Winning millions of dollars without really working hard for it can sometimes be financially harmful to you. That’s because you have loads of money in your bank account but you aren’t financially literate or astute. So, rather than managing the money prudently, many lottery jackpot winners end up blowing all their money within few years. Here are 3 Lottery winners that won big time but soon went broke:
1. Janite Lee
Janite Lee, an immigrant from South Korea, ran a wig shop in the US. In 1993 her life and her dreams completely changed when she won an Illinois Lottery jackpot worth $18 million. With that money in hand, she decided to donate to various charities and attend fundraising luncheon. She also donated munificently to universities and gambled unsuccessfully with some of her money. Then the day of reckoning came when the Internal Revenue Service send her a notice to pay the tax on her spending. As you may have guessed it already, Janite Lee didn’t have the money, so she filed for bankruptcy in 2001.
2. Suzanne Mullins
In 1993, the jackpot of $4.2 million was won by Suzanne Mullins. After the tax payments and other payments that she made to her family, she still had 20 annuity payments of $50,000. This should have been enough for her to lead a life of a millionaire but she took an unwise decision to take out a loan from People’s Lottery Foundation of $20,000 and was unable to repay it back. In 2004, the People’s Lottery Foundation sued Suzanne Mullins, as she was unable to return the loan.
3. Evelyn Marie
Evelyn Marie achieved the impossible when she shocked the world by winning two lotteries in her life. She would have thought that she would never ever face financial difficulties back in her life, but things turned out to be negative. Her friends and family began to ask for money and the strangers too. Evelyn Marie lost a large portion of her jackpot winnings while gambling in Atlantic City casinos and now works two jobs to support her. Now after she had lost everything that she has only one advice for the future lottery winners. ‘As soon as you win a lottery, the first thing that you should do is to go to your lawyer and accountant.’
When purchasing a lottery, the size of the jackpot is what matters the most. Mostly the jackpot is of few million dollars but due to the rollover of the prize, this amount can reach close to billion. Do not believe us? Here are four biggest US lottery jackpots and their winners:
The Record-Shattering $1.6 Billion Powerball
Yes, that’s right. The jackpot money of USA Powerball was rolled over many times until it reached to a whopping $1.6 billion. It was then finally won by three ticket holders on January 13th this year. Two ticket holders quickly came forward to claim the prize, however; the third ticket holder came forward on 19th July 2016. The three winners were from the state of Tennessee, California, and Florida.
Mega Millions Jackpot of $656 Million
On March 30, 2012, the jackpot of Mega Millions that reached $656 million because of continuous rollover was finally won by three different people. One ticket was divided among three friends from the state of Maryland that called themselves the ‘Three Amigos’. The other winner was the retired couple from the state of Illinois named Merle and Patricia Butler and finally, the third winner was from the state of Kansas that wished to remain anonymous. All of them received $218 million from the prize pool.
Mega Millions Jackpot of $648 Million
On December 17, 2014, the jackpot of Mega Millions reached $648 million. This is the third largest jackpot ever won until this date. This jackpot was finally won by two different ticket holders. One was a driver in San Jose, California who immediately after winning, called up his boss to say that he had hit the jackpot and won’t ever come again to work. Hmmm… what a great way to inform your boss about your resignation from the job. Another ticket was purchased by a woman named Ira Curry from the state of Georgia who said that she chose birthday of family members as the lottery numbers.
$590 Million Powerball Jackpot
On May 18, 2013, the Powerball that reached $590 million was finally won by a single ticket holder. The winner was an 84-years old retired teacher named Gloria Mackenzie. She dwelled in the state of Florida and announced that she would donate $2 million to Schneck High School in East Millinocket for the repair of the broken and leaky roof.
Thousands of people all around the globe win lotteries annually but there are very few people who make the correct investment decisions and multiply their wealth manifolds. So, what is their secret? Here in this article, we have pointed out the avenues in which a jackpot winner can invest prize money to ensure that they keep growing.
Invest Prize Money in Treasury Bills
The US Treasury bill is considered as one of the safest investment options. They are risk-free investment vehicles and provide lowest return on your investment as the repayment is guaranteed by US Treasury, the FED. You can contact your banker and instruct them to invest a portion of your prize money that’s in your account in the US Treasury bills.
Invest Prize Money in a Mutual Fund
After investing in the T-Bills you should also invest some amount in a tax-free mutual fund. The units of these funds are listed on stock and can be purchased by contacting a broker. They can then again be sold on the stock exchange to lock in a capital gain. If you yourself aren’t aware of investing in the stock market, then investing in a mutual fund is the safest option because your money will be managed by capital market professionals.
Certificate of Deposit
If you are ready to invest some amount of prize money for a fixed time period and give up your liquidity, then a certificate of deposits (CDs) is a good option for you. These CDs generally pay a higher rate than the Treasury Bills and are considered a safe investment. The only negative thing about them is that if you decide to liquidate them before the maturity date, the bank will levy some penalty on you.
Be a Seed Capital Provider
With huge jackpot winnings in your hand, you can decide to invest in someone else’s business. As a matter of fact, you will be looked as a venture capitalist that provides seed capital to a local small but rapidly growing business. This is risky as if the business fails your capital will be lost as you were a partner in the business. However, the profits in providing seed capital and acquiring a certain percentage of ownership are humongous if the business turns out to be a success.
The lottery is considered as a form of gambling but is popular in most countries all around the world. It has transformed the lives of many and has made them realize their dreams. There are also some people who won the jackpot at a tender age when a person hasn’t yet matured to take prudent life decisions. Here we have shared the story of three kids who became millionaires overnight by winning the lottery.
An 18-year-old Brooklyn native never thought that he would win the division one prize when he bought the ‘Win for Life’ ticket from a gas station in Coney Island. But he defied all the odds and in 2012, he won the division one prize of $1000 a week for life. Despite being 18 years old, he has taken a far-sighted decision to keep the money in the bank until he gets admission in an Engineering University. He said in an interview that he would use the money to pay the tuition fees of the university.
Ianthe Fullagar was just 18 years old when she won the UK EuroMillions jackpot in 2010. Rather than squandering her jackpot money, she made an astute decision of putting all the money in the bank. She celebrated her windfall by having a modest meal with her family. She grew her money through smart banking and investments and is now ranked as the 38th richest person in the UK.
Callie Rogers was just 16 years old when she won the UK National Lottery in 2003. Before winning the jackpot, she earned around £5.50 an hour. She told the media that she won’t spend the money (£1,875,000) crazily after receiving it but what happened was quite the opposite. To this date, she had spent $380,000 on drugs to get high, had undergone a breast implant twice and attempted suicide four times. She had blown all her money and is now considering becoming a nurse.
If this story of young accidental lottery winners has ignited the dream of winning a jackpot in you then wait no more, buy a US lottery ticket online or from a nearby news agency and pray that you get all the numbers matched in the next lotto draw. The winning BUYnumbers of lotteries are broadcasted live on various TV channels in the US.
Lotteries are commonly played all around the world. The money received from the sale of lottery tickets are used to finance public sector projects, educational institutions and to give the prize money to the winners. In the US too, lotteries are popular and the size of prize money of the US lotteries is much larger than the prize money of other lotteries in the world. Here are some of the most commonly played and popular lotteries in the US that you should know about and should try out:
This is one of the most popular lotteries played in the US. The jackpot prize money is $2 million however it keeps rolling up if no one wins the jackpot. The draws are held every Wednesdays and Saturdays at 10:59 pm EST. Each ticket to participate in the lottery costs $2. It is extremely easy to play this game; the player has to pick 5 numbers and then a one Powerball number. In order to win the jackpot of $2 million, all the six numbers have to be matched.
2. Super Lotto Plus
The ticket to play Super Lotto Plus costs $1 only. Out of this $1, 95 cents are channeled back to the community in the form of contributions to the public educational institutions. The method to play Super Lotto Plus is relatively straightforward; the player has to choose 5 numbers from 1-47 and one number from 1-27 numbers. The minimum jackpot that a player can win is $15 million. The draw takes place on every Wednesday and Saturday at 7:45 pm.
3. Mega Millions
This is also another lottery popular in the US. The ticket of the lottery costs only $1 and a jackpot of $1 million can be won. However, in Mega Millions, the player has the option to avail Megaplier feature and push the value of the jackpot to a $5 million level. The highest mega millions jackpot amount ever won is $656 million.
So, do you think that you are a lucky brat who can win obscene amounts of money in the lottery jackpot? If you believe that to be true, then you should buy lottery tickets of the aforementioned lotteries right now and pray under a shooting star that the next winning numbers match your previously chosen numbers.