From Recaps Archives:
Note: All Dinarians should read this.....So it will NOT happen to you!
InvestorChick: Lotto Winner Loses It All
I had the pleasure of meeting a very charming senior in the last few weeks. It's my friends mother and this lady is in her 70's.
She won 5 million dollars in the year 2000. I saw a copy of the cheque on the fridge at her son's house. I did a double take because I've never seen a cheque that large.
Of course me being a Dinarian and riding this crazy ride along with all of the others, I have been fortunate enough over the past 5 years to have been educated by people like Tony etc and I have done my research about this kind of thing.
All of us have been told the statistics and I do realize that all of this waiting has been hard, although the real challenge comes after our blessing arrives.
My friend told me the story of how his mother had won the lottery and how she had come to "lose it all".
I was fascinated because although we hear about it, I had never met someone in this unique situation. This is her story in a nutshell.
She won 5 million dollars and was not financially educated in any formal way. She made her decisions quickly and without professional help. Her son told me she wanted to "show them all" who she was and rub it in their face, whoever "they" are.
She gave $500,000 to her sister and then $600,000 to each son. She was down 1.7 million to start and it gets dramatically worse from there.
Her sons accepted the gift and my friend was in a not great marriage and of course since he had just received $600,000 from his mother that was not his own lotto winning or an inheritance, his wife when she divorced him was entitled to half.
The other son burned through his quickly as he also had no formal education or did not seek professional help.
My friend however did the wise thing and invested his remaining $300,000, he still has it 15 years later and it's making him money daily.
I repeat, it's invested professionally and it makes him a return daily!
This lady bought a brand new house, hired an interior designer and of course the new performance car, fully loaded. She spent 30-40 THOUSAND per month at the casino because they were "so nice to her", no kidding!
She brought her sister for company and of course her sister didn't spend any of her $500,000. She had an addiction to scratch tickets and lotto tickets even though she had already won.
She handed out $50 tips at the grocery store to the cashiers etc. She had the life she always wanted and she sure made a big splash doing it.
It didn't take long for the money to run out and her to be in a worse situation then when she won the money.
I sat and listened in sheer amazement! I gave her a ride home that night because the battery on her car was going and she didn't have the money for a new one, imagine!
Her son was taking it to be fixed the next day for her and footing the bill.
I drove her home and she went on and on about her house etc. I drove up and although it's a beautiful place it was overgrown and unkept, no money for maintenance, the neighbours must be thrilled.
She invited me in and was proud to show me all of her treasures. My heart truly went out to her as there she was and now it's all gone and the house will be going soon too.
I looked at her and gently asked if she had to do it all over, what would she do different? She looked down and thought about it, looked up at me and said she would have got some help.
Everyone was my friend, she said, until the money ran out. I wished her good night and got in my car and thanked God for that experience in person and up close.
It's real, it happens and it will happen to some of you.
I told her son about this investment and he has some currency, I know she will be looked after but it sure makes you think.
How many shots at wealth does a person generally get in their lifetime?
I'm thinking not too many.
The sad thing about it, is how much she gambled away looking for money and "the win" again.
Folks, when this blessing arrives, your ship came in and this for most of us will be the one shot you get at wealth. Don't waste it!
There are several lessons to be learned from this story.
Be wise, move with caution and be deliberate with your actions. I truly hope by sharing this story, it can help at least one person, my eyes have sure been opened!
Sudden Wealth Syndrome 70% will lose their money after a few years.
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