elwoodbluesElwood Blues Premium Member join:2006-08-30 Somewhere in |
How to blow your lottery winningsA "heartfelt' story in the Star how a $10m lottery winner is now living pay cheque to pay cheque. » www.thestar.com/news/gta ··· ion.html |
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wow. that hurts. But she is not the first one with that experience. I think CBC had a documentary about how bad the life turned after the lotto win.
Very few have done good after the win. Life is a biatch. |
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LazMan Premium Member join:2003-03-26 Beverly Hills, CA |
to elwoodblues
I knew a guy in North Bay; when I lived there, that won a little over 2 million - he was back to being broke in about 2 years... Cars, trips, big house (that he lost), etc...
Taking someone that's never had money, giving them 2 mil (10 mil, whatever) - it seems like an infinite amount of money. And then it's gone...
On the one hand, it would be nice if the Lottery Corp's provided a little financial guidance and planning the the winners, but then they'd be accused of meddling in people's private business, I'd imagine...
Rock and a hard place...
10 Mill could have set that woman up for life... If someone had taken her under their wing up front; and if nothing else, set her up with a good planner. $250k a year in income for the rest of your life, without working - would be a pretty sweet deal... And a nice little pile left over to leave to the kids, too. |
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donoreo Premium Member join:2002-05-30 North York, ON
1 recommendation |
to elwoodblues
These people did not change: they spend the money they had, no matter how much it it. |
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to LazMan
No! They can hire one on their own, why should the lottery system provide financial planning to millionaires for free.
If the Start wants to do a good human interest story they should find the thousands of people that are already living below the poverty line and still spend money on lottery tickets. |
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TLS2000 Premium Member join:2004-02-24 Elmsdale, NS |
to elwoodblues
I love how the Star seems to point the finger at OLG because they don't do followups with the winners or force them to use a financial adviser.
Seriously? lol |
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donoreo Premium Member join:2002-05-30 North York, ON |
donoreo
Premium Member
2013-Mar-21 9:29 am
said by TLS2000:I love how the Star seems to point the finger at OLG because they don't do followups with the winners or force them to use a financial adviser.
Seriously? lol They should provide the winners with a list of advisers, at least. |
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to elwoodblues
I'm having a hard time having any sympathy.
Rule #1 - When winning millions put 98% in the bank, for a year in a closed account so you cannot access it and can get the advice you need to do it the right way. Let the shock of the wins wear off a little before you start spending.
Rule #2 - When winning millions and old "friends" start showing up looking for money and promising to pay it back... politely decline the friendship, tell them to fuck off, and send them on their way.
Rule #3 - Get a lawyer. You'll need one. |
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TLS2000 Premium Member join:2004-02-24 Elmsdale, NS |
to donoreo
No they shouldn't. That opens them up to liability when one of those advisers inevitably takes advantage of the people that were referred to them. |
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Wolfie00My dog is an elitist Premium Member join:2005-03-12 |
to elwoodblues
This is a lot more common than you'd think. said by LazMan: it would be nice if the Lottery Corp's provided a little financial guidance and planning the the winners Why? Lottery Corp exists solely to generate government revenue by collecting an optional tax from the stupid. They have no other purpose. The prizes aren't a public service. said by Thane_Bitter:If the Start wants to do a good human interest story they should find the thousands of people that are already living below the poverty line and still spend money on lottery tickets. Absolutely agree. |
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LazMan Premium Member join:2003-03-26 Beverly Hills, CA |
to Thane_Bitter
said by Thane_Bitter:They can hire one on their own, why should the lottery system provide financial planning to millionaires for free. A _LOT_ of the lottery winning public isn't aware of things like financial planning - and even if they are, you take someone that makes 25-30 grand a year; give them 10 mil, and say "Here you go" - well, they see that as an infinite pile of money... They (and I'm speaking broadly) don't understand how to manage that amount of money... Hell, I don't understand how to manage it - but at least I know that I don't know. said by Thane_Bitter:If the Start wants to do a good human interest story they should find the thousands of people that are already living below the poverty line and still spend money on lottery tickets. Different issue - but lots of people call lotteries a "tax on the poor and stupid" - probably for good reason... |
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Gone Premium Member join:2011-01-24 Fort Erie, ON |
to Kitlope
said by Kitlope:Rule #1 - When winning millions put 98% in the bank, for a year in a closed account so you cannot access it and can get the advice you need to do it the right way. Let the shock of the wins wear off a little before you start spending.
Rule #2 - When winning millions and old "friends" start showing up looking for money and promising to pay it back... politely decline the friendship, tell them to fuck off, and send them on their way.
Rule #3 - Get a lawyer. You'll need one. There was a guy a few years back who waited several months before claiming his multi-million Super 7 jackpot or something like that. The reason being he got all his ducks in a row first. He got a lawyer, set up accounts at the bank, investments, trusts, whatever else. He did all of this first and only once all that was done did he show up at OLG for the big cheque. Then once he claimed it he got hit with child support requests and all sorts of stuff from his past. If more people did that, stories like the one in the Star would be far less common. Sadly, as it stands now they are the rule rather than the exception. |
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BigSensFan Premium Member join:2003-07-16 Belle River, ON |
to TLS2000
I know someone who won the lottery and bought some property as investment (rental units). And that bit him in the butt... hard to collect rent, sued by the tenants, etc
He has none of the winnings left...due to legal expenses and the money pit of the rental units
Winning the lottery can be a blessing, if you know how to handle the money
Even on 1 million dollars you
1. Buy or pay off your house (300,000 - 400,000) 2. Pay off Debts (50, 000) 3. Invest the rest in assests that are easily liquifed
Never 'Loan' money to family or friends if you want the money back (consider it a gift)
Even on a million you would still ahve to work but it would make your life more comfortable
On 10 million, you could live off of without working (give yourself a yearly income of $133k with no interest, that would last you 75 years) |
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MarkI stand with my feet join:2009-07-11 Canada |
to donoreo
said by donoreo:These people did not change: they spend the money they had, no matter how much it it. I have coworkers who measure their net worth by the amount of fuel in their gas tanks. I am serious, not exaggerating. These are $45-55k unionized positions, god help them long term if they win the lottery. |
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Gone Premium Member join:2011-01-24 Fort Erie, ON |
Gone
Premium Member
2013-Mar-21 9:44 am
said by Mark:I have coworkers who measure their net worth by the amount of fuel in their gas tanks. I am serious, not exaggerating. These are $45-55k unionized positions, god help them long term if they win the lottery. They're always the first ones to blow everything and be left with nothing. |
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bt to Gone
Member
2013-Mar-21 9:50 am
to Gone
said by Gone:There was a guy a few years back who waited several months before claiming his multi-million Super 7 jackpot or something like that. The reason being he got all his ducks in a row first. He got a lawyer, set up accounts at the bank, investments, trusts, whatever else. He did all of this first and only once all that was done did he show up at OLG for the big cheque. Then once he claimed it he got hit with child support requests and all sorts of stuff from his past. I think I'd be paranoid about losing the ticket... |
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Wolfie00My dog is an elitist Premium Member join:2005-03-12 |
Wolfie00
Premium Member
2013-Mar-21 10:04 am
... or having the ticket invalidated on some technicality. I'd want confirmation of the win in terms of cash in the bank. Park it in the money market for a few months and THEN do your planning.
I'm certain that this person's financial institution was all over her to help with financial planning. She just wasn't interested. As I said, this happens a lot. |
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1 recommendation |
to TLS2000
said by TLS2000:I love how the Star seems to point the finger at OLG because they don't do followups with the winners or force them to use a financial adviser.
Seriously? lol Dont forget the timing for this story. Since the casinos lobbyist are in town and they oppose it. |
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Gone Premium Member join:2011-01-24 Fort Erie, ON |
Gone to bt
Premium Member
2013-Mar-21 10:16 am
to bt
said by bt:I think I'd be paranoid about losing the ticket... He put it into a safety deposit box at the bank that he was doing all the planning with. |
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MaynardKrebsWe did it. We heaved Steve. Yipee. Premium Member join:2009-06-17 |
to loosedobbs
There ought to be an intelligence test for gambling and playing lotteries:
IQ .LE. 100 means you're too stupid to play IQ .GT. 100 means you are too smart to play |
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TLS2000 Premium Member join:2004-02-24 Elmsdale, NS |
TLS2000
Premium Member
2013-Mar-21 10:25 am
I like that. Says no one can play. lol |
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donoreo Premium Member join:2002-05-30 North York, ON |
to loosedobbs
said by loosedobbs:said by TLS2000:I love how the Star seems to point the finger at OLG because they don't do followups with the winners or force them to use a financial adviser.
Seriously? lol Dont forget the timing for this story. Since the casinos lobbyist are in town and they oppose it. Oh yes. This is the Star trying to sway public opinion. |
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nitzguy Premium Member join:2002-07-11 Sudbury, ON |
to elwoodblues
This is so simple, even I think my 5 year old would know what to do.
It may suck for a year, but you'd set yourself up for life like this..
In the story the winner won $10mil, well, even with $2mil here's what you do...
Settle your debts, pay off a mortgage, cars, credit card, etc...lets say for a normal non-Torontoian that's $400k...you're left with 1.6 million...
Take the money that's left, I'm sure with 1.6 million you can get a favourable interest rate of even 4% on that 1.6 million in some sort of GIC I'm sure...even if you can only get 2% on a 1yr GIC lets say even as a worst case scenario....you're left with 32,000 @ 2% or 64,000/yr @ 4%...so you continue to work for a year...
Then once the GIC comes up for maturity, boom, 64,000, or again even 32,000. Which would be a lot considering that you don't have a mortgage payment to ever worry about again...and you live on that...in perpetuity...
If I could get $32k/yr without working again, I'd do that for a year...I could easily live on that...I might have to pay some taxes on that $32k as investment income but hey as only 32k...that can't be too much in tax, no?
I'm sure all of us could live on $2600/month if we had no mortgage/rent to pay. |
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to donoreo
said by donoreo:said by loosedobbs:said by TLS2000:I love how the Star seems to point the finger at OLG because they don't do followups with the winners or force them to use a financial adviser.
Seriously? lol Dont forget the timing for this story. Since the casinos lobbyist are in town and they oppose it. Oh yes. This is the Star trying to sway public opinion. Why this story is on their frontage then and not the Budget 2013? That story is in lower half part. So you wont see it till you scroll down. |
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peterboro (banned)Avatars are for posers join:2006-11-03 Peterborough, ON |
to elwoodblues
I just emailed this to my nephew about not blowing his inheritance. |
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capdjqBe Kind, Be Calm & Be Safe Premium Member join:2000-11-01 Vancouver |
to elwoodblues
The person in the Article who states, Money doesnt buy you happiness." is a myth promulgated by people who don't have money. Believe me it can buy a lot of happiness. Wisely invested and spent it can give untold piece of mind knowing that mortgage is paid, children's education is paid. We only read the stories about the people who have, stupidly, spent it all. I bet there are untold mumber of Lottery winners out there having a great time. |
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bt
Member
2013-Mar-21 11:09 am
said by capdjq:The person in the Article who states, Money doesnt buy you happiness." I've always added "But it sure makes it easier to find" to that. |
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MaynardKrebsWe did it. We heaved Steve. Yipee. Premium Member join:2009-06-17 |
to elwoodblues
said by elwoodblues:How to blow your lottery winnings....
Two-step 'blow' method: a) hookers b) cocaine |
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GuspazGuspaz MVM join:2001-11-05 Montreal, QC |
to elwoodblues
It doesn't seem that hard to me:
1) Set aside between 1% and 10% to blow up-front. Should be able to play around a bit. Buy some toys. Make sure whatever you buy is fully paid for up-front so it won't get repo'd.
2) Using the remaining 90-99%, pay off all debts, max out RRSP/TFSA contributions for that year.
3) Divide the remaining money between various GICs in such a manner that a bit of it matures each year, this amount being what you live off or supplement your income with. When the longest term GIC (which has the bulk of the money) matures, repeat the process. Max out RRSP/TFSA every year first.
Maybe this isn't the best way to go about it, maybe there are other things that would produce a lot more interest or better ways to do things, but even with this level of naive financial planning, you wouldn't end up broke... |
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eksterHi there Premium Member join:2010-07-16 Sainte-Anne-De-Bellevue, QC |
to capdjq
With a million, I could easily start working part time, do all the things I enjoy doing in moderation and be set for life, living comfortably.
With 10 million, I could quit my job, be set for life, and live very comfortably and never go under 10 mill.
I really don't understand what people think when they blow off millions in a couple of years and go back to living worse off than they were before. Good thing that the person above realized it before it was too late and still left a decent sum of money for her children. |
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