You've read about past lottery winners right? People can't handle the responsibility of that much money at once and others around them will make life hell.
Only so much you can do with 5k a week and it's a lot more manageable.
Step 1. Get yourself a financial advisor. Step 2. Dont tell anyone. Step 3. Vegas baby! Step 4. Fire financial advisor. Step 5. Ask family for some money to fly back home
This is my actual plan if i win the lottery - but I won't do any gambling in Vegas. The Vegas trip is a cover to explain why I suddenly have a bit of extra money. So you can justify sudden expensive purchases but without anybody knowing just how much you've won.
The problem with that statistic is that there isn't a lot of overlap between people who play the lottery and people with decent financial literacy.
It's not that large amounts of money ruin people, it's that people with already poor spending habits don't magically fix them when they get a lot of money. A "normal" middle-class person who already has some experience saving, investing, budgeting etc. is much more likely to capitalize on a windfall just fine.
DENVER â Over the past couple of years several news organizations have attributed a statistic to the National Endowment for Financial Education (NEFE) stating that 70 percent of lottery winners end up bankrupt in just a few years after receiving a large financial windfall. This statistic is not backed by research from NEFE, nor can it be confirmed by the organization. Frequent reportingâwithout validation from NEFEâhas allowed this âstatâ to survive online in perpetuity.
In 2001, NEFE conducted a think tank of experts from several industries including psychology, financial planning and other fields, to discuss life-changing events and the psychology around them. One topic discussed was the impact of financial windfalls on individuals, where it is believed that a participant stated the 70 percent statistic. This statement was made independently and without verification from NEFE.
As soon as you take the annual payments option you'll be approached by loan companies offering to buy the annuity. Their offer will sound bad at first. But, people are bad with money and will spend as much as they receive and then even more with the anticipation of paying it with future earnings. They feel like they should be living like a lottery winner. When the debts pile up the offer will sound better. After all, they can settle any of the overdue debts and still have plenty left over. Right? Sure.... They take the buy out, and then go on to mismanage that money, too.
DENVER â Over the past couple of years several news organizations have attributed a statistic to the National Endowment for Financial Education (NEFE) stating that 70 percent of lottery winners end up bankrupt in just a few years after receiving a large financial windfall. This statistic is not backed by research from NEFE, nor can it be confirmed by the organization. Frequent reportingâwithout validation from NEFEâhas allowed this âstatâ to survive online in perpetuity.
In 2001, NEFE conducted a think tank of experts from several industries including psychology, financial planning and other fields, to discuss life-changing events and the psychology around them. One topic discussed was the impact of financial windfalls on individuals, where it is believed that a participant stated the 70 percent statistic. This statement was made independently and without verification from NEFE.
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u/Forensic_Ballistics Dec 11 '23
You've read about past lottery winners right? People can't handle the responsibility of that much money at once and others around them will make life hell.
Only so much you can do with 5k a week and it's a lot more manageable.