$10 Million "Frittered Away"

Icewynd

Member
If you win big don't be like this woman -- $10 million gone in less than 10 years! :wow:

http://www.thestar.com/news/gta/2013/03/21/hamilton_lottery_winner_fritters_away_10_million.html

Interestingly, the article implies that the lottery commission has some responsibility here, since it didn't provide financial planning advice to the winner.

I think that the lottery commission could maybe make available a list of counsellors who could be hired by the winners, but that it should be voluntary. You can't teach something to someone who isn't ready to learn and you can't force someone to be responsible with their money.
 

gmac78

Member
These stories shock me every time. How are people so irresponsible??

Then again, if you are an addict lottery player, I can see how it would be hard to stop gambling harder or feeding other addictions that you'd fall into.

Oh well, I'd love to see if I could do better if given the opportunity. :)
 

Icewynd

Member
I see that they have now written a book about this woman: Riches to Rags: Penniless Millionaire.

http://www.thespec.com/news-story/4039238-from-riches-to-rags-penniless-millionaire/
 

Godload

Member
i dont think they can legally recommend any financial councillors, but i do believe you do have to get financial councilling now if you win big.

reason being if they go with someone they recommend, and lose it in investments, then they could get sued.

i read from a site, that said if you ever win big money like lottery, its very emotional, and you are vulnerable to making bad mistakes or decisions so to take out what you need to live for the year, and lock it up in gic or something else for a year, till the craziness wears off. They said also if you feel the need to blow some cash, only allow yourself 15 percent.

They also said go away for a year, because you will be harassed and your phone will be ringing 24 hrs a day from people all over the world asking for money. One lady said she was getting calls from an inventor in japan that wanted her to invest in a new toilet he had invented.

Also banks and investment companies will be calling you 24 hrs a day as well. Even your cell phone. How they get it, they probably pay someone discreetly to get your number for them from the cell phone companies. Know someone who is wealthy and he says if you have 100k or more in the bank, especially in bad markets, these guys get your cell phone number some how and start cold calling you.

So I guess the general rule is, move so buy a place.

set a budget for what you will need for the year.

get a new phone and cell phone number

lock up the rest for one year

and go away for a year till everyone stops calling you.

come back, and figure out what you want to do with your life.

also if you invest dont give it all to one investment company or bank.

and also get them to invest conservatively for wealth preservation.

alot of people who come into money dont know that these investors will rob you blind if you are not looking out for yourself.

even in investments they will steer you to investments that are not necessarily good investments but gives them the biggest commission rips.

there is pro's and cons of taking the one time payment or the yearly payments. you need to know yourself and if you have self control. if you feel you will buy and spend on impulse, then its probably better for you to take the yearly payments and not the lump sum.

also you should be studying and learning about investments as well if you come into money, because its a cya world. investors invest for different reasons and you if you take their advice blindly, you may end up with nortel stocks that drop to less than 5 bucks, and when they were 80 percent value, they were telling you to hold for the long term, cuz you already lost this much, wait until it turns around.

There are sharks in this world, and they will take you for every penny if you let them. Especially in business.

Also you are going to have to learn to say no, because if you cant, you will have a rough time.
 

Icewynd

Member
Godload said:
i dont think they can legally recommend any financial councillors, but i do believe you do have to get financial councilling now if you win big.

reason being if they go with someone they recommend, and lose it in investments, then they could get sued.

Good point. Corporations always have to worry about the lawsuit.

Godload said:
i read from a site, that said if you ever win big money like lottery, its very emotional, and you are vulnerable to making bad mistakes or decisions so to take out what you need to live for the year, and lock it up in gic or something else for a year, till the craziness wears off. They said also if you feel the need to blow some cash, only allow yourself 15 percent.

They also said go away for a year, because you will be harassed and your phone will be ringing 24 hrs a day from people all over the world asking for money. One lady said she was getting calls from an inventor in japan that wanted her to invest in a new toilet he had invented.

Also banks and investment companies will be calling you 24 hrs a day as well. Even your cell phone. How they get it, they probably pay someone discreetly to get your number for them from the cell phone companies. Know someone who is wealthy and he says if you have 100k or more in the bank, especially in bad markets, these guys get your cell phone number some how and start cold calling you.

So I guess the general rule is, move so buy a place.

set a budget for what you will need for the year.

get a new phone and cell phone number

lock up the rest for one year

and go away for a year till everyone stops calling you.

come back, and figure out what you want to do with your life.

also if you invest dont give it all to one investment company or bank.

and also get them to invest conservatively for wealth preservation.

alot of people who come into money dont know that these investors will rob you blind if you are not looking out for yourself.

even in investments they will steer you to investments that are not necessarily good investments but gives them the biggest commission rips.

there is pro's and cons of taking the one time payment or the yearly payments. you need to know yourself and if you have self control. if you feel you will buy and spend on impulse, then its probably better for you to take the yearly payments and not the lump sum.

also you should be studying and learning about investments as well if you come into money, because its a cya world. investors invest for different reasons and you if you take their advice blindly, you may end up with nortel stocks that drop to less than 5 bucks, and when they were 80 percent value, they were telling you to hold for the long term, cuz you already lost this much, wait until it turns around.

There are sharks in this world, and they will take you for every penny if you let them. Especially in business.

Scary to think about. I think your advice to just go away for a year is sound. Have one phone just for family and close friends.

Godload said:
Also you are going to have to learn to say no, because if you cant, you will have a rough time.

Excellent advice! People hate to say "No", but if you want to protect your assets it is a skill that you have to learn.

Good luck!

:thumb:
 

savagegoose

Member
good advice godload. seriously i think my problems will only just have begun when i win. Still its a struggle i hope to take, keeping a massive jackpot.
 

Godload

Member
false beliefs about money and wealth, doesnt help anyone, money is neither good or evil, its neutral, and just a tool. its the religious institutions in consort with the state goverments or ruling class in the past helped propagate this rumor that money was evil, so the poor and working class would not rise up and kill the wealthy nobles and ruling class. To ensure they wealthy had a good life as well as the upper echelon of the clergy, while the working class was pacified in their lot in life while waiting for theirs in the next life.

the question you have to ask yourself is which is better, all things being equal.

would you rather be poor and miserable,

or rich and miserable.

poor and happy

or rich and happy.
 

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