The Lottery Changed my Life - Have you watched it?

[Moemg]

Quote:

Originally Posted by harley However, DW and I have entered the HGTV Dream Home giveaway every year for the past 6 or 7 years. We like looking at the house, and it's free to enter. I've been fascinated by the fates of the winners. Most end up having to sell the homes cheap in order to pay the taxes. Only a couple have lived in the places. I've read differing accounts of the situations, some saying the winners were put into major financial difficulties and others saying the winners sold and financed lifelong dreams. If I do win, the odds are I'll join the group who took the money and ran, unless it truly is my dream home.

I also enter the HGTV dream home contest and one year I was convinced I'd be the winner so I really planned exactly what I would do with the house and the night the winner was to be surprized I put on make up and waited for the doorbell . Alas ,another dream smashed !

[seabourne]

Didn't see the spot to register for it on the site - link? The 2011 one looks nice - I'd consider moving there if I could find a job, otherwise, sell it to someone else as a second home or look into renting it out.

[Sue J]

Quote:

Originally Posted by rec7 I wish it was on hulu. Any place to watch it online free?

Here's one episode (Season 2 Episode 1) I found online -

The Lottery Changed My Life: Season 2 Episode 1 on Vimeo

[FANOFJESUS]

Thanks Sue I enjoyed it.

[Gworker]

Quote:

Originally Posted by Moemg I also enter the HGTV dream home contest and one year I was convinced I'd be the winner...

The taxes on the prize then the property taxes kill you. I read that most people dump it quickly. Several of the houses also didn't come with the land. The land is on a 20 or 50 year lease. It seems like more of a hassle to win it.

[Culture]

Quote:

Originally Posted by Gworker The taxes on the prize then the property taxes kill you. I read that most people dump it quickly. Several of the houses also didn't come with the land. The land is on a 20 or 50 year lease. It seems like more of a hassle to win it.

Even after the hassle of selling it, and am certain I would be happy with the after-tax profits.

[bright eyed]

This has to be one of the sadder stories about lotto wins...

http://en.wikipedia.org/wiki/Jack_Wh...lottery_winner)

[Culture]

Quote:

Originally Posted by bright eyed This has to be one of the sadder stories about lotto wins... http://en.wikipedia.org/wiki/Jack_Whittaker_(lottery_winner)

Jack Whittaker has definitely become the standard bearer for the idea that winning the lottery simply magnifies your existing problems.

[HFWR]

I do occasionally buy a lotto ticket. I figure I waste $1 in lots of other ways...

Don't watch the program. Reality shows are verboten. I get enough real life in real life!

[harley]

Quote:

Originally Posted by HFWR I do occasionally buy a lotto ticket. I figure I waste $1 in lots of other ways... Don't watch the program. Reality shows are verboten. I get enough real life in real life!

+1 on that. Closest I come to a reality show is House Hunters International. My next closest to reality show is Buffy the Vampire Slayer.

[HFWR]

Quote:

Originally Posted by harley +1 on that. Closest I come to a reality show is House Hunters International. My next closest to reality show is Buffy the Vampire Slayer.

HHI is not reality for me...

[Meadbh]

This couple who won $50m last year still lives in their 2 bedroom trailer. They have become philanthropists, giving back to their community.
CBC News - Manitoba - Lotto winners fund baseball tourney

[kumquat]

Quote:

Originally Posted by Meadbh This couple who won $50m last year still lives in their 2 bedroom trailer. They have become philanthropists, giving back to their community. CBC News - Manitoba - Lotto winners fund baseball tourney

Sounds like my winners, only more "personally frugal". Aren't Canadians "interesting".

MY BIL had a neighbour (friend) who won about $3M in ~1970. The interesting part of this is that a month or so before the win he had completed the "decree nisi" part of his divorce. His wife had left to become the "housekeeper" for the local catholic priest. Local legend suggested she got the short end of both sticks.

Anyway, he didn't go bankrupt until 2006. He also gave a lot to his kids and the community and those people may still have some of it.

[evodbor]

Hi, I am a lottery winner of 8.2million. I was featured in the last episode of "the lottery changed my life" this last week. The lump sum is the best way as of yet. When I had won I talked to many investors and this is what i had learned. Out of 8.2million I recieved 2.3 million. Doesnt matter what you do for annuity or lump sum, the government rakes in the majority. If i invest 2 million and live off 6% interest, using historical data I would have 55 million in the bank still living off 6%. As opposed to have gone through 8.2 million at the 25 year mark. If you dont have the self control to keep to a plan take the annuity otherwise and plan to be broke in 25 years. I was the last 10 min featured with the youngest lottery winner of 19years old. hope this helps.

[samclem]

Quote:

Originally Posted by evodbor If i invest 2 million and live off 6% interest, using historical data I would have 55 million in the bank still living off 6%.

Please tell us where we can get 6% interest today. And, since you refer to the money "growing" while you live on the 6%, it sounds like you'll actually be getting more than 6% interest. That's quite a feat these days.

$2 million is a lot of money, but it won't enable a young person to quit work and live like a king. Most investors would estimate it would allow a person to safely take out $60K to $80K per year for 40-50 years or so, maybe longer. That can allow a comfortable lifestyle in many parts of the US.

If I were in your boots I'd park the money in a safe place and do my own research about investing. As you know, you won't get a "do over" with this money, and even if you don't want to make all the investing decisions yourself, you need to get educated so that you'll know if your advisor is truly working in your best interest.

Congratulations and welcome to the board.

[harley]

Quote:

Originally Posted by evodbor Hi, I am a lottery winner of 8.2million. I was featured in the last episode of "the lottery changed my life" this last week. The lump sum is the best way as of yet. When I had won I talked to many investors and this is what i had learned. Out of 8.2million I recieved 2.3 million. Doesnt matter what you do for annuity or lump sum, the government rakes in the majority. If i invest 2 million and live off 6% interest, using historical data I would have 55 million in the bank still living off 6%. As opposed to have gone through 8.2 million at the 25 year mark. If you dont have the self control to keep to a plan take the annuity otherwise and plan to be broke in 25 years. I was the last 10 min featured with the youngest lottery winner of 19years old. hope this helps.

Congratulations on winning! Very cool. Yes, I always assumed you'd get about a quarter of the total by taking the lump sum and then paying the taxes. Nice to see how that works.

As far as you plans, if you read around this site you'll see that most of us figure a 4% safe withdrawal rate is the most you can do without having a significant chance of running out of money in the long run. And at 19 years old, I would think that even that wouldn't be too safe.

My recommendation would be to take some time, have a blast for a while, but still plan on working. You're very young, and possibly have a spouse and maybe kids in the future. Pick a career you're interested in, and let the winnings grow for a while. You have the option of doing something you love, even if it doesn't pay that well. But although I'm a huge proponent of retirement and leisure, I don't think even I could imagine 60+ years of never working. You didn't win enough to be totally independent (80 million would have done it ). I knew a $10M winner, and he continued working because with 3 kids, college, a big house, a boat, love of travel, etc, he could see that it wouldn't last forever.

But definitely take some time, have some fun, and think about what you want to do with your life. Don't get sucked in to some investment advisor or annuity salesman's scheme. Good luck to you, and stick around. It would be cool to have someone with your situation involved in the conversations.

[evodbor]

Quote:

Originally Posted by samclem Please tell us where we can get 6% interest today. And, since you refer to the money "growing" while you live on the 6%, it sounds like you'll actually be getting more than 6% interest. That's quite a feat these days. $2 million is a lot of money, but it won't enable a young person to quit work and live like a king. Most investors would estimate it would allow a person to safely take out $60K to $80K per year for 40-50 years or so, maybe longer. That can allow a comfortable lifestyle in many parts of the US. If I were in your boots I'd park the money in a safe place and do my own research about investing. As you know, you won't get a "do over" with this money, and even if you don't want to make all the investing decisions yourself, you need to get educated so that you'll know if your advisor is truly working in your best interest. Congratulations and welcome to the board.

We were advised that 6% was reasonable at the time. that was in 2007 though. right before the crash. the data used was past 25year data (actual data) to kinda of predict the future. however it isnt working out that way. we lost alot of money and have since started a business to help support our parents. We commited to our parents and helping them retire but it is starting to be our downfall. I would hate to tell my parents i cant keep sending you money, but i dont want to lose whats left for my retirement. sticky pickle. but the recovery of the market has helped. I will go back to work as a RN when this business is successful enough to keep going with a manager. One i trust anyway. Night all.

[73ss454]

Listen to what some of the other posters said. You need to park the money in a safe place and do some reading. Hang around this and the diehards forum and learn. Stay away from advisors till you learn and read. Once you've done that you can make some rational decissions on what to do with the money.

[dex]

Quote:

Originally Posted by evodbor Out of 8.2million I recieved 2.3 million. Doesnt matter what you do for annuity or lump sum, the government rakes in the majority.

Did you consult a lawyer/CPA about any way to reduce the bite - a trust or something? All the info I've read said there isn't.

Quote:

Originally Posted by evodbor If i invest 2 million and live off 6% interest, using historical data I would have 55 million in the bank still living off 6%.

$2M is a lot of money but you have to make it last about 65 years. Look back over the last 65 years to get an idea what can happen & not just in the USA.

One piece of advise on investing - look in the mirror that is the person with the greatest potential to do harm to your finances. That person is needs to be educated, disciplined and wise. Many people will talk about their successes; pay attention to those who tell you how they lost money.

[Nords]

Quote:

Originally Posted by evodbor Hi, I am a lottery winner of 8.2million.

Yeah, if I was a lottery winner too then the first thing I'd also do is register on one of the world's largest Internet discussion boards and start handing out enough personal information to give people the chance to track me down and provide lucrative offers.

Oh, no, wait, the first thing I'd want to do is to learn why my 6% assumption is fatally flawed... and get real retirement advice from someone whose idea of "history" extends further than 25 years. Especially if you're looking at 60 or 70 years of remaining lifespan.