Hoping to cash in on the Mega Millions jackpot? Here's why winning isn't always a good thing
S E E D E D C O N T E N T
Winning the $970 million Mega Millions jackpot may sound like a dream come true. But if you purchase a lottery ticket, buyer beware: Coming into that much wealth can easily become a nightmare.
"You assume money makes you happy or takes care of all your problems. But money doesn't do that," warned financial planner Jim Shagawat, president of Windfall Wealth Advisors in Paramus, New Jersey, a firm that specializes in helping people navigate large sums of money they have received. "And it can cause friction with family and friends."
Friday's Mega Millions drawing is the second-largest lottery prize in U.S. history. With odds at one in 302.6 million , chances of winning are slim — but if you do somehow manage to correctly pick all six numbers and claim that jaw-dropping prize, you can bet your life will be different, although not necessarily for the better.
"When you come into a large sum of money, particularly when you're looking at a near 1 billion payout, there's this idea that I have a great sense of security, and the idea that I will never have to worry about money again. In fact, it's completely the opposite. You have to worry about money more than ever before," said Paul Golden, a spokesman for the National Endowment for Financial Education, a Denver-based nonprofit that helps people manage money.
Golden noted there are a range of feelings that winners can experience: Along with happiness and excitement, anxiety, fear, and stress are common with any sort of windfall, whether it's from a lottery win, an inheritance, or any other large payout.
And while Golden said there are no statistics on how often lottery winners blow through their earnings, there are plenty of cautionary tales.
Like David Lee Edwards , a former drug addict who won a $27 million jackpot in Florida in 2001. After buying a mansion, cars and other high-end purchases, he and his wife started using drugs again. Following multiple arrests for possession of drugs, Edwards lost all his money in only a few years and ended up living in a storage unit.
Then there was Andrew "Jack" Whittaker , a West Virginia building contractor who was already a millionaire when he won $315 million in 2002. Things turned sour eight months later when thieves stole $545,000 that he had stashed in his car and only got worse from there: Four years after his win, Whittaker was broke. He faced multiple lawsuits, including one by a casino to whom he owed $1.5 million after checks he tried paying them back with bounced.
And Willie Seeley , who along with 15 co-workers at a car maintenance garage in New Jersey won $450 million in 2013, said the drama was "nonstop" after his win, with media constantly calling him and people asking for money. He and his wife quit their jobs and bought a new pick-up truck and Chrysler, made home repairs, and helped some family out — and his share of the jackpot ran out fast.
"There are days I wish we were back to just getting paid every two weeks," Seeley said
Experts say there's a tendency for lottery winners to act impulsively. They advise immediately compiling a team of professionals, including an attorney, a financial adviser, an accountant, and even a psychologist to help make wise decisions with their newfound wealth.
Read more at the seeded content
Tags
Who is online
536 visitors
I know that most of us would love to win a couple of mil, but apparently, it does come with some downfalls. Do you think that you could handle the pressure of suddenly being rich?
I am more than willing to give it a try .
Yes. Momma didn't raise no fool! I am easy to cope and
aller' nearly all my 'foolish' days are behind me. So yes, who would my friends be? The good, true, ones 'that go along way back.' The newbies not so much. And yes, there will be new people bumping into your car "accidentally" at the parking garage. Oops!And Perrie, personally I do not need 500 plus million dollars to be happy, or have people clamoring to meet me in order to kill me (graveyard dead) to get it!
NOTE: 970 Million!!! It has 'climbed' since the last time I looked at it!!! By AM Friday, . . . (Babs gasps-screams, "Bette Davis!" and the back of hand touches forehead as he elegantly swoons to the floor.)
There is a difference between money easily won and money earned through hard work. It's the money that is hard to come by that is respected more. Eventually, wisdom guides us all. I'll bet if all those mentioned in the article, who lost it all, had a second chance they would know just what to do. Second chances are rare.
Shoot! And now we're at $1,600,000,000
That's $575,000,000 lump sum here.
I'm guessing we'll see in to $2-3 billion before this is done.
Can you imagine a single winner? Holy smokes!
Didn't I already post an article on NT that if I were to win a big one I would reserve a beautiful resort hotel in Colorado, and invite all the members of NT (and their spouses/companions) for a long weekend, pay for all the rooms, and all meals which would be provided banquet style, (but not any other expenses)?
Somehow I think I could manage the money, and I would seek sound investment advice, but if it were at all possible, I would prefer to have a trustee represent me in order to remain anonymous, because it's bound to be true that the media would make a circus out of it, every charity in the world would bang on the door - I know what charities I would fund. As well, I would certainly share it with family in the event that it was more than enough to provide enough income for me to be comfortable for the rest of my life and I don't need a castle to be comfortable.
"To be, or not to be: that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous fortune ,
Or to take arms against a sea of troubles,
And by opposing end them ?"
Thank you, Hamlet. If you don't mind, I'll suffer the slings and arrows of outrageous fortune.
Put in simpler terms...
I've been rich and I've been poor,
I'm here to guarantee you one thing,
Rich is better....
As have I, my friend, as have I.
The article I posted about my life at my lakeside home was when I was rich. Here in China, I've been poor, but I'm not entirely sure which life I enjoyed more.
I've read stories of the winners that lost it all. All I can say is ''give me a try with it''....
Same here.
At 64 I'd buy a Ferrari, travel, stay in the best Hotels and sleep with the most beautiful women on the planet until My excesses got the best of me.
E.A Wow!!!!
Talk about Misogynistic, what makes you think that Woman or ANY woman can just be " Bought "??
They call it "the oldest profession" for a reason. Renting is not buying. Grow up.
E.A
Ok so you think " all " woman are part of " The oldest profession "?
And a " Hand Full of $$$s " would get you?
HA!
You're a mess. LOL!
Being a member of the second-oldest profession, I can tell this joke.
What's the difference between a member of the oldest profession and one of the second oldest profession?
A member of the oldest profession can screw you only when you're alive.
In the unlikely event.....I do have a plan in place......My phone number would immeidatley go to an answering service. I would get a new and unlisted number. The answering service would take messages that would filter throguh my financial advisor.......of course, my family and friends would be looked after. There are several charities of choice I would donate to, but likely through a foundation......We purchased a group of tickets last night for my office-pretty much everyone jumped in as no one wants to be the only one that shows up for work on Monday.....
What do the say, a dollar (actually $2) and a dream? I can see how the stresses could mount-good preparation and immediate execution upon winning are keys to enjoying the windfall for generations to come.
Well Perrie, as they say you have to take the bad with the good. I'll take the bad, good, the 970 million and my chances
I've always been good with a buck and I know exactly who I would hire.
Here in Fl. I would get $349 mil after taxes.
1/2 gets put away for about 20 years in something like muni-bonds (tax free interest)
The other 1/2 will be chunked out for a non-profit I've been itching to start and salaries, our personal expenses etc. Most of it funded by interest. @ 3% $150,000,000 produces 4,500,000/yr. tax free.
Yeah, I could do this...
What isn't mentioned is security 24/7. You can't have this much cash and not be a target.
My friends have been my friends for 30 years, I don't think I'd have those issues.
It is easy to spend money. I am amazed, however, that people can be as irresponsible as the cases mentioned to lose that level of wealth. This is very easily addressed. Hire a financial manager (being careful to ensure you are working with a credible firm, etc.) who will sensibly invest your money and establish a monthly transfer of income for monthly expenses. The monthly transfer would be based on the principal and one's life expectancy so that the money will never run out. Next, when making a major purchase (e.g. a home) do not buy a castle in France. Buy a nice home / mansion whose expenses can be paid from the monthly income. The cost of the home is not as relevant as long as it at least retains its value over time.
None of this is complicated - average level of intelligence is all that is required. The key, however, is to have some bit of discipline. That, it would seem, is where people screw up. Think critically, not emotionally.
If I won, I doubt I'd buy a new house. Maybe do some work to the one I own, but I'm pretty happy where I am, and my house is reasonably low-maintenance.
I'm not into expensive clothes or cars. I think my weakness would probably be travel. And a yacht would be really tempting.
The yacht would be quite a maintenance problem - money pit. But you could rent yachts or go on awesome cruises.
Take the wind right out of my sails. Thanks a lot.
There would definitely be awesome cruises, if I won the lottery. But I'd probably have to play, first.
I had a small boat, 16 foot, when I was younger and I was ALWAYS throwing money at it. That being said, I would settle for a 99 foot yacht, 4-5 million??? Anything under 100 feet you don't need a captains license, so no need to hire anyone. Take it out for a month or two, come back, hire a cleaning crew and have it checked by a mechanic....good to go. Yea, still would cost a lot of money, but, what you make in interest on that much money would more than cover the maintenance.
It would be a good idea to rent some different Yachts at first though so you know what you need and use and what you don't. besides if after the first year you find that you only want to use it a couple months a year it would be cheaper to rent. If you rent you can have a Yacht in Europe, on the East or West Coast of the USA, in Asia, Australia, and in Hawaii without the time and expense of getting it there. Plus it would be nice to spend a month sailing the Mediterranean then step off the boat and do a month or two of inland travels without worrying about the Yacht. Also you want a Captain who knows the Ports and places of interest and you need a Cook/Maid to cook, clean, and shop for supplies while you're enjoying yourself. If you try that for a while and still want your own then buy one, or just get a 30-40 footer for local waters and rent when you travel.
I am thinking about taking it across thirty years. Why give away 1/2 of my loot to the 'system'? Live steady on! Bless a few people; deal with those few incessant loud-mouths in the family (once and for all) and the 'fools' who will remember somehow I took something from them over the years; and of course, the handful I
may havedefinitely did hurt even though I didn't me too.I love the advice of all y'alls! Especially about the answering service and damn I will at least one 'handler' to go with me everywhere after the cash begins to flow, alas!
Touching back down to Earth for a moment: I feel for the young person who could win. All that cash and all that living to do! What a rush! What a mighty train wreck starting down the tracks! That kind of wisdom is not easily gained in 'quick-time.' I am looking at a few young knuckleheads right now - strident, hard-headed, and willful. . . who can advise them?
Of course take care of my family first....but for fun....I would buy a summer home on a lake in northern Michigan and boats, a speedboat for skiing and a pontoon boat for partying, canoes, jet skis, etc. A Mustang, car not horse, or maybe some horses too. A Ferrari...cheapest one since I would only have about $350k. Then a winter home in the Caribbean somewhere. And then travel till I drop dead.
Me too. I would hit the road.
I don't want to win. Mr Giggles would give all of it away. You should hear him when he talks about winning. Giving X millions to this friend, X millions to the family, X millions to some charity
I won't ever get my new house!
I wouldn't want to win. I'd retire, and I'm enough of a natural recluse that if I retired now, I can see myself going full-out hermit.
LOL, I'll never win and here is why.
Some years ago I was carded when buying some beer. When a little grey is already showing you just kind of shake your head.
After she returned my ID she asked if I wanted wanted to purchase a lottery ticket. I sad no and gave her dollar bill to tear up and throw in the trash instead.
I remember her reply to this day: "Right, tax for stupid people".
I don't know about that, but it's funny and use it sometimes.
I don't even know how to pick numbers for a lottery ticket.
I don't either and not willing to spend time learning.
Ditto.
In fact, people who hog the cash register buying lottery tickets when only one register is open piss me off. I just want to buy my snack and leave, please. Can you move aside to do your scratch-offs, and let me pay?
LOL, I just "love" that too.
Then they go through all the permutations to come up with numbers.
Exactly right, I want my little snack and go.
I have heard that platitude too. No, the Lottery is not designed to be easy (as 'better off' people and 'pools' could buy it up), it is designed to let everybody in for a chance. A chance is all we are guaranteed by the Lottery Commission: Not a victory! Moreover, I have stood in line and had people query me along those lines word for word . I reply: If I hit jackpot once it will make up for all the money my 'masterplan' calls for me to put in over the years.
When I get up to a discernible "mega-thousands" in and not have a victory well, . . on second thought. . .I may as well keep going until I get all of my money back and more besides! See below
"Souami has played the lottery for 21 years, but his 20-year-old son, Imel, has long urged him to stop, citing slim chances of winning."
Powerball winner’s son told him to stop wasting his money on the lotto
By Jennifer Bain and Natalie O'Neill
June 8, 2018 | 4:17pm
The winner of a $315.3 million New Jersey Powerball jackpot — the third largest single-winning ticket in the state’s history — is an African immigrant whose son urged him for years to quit wasting money on lottery tickets, he said Friday.
“Father knew best,” Tayeb Souami, a 56-year-old accountant from Little Ferry, quipped.
Lucky winner claims $315M Powerball jackpot prize
Souami, a father of two who came to the US in 1996, will take home a cash payout of $183.2 million before taxes, he said at a press conference in Trenton.
“I’m very emotional right now in front of you,” he said tearing up. “I am lucky.”
Souami was returning a $5 carton of orange juice at a ShopRite on South River Street in Hackensack when he bought the winning lottery ticket on May 19. He chose numbers 3, 6, 9, 17, 56 and the Powerball 25.
The next day, he took the ticket to a 7-Eleven clerk — whose jaw dropped as she scanned the ticket.
“She kept saying, ‘Oh my God!” Souami said. “My heart was just beating, beating, beating [fast].”
It took him two hours just to fill out the lottery forms because his hands were shaking, he said.
Souami has played the lottery for 21 years, but his 20-year-old son, Imel, has long urged him to stop, citing slim chances of winning.
Souami now plans to pay off his house mortgage and use the money to pay for college for his kids, he said.
I can understand that and I am happy for anyone who does well at these things. It is ust not for me.
I ain't pushin,' but 21 years and a day and Mr. Souami is smiling from ear to ear. Because:
In my state we have legal gambling yet for some reason the religious leaders think that a lottery is immoral and won't allow one.
Go figure.
Losing millions of dollars? I guess it could be done easily. I don't know. Hell here you could buy a McDonalds franchise and live off of that.
My plan
Leave town
Attorney and financial advisor all set.
All immediate family members who have outstanding mortgages and outstanding student loans would be paid off. Any immediate family member that does not have a house would get a house. Any immediate family member that needs a house remodel would get a house remodel.
Any immediate family member that is in college, going into college or may some day go to college would get a college fund
All immediate family members would get a trust fund.
After that who knows.
Yup. My parents would live in the lap of luxury. My son, nephew, and nieces would go to college for free. Hell, I'd even pay off my ex's mortgage for him.
My mom, sister, and I would travel. My dad can be a homebody in a pretty nice home on a golf course, which would suit him just fine. Maybe I could talk him in to travelling to St. Andrews and golfing there.
I love it - you're starting to dream! (I really do love this!) Go for it - just this once!
I would probably buy 500 acres of Alaskan wilderness, fence it all off with 12 foot razor wire and live right in the middle of it.
You won't need to fence it in, I lived in Fairbanks and once your out of the city there's a whole lot of nothing for hundreds of miles in every direction, most of the towns you see on the map are little more than Trailer Parks. My Aunt lives there half the year (and the other half in Hawaii) and she has two planes (one in each state) and she flies and lands and camps on Lakes that have no roads leading to them. You could buy 5000 acres with a Lake fifty miles from the nearest road and have your supplies flown in. If on the off chance somebody does come on your property you'll probably have to save their life cause they're likely lost and half starved and will die if you don't help them.
Only in the summer. Winter would find me on my private tropical island.
Won't be buying a ticket, so no chance of winning. But if I played and won I'd be fine as I've always been a financially cautious person able to live well within my means.
At the same time there would definitely be more fun purchases and lots of travelling happening
The dreams, plural, continue. . . . MegaBall 1.6 Billion. PowerBall 620 Million.
Okay! It is time to get rockin and rollin, y'all! Or else I am going to walk away with both big bags! My 'pools' are full! How about you?!