The winner needs to figure out day-to-day cash needs, insurance needs and emergency needs before anything else.
Case I:
William “Bud” Post III
“He did everything you would expect of a guy who became a millionaire overnight,” Lacher told the Pittsburgh Post-Gazette. “While you might buy one laptop, Bud would see the same laptop and buy 30.”
Case II:
“A few of my relatives were angry because I had so much.”
Case III:
Andrew “Jack” Whittaker, won $315 million dollars
Whittaker started drinking heavily. He was robbed often and said he was battling more than 400 legal complaints at one point.
Case IV:
Florida residents Alex and Rhoda Toth were downtrodden in 1990.
“It caused us to lose a lot of friends, some family members,” Rhoda Toth told the St. Petersburg Times in 1997.
A crash course in taxes is a must for lottery winners.
Case V:
Winning a $31 million Texas Lottery jackpot in 1997 initially looked to be a cure-all for Billie Bob Harrell Jr.’s financial woes.
But the endless pressure of strangers asking for money took a toll. Harrell was forced to change his home phone number more than once. He and his wife separated.
One of the first things to do is put together a list of people you trust and make one of them a buffer — someone who will deal with those who come out of the woodwork, because you now have a target on your wallet.
Case VI:
In 1993, Janite Lee, a South Korean immigrant, was running a wig shop in St. Louis when she won $18 million in the Illinois Lottery
She also donated generously to Washington University, and its School of Law named a reading room after her.
But the annual, after-tax payments of $620,000 couldn’t match her spending.
When she filed for Chapter 7 bankruptcy protection in 2001, the extent of Lee’s debts became clear. She had only about $700 but owed $2.5 million, according to The Augusta Chronicle. And, she had lost nearly $350,000 gambling at casinos during one year.
Gambling financially is never a good idea. But with CD rates on the rise, they’re a low risk way to earn an almost 3 percent return on your investment.
Case VII:
Suzanne Mullins won $4.2 million in the Virginia Lottery in 1993. After she split the money with her family and taxes ate away some of the prize, her 20 annual payments of less than $50,000 weren’t remotely enough to lead a millionaire’s lifestyle.
Case VIII:
Denise Rossi had been married for a quarter century when she won $1.3 million in the California Lottery in 1996.
In 1999, a judge declared that Denise Rossi had violated state asset-disclosure laws. The result? Her ex-husband received all of her winnings.
Actionable Items
I like to look into the following topics.
Case II: buy same laptop 30 of them.
I used to purchase shirts/ pants 6 dollar each pieces, i bought 8 pieces some time from 2010 to 2014, the total cost is $48.00 dollars plus tax. I used to go USA shopping jeans, I bought more than six pieces of jeans since I do not want to go shopping any more.
The idea is to set limit on my purchase. Do not buy any clothes anymore. Do not buy grocery each time more than $50 dollar in Costco. Do not purchase any grocery in crystall mall more than $50.00 dollars.
I also need to spend time to document each purchase with items in detail. Also I need to push myself to find time to generate monthly expense report.
I sold VIGRX fund with one thousand dollar loss in 2002. And then I sold all stock and mutual fund after 2008, since the value of loss is more than $5,000 dollars.
So I have to learn to make my investment in stock market as a business. I need to document the purchase. Even if it is 50% of loss, it is still better for me to spend on vacation or shopping. Those items I can sell them with 10% of value easily.
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