The Lottery Changed my Life - Have you watched it?

Culture said:
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.
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I think there are many people who make one great mistake - they make money in one field and think they know something in an unrelated field that they can make money.

To a degree we all do in on this board - most have made money by working and LBYM. Yet, after we retire we think we can make money by investing in stocks and bonds to meet our need and in the face of economic challenges over 30 years and more.
 
dex said:
To a degree we all do in on this board - most have made money by working and LBYM. Yet, after we retire we think we can make money by investing in stocks and bonds to meet our need and in the face of economic challenges over 30 years and more.
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That is perhaps true for some of us. Others expect to make money from investing, but have long track records of doing just that. Many more invest passively, and their expectation (founded or not) is that the past will be similar to the future and a passive particip[ation in a very broad swath of debt and equities will support them. One thing about this faith that I wonder about is how can the future be withinn past limits, when interest rates for example are already so much lower than almost all prior periods?

And of course there is large group whose only necesary faith is that there won't be a persistant and somehow effective voter revolt against paying their very attractive retirement packages, when these same voter/taxpayers have seen all their income cources get smaller. Social security dependency while not as lucrative is also similar in that others have to pay so the retirees can play.

Ha
 
dex said:
To a degree we all do in on this board - most have made money by working and LBYM. Yet, after we retire we think we can make money by investing in stocks and bonds to meet our need and in the face of economic challenges over 30 years and more.
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I disagree with this. I do not think I can make money in investing (in the sense of alpha), I merely believe that through passive investing I can take advantage of the economic growth created by others. In a sense, I am a leech on people who do know what they are doing (i.e. the captains of industry).
 
Culture said:
I can take advantage of the economic growth created by others.
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Well, as long as you aren't taking advantage of the economic stagnation and decline created by others, you should be OK.
 
I rarely buy a lottery ticket, usually only when the prize is over $100M. I mean, really, a tiny chance is a tiny chance, but it is a chance. :D

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.
 
Culture said:
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.
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Actually I can't understand the desire for anyone to want to appear on reality tv. I don't get the whole 15 minutes of fame bizo. I would much prefer my privacy rather than having my life dissected for what purposes.

BTW I do buy lottery tix and I have to say I believe that over the years I have come out ahead. When I was 20 I won $5k on a scratchers tix, this was shared by 2 other co-workers. 6 years ago I won $18k on the lottery in Australia, all winnings in Oz are tax free. Less than a year later I won another $1k. I have won $500 a few times on the California lottery the past few years as well. The stupid thing is people will tell me how lucky I am, however they never buy tixs themselves so not sure why my winning is lucky.
 
tryan said:
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.
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I play when it gets over $200M. The fun of discussing what we will do with the money is valued at much more than $1.
 
dex said:
Well, as long as you aren't taking advantage of the economic stagnation and decline created by others, you should be OK.
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Well, unfortunately when you are dragging on others tails you have to take the down with the up. Let's hope that the stagnation and decline is not permanent. I do not look forward to living with Tina Turner in Bartertown.
 
Culture said:
Well, unfortunately when you are dragging on others tails you have to take the down with the up. Let's hope that the stagnation and decline is not permanent. I do not look forward to living with Tina Turner in Bartertown.
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Made me look:

 
harley said:
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.
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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 !:(
 
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.
 
Moemg said:
I also enter the HGTV dream home contest and one year I was convinced I'd be the winner...
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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.
 
Gworker said:
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.
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Even after the hassle of selling it, and am certain I would be happy with the after-tax profits.
 
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!
 
HFWR said:
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!
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+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. :D
 
Meadbh said:
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
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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.
 
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.
 
evodbor said:
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%.
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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.
 
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