These Lotto Winners Will Be Absolutely Broke Within 3 Years

[GTS Mark]

http://www.edmontonsun.com/News/Albe...45499-sun.html

Mark my words!

DH

[StuartD]

3 years? That's being generous.

[swoop]

little over a year im thinking ;)

[madawgz]

yeap, they are fucking st00pid

if they were smart they could hire someone to manage their money

[CDSmith]

A guy in Winnipeg won just over 8 million on the 6/49 in the late 90's. After going on that same kind of spending spree giving all his so-called 'friends' new SUV's etc, he was broke by 2003 and ended up committing suicide.

He died broke, apparently all those so-called friends had abandoned him after the money dried up.

Idiot.

[Peaches]

Honestly, if I won over $8mil, I'd probably spend the first mil paying off mortgages and buying some fun stuff too THEN sock the rest of it away. But why not enjoy the hell out of some first?

[Drake]

Depends, they seem to have set how much they plan to use for family and friends:

"The couple, who have a four-year-old son and a two-year-old daughter, figure they'll spend close to $3 million."

[gecko]

That or they won't be alive ;)

[mechanicvirus]

Originally Posted by Peaches

Honestly, if I won over $8mil, I'd probably spend the first mil paying off mortgages and buying some fun stuff too THEN sock the rest of it away. But why not enjoy the hell out of some first?

Yea I would collect interest in the bank, but still spend some of it.

[tyler.]

invest,invest,invest ...

[StuartD]

Originally Posted by mechanicvirus

Yea I would collect interest in the bank, but still spend some of it.

Interest in the bank?

[beemk]

Originally Posted by mechanicvirus

Yea I would collect interest in the bank, but still spend some of it.

the bank doesnt pay shit for interest, you have to invest it yourself. you actually lose $ keeping it in the bank if you consider inflation.

besides, people that spend a lot of $ on lottory tickets usually arent that good at managing money in the first place, so this comes as no surprise.

[CDSmith]

Originally Posted by mechanicvirus

Yea I would collect interest in the bank, but still spend some of it.

This is a prime example of why most people go broke after winning a huge sum of cash like that. Most people have no clue what to do with that kind of money much less how to manage it properly. "interest in the bank"?? Please... bank interest isn't worth spit these days.

Why would you settle for 2 or 3 % when you can make 5 to 10 times that with a simple basic investment strategy?

The first thing to do when winning the lotto is to admit that you know fuck all about money management, and go out and find a professional investment expert who can offer some sound advice. Seriously, wouldn't it be nice to double that win in 10 years instead of having to sell your home to stay afloat because all the money has been squandered?

[Peaches]

Originally Posted by beemk

the bank doesnt pay shit for interest, you have to invest it yourself. you actually lose $ keeping it in the bank if you consider inflation.

Depends on what you consider "shit" and what you plan to do with the money. I personally have just about everything in the bank right now earning between 4.5-4.8% so I can stay liquid and start buying property at foreclosure auctions

[Mr.Right - Banned For Life]

Originally Posted by StuartD

3 years? That's being generous.

[Sly]

Originally Posted by Peaches

Depends on what you consider "shit" and what you plan to do with the money. I personally have just about everything in the bank right now earning between 4.5-4.8% so I can stay liquid and start buying property at foreclosure auctions

Inflation sits between 3.5-4.5%. Enjoy that ~1%!

[Peaches]

Originally Posted by Sly

Inflation sits between 3.5-4.5%. Enjoy that ~1%!

I'll enjoy it when I buy some property at auction next month and then quadruple the return on it after a year

[Monk]

Originally Posted by CDSmith

This is a prime example of why most people go broke after winning a huge sum of cash like that. Most people have no clue what to do with that kind of money much less how to manage it properly. "interest in the bank"?? Please... bank interest isn't worth spit these days.

Why would you settle for 2 or 3 % when you can make 5 to 10 times that with a simple basic investment strategy?

The first thing to do when winning the lotto is to admit that you know fuck all about money management, and go out and find a professional investment expert who can offer some sound advice. Seriously, wouldn't it be nice to double that win in 10 years instead of having to sell your home to stay afloat because all the money has been squandered?

Most "professional investment experts" will squander your money faster than you can. These guys could make money in the 90's bull market... but who couldn't?

[SomeCreep]

Originally Posted by CDSmith

A guy in Winnipeg won just over 8 million on the 6/49 in the late 90's. After going on that same kind of spending spree giving all his so-called 'friends' new SUV's etc, he was broke by 2003 and ended up committing suicide.

He died broke, apparently all those so-called friends had abandoned him after the money dried up.

...and everyone lived happily ever after.

[seeric]

i'd be in belize already with that money.

peace out!!!!!!!!!!!!!!!!!!!!! canada.

[beemk]

Originally Posted by Peaches

Depends on what you consider "shit" and what you plan to do with the money. I personally have just about everything in the bank right now earning between 4.5-4.8% so I can stay liquid and start buying property at foreclosure auctions

of course if you plan on investing it on something better thats a different story. i keep a lot of money in the bank only because i havent invested it yet. also what i do which works good is use a home equity line of credit for my houses i purchase. that way you have access to a lot of cash when needed, and if you have extra cash after you use it you pay off the loan but still have acccess to get the $ back if you need it. it also gets you better deals on properties because when you pay cash they like it since you can close quicker, and dont have to pay mortgage fees.

[Sly]

Originally Posted by Peaches

I'll enjoy it when I buy some property at auction next month and then quadruple the return on it after a year

That isn't saving money in the bank and earning interest. That's investing.

[Manowar]

damn they are idiots

[CDSmith]

Originally Posted by Monk

Most "professional investment experts" will squander your money faster than you can. These guys could make money in the 90's bull market... but who couldn't?

The investment experts I'm referring to aren't the ones who are into playing the stock market with your money dude. I'm talking about people who know what they're doing with high-yeild low-risk types of investments, both long and short term, as in a good stable balance that brings in interest in the 10-25 percentile range.

Sorry if I wasn't clear on that part.

[Sly]

Originally Posted by CDSmith

The investment experts I'm referring to aren't the ones who are into playing the stock market with your money dude. I'm talking about people who know what they're doing with high-yeild low-risk types of investments, both long and short term, as in a good stable balance that brings in interest in the 10-25 percentile range.

Sorry if I wasn't clear on that part.

Who is earning 10-25% on low risk?

[Kevin - The PNN]

within 18 months

[Michaelious]

money is for spending who cares

[Kevin - The PNN]

Wait until the IRS gets a hold of them and they have to fine out that they owe the gift tax for every person they gave $11,001 or more. Under 11K the person receiving it money is responsible for the tax.

[CDSmith]

Originally Posted by Sly

Who is earning 10-25% on low risk?

My RRSP's alone earned higher than 10% last year and the year before.

In one particular year my Can-Am shares earned over 20%.

I have what's called a "Challenger fund" that comes with an insurance policy attached to it. That earned me just shy of 8% last year, still twice as good as my bank's regular interest.

I'm a dummy, but my investment guy isn't. So I know others must be out there doing just as well or better.

[StuartD]

Originally Posted by Michaelious

money is for spending who cares

If all they did was spend it... there wouldn't be a reason to care. But it doesn't end there.

Once they get down that never ending spiral of over spending and cash loss... it won't end once the winnings are gone. It can end in bankruptcy, or even worse as CD pointed out earlier... their lives.

[CDSmith]

Originally Posted by Kevin ? The PNN

Wait until the IRS gets a hold of them and they have to fine out that they owe the gift tax for every person they gave $11,001 or more. Under 11K the person receiving it money is responsible for the tax.

We don't have that in Canada, which is where that couple resides.

In fact, we pay NO tax on lotto winnings, except on interest earned later on from it.

The IRS can go suck an egg. :D

[Monk]

Originally Posted by CDSmith

I'm talking about people who know what they're doing with high-yeild low-risk types of investments, both long and short term, as in a good stable balance that brings in interest in the 10-25 percentile range.

Sorry if I wasn't clear on that part.

Yes, I believe I've heard you (and other people) say this before. Who are these mysterious people who can make such high yields on low risk? I'll believe it when I see it..... name names!

[NoWhErE]

Actually, I predict much squabbling in the family if EVERYONE doesn't get an equal share.


Oh, and HELLO moochers and long lost friends who seem to be down on their luck

[Monk]

Originally Posted by CDSmith

My RRSP's alone earned higher than 10% last year and the year before.

what in particular were your RRSP investments?

Originally Posted by CDSmith

In one particular year my Can-Am shares earned over 20%.

That's the key here.... in ONE particular year... and it was probably a particular year that the stock market did well.... what happens in years it doesn't. Its not guaranteed to go up... especially these days.

[Babagirls]

like peaches said, i would also be doing the same thing AT FIRST. however, after all my family was living comfortably (which wouldnt take that much) THEN its time to be smart about it. take $5mill and bank that shit! live off of the rest for a long time. let the $5mill grow ;)

[Peaches]

Originally Posted by CDSmith

We don't have that in Canada, which is where that couple resides.

In fact, we pay NO tax on lotto winnings, except on interest earned later on from it.

The IRS can go suck an egg. :D

I think he was talking about gift taxes. In the US, you can "gift" up to $11K without you (or the recipient) paying taxes on it. But each person can gift each person $11K. For instance my Mother could give my brother, his wife and each of their 2 kids $11K each, and so could my Dad, w/o paying taxes. So in basically my parents could give my brother's family $88K tax free. And it's per year so a lot of times family set it up to give it each year.

But once you go over the $11K per person the giver has to start paying taxes.

As far as not paying taxes on winnings, I love sitting next to Canadians who win big in Vegas and watching them find out they won't get all their cash until they get back in Canada

[CDSmith]

Originally Posted by Monk

Yes, I believe I've heard you (and other people) say this before. Who are these mysterious people who can make such high yields on low risk? I'll believe it when I see it..... name names!

My guy is an independant insurance broker with a background in income tax, accounting and investments. I understand he's a rare find, but guys like him are out there.

I'll refer new clients to him once he offers me a referral fee + ongoing %. :D

[Sly]

Originally Posted by CDSmith

My RRSP's alone earned higher than 10% last year and the year before.

In one particular year my Can-Am shares earned over 20%.

I have what's called a "Challenger fund" that comes with an insurance policy attached to it. That earned me just shy of 8% last year, still twice as good as my bank's regular interest.

In ONE PARTICULAR YEAR. Yes, it happens.

Do that every year for many years on low risk, yeh right.

[CDSmith]

Originally Posted by Peaches

I think he was talking about gift taxes. In the US, you can "gift" up to $11K without you (or the recipient) paying taxes on it. But each person can gift each person $11K. For instance my Mother could give my brother, his wife and each of their 2 kids $11K each, and so could my Dad, w/o paying taxes. So in basically my parents could give my brother's family $88K tax free. And it's per year so a lot of times family set it up to give it each year.

But once you go over the $11K per person the giver has to start paying taxes.

But from his post he was referring to this couple in question, and they are Canadian, not in the US. They won a Canadian Lottery, so all the blabber about gift taxes and 11k's just don't apply here.

Originally Posted by Peaches

As far as not paying taxes on winnings, I love sitting next to Canadians who win big in Vegas and watching them find out they won't get all their cash until they get back in Canada

From what I've heard from people who have won big down there, we get dinged by the IRS just the same as anyone else. Win $100k and they take their large chunk no matter where you're from.... at least that's the way I've heard it (from many sources actually)

The difference is that once back in Canada, there is an agency we can apply to, to recover most of what the IRS took from us. If they took $40k for example, this agency can recover up to something like 90% of it. They then take their fee and we get the rest.... which is still a better deal than what any US citizen gets. :D

[Peaches]

CD, the lottery and the gift taxes have nothing to do with each other. If you guys don't have gift taxes, that's great, but it has nothing to do with winning the lottery

And yes, I know they get their money when they get back, but you should see how pissed they are that they don't get it RIGHT THEN - especially if they've had a few cocktails ;)

[CDSmith]

Originally Posted by Sly

In ONE PARTICULAR YEAR. Yes, it happens.

Do that every year for many years on low risk, yeh right.

No one reputable could or would garantee that every year. "low risk" does not mean "without risk".... there is some risk of having loss in some years, but that risk is low.

Thus the reason why I said 10-25%. Of course it would be sweet to nail 20%+ every year.... but shit man whaddya want?? Like I said, even 8% is over twice as good as the bank's regular shit for interest.

[DamageX]

This is priceless:

The big loser was the saleswoman at an Edmonton dealership who apparently didn't believe Luke when he showed up Tuesday looking for a deal on four Hummers.

"I'm positive they didn't take me seriously," he said, adding he went to Calgary instead and bought three Hummers for $241,000.

"Somebody lost a commission."

[Sly]

Originally Posted by CDSmith

No one reputable could or would garantee that every year. "low risk" does not mean "without risk".... there is some risk of having loss in some years, but that risk is low.

Thus the reason why I said 10-25%. Of course it would be sweet to nail 20%+ every year.... but shit man whaddya want?? Like I said, even 8% is over twice as good as the bank's regular shit for interest.

Yep, 8% is the stock market average over time I believe, which of course is better than any bank will give you.

[CDSmith]

Originally Posted by Peaches

CD, the lottery and the gift taxes have nothing to do with each other. If you guys don't have gift taxes, that's great, but it has nothing to do with winning the lottery

Jeez louise Peachy, go back and read that guy's post again! We're talking about what that couple is doing with their lotto winnings, as in giving large sums as gifts for god sakes. He said he can't wait until the IRS gets ahold of them. I then pointed out that they arne't US citizens, they are Canadians, thus his post is nonsense.

Is that a bit clearer? I hope so, I don't think I can make it any less fuzzy without cracking my head on my keyboard.

Please say yes.

Originally Posted by Peaches

And yes, I know they get their money when they get back, but you should see how pissed they are that they don't get it RIGHT THEN - especially if they've had a few cocktails ;)

Well truthfully, there are idiots of every nationality, even Canadian. :D

[kristin]

Originally Posted by Kevin ? The PNN

Wait until the IRS gets a hold of them and they have to fine out that they owe the gift tax for every person they gave $11,001 or more. Under 11K the person receiving it money is responsible for the tax.

Not in Canada ... anything you win like that is untaxed.

Be something sweet to win $8 million in the lotto and physically take home $8 mil.

[Peaches]

Originally Posted by CDSmith

Is that a bit clearer? I hope so, I don't think I can make it any less fuzzy without cracking my head on my keyboard.

Please say yes.

Yeah, I get it, but I have the urge to say no just so you'll crack your head on your keyboard

[PimpDaddyPants]

someone here just won the $64M Florida Lottery

[kristin]

Originally Posted by DamageX

This is priceless:

The big loser was the saleswoman at an Edmonton dealership who apparently didn't believe Luke when he showed up Tuesday looking for a deal on four Hummers.

"I'm positive they didn't take me seriously," he said, adding he went to Calgary instead and bought three Hummers for $241,000.

"Somebody lost a commission."

Very true ... why as salesperson you'd brush someone off mindboggles me. I have met some people just in this industry who you couldn't tell they had money at all ... and they are millionaires.

[CDSmith]

Originally Posted by Peaches

Yeah, I get it, but I have the urge to say no just so you'll crack your head on your keyboard

It's been done, trust me. I have "QUERTY" permanently stamped just over the eyebrows.

Admit it, you love me.

[Peaches]

Originally Posted by CDSmith

It's been done, trust me. I have "QUERTY" permanently stamped just over the eyebrows.

Admit it, you love me.

I did until I find out I'd have to be hanging around with someone who had "QUERTY" on their forehead!!