Lottery winners who went broke after winning millions

[Gracin]

Basically, the trick to being happy after winning the lottery is to never let anyone know you won the lottery. Ever.

Problem with that in the US is that there are only like 5 states that allow the winners to not be announced publicly.

The lotto winners going broke is actually a lot more common than people realize. Now granted, not all of them are huge multi-million dollar winners. The problem is they look at it as a time to do whatever the fuck they want, and after it's all said and done the tax man bites them in the ass.

I don't play the lotto much, but I had already decided if I were ever to win big, 100+million lump sum after taxes is what I consider big, I would invest 40%, stash away 40% to continue investments over the next 10 years, and keep the remaining 20% to live on. Honestly, I'd likely spend my days just traveling wherever I wanted for months at a time. Not like first class, high roller travel, just travel and enjoy the world.

[Silent One]

This is why anyone who wins should take the annuity amount if possible. Unless you actually plan to build interest/ can invest it more wisely, (yet only like 10% actually take annuity.) Also in the long run you get taxed less.

[breadisfunny]

This is why anyone who wins should take the annuity amount if possible. Unless you actually plan to build interest/ can invest it more wisely, (yet only like 10% actually take annuity.) Also in the long run you get taxed less.

doesn't the lump sum pay less though?

[Nadiru]

doesn't the lump sum pay less though?

Capital attracts more capital. Investing 40 million bucks from the lump sum (say you won 80 millionish so you net 40 mil) with a ROI of 3% (a conservative estimate) still nets you 1.2 million a year. 40 million over twenty years is 2 million per year, call it 1.8 million after taxes. But once those twenty years are up, if you haven't got any money left, you're done.

[breadisfunny]

Capital attracts more capital. Investing 40 million bucks from the lump sum (say you won 80 millionish so you net 40 mil) with a ROI of 3% (a conservative estimate) still nets you 1.2 million a year. 40 million over twenty years is 2 million per year, call it 1.8 million after taxes. But once those twenty years are up, if you haven't got any money left, you're done.

doesn't the annuity pay the full amount though? so in that case wouldnt it be 80 million before taxes over twenty years? so then 3.6 million a year?

[TirielWoW]

When they take the lump sum, I'm usually pretty sure things are going to go downhill for them. The ones that take the lump sum always seem to just spend it all away.

[breadisfunny]

When they take the lump sum, I'm usually pretty sure things are going to go downhill for them. The ones that take the lump sum always seem to just spend it all away.

me i would take the annuity.
although if your old there is a more valid reason to take the lump sum. cause then it won't matter if you spend it all since your in your twilight years anyways.

[Hammerfest]

It's not surprising to me that lottery winners often don't know how to handle wealth. Most weren't wealthy to start with (hence, why they bought the ticket)... so what would they know about having and maintaining it?

[breadisfunny]

It's not surprising to me that lottery winners often don't know how to handle wealth. Most weren't wealthy to start with (hence, why they bought the ticket)... so what would they know about having and maintaining it?

well except for that guy that won the last lottery ticket in a upper class part of beverly hills.

[Forgettable]

The problem with the lottery is that the type of people who would buy a lottery ticket are the people least likely the benefit from it.

[Shadowspire]

It's called self control and a lot of sports players seem to have this along with celebrities.

Yes money makes life 100x easier but only if you spend and invest wisely. Lottery winners suffer the most from spontaneous wealth gain(SWG) because most think they are now in leagues with ppl who they see on tv, when I truth it's probably equal to that Doctor you see on tv in your town or the guy you hear hosting toe wide events.

If I'm ever lucky to win I already have a budget of what I want to do and what I'll do with the rest.

[Surfd]

john daly isn't he like 500 million in debt or some really huge amount along with michael jackson and several other dead celebrities?

Definitely not Michael J., unless the people managing his estate are complete fuckups. Even for a guy about 7 years in the grave, he still managed to top the list of highest grossing dead celebs for 2016, practically by a country mile.

[breadisfunny]

Definitely not Michael J., unless the people managing his estate are complete fuckups. Even for a guy about 7 years in the grave, he still managed to top the list of highest grossing dead celebs for 2016, practically by a country mile.

maybe i was thinking of some other celebrity.

[Shadowspire]

well except for that guy that won the last lottery ticket in a upper class part of beverly hills.

This hurt to read...I always gate seeing the lottery reset but my comfort is that it's going to some old person or a person who was struggling, Lower class...

[breadisfunny]

This hurt to read...I always gate seeing the lottery reset but my comfort is that it's going to some old person or a person who was struggling, Lower class...

yep. all that money wasted on making the rich even richer.
correction it was chino hills. my point still stands.
there was also a trio of wealthy men in 2011 who won 245 million in the lottery.

[OperationFerret]

Well, the flame that burns twice as bright burns half as long.

[Xar226]

As always, the best advice if you are lucky enough to net a big lottery win is to talk to some kind of wealth manager, accountant, and/or investment professional. There will be plenty of money to have fun with; call one of these guys to help you make even more. As others have pointed out, with sums of money this large it doesn't take incredibly savvy investments to really pad out your fortune.

[Deleted]

Money is useless once you stop existing. Might as well use it while you're young.

[breadisfunny]

Money is useless once you stop existing. Might as well use it while you're young.

there is no evidence to back up that claim. death is an unknown you cannot prove what happens in death anymore than you can disprove it.

[Shadowspire]

Money is useless once you stop existing. Might as well use it while you're young.

Except money also keeps ppl from just tossing you in a nameless hole....end of the day money is in everything. Is it bad? Hell yeah, but can it change, not anytime soon.