These Lotto Winners Will Be Absolutely Broke Within 3 Years
 

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

Mark my words!

DH

3 years? That's being generous.

little over a year im thinking ;)

yeap, they are fucking st00pid

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

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.

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? :)

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."

That or they won't be alive ;)

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

invest,invest,invest ...

Interest in the bank? :1orglaugh

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.

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?

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 :)

:1orglaugh :1orglaugh

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 :thumbsup

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?

...and everyone lived happily ever after.

i'd be in belize already with that money.

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

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.

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

damn they are idiots

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?

within 18 months

money is for spending who cares

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.

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.

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.

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

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!

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

what in particular were your RRSP investments?


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.

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 ;)

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 :thumbsup

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

In ONE PARTICULAR YEAR. Yes, it happens.

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

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.

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

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 ;)