Kentucky United States
Member #32,651
February 14, 2006
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Quote: Originally posted by GiveFive on Feb 16, 2023
"Because of that lack of controlled spending, people spend money at rates their winnings cant keep up with."
The key words in that sentence are "controlled spending". Here's an example of uncontrolled spending.
A woman who had won the lottery appeared on The Phil Donahue Show. (How long ago was that???) What she had really won was a before tax annuity of $150,000 per year for 20 years. (No lump sum option back then) She spent so much money during the first year of the annuity that she could not touch it again until year 15. She did receive the next several years of disbursements but because she had blown so much money during the first year she needed to payoff the items she overspent on during the first year therefore the money from succeeding years disbursements was not available for anything else.
"Jackpot winners haven't ever practiced managing money" Right. That's because they never had much money to practice with in the first place. Someone that never had much money but has a windfall of money land in their lap has an instant problem on their hands, but they probably cant see it. Combine that with the temptation to spend it and watch how fast it disappears. G5
Back in the day most of the $1 million lotto jackpot prizes were annuities paying 20 payment of $50,000 before taxes. Nice prize but didn't last very long after purchasing big ticket items on credit. Not every winner went broke, but an extra 40 grand a year convince many of them to retire.
"That's because they never had much money to practice with in the first place."
And why many people lost and are still losing bit coin investments. Have you noticed the "how will you spend your winnings" threads are few and far between?
Probably for the same reasons there are many more rollovers; it's probably because we're seeing $billion dollar jackpots being won by one ticket.
Florida - West Coast United States
Member #92,605
June 10, 2010
6,580 Posts
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Quote: Originally posted by Stack47 on Feb 17, 2023
Back in the day most of the $1 million lotto jackpot prizes were annuities paying 20 payment of $50,000 before taxes. Nice prize but didn't last very long after purchasing big ticket items on credit. Not every winner went broke, but an extra 40 grand a year convince many of them to retire.
"That's because they never had much money to practice with in the first place."
And why many people lost and are still losing bit coin investments. Have you noticed the "how will you spend your winnings" threads are few and far between?
Probably for the same reasons there are many more rollovers; it's probably because we're seeing $billion dollar jackpots being won by one ticket.
People can call me crazy if they want, but I play the lottery not so much because I want to be a millionaire rather I play because I have fun doing it and I play the types of online games that if I won a jackpot it wouldn't be all that life changing. All my life I've been an average middle class guy that never had millions of dollars in the bank. Therefore I've no clue what it's like or what it takes to manage big money. All I really do know about it is that it's not as easy as many people believe it is. Sudden wealth syndrome would not exist if it was easy and horror stories about people squandering fortunes would be few and far between.
As for an investment in any cryptocurrency I'm not interested in doing that whatsoever. I think they're just too risky for my personal situation. G5