Win the lottery? What to do and not to do when you suddenly receive a ton of money

S

sargentodiaz

Member
Location
North Las Vegas, NV
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Isn’t it amazing how quickly some lottery winners end up broke?
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Do pay off your debt​
Don’t tell the world [especially your distant family]​
Do invest
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Don’t radically change your life
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Do figure out a plan​
Don’t forget about taxes​
Do choose the right accounts to protect your money​
Making your money last​
 

My husband`s uncle won the lottery about 30 years ago. He and ten coworkers went in on the ticket and won $30 million. So he got 3 million. Chose to take it in yearly installments. So every year when he got his check,he would buy a house. He already owned some rental houses,a carwash and a building that he rented to Bank of America. He and his wife always did all of the work necessary on their rentals themselves-in the beginning out of necessity and later on just because that`s how they did things. In fact,their personalized license plates were "WYBO"-"Work Your Butt Off". My husband now has those plates on his truck,although they read WYBOWES,his first name. Anyway,his uncle and aunt did very,very well for themselves but still remained so humble. Uncle is gone now but his aunt still lives in SoCal and is very comfortably retired.
 
My family jokes with me about what I would do with the money if I won the Lottery. We were talking about one of the Lottery games that was worth 6 million dollars. My Son-in-law said "Do you realize how much you would have to pay in taxes if you won all that money." So I said "Don't worry I'll pay it out of my share." Then I was telling my Son what my SIL said and my son said "Gee Mom you and Dad wouldn't need too much of the money. What would you want 5 or 6 Thousand, so I'll pay the taxes with my share." They both have a great sense of humor. Honestly if I ever did win that kind of money I would share it with my entire family.
 

Like many, I too share the "dream", and probably waste about $10 a month on Powerball tickets. I just look at it as a voluntary tax, as most of the money generated goes to the State Dept. of Ed., and helps keep property taxes, etc., under control. If we ever won...and that is a ridiculously large IF...we would most certainly share it with the kids and grandkids. Powerball is up to 550 million...335 million cash...even after taxes there would be enough to support the entire family for generations to come. Heck, the odds are only about 450 million to one.....Fat Chance.
 
I would change my life for sure and enjoy myself. No worry about taxes. Millions are still millions. Lots to do with that much bread. :eek:nthego:
 
lol - I would follow the example of a WW2 vet that I worked with waaaay back in the early 70s. I asked him what he did with all that money (~$65 a month) he got paid to be in Europe fighting the enemy. He said "I spent some on wild women, some on booze, and some on gambling. The rest, well, I just spent foolishly."

That's my plan.
 
People get caught up in the talk about what they would do IF they won (millions). The odds are much better for winning lesser amounts - $250k, $50k, $10k, even $1,000 or $100.

I used to get snacks at a little store downtown, and the clerks said lots of professionals spent lots of money on lottery tickets. Of course they don't admit it to their co-workers...or their online "friends".
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I've won $1,000 several times and $100 many times - all for a $1 or $2 ticket.

My aunt won $5,000, and a former co-worker won $10,000. For them, buying a lottery ticket was neither a waste of time nor money. It's best to look at it as entertainment.
 
I worked with a woman that hit for something like three million, just before I retired. I heard about three years later that she was back at work.....broke, and yet still gambling........go-figure.
 
The first thing to do if you win really big in the lottery is SHUT YOUR MOUTH. Do NOT go running around and telling everybody that you've won. Tell absolutely no other person, except your legal spouse. Get yourself an attorney. No, not cousin Leroy, Aunt Lola's boy. Have a your local attorney's organization refer you to a large practice with skills in dealing with wealth. Follow their advice.
If you don' follow these few simple rules, you will find yourself forever fighting off scads of connivers, who think you owe them a living.
 
^^^ I'd say that applies even if you win a smaller amount. There's always someone who only needs a couple hundred or a few thousand, or just enough to catch up on whatever.
 
My cousin won $50,000 years ago. Her name, address & phone number were in the phone book. People were banging on her door 24/7. She told me the worst offenders were the parents of sick kids, who banged on her door in the early morning 4-5. They would get upset that my cousin wasn't going to shovel over the thousands of dollars she had laying around the house. She was always calling the cops. That stuff went on for over a year.
 
Of course I would share the wealth with my family and then go on a trip with the immediate family for a few weeks to let the commotion die down. I have a financial advisor and would ask her what to do.
 
This is what I would do if I had the winning ticket:
I would call both my atty and financial advisor asking for their advice
tell my siblings
I would share the money with my family&,friends,then give most of it to favorite charities Sue
 
Hoot N Annie said:
lol - I would follow the example of a WW2 vet that I worked with waaaay back in the early 70s. I asked him what he did with all that money (~$65 a month) he got paid to be in Europe fighting the enemy. He said "I spent some on wild women, some on booze, and some on gambling. The rest, well, I just spent foolishly."

That's my plan.
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That is what W.C. Fields said.
 
What kills me is the greed that prompts people to take it in one lump sum giving half to the govt. right away. If one cannot live on installments after decades of living modestly then they deserve to lose it all as so many do withing the first five years.
 
fmdog44 said:
What kills me is the greed that prompts people to take it in one lump sum giving half to the govt. right away. If one cannot live on installments after decades of living modestly then they deserve to lose it all as so many do withing the first five years.
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I think it's just the opposite. People aren't greedy to take a lump sum IMO .... especially if in the twilight of their years. They aren't concerned so much about the total amount of money involved... installments vs lump sum when you are talking millions. They just want to get it over with and deal with the situation the best they can. That's how I see it.
It probably all becomes a big blur anyway.
 
I've read that you should get a lawyer and a tax advisor and also a financial advisor. Best to get your lawyer to get the payment under an LLC (so your name won't be published). Don't tell anyone about the win and don't make any big purchases until you really know what you want. Get the annuity if you're bad with handling money and you're still youngish. If you're old and are good with money get the lump sum so that you can do whatever you want with it right away. Lottery money, unlike regular annuities, can be inherited, so that's not a problem. Lots of people who win the lottery end up broke within five years because they're bad at handling money and give money to ALL their relatives. Once given and you're broke, you can't ask those relatives to give the money back.
 
Um… I pretty much live that way already. But if I did get that kind of a windfall, I'd have fun, and still leave more than I won after I'm dead.
 

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