Lotto Winner Lost Most Of Million Dollar Prize After Investing Funds...
Jay took the seven-figure prize in a lump-sum payment. By the time he set aside 10 percent for charity and gave $10,000 each to his parents and several other relatives, he said he still had a healthy nest egg left over.
"After that, it was about $500,000 to $530,000. Of that, a good chunk was stocks and bond and the rest was low-risk, short-term investments so I could have cash on hand," Jay said.
Jay said he was aware of the studies that showed that 70 percent of lottery winners go bankrupt within five years and said he didn't want to become a statistic. He was careful to limit his spending and thought he was safe investing the bulk of his winnings in the stock market.
"The one sour note to this is I invested four months before the big downturn, so I made a little bit of money, then lost a bunch of money," he said.
The $500,000 he originally invested is rapidly disappearing.
"I have $330,000, or something like that," Jay told Cavanaugh.
Lotto Winner does the "right" thing: Invests
Started by
Rogerdodger
, Jan 22 2010 11:50 AM
2 replies to this topic
#1
Rogerdodger
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#2
Rogerdodger
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Posted 22 January 2010 - 11:58 AM
Although this story is not as bad as my friend who inherited his grandfather's lifelong investment in GM and never sold any. 
"Nature's Failure to Function in a 'Predictable Way'... 500 years ago?"
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#3
dasein
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Posted 22 January 2010 - 12:45 PM
Although this story is not as bad as my friend who inherited his grandfather's lifelong investment in GM and never sold any.
now that is very sad.
best,
klh
klh
