One of the weirdest things about Whitaker is that he was already a millionaire as a construction contractor. You'd think he would have had some experience getting -- and taking -- legal and financial advice.
What not to do when you win the lottery
- Thread starter Arcade22
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One of the weirdest things about Whitaker is that he was already a millionaire as a construction contractor. You'd think he would have had some experience getting -- and taking -- legal and financial advice.
Checkmite
Skepticifimisticalationist
Definitely. If anyone could be expected to gracefully handle a multi-million-dollar jackpot, surely it would be a person who already has a couple million. But, as he points out himself, the difference was the fact that before the lottery, nobody knew he had that much net worth. His life was ruined by family and friends and strangers constantly asking for money and his being unable or unwilling to say "no".
The advice I've read when it comes to multi-million lottery prizes is, as you say, get a lawyer and ask "what do I do now". But it can't, and shouldn't, be just any lawyer. Definitely not one you already know. It needs to be an attorney from a national firm that routinely handles high-net-worth clients and has no prior connection to you, or anyone in your family, circle of friends, local community, etc.
Information Analyst
Penultimate Amazing
Well, as I said, £75k would be more than we're both on now, but we'd be saving around a third of our current take-home on rent and commuting costs (and paying off some outstanding debts), so we'd actually be considerably better off. It's unlikely the even close to full £75k interest would actually be spent, there would still be a buffer of the remaining uninvested £1m or so, and of course interest rates may actually get better.
Everyone's different, of course, but certainly my own interests couldn't actually cost significantly more than I'm already comfortably spending, not least because certain aspects generate income to offset expenditure already. I've never driven, have no desire to do so, so no urge to buy a new BMW every other year, and any use of London's public transport would be a lot lower and far less expensive than what I currently do for work (Zone 3 to 4 via 1).
Information Analyst
Penultimate Amazing
That's a bit like citing chronic alcoholics to characterise everyone who drinks alcohol. That you notice the extremes is hardly surprising, but it doesn't make them the norm. I've run lottery syndicates at places I've worked in the past, and certainly with the UK one we did get approximately 50% back, which was obvious because we only distributed the winnings at Christmas. It was certainly not the case, though, that syndicate members were constantly demanding that we should play more and more lines than we already were, or immediately spend small winnings on scratch cards, or whatever.
Yes, at the start of this thread (although I'd already heard of it previously).
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quadraginta
Becoming Beth
Yep.
Plenty of variations on the same theme. I just like the way she phrased it. Kinda made the point more powerfully.
TragicMonkey
Poisoned Waffles
Because of your avatar I can't help but hear all this said by Peppa's dad, and think that you'd better save up a fortune for dealing with the aftermath of Peppa's young adulthood. You just know that girl is going to go wild, and you'll be spending a fortune on bail and legal bills. I wouldn't bet on George being any less wild, either.
newyorkguy
Penultimate Amazing
I agree. The problem is that some people think just suddenly having a lot of money will make them a new person. Instead they discover, 'they're the same old me.' I saw a similar study from the U.S. It was true, many (close to 50%) of the big winners go down in flames. In a few years they're broke. I remember reading an interview with one guy who went absolutely crazy. When he began to sense the money was starting to run out that increased his anxiety and panic and he blew through the remaining money even faster.
Again I agree. A guy I know, Mike the Professional Gambler (long story) says the smartest thing to do is sign over the winning ticket to a bank. They'll give you a big payout (more money than the lump sum option from the Lottery people because the bank knows how to minimize your tax load) plus you get their advice on how to safely make the money grow and/or last a lifetime.
If I ever win big that's what I'll do, though that's a 'problem' I don't ever expect to have.
What's the big deal about making it last? Where's the fun in that?
The whole point of playing the lottery is in having a huge pile of money to blow on frivolous things, things you wouldn't ordinarily have access to.
I'm a consumer. I live in a consumer economy in a nation that depends on consumption. It's my damn duty to consume, and by God I'm good at it. Am I tens-of-millions-of-dollars good at it? Challenge accepted!
The whole point of playing the lottery is in having a huge pile of money to blow on frivolous things, things you wouldn't ordinarily have access to.
I'm a consumer. I live in a consumer economy in a nation that depends on consumption. It's my damn duty to consume, and by God I'm good at it. Am I tens-of-millions-of-dollars good at it? Challenge accepted!
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paulhutch
Master Poster
The financial calculation on lump sum vs. over time is not simple and requires reasonably accurate estimation of two difficult to estimate values. The first is the highest income tax rate, if you think it will go down over next 30 years you should take the annual/monthly payments otherwise take the lump sum. The other is how much average return on investment you can achieve, predicting 2% over 30 years vs. 4% over 30 years will make a big difference in the calculation.
This article form Business Insider goes into more detail on these issues and points out other factors to consider.
http://www.businessinsider.com/shou...or-the-lump-sum-if-you-win-the-lottery-2013-9
This article form Business Insider goes into more detail on these issues and points out other factors to consider.
http://www.businessinsider.com/shou...or-the-lump-sum-if-you-win-the-lottery-2013-9
One of the biggest factors to consider is how long you expect to live. If you're 35, taking a 30-year payout might be sensible. But not if you're 62. Even if you want your heirs to get your money after you're gone, they will usually have to pay taxes immediately on the remaining future payments. At any age, taking the lump sum gives you flexibility and liquidity that you don't have with an annuity, and it just shouldn't be that hard for adults not to do something really stupid.
TragicMonkey
Poisoned Waffles
I'd take the lump sum simply because I wouldn't trust the lottery to honor its future payments. A fortune in the hand is worth two of George Bush, after all.
twinstead
Penultimate Amazing
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I worry about this too (hypothetically, of course, because I don't have win lottery kind of luck). Who knows what will happen in 20 years
Trebuchet
Penultimate Amazing
And then you're going to turn it over to a bank or Wall Street and trust them with it.....
Information Analyst
Penultimate Amazing
Seriously, I think Peppa will be fine. It's Candy Cat I worry about.
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bonzombiekitty
Graduate Poster
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At least then you have some control, diversify, etc.
Personally, if I won the lottery, I'd do things in the following order:
1. Hire a good lawyer and financial manager.
2. Pay off all my debts (mortgage, car, student loans)
3. Put enough money in an account for my kids college.
4. Set enough aside in a safe account(s) so that if I was out of a job, I'd be able to get by fairly comfortably.
5. Pay off parents debt.
6. Give parents enough that they can retire.
7. Siblings get a set amount of money.
8. Niece and nephew get a set amount to use for education.
9. Put enough aside so that I can retire now and live very comfortably.
TragicMonkey
Poisoned Waffles
I'd divide it between safe but boring T-bills, CDs, and a selection of Vanguard index funds. It would take nuclear war and/or a complete economic depression to injure all of those things, and in those events I'd be worried about more than mere money anyway.
We already have states not paying out lottery winners because they don't have the money (but they don't stop collecting money by selling lottery tickets). I think Illinois is one.
The CDs would be especially valuable after a total economic meltdown, because all the subscription music services would be down. (Just don't forget to include an appropriate ratio of CD players in your investment, and solar chargers for them.)
LOL
That's one of the funniest things I've read in quite some time. In fact when I read the OP I was going to suggest she do that as a silly absurd joke. Which not surprisingly describes this mental midget.
So if she sues them and wins, does that mean they're forced to take back whatever money is left? No wait, make her REALLY happy...take back more than she won! If she's in more debt she should be as happy as a pig in slop
(Which btw is what her pic reminds me of. Yikes. Did we O.D. on the lip stuffings as well?)
Never a shortage of painfully stupid people on the planet is there?
Armitage72
Philosopher
At the store I mentioned working at, one of our regular customers was actually a few positions from the top in the New York lottery operations. She and a customer playing the lottery were in at the same time.
Customer: Oops, almost forgot my gambling.
Lottery Woman: Now, now. It's not gambling, it's entertainment.
Me: (blurting out) Yeah. For it to be gambling, you have to have a reasonable chance of winning.
The dirty look she gave me...
