You know how I love reading about the trials and tribulations of lottery winners. Brad Duke is the example of someone that knew how to turn his lottery winnings in to a life long investment. Unfortunately most other people aren’t that successful with their winnings.
Take Rhoda Toth as an example. She won $13 million 18 years ago and has long since gambled and spent that money. In 2006 she and her husband were accused of tax evasion and the trial just completed. Unfortunately for her husband Alex has since died so it’s just poor Rhoda facing the music.
At her sentencing, she claimed that she had MS and couldn’t walk. When the judge saw video of her walking around, he opted to sentence her to jail, rather than let her off with a smaller punishment.
Just think. 18 years ago she was on top of the world. Now, she is facing jail time and is broke. Had she invested that money all those years ago, she’d be dining in the same restaurants as Warren Buffet. (Okay, bad example because we all know Warren eats in pretty darned normal restaurants, but you get the point.)
http://www.tampabays10.com/news/local/story.aspx?storyid=86972&catid=8
Isn’t that life in generally? One moment you’re on top of the world, the next in the bottom of the well. The wonderful thing about American’s is we’re always ready for one last comeback.
This is just a sad example. I once saw an article about a guy that put over half of his earnings into a risky business venture. It was just a downhill spiral from there. When the money started working for him his investment started to get return so he decided to invest in more risky investments. Finally his first investment tanked. Then his other investments started to go under. Long story short, he now lives in a mobile home in Kentucky. It’s kind of sad. I can’t say it won’t happen to me, but I don’t see how you could spend all of that money.
I’ve heard these types of stories on the news and it always confounds me. I wonder if there is any research that points to prior gambling problems before winning the Lotto?