(Closed) People whose lives were ruined by big lottery wins…why?

posted 8 years ago in The Lounge
Post # 17
Member
2359 posts
Buzzing bee
  • Wedding: September 2012

why?  cuz money changes everything.   simple.   Not always good, not always bad.  i think as far as “ruining” it, people already have their personalities and habits before winning the lottery, except after winning, they are more in the spotlight.   The ones that actually do good with their winnings, and use it wisely, you don’t hear about, because that’s boring to society. 

 

 

Post # 18
Member
5272 posts
Bee Keeper

Like Biggie says “Mo money Mo problems” Soooo true!!!!

Post # 20
Member
7131 posts
Busy Beekeeper
  • Wedding: September 2012

It really boils down to people acting irresponsibly. All the winners who have “made it” are those who were financially responsible with their winnings. They hired a financial advisor, saved it away, made wise investments, and didn’t blow it all.

I’ve always said if I ever won the lottery of course there will be some money that I burn, because what’s the fun in winning and not buying anything? That being said, the first call would be to a financial planner. 

Post # 22
Member
2359 posts
Buzzing bee
  • Wedding: September 2012

@claireos:  yea i used to think it was just the money aspect, but as i thought more, i think it depends on the persons own stablility.  I think having a ton of money is just a gateway to see it more clearly

If i won the lottery, and i lost some relationships because of it, i wouldn’t see it as “ruining” my life, i’d see it as a learning experience, because i could rid myself of those shady people, if i ended up bankrupt after years, it would be my own stupidity of not managing my money well.  which i was always bad at managing money until about a year ago, i am learning to be more smart with my money. If i needed to put my guard up because of criminals targeting me, well, i am like that now, i dont’ trust many people.  

I just feel it has a lot to do with people’s personalities.    winning the lottery won’t ruin your life if you dont’ let it….

Post # 23
Member
673 posts
Busy bee

It’s not just about their ability to handle money, but if you look at many of the cases that make headlines, the money just allowed the bad decisions they would have made anyway much easier.

I see the guy in West Virginia who gets cited all the time when they note that his daughter and granddaughter turned up dead, along with the grandaughter’s boyfriend. Few note that those things didn’t happen all at once and they didn’t involve foul play. They all overdosed on drugs. That’s a bad decision made by thousands of other people every year with much less money than can be won in Powerball.

In the situation of divorce, those are likely cases of unhappy marriages where the spouses felt like they are bound by their finances. When they suddenly win the means to make a decision based on their happiness in life, well, some probably take it. Is it ideal? No, but it’s something that might have happened anyway later on down the line.

Some of it also stems from trying to do too much for too many people and indulging in too much. For example, I’d totally want to buy a vacation home in Hawaii. But, I would go pick out that property based on price and ability to run it as a vacation rental anytime I’m not using it so it can be another source of income.

I saw an article yesterday from WSJ when the jackpot was only at $500 million and they said that if you took the lump sum from that payout and invested in the safest, lowest return treasuries and lived off the interest alone without ever touching the original jackpot money, you would be living off $182,000/year.

Basically, the best advice would be to take out a few million for “fun money” (i.e. donation, gifts, indulgences, business ventures) and then invest the rest like you’re a person already living in retirement. That way you still have a very comfortable income off interest and still have your fun at the beginning.

Post # 25
Member
2359 posts
Buzzing bee
  • Wedding: September 2012

I also think people should spend less time/money gambline, and more investing.   Instead of spending 5$ on a lottery ticket everyday(where you’re chances of winning are pretty slim), put that 5$ into your savings…. you can probably afford to retire or buy a house before you even win the lottery, haha

Post # 27
Member
673 posts
Busy bee

@RockStar33:  Actually, that philosphy doesn’t quite work out with a jackpot this big. As many articles have pointed out, you could actually buy every single combination out there and walk away a winner.

It would cost, IIRC, about $176 million to do that, but if you’re a single winner, then you’re still walking away with about $200 million in profit. Obviously, with so many tickets sold, the chances of being a single winner are basically impossible now. But, point being, breaking this down into a simple odds game of what you could otherwise do with the $1 ticket isn’t quite so simple when the jackpot is this big.

That doesn’t even get into what non-financial value some might draw in actually playing the lotto. It’s just complicated like that. 🙂

Post # 28
Member
2359 posts
Buzzing bee
  • Wedding: September 2012

@claireos:  exactly(as you can tell i’m not a big gambler) but,  most people play hoping to win and it will “solve all their problems”….  i think that’s a bad omen right there.

Post # 29
Member
2580 posts
Sugar bee
  • Wedding: November 1999

@PinkMagnolia:  I might be making this up, but I think Darling Husband told me there was some sort of loophole. I thought you could do something like set up a blind trust or some other kind of legal entity that would prevent your identity from being revealed. Again, I’m not sure if that’s true…but if it is, that’s what I would do!

Post # 30
Member
1157 posts
Bumble bee
  • Wedding: July 2013

Honestly, I couldn’t trust myself with that amount of money. And I wouldn’t want to deal with people knowing how much money I won. I’d consult a financial advisor–that should be a requirement for all the big winners!

Post # 31
Member
747 posts
Busy bee

My mom always says to be careful of lottery wins because “there’s always a balance…you win somewhere, you lose somewhere else”. 

Superstition aside, I think it has a lot to do with expectations (although also with how people manage money, like y’all have said). People expect somehow that winning all of this money will solve all of their problems. Like, by itself. Well, this doesn’t usually happen. With more money comes more responsibility, and sometimes even more problems. It’s rare that you just get to move off to an island and live the dream life. So I think it has a lot to do with unrealistic expectations, whether they are conscious or not.

Just my 2 cents.

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