Is it possible to go bankrupt after winning the lottery?

Discussion in 'Amateur Video Production' started by The Magnificent Bastard, Nov 23, 2004.

  1. The Magnificent Bastard, Nov 23, 2004
    #1
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  2. The Magnificent Bastard

    Greg Henry Guest

    Greg Henry, Nov 23, 2004
    #2
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  3. The Magnificent Bastard

    Augustus Guest

    Up here in Canada the national lottery prize was worth about $2-5M, paid in
    one lump sum and tax free (I say "was" because they doubled the price of
    tickets this year and pretty much doubled what you can win)

    I remember reading back in the mid 90s that most people who won the lottery
    (2 draws per week, was a guaranteed $2M per draw) wound up spending it all
    within a year.

    The problem was usually the same as what people in the above article said:
    that everybody would come with their hands out.

    Sure there are the usual friends and family that come looking for
    something... but you also get people you haven't seen in years... friends
    from when you were in school... people pretending they knew you or helped
    you out in the past... distant relatives you haven't seen in 10+ years...
    plus you get charities calling you up too (Up here they have to publish the
    winners' names for the lotteries... so the charities always know who to call
    and what angle they can use based on how much the person won)

    Obviously the easy answer is "Just say NO" and that might be easy with
    charities and people you haven't seen in a long time... but if its close
    family members or a good friend then you run the risk of losing them over
    it, plus the ripple effect it could have as people take sides (and that
    ofcourse doesn't take into effect the pressure others can put on you... like
    if your brother comes to you and asks for a few thousand and you say no...
    and then your mother comes to you and says you should help him out because
    he's a good boy... and then if you do that you'd have others like your
    sister and other brother asking for what the other got)

    All that is compounded by people often quitting their job and spending
    stupidly when they have the money... $2,000,000 doesn't go far if you buy a
    $500,000+ home, a $100,000 car and then blow a few thousand on goodies for
    yourself.

    The one thing with quitting their job is that people don't stop and think:
    "Ok I have $2,000,000... if I quit my job, how am I going to live off that
    for the rest of my life?" Yes its alot of money and its hard to think about
    having to work when you got a big wad of cash in the bank... but unless its
    invested in *something* the money will run out eventually (probably sooner
    rather than later)
     
    Augustus, Nov 23, 2004
    #3
  4. The Magnificent Bastard

    flipper Guest

    The $149 million man — the biggest single
    winner in New York lottery history — had just
    78 cents in his bank account the day he filed
    for bankruptcy, court papers show.

    http://nypost.com/news/regionalnews/34889.htm
    --flip,
     
    flipper, Nov 23, 2004
    #4
  5. The Magnificent Bastard

    flipper Guest

    I think that people who view the lottery as
    an investment are probably not good with
    money to begin with.
    --flip,
     
    flipper, Nov 23, 2004
    #5
  6. The Magnificent Bastard

    Uncle Peter Guest



    Yes, but he won the lottery AFTER filing the bankruptcy!!!
    The same day he filed.

    Pete
     
    Uncle Peter, Nov 24, 2004
    #6
  7. The Magnificent Bastard

    peter Guest

    In a word yes. Problem is most people who win the lottery are usually
    broke before they win, and therefor have no idea how to manage money.
    This will result in willy-nilly spending, and ending up broke as usuall.
    Of corse this isnt the norm, but it does happen.
     
    peter, Nov 24, 2004
    #7
  8. Are top posters assholes?

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    Gary L. Burnore, Nov 24, 2004
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    Ritz Guest

    <anything to get on Gary's good side...so I'll top post>

    Lotteries in general tend to be more of a poor tax (as in the poor get
    taxed) than anything else. To add insult to injury, governments almost
    always find a way to sleaze the proceeds into the general slush fund
    rather than use them for purposes that were originally intended to
    benefit from lottery largesse (education/roads/etc).

    Just to put things into perspective, you've got a better chance of
    standing in a field and being struck by lightning a few times than you
    do of winning the lottery. But poor folks are practically trampling
    eachother to get their chance to win that "big jackpot."

    It's really rather sad.

    Cheers,
     
    Ritz, Nov 24, 2004
    #9
  10. The Magnificent Bastard

    tom ronson Guest

    POTD!

    --tr





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    tom ronson, Nov 24, 2004
    #10
  11. The Magnificent Bastard

    Nigel Guest

    370HSSV-0773H

    (intended humorously)

    There are currently theories going around that there are more than one
    sort of IQ. Apart from the traditional intelligence/memory tests that
    qualify you for mensa and cab driving, there are also postulated
    emotional IQs and sporting prowess IQs. Is it so much of a leap to
    suggest there's such a thing as gambling IQ? The symptoms would be
    people who seem complete losers in life, but able to win huge amounts on
    the lottery or by other gambling means. Of course, they would lack the
    wherewithall to retain their winnings unless they found an astute and
    honest financial advisor!

    Evil Nigel
     
    Nigel, Nov 24, 2004
    #11
  12. I always thought if I did win I would have to give half to the
    government and another quarter of it to an economic advisor and
    accountant to avoid giving the last quarter of it to the government :)
     
    Chris Phillipo, Nov 24, 2004
    #12
  13. Better to get that out of the way right off the bat I guess!
     
    Chris Phillipo, Nov 24, 2004
    #13
  14. Advice for all you lotter winners out there. First, pay off everyone
    involved in the lottery to keep your name secret and don't tell anyone
    you ahve it, especally your family, and then to thank me for the idea,
    send me a BMW M3 CSL and as long as you keep buying my tires I won't
    tell anyone :)
     
    Chris Phillipo, Nov 24, 2004
    #14
  15. The Magnificent Bastard

    Joe Guest

    Not so much about going bankrupt after winning the lotto but here in South
    Africa we have a story of a woman who remained poor after winning 23.7 mega
    Rands = ~ 4 million $US.
    She heard the draw results over the radio and *thought that she had won
    something*. She then gave her ticket to a *friend* to collect the winnings
    and ..................

    The friend appeared in court this morning.

    Joe
     
    Joe, Nov 24, 2004
    #15
  16. I volunteer for the economic advisor position :)

    Gino
     
    Gene E. Bloch, Nov 24, 2004
    #16
  17. The Magnificent Bastard

    tom ronson Guest

    something tell me you could go broke doing this, no? <grin>

    --tr





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    tom ronson, Nov 25, 2004
    #17
  18. The Magnificent Bastard

    vegas71 Guest

    I used to work with a guy who hit a big Keno ticket. He immediately
    quit his job, cashed out a new Cadillac, then took off to California
    where most of his relatives live to show off a bit with the remainder
    of the cash. Almost a year to the day after he hit the ticket he filed
    for bankruptcy, so such things to happen.

    Frank G.
     
    vegas71, Nov 25, 2004
    #18
  19. The Magnificent Bastard

    hona ponape Guest

    Almost as much as people with stupid, long signatures.
     
    hona ponape, Nov 27, 2004
    #19
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