Learn How A $27 MILLION Jackpot Winner Went Broke In 5 Years

[kingkoopa]

Further proof that taking the annuity is the way to go. If he had taken the annuity he would still have had 25 more years of ballin to enjoy.

And instead of 27M he would have gotten a prize of 70M Before taxes are taken out each year
Which is about 2.3M for the next 30 years of your life, or almost 1.6M a year after taxes.

But most people would rather take the lump sum or "cash option" and give away half of the money right from the gate.
And thats BEFORE taxes even touch the money.

But say you where to die after 10 years. Nobody gets that money. I need to take care of the fams first and foremost.

 

[sunshineblotters]

Its not very hard to not be stupid with your money. If you were stupid with your money, chances are you were norn with too much of it. Funny how former crack dealers are topping Forbes best paid lists in x, y, z careers and people winning the lotteries become broke.

 

[mr jordan04]

Still must've been one hell of a ride

 

[jaysrcrak]

But say you where to die after 10 years. Nobody gets that money. I need to take care of the fams first and foremost.

This is one of the most believed MYTHS about lottery winnings.
Once you have won the lottery, no matter how you take the winnings, IT IS YOUR MONEY.
It can be left to your named beneficiaries just as any of your other assets.
It actually is a better way to leave money to your loved ones because when you have the lump sum alot of it gets eaten up in Estate taxes when you die.
If (and I stress if) invested properly, an annuity can avoid these taxes.

POWERBALL FAQ

WHAT HAPPENS IF AN ANNUITY PRIZE WINNER DIES?
The estate will handle the lottery prize. A lottery annuity prize is just like any other asset. You can pass any remaining annuity payments on to your heirs or to anyone else. The Powerball game will even cash out an annuity prize for an estate. This may make it easier for the estate to distribute the prize. It also may be necessary to cash out the annuity to pay Federal estate taxes. We will sell some or all of the securities at competitive bid or will even just transfer the securities to the estate. We do not charge a fee of any kind. I think that this misunderstanding may come from the response that the prize "goes to the Estate" and some people hear "goes to the State."

http://www.powerball.com/pb_contact.asp

 

[00david00]

Life is crazy

 

[createdestroy]

thought this was gonna be a warning about investing in Gold Street Capital

 

[jumpmanpro97]

if people didn't know how to handle money before winning millions, getting millions just makes it worse.

 

[superb]

25 mill is a lot I would had put 10-15 million in a high interest account at 10% that's 1.5 million a year for the rest of your life

The other 10 mill would had bought my 1 mill house . Few cars. Traveled and I'm set

Put 10-15 mil in a high interest account account that pay 10% per year shouldn't be hard. And I would be relaxing of 1.5 mill a year for the rest off my life

 

[buggz05]

Lmao @ that 1BR 4-car garage home

 

[marcielago]

I don't understand how some of you guys can say 27 mil isn't a lot for 5 years. Most, if not all of us, wont see that amount of money in our lifetime let alone 5 years time. I could live off that money COMFORTABLY for the rest of my life

 

[carver]

I don't understand how some of you guys can say 27 mil isn't a lot for 5 years. Most, if not all of us, wont see that amount of money in our lifetime let alone 5 years time. I could live off that money COMFORTABLY for the rest of my life

I didn't read through the thread but.. I'd live comfortably for the rest of my life if I received 27mil.

 

[balki]

Sucks.

You have to portion out money when winning lottery.

-% for investment
-% for stocks
-% for free spending
-% for saving in international account
-% other stuff that is going to bring a return back not make you lose money.

-Me personally i'd buy a house in D.R and nice car and just move outta here! With all the investments I'd stay humble and wouldn't work another day in my life,

The way things are looking now a days in DR the min ppl find out you have some cash they would probably start plotting on how to get in those pockets.

 

[blastercombo]

Never understood buying a huge house when your money has an "end" meaning time will come you won't be getting paid that way annually. Do they not realize you still pay the utilities and upkeep?? Lol....... Well I guess not

 

[al audi]

Lmao @ that 1BR 4-car garage home

i actually like that a lot

 

[crcballer55]

Never understood buying a huge house when your money has an "end" meaning time will come you won't be getting paid that way annually. Do they not realize you still pay the utilities and upkeep?? Lol....... Well I guess not

Something a lot of people don't factor in when buying a bigger house. It's not just the price, but the maintenance and taxes of the property as well.

 

[spiceman80]

^^^^^^^
Exactly. They have no clue, and it is a damn shame to throw away an opportunity like that. Even if you make a conscience decision to blow cash on dumb ****, at least set that portion aside and invest the rest, or bank it.

The reason these people go broke so quick is because of the bad habits they brought with them. Then add the free money into the equation, that is a recipe for disaster.

 

[buymyshoes]

WOW WOW WOW... Dude need to learn how you need a daily income no matter howww rich you are! I would've invested big time smh 

 

[durden7]

So many people saying theyd manage their money well, save it..... and im sure some of these same people are the ones buying stuff they dont need on black friday simply because its "a deal".

Nothing you do with 27 million will fall into the "things you really need" category.

Spending a couple hundred on a holiday sale is not the same as blowing through 27 mill in a few years.

It takes a special breed of idiocy to be able to do that.

thats not what im saying though. Im saying that Im sure some of the people who claim they would have managed it properly cant even manage a smaller amount of money well.

 

[eiddyfouw]

First thing that came to mind..

Its crazy that in todays world 25mil aint even a lot anymore. Especially living in LA. I honestly would still keep my job for 2-3 years if I won 25mil. Knowing that you have that in the bank would change anyones attitude at work lol. I'm still young enough to wait a few years to quit, it pays well and I have good benefits (even after Obamacare) . My wife and I haven't had kids yet so I would at least wait until we have them to take advantage of them lol. Just take some extravagant vacations in the meantime but once the kids come Im out!

NO you wouldn't.

The moment your boss comes up to your desk like...

talkin about giving you a warning for those reports being late, I guarantee you'll hit him with the...

walkin outta there with your George Jefferson stroll.

 

[wallyhopp]

Why not put $2million away RIGHT away into some sort of savings account or low interest 5-10 year investment.

3 percent of $2milion is $60,000. That's on the low side of things too.

1 percent of just $1 million is $10 grand. By the time you do end up broke in 5 years, you'll have a million back plus that extra $50 grand

I'd probably do that on top of opening up a franchise of some sort. Those guys make bank doing almost nothing

 

[crcballer55]

thats not what im saying though. Im saying that Im sure some of the people who claim they would have managed it properly cant even manage a smaller amount of money well.

True. The irony is that you need to be able to manage a small amount of money well before you are really able to handle a larger amount, which will include many more complexities with it.

 

[foamtothedome]

 
man thats nothing

look how much athletes lose

allen iversion loss 200million

latrell sprewell loss 90million

scottie pippen loss 120million

antoine walker loss 110million

derrick coleman loss 80million

Apparently Iverson isnt broke though, via yahoo sports

"A person with a firm grip on the situation informs me Iverson has an account worth $32 million, a principal he is prohibited from touching until 55. In the meantime, it feeds him $1 million annually.

At 45, Iverson is eligible to start drawing on an NBA pension that maxes out at 10 years of active duty, or take whatever's there as lump sum. He will be entitled roughly to $8,000 per month ($800 per x 10).

If at all possible, Iverson will issue a restraining order against himself until he's 62 or so. At that time, I'm told, his lump sum will be between $1.5 million and $1.8 million, or he can elect to take monthly checks of approximately $14,000 per."

http://sports.yahoo.com/blogs/nba-ball-dont-lie/allen-iverson-isn-t-broke-definition-231239875.html

 

[360waves]

I would buy nice condos/townhouse and rent them out.

 

[gothmog]

if i won such a big amount of cash i d just buy a few cars i love , sneakers i miss , do some travelling , I need to read NikeTalk's rules. some nice ******* and be more generous with my friends and family rest of my life 

 

[eiddyfouw]

if i won such a big amount of cash i d just buy a few cars i love , sneakers i miss , do some travelling , I need to read NikeTalk's rules. some nice ******* and be more generous with my friends and family rest of my life 

...and that right there will probably see you finish that cash in less years than David Lee Edwards.