3 million in lottery winnings and 8 years later, flat broke.

[HAL9000]

I can't believe this idiot from a town about half an hour away from where I live. A $2.5 million win in 1996 and a $500k win two years later and now he's flat broke. He should have been set for life.

Full Story

[doctorgonzo]

If only the lottery could give you common sense in addition to lots of money. Six luxury cars? Talk about no impulse control.

[HAL9000]

No kidding... If I won the lotto.. sure I would love to go buy something like a Viper... but in reality... when it came right down to it... I really don't think I could fork over that much cash for a car let alone six of them. If anything, I would build a kit car and make what I want. That way, being a long term project to keep busy, it would also spread out the expense so that you're only spending intrest, not the winnings. Invested proplerly, $3 million can turn into a very healthy monthly income.

[Force Flow]

Someone once told me that the average person doesn't make more than $1 million over their entire lifetime.

What this guy did is just sad...

[doctorgonzo]

If I found myself with that kind of money (I don't play the lottery, and I don't have any rich family members, so it's not that likely!), I think I would go back to school first. No luxury cars for me. I just can't see myself changing lifestyles all that much, except that I may fly first class instead of coach when I go on vacation.

[Cricket]

I think this is actually kind of common. Many past lottery winners are now broke.

Cricket

[HAL9000]

Originally Posted by Force Flow Someone once told me that the average person doesn't make more than $1 million over their entire lifetime. What this guy did is just sad...

That's quite possible depending on how you look at it. In a 25 year career, you would have to make $40K per year to hit a million. If say you worked from age 18 to 65, you have to earn about $22K per year which is a lot more reasonable... but then you could say that is gross income... take away all your taxes and add up only what you brought home... probably not even close.

Originally Posted by Cricket I think this is actually kind of common. Many past lottery winners are now broke. Cricket

And that is sad cuz there is no need for it. A guy I talked to that does financial planning tells me that a $2 million win could easily be turned into a $10K-$15K per month income after taxes. There's no reason to ever touch the principle.

[doctorgonzo]

Originally Posted by Cricket I think this is actually kind of common. Many past lottery winners are now broke.

And they found that winning millions didn't make them any happier either. I don't think I would expect it to be any different, though.

[PMich]

I think most people have an idea of what they "want" to do if they come into a financial windfall. The problem is not many of us really know what we would do if someone threw $3,000,000 in our lap. We should test this. I will come up with a financial plan and then you guys pool together and give me $3 million and we will see if I can handle the pressure.

[Pounder]

look how many athletes who made millions and are now broke (tyson) also they buy a 10 million dollar home not realizing what it costs to maintain it

[Rebel_526]

OMG...I have plans should I ever win a lottery (I might spend $20 a year on lottery tickets ), but dropping that kind of cash... The first thing I'd do is setup a trust for my kids, then one for myself I'd continue to work, otherwise I'd be bored to tears. Would I buy expensive items? A few....I'd love to have a Chevy Avalanche. I'd add an office to my house, but I'm already going to do that anyway. some clothes and a vacation......and that's about it.

[Stryker]

This is beyond sad... this is tragic!
That amount of money could have changed the lives of hundreds, thousands, tens of thousands of people and this guy just "crapped" it away. He should be strung up in public and have pennies thrown at him (and he doesn't get to keep the pennies after either).

[Trent Steel]

If you want to hear a truly sad story about a guy losing money big time read Stung by Gary Ross. Its the real life story of Brian Molony who gambled away over 10 Million dollars of CIBC's money before getting caught. I know I would like to get a lottery win but the statistics prevent me from ever buying a ticket, I would rather burn it and get enjoyment out of the pretty colors (I don't do that either).

[roomwithamoose]

The first thing you do if you get that kind of cash is don't quit your job! I would get bored, but also a job helps keep you grounded. The second thing is: real estate, real estate, real estate!! I'd spend about 1.5 mil on property and just sit on it. By the time you die you could buy even more, well, I guess if you're dead then your family would. Then you save the 1.5 for retirement. Sure, fix up your house, buy a car, set up trusts for the kids and buy your wife a new ring, but stop there. I think I would do pretty good. I'd hate to go from a Viper to a crappy bike!

[formerjudge]

Originally Posted by HAL9000 And that is sad cuz there is no need for it. A guy I talked to that does financial planning tells me that a $2 million win could easily be turned into a $10K-$15K per month income after taxes. There's no reason to ever touch the principle.

10-15k is not allot of money

[doctorgonzo]

Originally Posted by formerjudge 10-15k is not allot of money

Per month? That would provide me just about anything I'd want.

[formerjudge]

Originally Posted by doctorgonzo Per month? That would provide me just about anything I'd want.

you say that right now. When you have 10-15k you will want to and will actualy change your stile of live regardles of what you say right now you will. Yes 10-15k is allot of money to some people and not allot of money to others. Basically as the story in the link shows its easy to speend allot of money when you have it.

[Stryker]

If 10-15k per month isn't enough money for someone, then no amount of lottery winnings is going to make them happy. I would classify this as greed and the person wouldn't deserve a penny of it. The type of person who deserves this kind of money is the person who is going to better themselves and help others. And by "better" themselves, I don't mean selling your Honda and buying a McLaren F1.

[sataraid0]

I think this is actually kind of common. Many past lottery winners are now broke.

Cricket


I believe you are absolutely correct Cricket. Something happens, don't know what? , when you get that much money all at once???? Would like to experience it one time tho



and don't you love it when the winner says " I'm not gonna give up my job cuz I love it" Ha what a bunch of hooey, they all quit their job...................


Regards........................Sterling

[kram 2.0]

"The lottery is a tax for those who don't understand probability"

kram

[Stryker]

Originally Posted by kram8806 "The lottery is a tax for those who don't understand probability"

I like this quote kram... is it your own or is it an exerpt from something?
Very accurate!

[doctorgonzo]

Originally Posted by Stryker I like this quote kram... is it your own or is it an exerpt from something? Very accurate!

I've heard that a lot of places. I've also heard of people trying to frame this as an issues of "innumeracy", or the inability to do math. Everybody knows what illiteracy is and how damaging it can be, and innumeracy can be just as dangerous. Consider the person who spends $10 a week on lottery tickets. That's over $500 a year, and you could invest that in a simple index fund and have something real in a few decade's time. Or you could invest in lottery tickete an in a few decades maybe make yourself a quilt out of all the losing tickets.

[HAL9000]

Originally Posted by formerjudge 10-15k is not allot of money

Maybe not to you... going by your user name... but if you have lived on as little as $600 per month... it's more than ample and even with a lifestyle increase... I could live on it just fine.

[Tech Guy]

Working full time at my job (which is rare because I am a full time student), I make $1600 before taxes a monthly, about $1250 dollars a month. When I work full time I can live off that and be able to purchase things that I want. Given I am a student and still live with my mother. But it just goes to show that 10 - 15k a month would be more than enough to live off.

[kram 2.0]

Originally Posted by Stryker I like this quote kram... is it your own or is it an exerpt from something? Very accurate!

More of a common saying than an exerpt - My Physics instructor uses the phrase when he's describing how he's going to live after he's too old to teach

kram

[Cricket]

Originally Posted by doctorgonzo Or you could invest in lottery tickete an in a few decades maybe make yourself a quilt out of all the losing tickets.

LOL...that would match nicely with the cardboard box house and newspaper blanket when they go homeless because they spent all their money on lottery tickets instead of taking care of the important things.

Cricket

[Jaggannath]

I reckon the reason so many people go broke after a big lottery win is basically because, although fiscally responsible before the win, the lottery win suddenly gives them the impression that financial planning is no longer necessary.

[ZeratulsAvenger]

Wish I could win the lottery... Then I could give some money to the less luckly friends of mine who have to pay their own way through college(I think that's wrong... Same with a car. Asking a kid to do work AND school is to much when most parents are expected to do work and work alone. Raising kids doesn't count in this case(in my mind) since a lot of people can take awhile off from work to stay home with a kid, and daycare in place of booze or cigs probably couldnt hurt either).) And of course I would buy a car, and maybe a computer(I dont play games so I dont know what I really need a new one for), legalize my music collection completely, and put the rest into saving's/some place I can't touch it. Oh ya, and a pool table for my friend who works his butt of day and night for school since he is completely grade driven, as so many kids are these days. He needs a reward before he snaps like my sister did(not actually snap... but she didn't enjoy highschool nearly as much as she could have, and now is in a college where she has to work constantly from what I know... No break is hard to compensate for years down the road...). Then of course something for my friend who had her mother run out on her when she was younger, and something for her sister who took care of her... Then just pots of money for when people get in trouble(it happens..) and for the future. A car accident, health problems, you name it... Oh ya, and a bowling alley for me and my friends.

Guess I can't even win though since I am only 17... Oh well, guess I can dare to dream.

That guy was stupid.

[Force Flow]

Originally Posted by HAL9000 Maybe not to you... going by your user name... but if you have lived on as little as $600 per month... it's more than ample and even with a lifestyle increase... I could live on it just fine.

Heck 10k-15k a month would be more than a comfortable income. Even better, you wouldn't have to go out and work if you really didn't want to. heh, I know I would still go to work. Gotta do something to keep yourself occupied.

[HAL9000]

Personally... I would quit my job right away... let somebody else be employed... if anything, I would do something productive like start a business, create employment if even only a few jobs.

Not to mention... I could win 10x what this guy won... I'm still going for the RCMP.