Is there any "rules" or "guidelines" how much of lotto winnings spend on house? (houses, buying)

[Need_affordable_home]

Is there any "rules" or "guidelines" how much of lotto winnings spend on house?


Just in case me or someone I know wins! I hear the 10% guideline thrown around alot. If you are already retired, older or win a very large amount then you can spend as much as 20-40% of your lotto winnings on a house and still have enough to live the rest of your life without going broke. I have read several stories of people losing all their lottery winnings in a few years.

They buy the biggest house they find without thinking about property taxes, insurance(you can self insure instead at your own risk) HOA, repairs, maintainence and utilities that come with a big, expensive house. Some even take a mortgage despite having the money then they go broke and their house ends forclosed!

If you win and get annual payments, you are not yet a millionire till you actaually have that much in assets. You may get $50k a year for 20 years. Save all of that into funds and keep your job, especially if its a high paying job. Build your retirement nest egg and retire early.

You may give money to friends and family but make it a one time gift, if they waste it too bad, you arent an ATM machine and they need to learn from their mistakes and not drag you down with them. I will tell them to wisely invest what I give them and not to touch it except when buying a house or when they retire. Use what you make on the job, my gift to them is to be saved and invested!

Florida's lottery is at $20m. If im the sole winner, I should have about or almost $7m after lump sum and taxes. Ill give my parents like $1.5m, my bro and sis $150k and the rest of my relatives several thousand each to help them pay off their bills and mortgage. I will keep about $5m. I wont rush and buy the first nice house I see, ill visit many cities all over USA and carefully consider what I want to do with the rest of my life. Ill spend 10% of my fortune or about $500k on a house, probably more like mansion! The rest, ill be investing in funds which appreciate around 10% per year. I can always upgrade my house or buy a second house several years from now when I have many more millions thanks to funds.

A half million house or mansion is more than enough for me. I wont be staying in Florida because houses are way overpriced, depreciating and the risk of hurricanes can cause me to lose it all! Ill likley want to live in a quiet suburb or town in a huge house or mansion with lots of land and a short commute to the city for my shopping needs.

[cleosmom]

Don't ask me. My money needs to go to other places than the lotto/lottery.

[chaz longue]

Originally Posted by cleosmom

Don't ask me. My money needs to go to other places than the lotto/lottery.

I agree - these games sadden me. Most people who play should be spending thier money on, ...well, saving for a downpayment or paying off credit card debt. Or on food.

You're far far more likely to be hit by a latvian zamboni driver - in Florida - than win the lottery.

The state should be advertising the miracle of compounding and the rule of 72's rather than promoting gambling.

[Need_affordable_home]

I spent $2 on two lotto tickets. You cant buy anything with $2 except a quick snack and if I win, ill get a piece of the $20m jackpot then ill retire for the rest of my life. Read my first post for more info.

[cleosmom]

Originally Posted by Need_affordable_home

I spent $2 on two lotto tickets. You cant buy anything with $2 except a quick snack and if I win, ill get a piece of the $20m jackpot then ill retire for the rest of my life. Read my first post for more info.

However if you were doing that on a weekly basis and won nothing, you could have placed that $104 into a retirement fund or an interest bearing savings account.

To borrow an old adage- " A penny saved, is a penny earned"

[Need_affordable_home]

I play about $2 a month on average. Its not an investment, just something I do for fun. The excitement of a chance to win is well worth $1 a ticket

[CandyApple]

It's fun to daydream, eh? Sometimes I wonder what it would be like if I were a vampire. Not being able to go out during the day would suck, but I think the immortality bit would make up for it. It would be hard to be a vegetarian, so I don't think vampirism is for everyone. I think I'd have a herd of cows to feed on, 'cause sucking human blood would be gross. But, back to the lottery...

You've gotta remember, if you give too much money to someone in one year, you have to pay a gift tax. The limit is either $11,000 or $12,000, I'm not sure which. You could buy a house and let them live in it, it wouldn't be in their name, but you wouldn't have to pay gift tax for giving it to them either. Maybe you could transfer a portion of the house to them every year until they own it.

I don't think I'd blow all the money on an expensive house. To me, that's just dumb. Sure, I'd buy something better than if I had to earn the money, but not at 6-7 times the price! It's better to spend the money on not having to work, like not having to worry about losing a job or failing in a business venture. Peace of mind is more important than an overpriced mansion.