Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
That's a problem IMO. I think everyone should have the option to be anonymous. I can only imagine the long line of charities calling, real estate agents and car dealers inquiring, relatives/friends asking us to "invest" in their business or "loan" them some money, etc.
If it were enough money to quit working that makes it a little easier to manage. One could move and try to drop under the radar, so to speak. Maybe put things in storage, buy an RV, and live on the road for a year or two at first?
If it's all anonymous how do you know if there are ever any real winners?
I wonder if winning big in the lottery is worse for low income people? When a upper income person wins it big they are likely to have other family members and people living in their area who are also well off financially. So I don't see these winners being bombarded for their money as much coming from family and friends. But when low income people win big they are likely to have low income people in their family and area who will be more eager to get money from them because of their need for money in general. So I wonder if something needs to be done to counsel those winners coming from low income backgrounds into how to deal with problems specific to them?
Yes, low income people probably have the hardest time with lotteries, for a variety of reasons. You outlined one of them, but here are some others:
--They are more likely to have bad/unhealthy habits, which only get magnified with more money.
--They are more likely to believe money is going to solve all their problems.
--They are more likely to believe their winnings are inexhaustible.
--They are more likely to engage in hyperconsumption to make up for all the things they didn't get as children.
--Psychologically speaking, they are used to being broke and they can't handle what it feels like to not be in a broke state of mind.
--They are less likely to know anything about the basics of investing in stocks, bonds, mutual funds, etc. (financially illiterate), so they are more prone to being ripped off by financial advisers or just investing badly.
If it's all anonymous how do you know if there are ever any real winners?
Voluntary, not mandatory. Plenty of folks would still want their name and picture in the news or will tell all of their friends, because they want the attention.
And it would still be audited... not that there couldn't be some conspiracy I suppose, but we have this possibility in part already because there are some placed that allow anonymity.
Here in my state, if you won $1million dollars, you would get about 60% or $600,000 after state and fed taxes..
If you invest well, spend $100k, and then YOU HAVE OPTIONS for employment, and still get to invest $500k.
Done well, if you have an $18k a year job, even taking just $18k a year of the $500K will last you 20 years or so! [18000 x5=90,000.]
Now, having something AFTER the 20 years is a whole 'nuther story!
of course, IF i ahd the option, I'd take it in yearly payments for the 20 years, to be sure i DIDN't spend it all in one or two years!
Actually, you could invest 500K in the stock market and just live off the dividends. Since dividends generally increase over time, your income could steadily go up with the rate of inflation (if not better than inflation).
A pretty broad based dividend focused mutual fund like Vanguard Equity Income currently pays out 2.76%.
2.76% of 500K is $13,800 per year, but that income would likely outpace inflation in most years and your account balance after 20 years would likely be much higher than what you started with.
Not enough to retire on but 2.76% is a super safe rate of withdrawal.
Because you could do something awesome with it. Even $10,000,000 would let you live like a king.
You could fund research, a park, 500x scholarships at $10,000 per year...millions of things. How could someone even want additional crap over that opportunity?
You could do something awesome with it, but when you get into $100M land, you can actually set up a non-profit foundation. Instead of a one time giveaway, you can invest the money and as the investment gains grow in value, you can give away more and more over time.
The thing is, you have to be very careful about how you give away the money. A one time giveaway of 90M is not likely to be spent well.
Every large jackpot winner is counseled prior to receiving their money (which takes 30 days btw). Ibut I seriously doubt the Lottery Commission looks at their family history and makes the snotty assumptions you have made. Not all poor people have poor relatives, and not all well off people have affluent relatives. That's just absurd.
It's not snotty...just reality. Like attracts like. Poor people are more likely to be around other poor people and rich people around other rich people. That's just how it is. Of course, there are exceptions, but they're just that--exceptions.
Quote:
Originally Posted by applej3
I always thought it was interesting how some people have their nose in the air regarding the lottery. They say "I don't buy lottery tickets" with disdain. Yet there have been quite a few affluent people who have won. I used to work in downtown area (large city) and sometimes I'd go into a small Mom & Pop store for soda, chips, etc. A clerk told me that during lunch hours lots of lawyers, execs, etc. would come in and spend a LOT on lottery tickets. I doubt all that was office pools.
Lawyers and top level execs are known for being flashy spenders. Lawyers, in particular, are often high income broke people, so I don't think I want to emulate their behavior.
When you hear of lotto winners who have won a million dollars or more quitting their jobs how exactly are they able to do this? Even with a million bucks you'll still have various bills and other expenses to cover over the years. So what exactly do these winners do with their money that allows them to quit their jobs while still being able to cover their various expenses over the years?
A mill isn't what it used to be. It's not enough to support someone fully, if invested, considering some of the investment has to be for growth, not income, so the amount lasts a lifetime.
However, most winnings are multi-millions, so that can work.
I could easily retire on $1.5 million post taxes. I'm in my 40s.
I'm of similar age and am thinking the same thing.
Actually, I could do it on $1m as I already have a decent amount saved for retirement.
A very safe 3% withdrawal rate from $1M is $30,000 per year, plus an annual inflation adjustment. That's already more than I typically spend in a year. Of course, if I quit my job, I'd probably have to pay more for health care, but my other investments should be able to easily cover the cost of health care.
By the way.... she ended up bankrupt !! There's a bunch of stories on her. I guess she was featured on a 20/20 episode of lottery winners that went bankrupt.
She was a typical lottery winner. Went way too heavy on flash and bling. Expensive art. Spent $200,000 on handbags. Expensive house. $400,000 on 2 cars. Tried to buy her way into Hollywood. Not realistic. It just took her a few extra years to go broke because the dollar amount she won was higher than the norm.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
