What, is their money not as valuable?

[AdminAssistant]

I also imagine that her clients are used to a certain 'lifestyle', that is, if you have a limited amount of money from a lotto, her clients will burn through it faster than a fire in a paper factory.

[Dreamstalker]

Good point. I've actually known people like that (not millionaires, but used to having someone else buy them everything they want)...they thought everyone had an unlimited supply of money.

[gremcint]

But she doesn't exclude trust fund kids who just live off of mommy and daddy?

[AdminAssistant]

But she doesn't exclude trust fund kids who just live off of mommy and daddy?

Is said trust fund kid also set to take over the corporation/business when mommy and daddy retire/die? If so, then that is a continuous stream of income. You could call the Walton kids "trust fund kids" and they are all still doing very well financially. Some are still leading up Wal-Mart, some have started their own businesses.

BTW, I think this whole thing is horseshit, I'm just trying to explain the logic behind it.

[Andara Bledin]

Also, in the case of a TF kid, they've grown up in that society. They have the connections and the reputation that is part of the package that she's representing.

Lottery winners aren't part of that world, in the majority of cases. Plus, there are likely some TF kids that get rejected on further examination, too.

^-.-^

[Mytical]

Before I get into why lottery winners tend to end up broke, and sometimes worse off then before they won, I will say that I agree that without a proven track record of turning that winnings into steady future income..I couldn't blame them for not including lottery winners.

Now the first issue with Lottery winners is, they vastly underestimate the tax on the winnings. That is a major problem, because if you win millions the tax can be in the millions. Second as soon as they win, they have more 'family' then they know what to do with..and everybody has their hands out. They end up giving way too much of the money away to 'sob stories'. While the people who have made their money can be generous also, they know their limitations ..while a lottery winner may not.

They also tend to over compensate. They have been struggling all their life to make ends meet, and doing without that they buy everything they ever wanted..regardless if they need it or not. They tend to think that they will never run out of money..so they don't tend to invest it or make it work for them either.

However, this is not only lottery winners. Sport stars, movie stars, etc who make millions of dollars have squandered it all also. Wonder if this person accepts them as clients...

IF you win, and have no head for money..the first smart thing you will do is hire people who are. Claim it quietly (ie through a lawyer or such) also. So that every needy person is not knocking on your door (and the ones that are not needy but are good at faking it).

Me..I'd be one of those that my lifestyle wouldnt change much. I'd not buy mansions, fancy cars, etc. A simple, quiet life.

[Ginger Tea]

I dont't know how much the lotteries differ between countries (let alone states) but the UK one afaik you win that ammount completely, the tax is taken out from the pool of sold tickets.
Also you can claim anonamously (sp) and they do (or did) offer financial advisors on large wins (not too sure what the minimum is)

So if I were to play the lottery again and won one of the larger ammounts, I would buy a house instead of renting (a second property to let out if finances were right) and still go to work as a million or two just doesnt seem enough to last till retirement as it becomes your sole income and after the purchase of a house (quarter of a mill minimum here in Cambridge) there won't be much left for the long run.
For a time I might even have both houses as shared houses, with a letting agency handle everything and no one being any wiser to me owning the property instead of just being another tennant, if you knocked on my door to borrow money, I know you don't have much after rent or perhaps can not make it, so depending on the agency, you might not be around long enough to pay me back.

TBH if finances stretched that far, I would buy my brother a simple house, so I know he would always have a roof over his head, but I wouldn't then like to be seen as his personal bank either

but I would have to start playing the lottery again ...

[Andara Bledin]

I dont't know how much the lotteries differ between countries (let alone states) but the UK one afaik you win that ammount completely, the tax is taken out from the pool of sold tickets.

In the US, you can either take payments or take a lump sum. If you take the lump sum, you end up only getting about 60% of the money. After that, you can end up paying up to something like 1/3 in taxes, depending on how much you won.

Most people aren't aware that you see less than half of what you won unless you go the payments route, which nobody does because it not only takes something like 20 years, but you can earn more on investments than what you lose by taking the lump sum.

^-.-^

[Teysa]

I can see where someone would go through their winnings in a short amount of time. I honestly can't say that I'd be any different. Money tends to burn a hole in my pocket if I have any lol. That's why, on the rare occasions that I do buy a ticket, I always do the payments option. That way, if i have too much fun the first year, I'll at least have more money coming in. (I only spend a dollar here or there on the lottery. I don't buy 20 dollars worth of tickets when the car is low on gas. That's silly.)

[Boozy]

The problem lottery winners run into with taxes is not usually the lump sum they pay (if any), but the property taxes they owe on any homes they buy.

For someone bad at financial planning, it could be tempting to spend a large chunk of their winnings on a large home in an upscale neighbourhood without setting aside funds to pay the ongoing property taxes.

[Ginger Tea]

or buying 10 stupidly expencive cars and not having enough gas money :-p

[Peppergirl]

or buying 10 stupidly expencive cars and not having enough gas money :-p

I knew a guy in the late 80s that won a million in the lotto. I was in my late teens and he was probably in his early 20s and was a bigger partier than I was, even. (which was saying alot).

I'll never forget being at work and him walking into my store, all out of breath. I asked him what was up and he asked me to borrow 5 bucks.

I handed it to him and asked what happened. He had run out of gas in his fancy car that he bought with his winnings 6 months prior.

*sigh*

[muses_nightmare]

Now the first issue with Lottery winners is, they vastly underestimate the tax on the winnings. That is a major problem, because if you win millions the tax can be in the millions.

Not all countries tax the winnings. I know if you win say $500 000 in BC (all of Canada maybe?) You get that amount. Well I think they added an extra $1 to my uncle's payment, for some reason or another...I can't remember. But I know he got the full amount, not 60% of it.

[Mytical]

That is true, I was speaking for the lottery here. As mentioned not only does lump sums usually take half of any winnings (so if you 'win' 10 million, you get about 5 or so..give or take) then you have to report gambling winnings and they tax it. Not sure if the tax is off the 'original amount' or the 'lump sum' tbh.

So if you win that 10 mill, you get 5..and if they tax the 10 mil at 35% you would end up with 1.5 but most people don't realize that and think "I have 5 million!!!"

Even if they only taxed the 5 that you got..that is 1.75 mil tax for total after taxes of 3.25 million. Which seems a LOT, but if you are not careful you can go through that fast..especially if you are not used to having a lot of money.

And yes what gets them is they go out buy those big houses (and forget they still have to pay taxes on it for life), have 10 cars (and only need one)..usually sport cars..and do things like go to Rodeo drive for a spending spree. Not to mention throw parties (hey gotta celebrate right?!) and invite a thousand people who they actually barely know.

[Amanita]

^Ye gods, I wouldn't go that if I won the lotto. If I won here in Canada, and I actually got to keep most of it, I imagine I would look into emigration ASAP- I've always wanted to be a New Yorker. Depending on how much I got, I might look for a condo in Manhattan, or even a standalone place in one of the other boroughs, close to the commuter trains and ferries. And then I would start taking classes in costume/fashion studies and business. In a place like NYC there's definately room for a niche fashion designer such as myself- not so much here in Halifax.

I don't need 10 cars, I don't plan to have a huge party with a crapload of people I barely know, and one reason for leaving ASAP would be to stave off the pity parade of people I barely know chasing after me with their hands out, as cold hearted as it sounds. Of course, I would give some to my immediate friends and family, but that's it. A few of my relatives have student loans, I would give each of them enough to pay those off and have some left over for more schooling/down payment on a house/whatever. Another relative is special needs, I would give his parents some for themselves plus some to make sure he's looked after.
We're not talking huge sums of money here- enough to cover specific needs and still have some left over to give them a leg up, should they wish to buy their own place/ go back to school/etc.
Unfortunately there's one friend I would be hesitant to give any to- she's the one I've ranted about, who has tried to hijack my lightsabers and other props, and has been on assistance the whole time I've known her. One, she refuses to have a bank account- so if I gave her $10,000, she would most likely keep it stuffed in her sock drawer. Also, if social services found out, she would get cut off assistance ASAP, or otherwise penalized. Now, OTOH, if she had a specific plan to get off welfare, such as job training, tutoring for her GED, or the like, then we could talk.

After I've helped out my immediate friends and family, then I would be gone, ASAP. If anybody who previously didn't know me from Eve wants money, "but I'm faaamilleee!", then they can buy a plane ticket to NYC and come looking.