Gyroscopic Investing

Ad Orientem wrote: This woman is seriously S.O.S. But sadly that is not exactly unusual for lottery winners. Around 40% burn through their winnings in 5 years or less. It is the logical consequence when the vast majority of people who play the lottery come from a socio-economic background that often leaves them intellectually and temperamentally ill-equipped to deal with sudden wealth. Add to that the fact that most state lotteries insist on putting a giant bulls-eye on them for every con-artist, nut job and moocher by identifying big jackpot winners and it's a wonder that the stats aren't worse.

Libertarian666 wrote:

Ad Orientem wrote: This woman is seriously S.O.S. But sadly that is not exactly unusual for lottery winners. Around 40% burn through their winnings in 5 years or less. It is the logical consequence when the vast majority of people who play the lottery come from a socio-economic background that often leaves them intellectually and temperamentally ill-equipped to deal with sudden wealth. Add to that the fact that most state lotteries insist on putting a giant bulls-eye on them for every con-artist, nut job and moocher by identifying big jackpot winners and it's a wonder that the stats aren't worse.

It should take more than 5 years to blow through $88 million; this woman is astoundingly stupid even for a lottery winner.

And the first thing one should do should one be fortunate enough to win a big jackpot is to set up a blind trust to cash in the ticket. The IRS will of course know who you are, but it won't be made public.

Or so I understand, not ever having had this issue to deal with.

clacy wrote: After reading the article, "Hot Sauce" seems like a decent guy, and very likely to obey the legal system.  I see very little risk in this move.  What could possibly go wrong?

On a serious note, even though lotteries are basically taxes on the poor, I do enjoy playing when the jackpot gets large (like Powerball currently is at $700m!!!).

I look at it purely as entertainment and enjoy the day dreams necessary to plan out my spending for when I hit it, lol.