Posted on 01/26/2014 10:17:02 AM PST by Innovative
Bump for later
IIRC, he died recently broke, from an overdose.
Someone on FR could probably verify some other details.
5.56mm
I met a college professor who had done research on how lottery winners were affected by their new found wealth. One interesting observation she shared was that the money winners often found themselves alienated from friends and even family who now saw them as primarily a source of money and free good times. She also told about a girl in her early twenties who was a large money winner. The girl was not particularly educated and grew up in very modest surroundings. After winning the girl became alienated from her friends who seemed to want to use her just for her money. However, while she used the money to move up in society, the girl said she never really felt she fit in and had a hard time establishing new relationships in a more affluent society.
Money may not buy happiness, but it can sure make the down payment. I’d like to have the chance of losing a million dollars. Note to self - no drugs, no low life friends, no gambling, no prostitution and don’t leave half of it in the car.
Same story could be written about Sports stars and Media stars. Very few of them, mainly those who come from well-grounded families and friends, still have the millions that gilded their names in their glory days. Anybody care to guess when Ol’ Justin B will be wondering “What Happened?!?”
I particularly feel sorry for the bag-boy preacher who lost it in being generous to others. Having that amount of money must have seemed a real way of helping others but it seems everyone took advantage but also took no responsibility! Hmmm, sounds a bit like Uncle Sugar, doesn’t it!
Good point.
“I don’t care about losing all the money. It’s losing all the stuff.”
lol
Step 1- have lunch with lawyer and CPA to set up trusts.
Step 2- take lump sum and the trust takes posession, anonymously of course.
Step 3- pay off all immediate family debts:house, cars, loans, credit card, etc.
Step 4- tax free muni bonds bought from me! A million dollars after taxes, I can get approx. $80,000.00/yr tax free income, and you still have your $1mm at maturity. Don't put all eggs in 1 basket though. Bullets, food, gold and silver us a good place to park money.
after your family is financially safe, then you gift to family, friends, charity, etc.
It can and has been done.
One must assume the lottery or bank holding the funds will remain viable to take the monthly payments. One crook in charge or bad luck bank and you could get little to nothing. I think this is the main reason people take the lump sum payment because it’s guaranteed money.
That's why you don't put your money into a bank or into the hands of an independent money manager. Invest with a reputable money managing company, like Edward Jones or ING.
Yes indeed, don’t invest with Madoff — I am sure there others like him out there too.
DIVERSIFY, don’t invest with an investment advisor, just because all the famous people do, many lost a great deal of money because they were greedy and gullible and believed Madoff.
I doubt a “trust” can’t take initial possession, though in some places one may remain anonymous.
A “trust” tried to claim a prize in Iowa. Not only could a trust not claim it, any claimant has to prove a lawful chain of possession of the winning ticket.
Not much is said about the other winners before they won. The gym owner seemed to have already been successful prior to winning. Too many people really don't know where to turn or who to trust after they win big, having never had that kind of money before.
And what with the story from the UK about banks not giving people their money back without a "good reason" makes me trust banks even less (if that's possible), so storing tens of millions in a bank even for a short while doesn't seem like much of an option these days.
What's a safer investment than multi-year jumbo CD's? Not much of an investor, so IDK.
******“Money won’t make you happy”,
Yeah, but it’s nicer to be miserable in a Rolls Royce than in a Yugo.
Agree, Poverty won’t make you happy either. I’ll take the money, trust, DPA and will already set up. At 75 its time to party. If I can find any energy..
“Step 2- take lump sum and the trust takes posession, anonymously of course.”
Step 2- take lump sum and your newly formed Cook Islands International Trust takes posession, anonymously of course (of course, you always have to report to Uncle Sam).
I would suspect that most winners do succeed in bettering themselves. Why do I say that? Simply because we’d be hearing about them if they were in fact abject failures.
I was wondering the same thing. Give us some stories of people who have done well after winning the lottery. there has to be a few.
The reason why people take cash instead of the installment payments is the UNITED STATE FEDERAL ESTATE TAX imposed upon the estate of the decedent, due and payable nine months after death in CASH. The IRS calls the payments “Income in respect of a decedent”, you own it and anything you own in included is the asset calculation that will be subject to the estate tax.. which can be as high as 50%.
The problem arises in that the estate does not have the cash on hand because it is coming in future down the road payments but the estate tax is payable NOW. Taking the winnings in cash will not eliminate the estate tax but the money is there to deal with the IRS in the ninth month when the estate has to make the estate tax payment.
Do a google on U.S Estate taxation.
Have a good day...
The ones that really get to me are the folks like Jeff Dampier and Bob Harrell, who used their money to try to help others and ended up being burned (and in Dampier’s case, murdered) for it. No good deed goes unpunished, an all that.
As for me, I would not breathe a word to anyone if I won lots of money. I sat down one day after buying a lottery ticket, and wrote out a list of all the people I knew (or had known at some point in my life) that would likely come looking for a handout if I won. I stopped after two full pages of names. Add in strangers, scam artists, and so on, and I’d never know a moment’s peace.
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