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Your lotto numbers roll in, what do you do?

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Re: Your lotto numbers roll in, what do you do?
Post by Daryl   » Sat Dec 23, 2017 4:55 am

Daryl
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Posts: 2293
Joined: Sat Apr 24, 2010 12:57 am
Location: Queensland Australia

I believe that the US is different to most nations in how they handle Lottery winnings. Taxed and paid out in installments?

For Australia (and I believe others) we get a lump sum that isn't taxed, although earnings derived from investing it are.
My older brother won $60,000 back in 1969. Enough in those days to buy 20 cars or a number of houses. He bought holiday units that he lived on site in and serviced. Did quite well, then he embarked on a number of ventures that saw him get quite rich, but die broke in 2015.


Fireflair wrote:Yeah, one study says most lottery winners end up broke. There was another done on big lottery winners as well, that concluded that more than two thirds came out just fine. There was an article done by NPR a few years back about this subject. They interviewed the very first modern lottery winner. He didn't win much, respectively, but he put most of it away and kept on living his life as it was.

Since then things have changed drastically. When you win the lottery now you're required to go through financial counseling prior to receiving your pay out. The state will provide you with basic advice and make recommendations of advisors to assist you afterward. Most people tended to blow the money on the usual vices, or even if they didn't they bought things like cars and houses. Then they couldn't pay the taxes on them. In many ways it's the same trap that newly rich movie and music stars fall into.

However, if people get past that first 2-5 year hump of adjusting to having wealth, they statically do just fine. In fact, 85% of them find a job that they like. And the more meaningful and personally rewarding they find that job the more likely they are to handle their money well.
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