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7 reasons to be glad you didn't hit the PB

Topic closed. 24 replies. Last post 10 months ago by SoleWinner21.

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Zeta Reticuli Star System
United States
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January 17, 2006
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Posted: February 3, 2016, 8:01 pm - IP Logged

1. You like your hometown.

Many lottery winners move to a new community because they can suddenly afford to live in a more expensive neighborhood or town. But others, who like where they live, find they have to leave anyway after they become instant celebrities with desperate people waiting outside their door asking for money or investment. This likely wouldn't happen--or not as much--if you had a different sort of windfall such as an inheritance. But anyone who's ever plunked down the price of a lottery ticket will feel in some way that your winnings belong partly to them. You may think you could avoid this problem by remaining anonymous, but watch out: Some states require you to attend a press conference if you want to claim your winnings.

2. You love your spouse get along well with your family.

That will likely change if you win a big lottery payout. Family members have been known to sue for a portion of lottery winnings. And according to financial author Dave Ramsey, lottery winners have a four times higher divorce rate than the national average.

3. You like your friends.

"Everyone who wins thinks they're going to have the same friends and do the same things," one lottery winner says. But it rarely works out that way. Your friends are apt to be envious of your winnings, raising difficult questions about whether or not you should share the wealth and with whom.

4. You'll learn what people are like at their worst.

It's human nature: We compare ourselves to the people we know, and when things happen to them, good or bad, we think to ourselves: "That could have been me." In a brilliant TED Talk on happiness, psychologist Dan Gilbert shares research that shows that lottery winners are no happier a year later than people who've lost the use of their legs.

It's not really surprising. When misfortune strikes, it brings out the best in others, who often think that it could have been them instead. When good fortune strikes and they think the same thing, it brings out feelings of envy and bitterness. Which would you rather have surrounding you?

5. You don't want to become a drug addict or commit suicide.

Unfortunately, your chances of drug addiction, suicide, attempted suicide, and even murder go up if you take home a lottery jackpot. For your reading pleasure, The Atlantic website has compiled several accounts of lives ruined by lottery winnings. After being sued multiple times, survived a drugging-and-robbing attempt, and having his granddaughter, granddaughter's boyfriend, and daughter all die, one unlucky winner commented, "I wish I'd torn that ticket up."

6. You don't want to go broke.

Say what? The whole point of winning the lottery is to become wealthy, right? For most people, it doesn't work out that way. In fact, 65 percent of lottery winners wind up in bankruptcy. It's easy to see why. Winning the lottery is a temptation to lavish overspending. At the same time, friends, relatives, and strangers will approach you with requests (or demands) for money and/or investment opportunities. 

Then there's taxes. Lottery winnings are taxable income, usually taxed in the highest tax bracket of 39.6 percent. But instead of withholding taxes the way an employer would, the government only takes 25 percent of the full taxes owed at the time of payout. You'll have to pay the other 75 percent at tax time, and your state and city may be collecting taxes as well. The only smart (but rarely followed) strategy is to immediately set half your winnings aside to pay off those taxes. Oh, and the first thing you should do when you win? Call your lawyer, according to USA Today

7. You're saving and investing instead.

I really, really hope this is the reason you haven't bought a Powerball ticket. So does Tony Robbins. He says that the average American household spends $1,000 a year on lottery tickets. If you took that $1,000 and invested it with even a fairly conservative 4 percent return per year, with compounding you would have $10,000 in less than nine years. That's not a one-in-292-million chance--there's a very high likelihood you would achieve those returns, and you wouldn't have unexpected tax bills or money-seekers camped outside your house.

Doesn't that sound like a much better strategy?

http://www.inc.com/minda-zetlin/7-really-good-reasons-to-be-glad-you-didnt-win-the-powerball.html

______________________________________________________________________________

No one here on LP will agree with most of this, but it is an insightful look at some things people don't think of.

Personally I find #7 to be hype.

But here goes:

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.

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    The Windy City
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    Posted: February 3, 2016, 8:53 pm - IP Logged

    I'm still not glad I didn't win. 

     

    "Lottery winnings are taxable income, usually taxed in the highest tax bracket of 39.6 percent. But instead of withholding taxes the way an employer would, the government only takes 25 percent of the full taxes owed at the time of payout... You'll have to pay the other 75 percent at tax time"

     

    Their taxing 25% up front, which is roughly 63% of the 39.6%.   So you will owe 37% of the total tax at tax time.... Still wish I had that problem.

      TheMeatman2005's avatar - lightening
      Brooklyn, NY
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      Posted: February 3, 2016, 8:57 pm - IP Logged

      There are some good points in your post, but I will still take my chances at winning.

      There was one thing I noticed that was wrong and that is in #6

      6. You don't want to go broke.

      Say what? The whole point of winning the lottery is to become wealthy, right? For most people, it doesn't work out that way. In fact, 65 percent of lottery winners wind up in bankruptcy. It's easy to see why. Winning the lottery is a temptation to lavish overspending. At the same time, friends, relatives, and strangers will approach you with requests (or demands) for money and/or investment opportunities. 

      Then there's taxes. Lottery winnings are taxable income, usually taxed in the highest tax bracket of 39.6 percent. But instead of withholding taxes the way an employer would, the government only takes 25 percent of the full taxes owed at the time of payout. You'll have to pay the other 75 percent at tax time, and your state and city may be collecting taxes as well. The only smart (but rarely followed) strategy is to immediately set half your winnings aside to pay off those taxes. Oh, and the first thing you should do when you win? Call your lawyer, according to USA Today

      The last time I checked, 39.6% - 25% = 14.6% NOT 75%

      The IRS takes 25% of the prize (leaving the balance due of 14.6% at tax time), not 25% of the 39.6% which would be 9.9%

      The Meatman

      “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

      Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

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        New Member

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        Posted: February 3, 2016, 9:56 pm - IP Logged

        Hello everyone! first time poster. 

         

        To quote puff daddy, mo money mo problems. But if you notice he never offered to not be rich either lol. I'd take my chances and I acknowledge that I couldn't live quite my normal life...and I'm ok with that.

          savagegoose's avatar - ProfilePho
          adelaide sa
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          Posted: February 4, 2016, 2:04 am - IP Logged

          Ok ill take that challenge. , drug addictions, suicides, miserable, broke , frivolous law suits and  friends and family that hate me! bring it on.  but yea. anonymous it is then. maybe i could avoid all that drama.

          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

            travelintrucker's avatar - morph
            Greenville, SC
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            Posted: February 4, 2016, 1:58 pm - IP Logged

            BS. However, you CAN save, invest, and still play the lottery. You could say lotto is the speculative part of the portfolio.

            May the balls bounce in your favor!

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              Posted: February 4, 2016, 2:19 pm - IP Logged

              I would rather hit the PB.

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                Alpharetta, GA
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                October 23, 2015
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                Posted: February 4, 2016, 2:36 pm - IP Logged

                I call BS on all of these.  All except the spouse one maybe. I don't know.  Marriage is not for me! Lol  Tried it twice and am happier single.  Lol. 

                I save, save for my retirement and my kids education and invest and still play the lotto.  So the rest of that list is bunk in my opinion.   I've never tried drugs lol so I wouldn't worry about that either.  I'll live on the edge and take my chances winning the jackpot! :-)

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                  Alpharetta, GA
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                  Posted: February 4, 2016, 2:38 pm - IP Logged

                  Quite frankly I've lost more money with some of my hair brained stock market speculation schemes (iron condors) than I have playing the lotto. That is sad I know. Lol.  Most of my investments are very conservative these days after getting burnt badly.   Women are supposed to make good investors because we "don't argue with the market". Lol. Not this girl.  So I get my speculative rocks off by playing the lottery and dump the majority of my money in boring etfs.

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                    Alpharetta, GA
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                    Posted: February 4, 2016, 2:43 pm - IP Logged

                    And for every "the lottery ruined my life" story, there is a story where the lottery was a huge blessing.  I chalk the focus on the lottery tales of woe up to "jackpot envy".   We just don't hear about the happy winners after they fade from the limelight.  Not everyone is a trainwreck and most I believe are capable of managing a large win with some discipline :).

                      mikeintexas's avatar - tx avatar-1.gif
                      Texas Panhandle
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                      Posted: February 4, 2016, 3:51 pm - IP Logged

                      And for every "the lottery ruined my life" story, there is a story where the lottery was a huge blessing.  I chalk the focus on the lottery tales of woe up to "jackpot envy".   We just don't hear about the happy winners after they fade from the limelight.  Not everyone is a trainwreck and most I believe are capable of managing a large win with some discipline :).

                      I Agree!  Well, I do agree in theory because I think for every bad story, there are a hundred - or many more -  good ones.  The media knows that a story of someone who lost it all grabs more attention than a story about someone who took their win and used it wisely.  ("If it bleeds, it leads.")  I also think that 65% figure of all lottery winners go bankrupt is numerical fiction.  I've seen a 70% number tossed around, and IF the article cites a source, it's attributed to a National Endowment for Financial Education study. The problem with that is that I've looked through the NEFE website and there's nary a mention of the "study". If it is true, then I'd like to see their methodology in obtaining that number.

                      I'm sure that the number of lottery winners declaring bankruptcy is inversely proportional to the amt. of money they won, i.e. if they won "only" a few hundred thousand, then they'd probably be more prone to blowing through that amount in a short time, even to the point of going into debt and having to declare bankruptcy.  I also suspect that the people who won the lottery and lost their money didn't give much thought beforehand except as to what they were going to buy if they won.  Sure, I do that too, but I also think about and research what I'd do and how best to hang onto the money.  As much of a long shot it may be for me to win, I have a plan if I do. 

                      Also, I'm like Sookie in that a lot of those things don't apply to my own personal situation.


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


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                        Posted: February 4, 2016, 5:36 pm - IP Logged

                        I'd rather win lol.  Reading this board and other resources on the internet have taught me that if you remain fairly frugal after winning, do your best to stay anonymous, know how to say NO, hire the right individuals to help you (attorneys, accountants, wealth managers), etc that you should be OK.

                        Notice I said hire the RIGHT individuals, not the doofus attorney the TN Powerball winners hired that told them "Yes!  Go on the Today show, go on the Ellen show, get on the cover of People magazine!" LOL

                          pickone4me's avatar - 021414tvlies zpsa453b327.jpg
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                          Posted: February 4, 2016, 5:50 pm - IP Logged

                          Finally something reasonable posted,  however I didn't know we were allowed to copy and paste off another webpage.  #5 doesn't apply to me.  #6 The democrats will have your pockets emptied if people vote for a democrat a 3rd time.

                          Trump 2016!


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                            Posted: February 5, 2016, 10:28 am - IP Logged

                            Finally something reasonable posted,  however I didn't know we were allowed to copy and paste off another webpage.  #5 doesn't apply to me.  #6 The democrats will have your pockets emptied if people vote for a democrat a 3rd time.

                            That's exactly right.  Bernie Sanders would tax everyone at 90%, not just the rich but everyone, even welfare recipients lol.

                            I still say there should be zero taxes on all lotteries.

                              savagegoose's avatar - ProfilePho
                              adelaide sa
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                              Posted: February 5, 2016, 10:50 am - IP Logged

                              That's exactly right.  Bernie Sanders would tax everyone at 90%, not just the rich but everyone, even welfare recipients lol.

                              I still say there should be zero taxes on all lotteries.

                              here in aust. although its said there is no tax.  the tax is actually paid at point of purchase, so  everyone pays the tax  so the winner doesnt. its a 1/11th gambling tax. soo big gov is still getting their money. and we all dream of being the winner. and all in all 9% is better than %39

                              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