bonds. 

    It's not impossible to turn $100 Million into $1 Billion. The question is how much risk is a Lottery Winner willing to take to get there as having that kind of money is a business that most people as not prepared to handle, unless you had the experience of money management before winning the Lottery. 

      rcbbuckeye's avatar - Lottery-043.jpg
      Texas
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      October 23, 2007
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      Posted: July 28, 2015, 11:39 am - IP Logged

      At my age, if I win a jackpot, I'm more interested in money protection, than money growth. Because interest rates are so low, it takes risky investments to grow money. You can't really grow money like you could 20 years ago.

      But, if I won a few million, I wouldn't need to.

      CAN'T WIN IF YOU'RE NOT IN

      A DOLLAR AND A DREAM (OR $2)

        mikeintexas's avatar - tx avatar-1.gif
        Texas Panhandle
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        December 20, 2012
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        Posted: July 28, 2015, 1:22 pm - IP Logged

        At my age, if I win a jackpot, I'm more interested in money protection, than money growth. Because interest rates are so low, it takes risky investments to grow money. You can't really grow money like you could 20 years ago.

        But, if I won a few million, I wouldn't need to.

        I Agree! Same here.  Barring catastrophic circumstances, a  couple million could easily last me 20 yrs. or longer.

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          homestead
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          August 14, 2014
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          Posted: July 28, 2015, 7:41 pm - IP Logged

          At my age, if I win a jackpot, I'm more interested in money protection, than money growth. Because interest rates are so low, it takes risky investments to grow money. You can't really grow money like you could 20 years ago.

          But, if I won a few million, I wouldn't need to.

          20 years ago, short term interest rates was around 3% for Treasury Bills; around 5% for Treasury Notes, and around 6% to 7% for Treasury Bonds. I remember that a 5 year CD was giving a 6% yield. But thanks to the manipulation of the Federal Reserve, interests rates are now less than 1%. The only why a person is going to get more than that is in the stock market as the interest rates on Bonds are terrible. It might take a generation or more for interests rates to get to where they were in the early 1990's.

            Funtimz's avatar - Lottery-022.jpg

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            March 30, 2015
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            Posted: July 28, 2015, 9:19 pm - IP Logged

            I watch too much of American Greed to really believe in investing.

            Take Risks: If you win, you'll be happy.  If you lose, you will be wiser...

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              Maryland
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              January 2, 2015
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              Posted: July 28, 2015, 9:38 pm - IP Logged

              I watch too much of American Greed to really believe in investing.

              Yea, that show makes it REALLY hard to trust ANYONE.  But its cool they show all these thieves and how they do it.   I think its more about diversity, put SOME money in several places, so if ONE rips you off you still have most of your money.