maybe it's better if you don't win the lottery (??!)

[empy]

Jackpot! That's a Good Thing, Right?
Organization Says Lottery Winners Often Squander Their Millions

By NEAL KARLINSKY, ABCNews.com

LINCOLN, Neb. (Feb. 20) - Here's a statistic for the people of Lincoln as they await news of the $365 million lottery winner: Seventy percent of those who become suddenly wealthy squander it within a few short years, according to the National Endowment for Financial Education.

In this college town of 230,000 people, there is plenty of conversation about who may have won the lucky ticket purchased at a Lincoln convenience store. And there are plenty of suggestions for the lucky winner.

"If I know them, I'm going to hit them up for a loan," laughs Carl Jansen over a cup of coffee.

But at the next table over, Michelle Darcy hits on the very problem that has plagued lottery winners since big jackpots were first awarded.

"I think it'd be scary to be that person," she says. "Because you've got all your friends and family coming out of the woodwork and wanting a little piece of that lottery themselves."

In fact, state lottery officials here are blunt in their advice for the state's newly minted millionaire.

"Sign the ticket, put it in a safe place, take the phone off the hook, tell as few people as possible, talk to financial person, and come tell us," says Tom Johnson of the Nebraska Lottery.

It is advice that comes from experience. The record books are filled with previous lottery winners who've squandered their millions.

One of the saddest stories of a former winner is that of William "Bud" Post III, who died last month of respiratory failure at the age of 66.

The former Pennsylvania lottery winner called it the "lottery of death" despite his $16.2 million winnings. He used the money to start businesses with siblings -- but they all failed. His own brother was convicted of trying to kill him. His sixth wife moved out, and an on-again, off-again girlfriend successfully sued for a third of Post's winnings. At one point, Post was convicted of assault for firing a shotgun over a bill collector's head.

John Lacher, a bankruptcy lawyer who assisted Post, said he was like "The Beverly Hillbillies."

"He did everything you would expect of a guy who became a millionaire overnight," Lacher says.

A similar case comes out of New Jersey, where in the mid-'80s a woman won more than $5 million. Today, the money is gone and the former millionaire lives in a trailer.

"I won the American dream but I lost it, too," the former winner has been quoted as saying. "It was a very hard fall. It's called rock bottom."

She says some of the money was gambled away, but millions more were lost by simply never saying "no" to friends and relatives who seemed to always "have a hand out."


02-20-06 16:33 EST


Copyright 2006 ABCNEWS.com

[BlueBimmer]

hmm the $365M prize sure is big though, much much much bigger than the other winners before :D

[FrankDrebin]

Reminds me of a John Cusack movie where he found a bag full of cash.

[kimpOy]

i'll prove them wrong....gimme $365M......







[SIZE=1]landcruiser 100, cayenne, hummer h1, ferrari 430, house at monaco, bently,
[/SIZE]OOOPPS

[niky]

True... it's something we learned in school... most family-owned businesses founder by the third generation, as those people inherit all the money without working for it. (Guess what? I'm third-gen... )

Reminds me of a John Cusack movie where he found a bag full of cash.

Funny thing is, that was based on a true-story. And that guy successfully pleaded temporary insanity at his trial... which it kind of was.

Love what he did at the end... :D

[ghosthunter]

True... it's something we learned in school... most family-owned businesses founder by the third generation, as those people inherit all the money without working for it. (Guess what? I'm third-gen... )

good thing I am 2nd gen...

[niky]

The problem is, most people who win instant money automatically spend it on their heart's desires, without thought to how much money they'll have to spend in paying the upkeep of those purchases.

Plus the fact that the person most likely to win the lottery would be a compulsive gambler and/or spender. Buying a lottery ticket is compulsive/reckless behavior, now, isn't it?

If I'd won that much money, I'd probably set aside 1-2 million pesos for myself, and stick the rest in a portfolio of high-stability, low-yield bank and time deposits, and maybe gamble 1 million or so in high-yield loans or stocks.

good thing I am 2nd gen...

Ansuwerte mo... you guys always get all the money! :lol: Us third-gens get hand-me-downs, family squabbles, and sell-offs to rich Chinese businessmen. (knocks on wood...). Second gens are usually still close enough to the core of the business and the founder's vision to maintain it, but any mistakes they make (and they always make mistakes) will carry over and be amplified by the third generation, who won't have the mitigating factor of family closeness to prevent business squabbles.

Wait, second gens fight a lot, too... but it's usually still controllable.

[boybi]

The problem is, most people who win instant money automatically spend it on their heart's desires, without thought to how much money they'll have to spend in paying the upkeep of those purchases.

Plus the fact that the person most likely to win the lottery would be a compulsive gambler and/or spender. Buying a lottery ticket is compulsive/reckless behavior, now, isn't it?

If I'd won that much money, I'd probably set aside 1-2 million pesos for myself, and stick the rest in a portfolio of high-stability, low-yield bank and time deposits, and maybe gamble 1 million or so in high-yield loans or stocks.



Ansuwerte mo... you guys always get all the money! :lol: Us third-gens get hand-me-downs, family squabbles, and sell-offs to rich Chinese businessmen. (knocks on wood...). Second gens are usually still close enough to the core of the business and the founder's vision to maintain it, but any mistakes they make (and they always make mistakes) will carry over and be amplified by the third generation, who won't have the mitigating factor of family closeness to prevent business squabbles.

Wait, second gens fight a lot, too... but it's usually still controllable.

i wonder what will happen to the grandchildren of Henry Sy, Lucio Tan and Gokongwei.

[ILuvDetailing]

If I win the lottery I'm keeping my mouth shut :bwahaha:

[konde]

give me the $365M and let it be my problem.

[UFO052002]

give me the $365M and let it be my problem.

well said my friends... same here hahah

[theveed]

May parang ganyan na article sa FHM US dati, about this guy that won a big Powerball draw than nagkagulogulo pamilya, linoko ng kapatid etc... Then in 3 years bankrupt na sya and super praning as in may CCTV sa bahay at laging nakaabang with a shotgun.

Meron din isa nung nanood yung magasawa waiting for the lottery result, tapos nung naannounce na nanalo yung ticket nila (they were both in their bedrooms watching TV with the ticket), saya-saya nila, then the wife said something like bibihis sya, cecelebrate sila, the next thing the husband heard was their car screeching and she's a goner hehe.

[jim]

if i win 36M USD, i'd stay away from all my friends and relatives, never tell them where i am and never tell them that i won until i have used up all the money for myself harharharhar :eviltongu

[ghosthunter]

its a real problem where people either win a lot of money or inherit it.

[Autobeat]

Grabe $365M is big! This can possibly let the winner earn roughly $3M (Php150M) every month, if invested wisely sa banks. Grabe that's every month!

[imprezawrxsti]

Grabe $365M is big! This can possibly let the winner earn roughly $3M (Php150M) every month, if invested wisely sa banks. Grabe that's every month!

Wait up , on top of everything ( taxes, etc.) it was $124 m . Well, it's stil millions though..

[Autobeat]

Wait up , on top of everything ( taxes, etc.) it was $124 m . Well, it's stil millions though..

Wow, laki pala ng tax. Yup, at $124M, that's possibly still a big $1M (Php50M) monthly earnings, if invested sa bank wisely. Imagine that monthly earnings!

[5Speed]

for me, having lots of money is much better problem than having no money as a problem.....


so give me that 365M USD....:evil:

[empy]

like a modern-day philosopher once said:

"I don’t know what, they want from me
It’s like the more money we come across
The more problems we see"

[NightRock]

Be a low profile..lipat ka as place na walang nakaka kilala sayo.. help your relatives secretly.. wag na wag ka mag papakita sa kanila.. use your money to help them..