Fluking the Big One

[cu@thetop]

Not sure if that's how it's spelt, but it is an expression used by an elderly delusional client of mine as to his retirement plan by winning lotto.

I saw this article:

http://www.canberratimes.com.au/mon...money-can-disappear-quick-20121107-28xh9.html

I got thinking (my lotto investment is limited to $6.55/wk at the moment) about what I would do if I "fluked the big one". I like the idea of not telling anyone but word would soon get out. Do you get your money paid in multiple smaller cheques and open up multiple accounts?

I read about a successful business man who won big bucks in the US of A and it made his life hell. His business he says went from 1-2 lawsuits a year to over 400 after word got out he won.

Any one here won big buck and suffer unexpected consequences?

 

[Colin Rice]

I heard a stat that 90% loose the lot within a few years. Went to a seminar in Perth 14 years ago and I guy called Paul Counsel explained that we all have an internal money thermometer and its set at a young age. If we come into a windfall via lotto or even a pay rise the thermometer hits boiling point or even rises a few degrees and we sub consciously do what we can to return to normal temperature. We can reset the thermometer via education and application over a period of time.

 

[MTR]

Not sure if that's how it's spelt, but it is an expression used by an elderly delusional client of mine as to his retirement plan by winning lotto.

I saw this article:

http://www.canberratimes.com.au/mon...money-can-disappear-quick-20121107-28xh9.html

I got thinking (my lotto investment is limited to $6.55/wk at the moment) about what I would do if I "fluked the big one". I like the idea of not telling anyone but word would soon get out. Do you get your money paid in multiple smaller cheques and open up multiple accounts?

I read about a successful business man who won big bucks in the US of A and it made his life hell. His business he says went from 1-2 lawsuits a year to over 400 after word got out he won.

Any one hear won big buck and suffer unexpected consequences?

Yes, I won $10,000 the big onetook the friends and family out to the swankiest restaurant, knew that would keep them at bay, I am a tight ****

 

[The Fence]

Friends of mine won $7.5m on $2 Jackpot Lottery and had to move house a couple times in the same area before having to move completely away from their home area of upbringing altogether, taking their grown up kids and families with them.

The so called friends they thought they had, turned on them when they didnt turn the $$$ tap on for them.

Terrible for them to go thru that, but they are very happy now on the Gold Coast and no-one knowing, or even caring, where they got their dosh. Surrounded by family and new unbiased friends.

On average, it's a terrible thing to happen to people who dont know how to handle it ( the money and new found status).

But, I also know a local near me who picked up about $1.5m in Lotto and still works on the Council as a general hand.
His attitude....If I stopped working now I'd be an alchoholic and loose the lot on the horses.

Built a new house, rented out the PPOR to a friend on easy terms and lives now without worrying about anything really.

He's a council worker thru and thru and will not deviate from that. But he now does not need to go to the pub and **** it all up against the wall and punt it away.

It's all about how Jan Somers says in her teachings, get used to handling the larger amounts of $$$ and you will evolve.

It changes people lives dramatically a big win like that and most dont handle it well at all.

 

[china]

Maybe the Lotto authorities ought to deal out the windfall in several portions - say 2mil every year for the next three years. That way, it is less of an adjustment.

I think it also depends on the winner's pre-win status as well. If you already have several mil, winning a few extra mil should not unsettle you too much.

 

[see_change]

I only go in powerball when it goes over 20 mill.

I figure I'm not going to win anyway , so I might as well not win 20 mill compared to not wining 1-2 mil in lotto

Not sure what I would do , but I know what I wouldn't do .

TELL ANYONE . My wife and I have agreed , If it's possible , to not even let the kids know as it could change their attitudes .

They know all about our investing , and we would have a couple of successfull investments come through ( maybe a specie 400 bagger ) to pay for the new house.

Cliff

 

[jaspn]

I heard somewhere that winners are encouraged by the lotto group to undertake financial education to prevent them from blowing it all.

 

[lizzie]

I only buy when there is a big one up for grabs ... and have the investing/spend plan already mapped out so no probs blowing it here

Just waiting for delivery day now (hehehe)

 

[cu@thetop]

The so called friends they thought they had, turned on them when they didnt turn the $$$ tap on for them.

This is what I have heard too. One guy had his friends turn up with their credit card statements. He paid them out only to have them turn up next month with statements at twice the previous balance. They got shirty when he didn't pay them out again.

Another winner would be approached by people in public who he didn't know asking him for money.

I find it funny that people would have their hand out like that- but I suppose it is human nature.

 

[D.T.]

If I won, i'd happily join the statistics of blowing it in a few years. Why the heck not; thats the life we all dream of having - may as well experience that for a few years.

 

[handyandy]

Wouldn't tell anybody outside of my own sons.

My sons already know not to talk about what we do - so no problems on that front.

But, similarly we don't get people turn around for a handout now and a big win wouldn't approach anywhere near where we operate currently (depending on size of win).

Mind you when the GFC hit I did have someone come and ask for a loan 'for his brother'. No question as to how I had fared. Never heard from him again apart from a curt email about how little regard I had for him. Such is life.

The win would simply go into consolidated revenues for further investing. Any money spent would simply come from our various structures as it does currently.

Cheers

 

[nhg]

As above, I have thought about it, and definitely agree with the 'financial thermometer' mentioned previously.

I was always hovering around the $40k mark from 17-25 until I asked myself the question, IF I HAD A MILLION, WHAT WOULD I DO WITH IT.

Usual thoughts, pay down PPOR, purchase IP, purchase nice car, go on holiday. Then I realized, that's SPENDING $1M, how do I INVEST $1M.

I'm 27 now, my comfort level is now around $1-2M (not that I have it), tho money seems to come at you once you are comfortable with it, that's for sure. If it came from lotto, I'd invest it, wouldn't tell a soul. Even now I'm thinking of ways I could raise a family without my kids knowing I were wealthy till they were mature and independent.

Fortunately my family are independently financially-ok. Both my parents refused their inheritance and my sis and BIL have their own rapidly growing IP portfolio. How awkward to ask for money :-/

Now if only I was comfortable with $20M
POWERBALL BABY!!!

 

[china]

Now if only I was comfortable with $20M
POWERBALL BABY!!!

At $ 20m, I would not be concerned at all about investing. Why worry myself at all? There is plenty to last me for eternity even just putting the 20m in a bank.

I would give some to charity first, maybe a mil spread between two groups.

 

[westminster]

I have various daydreams about winning lotto over the years. It's nice to have a little wish list about what you would do. I use it for my motivation for investing too.

I'd pretty much do all the things which I'm trying do via IPs"
- pay off my parents mortgage - they are in their 70s and still working to pay it off
- upgrade our house - nothing swanky - but something nicer
- put some aside for the kids
- invest it well
- travel

 

[Singo]

I also have various imaginations about winning a lotto. It includes donating 10% to a charity.
BTW, I never buy any lotto. Lol.

 

[Oscar]

I've been in a syndicate the past 5 years. If we win, I wouldn't tell a soul. I'd blow it all on a nice PPOR. We've been renters for 5 years, but my employer picks up the tab!

 

[jaspn]

I find it funny that people would have their hand out like that- but I suppose it is human nature.

For some, not all. I personally couldn't do it. When we purchased our PPOR a year ago, we were given an extra $7k by our parents to avoid LMI. They insisted we keep it, and even though we aren't doing it easy, we paid it back in full (when we could) - every last cent of it. I'd prefer to do it tough, and to know that one day I will get there on my own without walking into it. Although I'd never knock back a lotto win (like that's going to happen - I barely buy tickets), if my future self at 50 years of age could look back on the past 20 years and decide out of two things:

1. Getting wealthy by a lotto win, or
2. Getting wealthy by hard work and determination

I would choose the latter every time. The reward seems ever so much greater.

 

[Peter_Tersteeg]

With a windfall of $20M+, I'd be happy to help some of my family members to the tune of about $500k each. For some of them I'd put it into a trust for their benefit, but I'd retain control of the money as trustee. I'd wait quite a while before actually telling any of them about the money. They're all in different places financially and some would do quite well with a lot of cash, but 3 of my relatives I simply wouldn't trust them to make good use of it. They'd be better of having it invested on their behalf where they get a modest dividend every financial year.

I'd also pay off my own debts and enjoy a few lifestyle changes. This would still leave about $15M for additional investment. I'd probably diversify that between property, quality shares and a modest amount of cash.

I haven't bought a lottery ticket in about 20 years.

 

[Aaron_C]

$20m? Time for an upgrade on everything....

 

[HotRod]

At $ 20m, I would not be concerned at all about investing. Why worry myself at all? There is plenty to last me for eternity even just putting the 20m in a bank.

I would give some to charity first, maybe a mil spread between two groups.

Yeah, that approach worked a charm with these winners...........

http://www.news.com.au/money/money-matters/michael-carroll-andrew-whittaker-lottery-winners-who-lose-it-all/story-e6frfmd9-1226600658107

But, hey, you'd probably still have $18M still left and still not feel rich.