Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Lotto Winner FIRE Message
Old 01-03-2014, 03:25 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,885
Lotto Winner FIRE Message

Quote:
After doublechecking the number on Monday, Tran said, he called his boss and left a message: "I'm really sorry boss. I hit the jackpot. I don't think I'm going to come in today, tomorrow, or ever."
That's the way to leave an I'm retiring message

Calif. man to share $648M lottery jackpot
__________________

__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-03-2014, 03:35 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Please post a follow up in 5 years.

Quote:
According to a 2010 study by researchers at Vanderbilt University, the University of Kentucky and the University of Pittsburgh, the more money you win in the lottery, the more likely you are to end up bankrupt.
Riches to rags: Why most lottery winners end up broke - Yahoo Finance Canada
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-03-2014, 03:35 PM   #3
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
Quote:
Originally Posted by travelover View Post
Hater.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 01-03-2014, 03:38 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by Sarah in SC View Post
Hater.
I'm only bitter because the government won't let me run my own lottery.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-03-2014, 03:39 PM   #5
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
Quote:
Originally Posted by travelover View Post
I'm only bitter because the government won't let me run my own lottery.
They hate competition, that's for sure. Way before it started up here, they outlawed the much maligned video poker machines, to make sure there was no other outlet for the hapless millions.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 01-03-2014, 05:21 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,434
Quote:
Originally Posted by travelover View Post
I wouldn't mind seeing if I could be one of the few successful ones.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 01-03-2014, 05:56 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by Dawg52 View Post
I wouldn't mind seeing if I could be one of the few successful ones.
If you win, be sure to PM me your phone number, old buddy, old pal.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-04-2014, 12:20 PM   #8
Full time employment: Posting here.
 
Join Date: Sep 2012
Location: San Jose
Posts: 607
Reading that guy's response to his boss made my day.

Normally I detest reading about lottery winners. Mostly because of severe envy on my part

But also because I get sick of so many of them saying stuff like, "Oh, I'm not going to let it change me! I'm going to keep my job!"

THEN WHY DID YOU PLAY

I want to read more about the people who tell their boss, "I won the lottery. Take your job and shove it!" kind of like this guy did.

Hopefully, he'll be smart about the winnings and not do stupid stuff with it. But at least he wasn't one of those saccharine-sweet people who say it's not going to change them, and they're going to keep their jobs.
__________________
LoneAspen is offline   Reply With Quote
Old 01-04-2014, 12:58 PM   #9
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,840
Quote:
Originally Posted by travelover View Post
From your link,
Quote:
Why big winners end up broke
But let’s say you beat the odds; you avoid death by lightning and win a big jackpot! It could happen. It happened to a 35-year-old resident of Hamilton, nine years ago. After scraping by on low-paying jobs and welfare, she cashed in a winning ticket for more than $10 million. But after travel and cars and other purchases ate up her fortune, she’s right back to where she started - becoming just one of many big lottery winners who went from rags to riches and back again.

How could this happen? How could someone used to living on so much less spend all that money?

A million-dollar lesson
Think back to that big bowl of candy. The bigger the bowl, the more you eat. The same is true for money. The bigger the sum, the more indiscriminately you’re likely to spend it, believing that if the pile is deep enough, you’ll never have to worry about hitting the bottom. It’s the same fantasy for those who struggle financially and come up short every month.

Whether you have an extra $10,000 or $10 million, the lesson is the same: If you dive in indiscriminately, it won’t be long before you’re scraping the bottom of the bowl. And whether you’re rich or poor, that’s one lesson worth at least a million bucks.
So, essentially the reason why people go broke after winning the lottery, is that they spend too much no matter how much they have.

In other words, a certain percentage of people are doomed to be broke, no matter what fate brings them. Wow, that's so depressing. Probably true, though.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 01-04-2014, 02:17 PM   #10
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,508
Quote:
Originally Posted by travelover View Post
Not all of them of course. A local retired sheriff around here won ~$30 million and has done well (donated a lot to local charities) and another family DW is slightly acquainted with kept their self control.

We'd look at what is a sustainable withdrawal rate. I suspect most members of this board would do likewise. Even then we'd have a hard time deciding how to spend an additional say $500k a year. But I'd like to have a go at it.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 01-04-2014, 03:27 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by Walt34 View Post
Not all of them of course. .......
Right, there was a neat story in our local paper about a tiny restaurant here in MI where the employee lottery pool won and the people did really responsible things like going back to school and paying off credit card debts. I don't recall the numbers - it was significant but not double or triple digit millions.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-04-2014, 05:32 PM   #12
Recycles dryer sheets
 
Join Date: Dec 2012
Posts: 390
A study on how people do after winning the lottery would be most interesting. Of course we read about those who spend all their money, and some even end up dead.

I would think the majority of winners would be responsible.

Just applying the 4% SWR would allow the money to last more than a lifetime.
__________________
Elbata is offline   Reply With Quote
Old 01-04-2014, 05:36 PM   #13
Recycles dryer sheets
 
Join Date: Apr 2013
Location: Thousand Oaks
Posts: 220
When my mom died a few years ago we kids had to sell her house and we ended up selling to a local lottery-winning family who bought the place for their adult daughter. From what I understand, they're being fairly responsible and remain well-to-do. (I should state that it's my sister who's kept in touch with the daughter. I haven't had anything to do with anyone.)

I remain firmly in favor of lottery winners, under the circumstances.
__________________
"Being shot out of a cannon will always be better than being squeezed out of a tube. That is why God made fast motorcycles, Bubba…" Dr. Hunter S. Thompson.
chilkoot is offline   Reply With Quote
Old 01-04-2014, 06:09 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by mikefixac View Post
........I would think the majority of winners would be responsible............
I'd think that the average lottery player is not the same as the average American and certainly not like the average ER forum participant.

Quote:
Don McNay, author of the book "Son of a Son of a Gambler: Winners, Losers and What to Do When You Win the Lottery," says nine out of 10 winners go through their money in five years or less.
Powerball: What to do if you won - CBS News
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-04-2014, 06:11 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,875
There's a big, fancy stone mansion a few miles from us, which was built about 20 years ago by a couple who won $20 million. Trouble is, it was $1M per year for 20 years, meaning "only" about $600K/year after taxes. They spent everything they could get their hands on to build this magnificent spread, and somehow forgot that a mansion needs $$ for taxes, insurance, upkeep - and staff. They ended up selling it for less than they paid, since this was not yet a mansion area and buyers were scarce. I felt sorry for them - they could have lived so well on that $600K, but they wanted the idea of a mansion and couldn't handle the reality.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Amethyst is offline   Reply With Quote
Old 01-04-2014, 06:32 PM   #16
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,826
Don't lotteries pay an annuity? It's probably up to each organization, but I know in Florida a while back the default option was an annuity, but you could take the NPV of the cash flows. If you're 95, the lump sum sounds like a good deal, hehe.
__________________
sengsational is online now   Reply With Quote
Old 01-04-2014, 06:58 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by sengsational View Post
Don't lotteries pay an annuity? It's probably up to each organization, but I know in Florida a while back the default option was an annuity, but you could take the NPV of the cash flows. If you're 95, the lump sum sounds like a good deal, hehe.
Generally, you get a choice between a lump sum or a yearly payout. Most seem to want the lump sum.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-04-2014, 07:48 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by LoneAspen View Post
Reading that guy's response to his boss made my day.

Normally I detest reading about lottery winners. Mostly because of severe envy on my part

But also because I get sick of so many of them saying stuff like, "Oh, I'm not going to let it change me! I'm going to keep my job!"

THEN WHY DID YOU PLAY

I want to read more about the people who tell their boss, "I won the lottery. Take your job and shove it!" kind of like this guy did.

Hopefully, he'll be smart about the winnings and not do stupid stuff with it. But at least he wasn't one of those saccharine-sweet people who say it's not going to change them, and they're going to keep their jobs.
I completely agree. One of my favorite statistic that I quote (it may even be true ) Is percentage of lottery winners who say they will keep their jobs 75%, percentage who quit one year 75%.

The thing that amazes me is why do almost all the lotto winners take the lump sum? I've never done that math and maybe the interest rate they offer on the annuities is awful. But if you won $20 million, $1 million a year should be plenty for anyone and if you screw up and spend it all in the first couple of year hopefully by year 5 or so you'll get a clue about being rich.

So when we are talking $300 million or $15 million a year why you would elect to the $100+ million lump sum (and pay all the taxes up front) is incomprehensible to me.
__________________
clifp is offline   Reply With Quote
Old 01-04-2014, 08:28 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,172
Quote:
Originally Posted by travelover View Post
I'd think that the average lottery player is not the same as the average American and certainly not like the average ER forum participant.

Powerball: What to do if you won - CBS News
I don't believe that 9 out of 10 number, but I don't really know. Just like articles about people blowing through the money are more popular than the ones about people who manage it well, I wonder if this number was contrived to sell his book.
__________________
RunningBum is offline   Reply With Quote
Old 01-04-2014, 08:34 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,172
Quote:
Originally Posted by clifp View Post

The thing that amazes me is why do almost all the lotto winners take the lump sum? I've never done that math and maybe the interest rate they offer on the annuities is awful. But if you won $20 million, $1 million a year should be plenty for anyone and if you screw up and spend it all in the first couple of year hopefully by year 5 or so you'll get a clue about being rich.

So when we are talking $300 million or $15 million a year why you would elect to the $100+ million lump sum (and pay all the taxes up front) is incomprehensible to me.
Those aren't the numbers though. Even with higher interest rates I think you got at least half the money in a lump sum (unless by 100+ you really mean 150 or so). With much lower interest rates it's a lot more. Mega Millions Lottery Jackpot: Should You Take the Lump Sum or Annuity? - ABC News says that a $500M jackpot less than 2 years ago would pay $359M lump sum--both amounts before taxes. Spreading the amount over multiple years doesn't help that much with taxes since nearly all of it will be in the top bracket each year anyway. That article says it's a no-brainer to take the lump sum from a financial standpoint. You could argue that people would probably manage the money better getting 1/20th each year, but you also hear of people who wind up selling off their future payments to pay debts, probably at an even worse rate.
__________________

__________________
RunningBum is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 04:03 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.