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Robert
January 8th, 2012, 11:07 PM
No, not me! I don't play the lottery. I watched a very good documentary tonight on CBC, called "Lucky". Made me think.

I don't think that a sudden pile money automatically is a good thing. Likely the the opposite.

Not that I would complain if I won some money... but I am more interested in working hard to build my own fortune, instead of wasting a fortune in the end, hoping for the big win. Yet so many people seem to do just that.

A person who spends $100 per month on the lottery—slightly less than the average resident of Rhode Island spends on the lottery (see Table 2)—over a forty-year period would be $144,000 richer if he instead invested that money. A lottery player who spends $50 per month—slightly less than the average resident of Massachusetts—would have an additional $72,201 if he instead invested his money, and the average New Yorker, who spends about $25 a month on the lottery, could be over $36,000 richer by retirement age if he instead invested in the stock market. [ http://www.taxfoundation.org/news/show/1302.html ]

Some more numbers (http://govinfo.library.unt.edu/ngisc/research/lotteries.html):
Lotteries have the highest profit rates in gambling in the U.S.: in 1996, net revenues (sales minus payouts, but not including costs) totaled $16.2 billion, or almost 38% of sales. They are also the largest source government revenue from gambling, in 1996 netting $13.8 billion, or 32% of money wagered, for governments at all levels.
[ http://govinfo.library.unt.edu/ngisc/research/lotteries.html ]

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LUCKY takes an entertaining and candid look at the seduction of the lottery and what hitting the jackpot does to the winners. Veteran director Jeffrey Blitz (SPELLBOUND and 2007 Sundance Film Festival Director Awardwinner for ROCKET SCIENCE) crisscrosses the country following winners as they navigate their newfound riches, and hopefuls who have “a dollar and a dream.”

The cast of characters includes Quang and his wife, Mai, Vietnamese immigrants working the graveyard shift in a Nebraska meatpacking plant who reinvent their lives when they win $22 million dollars; James, a destitute, suicidal loner who divvies his last $3 between food for his cats and a Powerball ticket--and wins over $5 million; Kristine and Steve, a middle class New Jersey couple who, after winning $110 million, are sent 12,000 pieces of mail from strangers around the world begging for money; Robert, a Berkeley mathematician who understands better than most the near impossibility of winning and yet still hits a $22 million jackpot; and Buddy, considered a hero after running into a burning building to save a boy’s life, who seems to be repaid for his bravery with a $16 million win -- until his life comes apart at the seams. But the reality of these winners' stories mean nothing to Verna, an obsessive player from Delaware who spends up to a $100 a day on the lottery and still, after 30 years, firmly believes that she’ll one day land the big win.

Winners’ lives are turned upside down as they are forced to grapple with their new role in the world. It’s a chance to realize their dreams, to make a difference. But life also becomes complicated as they travel through a haze of attorneys, hired security guards, changing friendships, scheming family members and prying strangers. And those are just the pressures on the outside. How an unearned but thoroughly life-changing event forces them to reconsider who they really are and what they truly want from life may be the biggest challenge of all. In the end, is the payout a nightmare, blessing or some rich mix of the two? LUCKY is revealing, engaging, and will shed some light as you weigh your future deciding whether or not to buy a ticket.

See also http://www.cosmoloan.com/investments/5-worst-cases-of-lottery-disasters.html - some sad examples of big winners.

Eric
January 9th, 2012, 07:48 AM
That looks like a very interesting show. I've only read of the fates of lottery winners before. Personally speaking, I'm too cheap to ever enjoy gambling. I'm not really interested in building a fortune either, so the whole thing just doesn't make sense to me. I guess it's a good way to daydream. I played in work pools a couple of times, but eventually I realized I was doing it solely because of peer pressure.

If people want to do the lottery, I have no problem with it. I just think it's not for me. Kind of like strats. ;)

Robert
January 9th, 2012, 09:27 AM
Oh I have no problem with people wanting to do the lottery either. Or buying guitars other than strats...

Still an interesting topic though. There is an enormous amount of money spent on lotteries, and so very few win anything substantial.

Desperate times needs desperate measures?

mapka
January 9th, 2012, 09:30 AM
There is a program on TLC or one of those networks called "How The Lottery Changed My Life". Similar tales of triumph and loss from winning the lottery. Best one was the family living in a double wide trailer in rural Appalachia that after they won didn't buy a home without wheels but expanded on the double wide! Oh, did I mention they bought a Lamborghini to fetch groceries and such in!

Knew people at work who would spend 50 bucks a week on scratch off tickets. Only one had luck with them. I buy Powerball tickets when I go into the market, but only like $2 worth. My feeling is that if you are going to be lucky you will be just as lucky with one ticket as with ten (cat food example in Roberts post)

R_of_G
January 9th, 2012, 09:46 AM
The lottery gives people a chance to daydream about what they'd do with money they'll never have while simultaneously wasting money they probably shouldn't be spending. It's any state's best dream, a regressive tax levied on ignorance.

Eric
January 9th, 2012, 09:52 AM
It's any state's best dream, a regressive tax levied on ignorance.
Nicely stated. I've never thought of it in exactly those terms; I had only heard "fool's tax." Interesting thought.

Tig
January 9th, 2012, 10:48 AM
Mrs. Tig puts about $30 per month into a 6 co-worker pool for mega lottery tickets. That's the extent of our lottery involvement. If all we won was enough to pay off the house, I'd be more than satisfied. That frees up more cash to invest towards retirement and, well, guitars! :D

The sudden influx of money and choices amplifies a person's personal qualities but more importantly, their flaws. Some have done well, while others have ruined their lives with a win.

R_of_G
January 9th, 2012, 11:03 AM
Nicely stated. I've never thought of it in exactly those terms; I had only heard "fool's tax." Interesting thought.

I will say this for a lottery. It's the tax revenue generator I find the least offensive because it's purely voluntary. That's why I don't object to the existence of lotteries, I just abstain from playing with my own money.

Eric
January 9th, 2012, 11:18 AM
This whole discussion reminds me of a story I once heard about Rich Mullins, the songwriter of many a Christian tune back in the 80s and 90s. He was really commercially successful, but he had his church give him a stipend of the average American's wages and donated the rest to charity, without ever telling him how much money it was. People thought he was nuts and asked why he didn't just take the money and dole out to charities as he saw fit, but I think he said that if he ever got the money, he would never be able to let it go.

Religious affiliations aside, I thought that was some pretty amazing foresight on his part. I like to think that's how I'd handle a huge influx of cash, but I doubt that I'm that strong.

I've often wondered what I would do if I had complete financial security for as long as I was alive, and I don't know. I definitely wouldn't quit working, that's for sure.

Katastrophe
January 9th, 2012, 11:39 AM
I think ignorance has a lot to do with how and why big lottery winners lose their money. If it was a requirement that a lottery winner had to consult with a reputable financial planner, and be educated in how having a large pile of money can work for them, then problems would go down. Folks who've never had a large sum get it, and think the supply is infinite, when it really isn't.

I don't play the lottery, but if I did, and won by some miracle, the first three people I would consult would be a lawyer, a CPA for tax issues, and a certified financial planner before taking posession of the money. It would be something that I would want to last beyond my lifetime, so my kids could have their college paid for and other things.

Tig
January 9th, 2012, 12:15 PM
the first three people I would consult would be a lawyer, a CPA for tax issues, and a certified financial planner before taking posession of the money.

The main thing is an estate lawyer. The rest can be done after taking possession.

Tig
January 9th, 2012, 12:22 PM
Having more available free time would be the greatest gift of all. I don't have enough time in the day or week to do everything now, even working just 3 or 4 nights per week. I would not miss work! I would, however, spend some time volunteering. The opportunities to give back would also be exposed when being up close to those who need an anonymous hand.

Travel would be another bonus. I can see traveling to so many different places around the world.

deeaa
January 9th, 2012, 11:01 PM
I think we can say what we want about what would we do if we won big...i doubt that is what would really happen. I also think it would be really scary to win big and potentially a disaster. I do lottery sometimes, say with 30 bucks a year or so.

Me, I would pay off debts of mine and my family and a couple of best friends of mine but do that in secrecy. I would build a new house and studio near it. I would then set up some sort of trust fund that would pay me monthly an amount that would be enough to live on well but not crazy much just so much I would have to live normally and even work some to get some bigger things etc. Or alternatively buy apartments etc. With all of it and live off lease income.

And it would definitely have to be done so there would be money left when I die to support my kids later similarly, only I would not give them a penny before they have grown up and gotten jobs etc. Unless in dire need.

I believe it is beSt to wean kids well and let them live on their own from like 16 onwards till they have learned to make a living for themselves. When they are 30 or so I can give them all I have but I know for a fact that if my parents had not kicked me out in my teens. If they had bought me stuff like a car and such, I would never have gone to university even. And I know even now I would take it too easily if I had lots of money, so I would have to curb it right away.

Sent from my HTC HD2 using Tapatalk

marnold
January 10th, 2012, 08:34 AM
Nicely stated. I've never thought of it in exactly those terms; I had only heard "fool's tax." Interesting thought.

The lottery is a tax on people who are bad at math.

R_of_G
January 10th, 2012, 09:01 AM
The lottery is a tax on people who are bad at math.

Exactly. The tax rate is proportional to how little the player understands about probability.

Commodore 64
January 10th, 2012, 10:25 AM
I don't play the lottery. But if I did, and won, I'd hire a lawyer and have them do whatever is needed to get the money. I'd remain anonymous. I'd pay off the homes and debts of immediate family anonymously. And buy a nice TV.

tunghaichuan
January 10th, 2012, 10:33 AM
I know what'd I'd do.

http://static.moviefanatic.com/images/gallery/lawrence.jpg

R_of_G
January 10th, 2012, 11:20 AM
I know what'd I'd do.

http://static.moviefanatic.com/images/gallery/lawrence.jpg

+1

Katastrophe
January 10th, 2012, 11:21 AM
Grow a mustache and killer mullet?

Eric
January 10th, 2012, 12:05 PM
Two chicks at the same time, man.

Eric
January 10th, 2012, 12:06 PM
I don't play the lottery. But if I did, and won, I'd hire a lawyer and have them do whatever is needed to get the money. I'd remain anonymous. I'd pay off the homes and debts of immediate family anonymously. And buy a nice TV.
Is that even possible to remain anonymous? That's a good thought though about paying off the debts of immediate family anonymously.

NWBasser
January 10th, 2012, 01:09 PM
The lottery gives people a chance to daydream about what they'd do with money they'll never have while simultaneously wasting money they probably shouldn't be spending. It's any state's best dream, a regressive tax levied on ignorance.

Now that's a perfect summary of the lottery system.

Like Eric, gambling and strats are not for me.

R_of_G
January 10th, 2012, 02:17 PM
Is that even possible to remain anonymous?

That raises a very interesting question of privacy rights versus government transparency. I don't think the media needs to publish the names of lottery winners unless the individual winners want their story to become public. However, since lotteries are run by state entities, there is a certain degree of transparency that needs to accompany something that generates revenue for the state to prevent fraud. I would therefore suspect that the names of lottery winners are a matter of public record somewhere or another within the bureaucracy. Finding that information probably varies in degrees of difficulty from one state to another.

Katastrophe
January 10th, 2012, 02:20 PM
I'm not completely sure, but I don't think you can remain anonymous if you win the lottery in Texas. I think the state reserves the right to use your name and likeness for advertising purposes, although one rarely sees lottery winners on the news anymore, unless it was a really big amount.

Eric
January 10th, 2012, 02:25 PM
However, since lotteries are run by state entities, there is a certain degree of transparency that needs to accompany something that generates revenue for the state to prevent fraud. I would therefore suspect that the names of lottery winners are a matter of public record somewhere or another within the bureaucracy.
Yeah, that was my basic assumption as well.

tunghaichuan
January 10th, 2012, 07:07 PM
Grow a mustache and killer mullet?

Here's the quote from Office Space:

Peter Gibbons: What would you do if you had a million dollars?
Lawrence: I'll tell you what I'd do, man: two chicks at the same time, man.
Peter Gibbons: That's it? If you had a million dollars, you'd do two chicks at the same time?
Lawrence: Damn straight. I always wanted to do that, man. And I think if I were a millionaire I could hook that up, too; 'cause chicks dig dudes with money.
Peter Gibbons: Well, not all chicks.
Lawrence: Well, the type of chicks that'd double up on a dude like me do.
Peter Gibbons: Good point.