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From multi-millionaire to poverty

Lotto winner now struggles to pay the rent.

by Anonymousreply 4403/22/2013

I'm confused. It says she invested $5 million and was living off the interest, smart. But why does she need to work?

A friend recently had a windfall. He had a discussion with his family and the first thing he did was put $1 million into his BFs account so he could be independent financially. His family met with their attorneys after the inheritance came through and told them various things about investing, etc.

I think he'll be able to live forever on his share. But it's so true. Money does not buy happiness. But money isn't the root of all evil. It's the LOVE of money that is.

by Anonymousreply 103/21/2013

R1 your last sentence is what immediately went through my mind when I read that quote in the article.

by Anonymousreply 203/21/2013

A lot of people feel overwhelmed when any kind of sudden change (positive or negative) occurs. While a sudden financial windfall may look positive some people run around like chicken with their heads cut off and spend the money on overpriced things they don't need and hand it over to grifters. I read it's some unconscious thing where people feel guilty for having so much and need to get rid of it fast so they can go back to their mental and physical comfort zone.

by Anonymousreply 403/21/2013

Well, she did have the decency to stop, when there was at least 750,000 left, to leave in a trust for her kids.

by Anonymousreply 503/22/2013

One of the winners of a recent record breaking national lottery jackpot lives near my mother. She used to be friendly with him and his wife. He is now paranoid and never without a gun at all times. And still has not moved to a bigger better house because they cannot decide what to do with a TON of money.

by Anonymousreply 703/22/2013

This actually happens a lot. But, the article says she "stopped" when there was "only" $750,000 left. A merely okay job and 750k would mean a fairly good life. And, she could sell some shit she bought.

Problem is if she has a lot of liabilities.

A person in my parents' housing development won abut $2 million, and went out and bought cars and a super-expensive home - basically spent the money in months, somehow ignorant of the fact that utilities, insurance, taxes on an expensive home cost a lot.

I guess the stories of level-headed lottery winners would never garner a story, so I know there probably are many. But, the number of people who blow through a big prize is surprisingly high.

by Anonymousreply 803/22/2013

Linked to the this story is a couple of other lottery winner articles - a teacher who won 21 million and did well to not waste it, but lost a lot of friends who were pissed he wouldn't pay off their debt or otherwise give them money.

And, a guy who won around $420k and was poisoned. I live in Illinois where you are required to do media promotion for big wins (get your picture taken with the winning ticket or a big check and have your name and picture on the lottery website). I just think that's so fucking stupid to make lottery winners do that.

by Anonymousreply 903/22/2013

[quote]One of the winners of a recent record breaking national lottery jackpot lives near my mother. She used to be friendly with him and his wife. He is now paranoid and never without a gun at all times. And still has not moved to a bigger better house because they cannot decide what to do with a TON of money.

How could you not be paranoid in this day and age where people can easily track you down.

Obviously winning a smaller amount (like a 30k scratch off) would be much better in that regard. For a big prize, they now have those lottery games that pay, for example, $2000 a week for 20 years. That's over $2 million total, but probably wouldn't attract attention the way a massive lump sum would.

by Anonymousreply 1003/22/2013

[quote] I'm confused. It says she invested $5 million and was living off the interest, smart. But why does she need to work?

My understanding was that on winning in 1994, she immediately gave away $2.75M to parents and siblings. In a 2007 newspaper interview, she claimed that half the money was gone and that she was living off interest from $5M which had been invested.

Evidently she overstated her assets in 2007 and had less of a back-up than she claimed; likely, too, she continued to waste the capital, and rapidly. A 5% return on $5M would be $250K, enough not to have to catch "the bus to her part-time job so she can support her kids and pay the rent."

And has anyone ever not lost his ass buying Michael Jackson memorabilia?

by Anonymousreply 1103/22/2013

[quote] How could you not be paranoid in this day and age where people can easily track you down.

But there are more millionaires who have earned or inherited their money than there are lottery winners, and nobody tracks them down. There must be something about sudden, unearned wealth that makes people paranoid that someone's going to snatch it from them.

by Anonymousreply 1203/22/2013

I knew before even clicking on the link that it would be a black person. And before anyone starts the "racist" nonsense, I'm black. It's something I've seen over and over again with black people - as soon as they get some money, they blow through it rather than being grateful for it and spending wisely, and end up right back where they started eventually.

by Anonymousreply 1303/22/2013

It happens to white folks too, and I'm white, r13, so I guess we shouldn't generalize.

by Anonymousreply 1403/22/2013

Blared hip hop in the driveway that shook the quiet street, yet she didn't understand why her new neighbors didn't like her.

by Anonymousreply 1503/22/2013

Why buy shit? You can't take it with you when you die and all that happens is someone has to get rid of it.

by Anonymousreply 1603/22/2013

[quote]There must be something about sudden, unearned wealth that makes people paranoid that someone's going to snatch it from them.

As R9 mentioned, people who hit the jackpot have good reason to be paranoid -- aside from the annoyance of leeches coming out of the woodwork, there've been lottery winners who have been murdered or had relatives kidnapped and killed. Another winner's business was burned down by a jealous relative whom he turned down for a handout. Yet another winner ended up moving to another state because her old circle of friends turned on her and started harassing her and her family.

One woman who won part of a huge Powerball jackpot last year has never come forward to identify herself because she's from Maryland, where winners can remain anonymous. I wish that were the case everywhere.

by Anonymousreply 1703/22/2013

R13, the lotto winners on TV that spend all their money on crap are usually white. When you see the way they decorate their homes, the things they buy, the lousy taste they foist on the cameras, you realize that some people are mean't to be poor and this is just fate's way of putting these people back where they belong.

by Anonymousreply 1803/22/2013

[quote]But there are more millionaires who have earned or inherited their money than there are lottery winners, and nobody tracks them down.

But these people don't have their pictures in the paper or are seen on TV holding a big check.

by Anonymousreply 1903/22/2013

R19,

You don't think people know who the millionaires are when a Maserati or a Lamborghini passes them by?

by Anonymousreply 2003/22/2013

[quote]Blared hip hop in the driveway that shook the quiet street, yet she didn't understand why her new neighbors didn't like her.

She deserved to die, not just lose every cent.

by Anonymousreply 2103/22/2013

[quote]some people are mean't to be poor

Including those who spell 'meant' with an apostrophe!

by Anonymousreply 2203/22/2013

This is why financial literacy needs to be taught to everyone.

by Anonymousreply 2303/22/2013

[quote]Including those who spell 'meant' with an apostrophe!

I'd like to thank Marian the Librarian for helping out with "meant." Sorry dear. I guess I was speaking Middle English.

by Anonymousreply 2403/22/2013

R13, it's not about race, it's about socio-economic status. People always confuse race and SES and it's so frustrating. Poor people, no matter their race, don't know how to deal with a windfall of money. Rich people, no matter their race, do. It's simple conditioning.

by Anonymousreply 2503/22/2013

[quote]Rich people, no matter their race, do. It's simple conditioning.

Untrue. Most of the rich gay guys I know are redfaced, bigoted alcoholics who have Mommy issues and absolutely despise their fathers. In my family, I had a cousin who drank himself to death, for nothing. Unhappy. Another friend drank himself to death after his boytoy left. When you don't have to do anything, you can ruminate on your lot in life, and it's never about money. It's about love, or a lack thereof. I could go on and on.

by Anonymousreply 2603/22/2013

Most of the unhappiest men I have known, R26, have been guys whose biggest decision in life was whether or not to run the (usually very profitable) family business.

by Anonymousreply 2703/22/2013

Low cultural capital with lots of money? "The Great Gatsby"

High cultural capital with no money? "Streetcar Named Desire"

High and low cultures have stringent rules that push out those who don't belong.

We are taught from an early age to stay within our class. This is just another lesson.

by Anonymousreply 2803/22/2013

a cautionary tale

If I won, I'd try to keep my name out of the press and not tell anyone, just quietly lend money to help people.

And pick up lots of dinners.

by Anonymousreply 2903/22/2013

R26, I didn't say those with higher SES are better people or happier people. I said they tend to know how to effectively handle large sums of money. That was the only assertion I made. I, too, would contend that most of the truly happy people I've met aren't in the 1%.

by Anonymousreply 3003/22/2013

r25/r30 has it right. If I won $10 million my life wouldn't change all that much. I'd know I'd need professional wealth management services to grow and preserve it, and not to blow it on a house and cars. I'd set up a charitable foundation to make grants to my poor relatives and friends who need money. They'd have to follow the rules of the charity and deal with its administrator, I'd have very little to do with that part.

by Anonymousreply 3103/22/2013

"I'd try to keep my name out of the press and not tell anyone"

If you told just one person, it would spread like wildfire. People cannot keep secrets. Even someone at the bank is going to tell their friends "Someone just deposited a $250k check today. Yeah, it was from the lottery offices."

If you start getting weird financial offers in the mail, or start getting hit on by strangers who never noticed you before... you know They know.

by Anonymousreply 3203/22/2013

Illinois now has a lawyer that specializes in forming LLCs for the express purpose of keeping winners anonymous.

by Anonymousreply 3303/22/2013

I have a friend who inherited a boatload of money while his stepbrothers did not. He's also the "gay" one in the family, the one who got it all. I adore him. But he's hard to live with. Paranoid. Wiped all his personal information off the Internet, including the location of his new house, so his family couldn't find him. He had a cousin who inherited the same way - jumped to the head of the line when his father died. The cousin (older) was 19 when he got $75 million in 1969. He took it all out of the bank in a Brinks truck and put it in what he called a "secret cave." By 26, he was dead. Drink, drugs, alcohol, and no limits on what he could do.

by Anonymousreply 3403/22/2013

R34,

I'm a little agog that the father didn't put some kind of restrictions on 75 million going to a teenager.

Weird story, though.

by Anonymousreply 3503/22/2013

This is the guy R35. Click on trailer. (PS - the movie never got made.)

by Anonymousreply 3603/22/2013

R13?

by Anonymousreply 3703/22/2013

[quote]If I won, I'd try to keep my name out of the press and not tell anyone

Some lottery jurisdictions say that you MUST allow them to use your name and picture for promotional purposes, or else you cannot claim your money.

It's total fucking bullshit, imo. But I'm in Canada; we're not nearly as litigious as the U.S., and so I think I'd be bound by the lottery corp's rules.

by Anonymousreply 3803/22/2013

Thanks for the clip--I had never heard of the guy.

by Anonymousreply 3903/22/2013

Here, I found the Western Canada Lottery Corporation's rules re: privacy.

[quote]Q: If I win a major prize, do I need to have my picture taken?

[quote]A: Yes. Under WCLC Rules and Regulations, the Corporation has no obligation to pay a prize unless the winner gives WCLC the right to publish the winner's name, city or town of residence and/or recent photograph. Names and photographs of major lottery winners are publicized to protect the integrity of the games – it verifies that prizes are won and shows that winners come from every walk of life.

by Anonymousreply 4003/22/2013

[quote] Q: If I win a major prize, do I need to have my picture taken?

Your local weave shop and Mary Kay lady together will save the day. Also go to the Salvation Army for a huge fat lady mumu.

by Anonymousreply 4103/22/2013

R1, what a ridiculous, meaningless distinction. It's in the same ballpark with "love the sinner, hate the sin." Money is the root of all evil because it creates greed (love of money). Many a freeper was created through financial gain.

by Anonymousreply 4203/22/2013

I love your post, R28. That was pretty close to brilliant.

by Anonymousreply 4303/22/2013

[quote]The Tirabassis advise other lottery winners to be wary of sharing their winnings too freely. “Keep it to yourself and don’t trust anybody but family,”

Hell, I wouldn't even tell my family. Not that I don't trust them, but some of my more loose-lipped family members would tell someone they "trusted", then that person would tell someone else and so on, until, before you know it, your home is invaded and you're being robbed and possibly murdered by some low-life who knew someone who knew someone who knew the guy who knew my drunk blabbermouth uncle.

by Anonymousreply 4403/22/2013
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