The Lottery Changed my Life - Have you watched it?

[Culture]

I disagree that all of the people profiled are train wrecks.

So do I. As I noted, about 20% seems to respond reasonably.

 

[Lisa99]

I just finished reading the book "It's Not About the Money". There is a section on exactly this topic.

33% of all lottery winners file bankruptcy at some point after their windfall.

Amazingly high statistic, but if one has never been 'good' with money then having a lot of it isn't going to change their behavior.

 

[dex]

I admit I buy lottery tickets - after I reach the top of a 14er mt or when I'm out of the state - maybe 15 a year. I'll then think about what I would do with the money if I win. The problem is becoming I would not do anything much outside I what I am or want to do.

 

[Culture]

One book I found fascinating on the subject of annuity buyouts was Edward Ugel's Money for Nothing.

Thanks for the tip. Just ordered the book.

 

[Sarah in SC]

Culture, it is a pretty baldly honest view of a very unsavory business. The ignorance of basic financial information by lottery winners shouldn't have surprised me. Some other "sudden money" beneficiaries, like surprise inheritors and professional athletes, fare equally poorly, I'm afraid.
Hope you find the book as interesting as I did.

 

[CuppaJoe]

Before I retired, a low wage guy who worked in our w/h inherited an unexpected sum of about $40k. He quit. People tried telling him it wouldn't last long, but he didn't listen. Not sure whatever happened to him.

I'm thinking it over but it probably would take less than 40K to inspire me to take a break from a W/H j*b.

 

[haha]

Before I retired, a low wage guy who worked in our w/h inherited an unexpected sum of about $40k. He quit. People tried telling him it wouldn't last long, but he didn't listen. Not sure whatever happened to him.

What is w/h ?

Ha

 

[Sarah in SC]

warehouse job. I had one, too. I'd have quit for less, too.

 

[Culture]

warehouse job. I had one, too. I'd have quit for less, too.

Graduated from college in to the Texas Oil Patch Apocalypse of the mid 80s. My first job with a BS in engineering was pulling orders in a warehouse. Quite a drop from my expectations. I lasted two days (leaving the second I got a better job offer), a testament to why you should never hire over-qualified help.

 

[Sarah in SC]

Yeah, I took the w/h job to leave an even worse non-profit job. But at least at the w/h I could buy stuff we needed for our sailboat at cost, and I lost some serious weight hauling anchors and dockline down the aisles.

Having no education (until recently), I was never over-qualified for any job I took.

 

[DangerMouse]

I heard someone say that winning the lottery does not change someone's personality it merely emphasizes what was already there, and watching the above mentioned show I would have to agree that most of those featured were candidates for train wrecks before the lottery came into their lives. However, it seems to be well known that it is watching train wrecks that sucks viewers in, no-one wants to hear the happily ever after story. That said, if you won a fortune would you want to have your mug plastered all over the telly?

 

[travelover]

There was a heartwarming story roughly a year ago about a lottery club in a tiny restaurant in northern Michigan that won 12 million dollars - about $400K each. Nearly all the staff stayed on to work, mostly in loyalty to the owner. Their splurges were to pay off house trailers, get dental work and send kids to college. I hope things continued to work out for them, as they really seemed to take their windfall realistically.

 

[Culture]

That said, if you won a fortune would you want to have your mug plastered all over the telly?

Yeah, I think you have to be an attention-whore to want to appear on this show. I think any rational lottery winner would run far from TLC.

To their credit, there was one family that clearly was appearing to plug their foundation that worked with a childhood disease of some type.

 

[bbbamI]

If I received a windfall, I'd blow it all on pizza and beer.

(oh and a couple of bottles of Gentleman Jack of course)

 

[Keim]

So you'd pretty much do what you're already doing?

If I received a windfall, I'd blow it all on pizza and beer.

(oh and a couple of bottles of Gentleman Jack of course)

 

[bbbamI]

So you'd pretty much do what you're already doing?

Shoot nah...that would be livin' high on the hog. I'm an old retired woman just barely gettin' by....

 

[Keim]

Riiiiight...

Paid for those fancy boots with your welfare check, huh?

 

[Alan]

I remember a sermon from our Rector some while back where he told us about a parishioner in his previous church. This guy, a Scotsman, came to him and asked him to pray with him, privately, for God's help to win the lottery, and if it happened he would donate 10% of the winnings to the church. The Rector agreed and after each week the parishioner would increase the promised share to the church. When it was at 50% and they were praying together on the steps in front of the altar, the lights in the church dimmed and suddenly a bright light filled the air and a heavenly voice boomed out, "Aw, come one Jock, g'is a chance and buy a lottery ticket!"

On a more serious note I do know one person who won 1.3m pounds (~$2m) on the football (soccer) "treble chance" chance in England in the early 80's. He left his job as a plumber and bought a milk delivery business and was a "milk man" for several years. Unfortunately for him he had received some really poor advice from a financial planner and lost most of his money in the crash of '87. He was surprisingly very relaxed about it all and said he enjoyed the 5 years of being his own boss. He went back to being a plumber.

 

[Gworker]

There was a good show on HBO that profiled different winners. They showed some that could manage their money and who did alright. One guy said it was a full time job just keeping track of his money. They showed quite a few who lost it all too.

 

[MuirWannabe]

I've been oddly attracted to this show for a while now. It is very much like watching a train wreck. So many of these folks have no qualms about spending their money in such crazy ways. I saw a wicken worshipper who created his own record company to promote some black death crazy girl singer. Some other guy who bought a roadside rest stop with teepee cabins. Maybe the most sad ones are those who invest in ill fated 'great' family business products and ideas.

Almost everyone goes out and buys new cars (usually several). Guess I'm just not that into cars so that always surprises me.

But I can't turn away from watching even though I feel dirty afterwards.

 

[seabourne]

Ah, I do think that I'd buy a car, maybe even new. Never owned one, might be an interesting experience. Most people seem to think so. I think that one of my first calls would be to an attorney I know - there are a few at their firm who specialize in helping people who come into large sudden sums of money - sports figures, inheritances, lotteries, IPO sales, etc., who specialize in it - the taxes, the (controlling of) publicity/privicy, the initial allocation, the advice to blow 10% so you know that you've actually won and things have changed, but invest the rest...

 

[kumquat]

There was a ~60 y/o western Canadian farmer, some miles from my home town, who won 3.5M in the lottery. Went totally spend crazy. He let his wife quit her job and he bought himself a used pickup truck.

 

[tryan]

I remember a discussion about "powerball" (lottery) numbers with a co-worker. She's been playing a combo of family ages and b-days for years ... I said I've been waiting for years for my numbers to hit: 1,2,3,4,5,6. To which she said "Oh, those will NEVER hit".

She was less happy when I explained that statistically our chances are EQUAL.

No, I don't play.

 

[Independent]

There was a heartwarming story roughly a year ago about a lottery club in a tiny restaurant in northern Michigan that won 12 million dollars - about $400K each. Nearly all the staff stayed on to work, mostly in loyalty to the owner. Their splurges were to pay off house trailers, get dental work and send kids to college. I hope things continued to work out for them, as they really seemed to take their windfall realistically.

Interesting story. It looks like there were 30 winners. I wonder if the number helped in decision making? I imagine them talking a lot about relatives, investment "advisors", making the money last, etc.

The only times I've tried the lottery were pools at work. I figured it would be easier to win if you're part of a group, and rather depressing if the group won but I didn't join.

 

[Culture]

I saw a wicken worshipper who created his own record company to promote some black death crazy girl singer. Some other guy who bought a roadside rest stop with teepee cabins. Maybe the most sad ones are those who invest in ill fated 'great' family business products and ideas.

It definitely seems to me that the largest amount of money is lost by winners with absolutely no business experience starting businesses. They have profiled winners starting up hotels, restaurants, auto dealerships, record labels, and manufacturing business. Given the amount that is lost by experienced people starting businesses, it is no surprise the less experienced do even worse.

OTOH, it seems some of the most grounded start small businesses (i.e. low overhead) with no real anticipation of making a profit, just doing something they love and keeping themselves busy.