Lotto Fever: What Would You Do?
- Posted by Jeff Carter
- on March 22nd, 2013
The Powerball is up to $320M. The estimated cash value you’d receive is $198.3M. Of course, if you live in a high tax state like California, Minnesota or New York, the actual cash value would be around ten cents.
Everyone thinks that if you won the lotto, it would be bad because of all the old family members you left in your closet coming back to haunt you. There would be hangers on and beggars coming at you for money.
The worst part would be all the Wall Street wealth managers that would be harassing you. Many of them know how to take a large fortune and turn it into a smaller one, ask Josh. (He’s one of the good guys)
There is a litany of tragedy for people that win the lotto. Many of them go broke. Having that kind of money changes you, changes the way people look at you, and changes how they interact with you. Many times, even your close friends and family members change the way they approach their relationship with you.
A lot of people say they would “cure world hunger” with the money, or some unattainable goal like that. As long as there is a world, there will be hunger. But, you might be able to create something useful that solves a problem.
One thing you never hear a lotto winner say is “nothing”. Wouldn’t it be funny to hear a lotto winner say, “I am going to do nothing with this money except retire, sit on it, live off the interest and pass it on to my family.” ? Of course, that’s what the press and a lot of people think people that actually made a huge pile of money do with their wealth. The facts don’t bear them out.
Outside of buying stuff for your family and kids, feeling financially secure, what would you do with the money? Why? And what’s stopping you from doing it now?
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...)