Lessons Learned From Losing the Million Dollar Jackpots

Lessons Learned From Losing the Million Dollar Jackpots
Every now and then we get to see how some lottery player wins a much desired jackpot. There are some that are below the million dollar mark, but the million dollar jackpots always get the media’s attention. Common people and lottery players alike are fascinated by these humongous amounts of money. Personally, I wouldn’t know what to do with all that money. In the past 50 years there have been cases when jackpot winners failed big time. Some loss all of their money, other had problems with the authorities, legal disputes etc. Let’s see how a jackpot winner can spoil the fortune he/she had.

Don’t Put All Your Eggs in One Basket – Stay Conservative

This phrase is commonly used in the business world. It means that you shouldn’t invest all your money in one company or put all your money in one bank. The reasons are obvious. Well, what happens when a lottery player wins a multi-million lottery jackpot? Bad things can happen. I’m not saying that you’d do this if you win; I’m just trying to say what you shouldn’t do at all costs. After winning a large sum of money some jackpot winners decided to act they’re financial experts and that they can cope with the dynamic financial and investing industry. Fortunately, most of them got out in time without suffering major losses, but their jackpots were shredded. Some of them suffered losses equal to more than 50% of their valuable jackpots. That’s some way to lose a jackpot, right?

What I’d recommend once you win the jackpot is to keep doing what you did before. That way you can’t go wrong. You are the master of your craft, however, now you have a hefty bank account with millions of dollars. If you intend to gamble your way to more money, try not to invest or spend all your money, a trust fund is a good start.

You Can Forget Your Tax Bill, But the Tax Guy Won’t

All million dollar jackpots are subject to tax, some countries have lower other tend to tax these winnings a bit more. The first thing a lottery winner should is consult with an accountant, preferably a tax expert. There are jackpot winners who got carried away by all parties they had to attend to. There’s one rule in the USA: Every man must pay taxes and every man will eventually die. The latter, nobody knows when it will happen, but the first one should happen as soon as possible. You don’t want to be tagged as tax evader right after you won millions of dollars. One day you’re a hero in the eyes of the public, the next day you’re the villain they never imagined you can become.

Pay your taxes people, especially lottery winners since you’re in the spotlight. The government wants its share. You don’t want to end up like several jackpot winners who were cheering on TV jumping in the air with the big check and then “forgetting” to pay the tax bill. Once your taxes are cleared you can go and party as much as you like. The fines can be progressive and can eat away a big chunk of your prize.

Your Old Friends are Your Best Friends – Money Won’t Change Them

It’s absolutely reasonable to assume that people who used to dislike you will come at your doorstep after they find out you’ve won a million dollar jackpot. However, it’s also true that million dollar jackpots can’t buy real friends. I’m not saying that after you win the jackpot you can make new real friends, but it’s going to get more difficult.

This applies to non-jackpot winner as well. However, when there are few millions of dollars in between two individuals, things are rather more interesting. Jackpot winners, time and time again come up with statements that people around them are just not the same anymore. They find it hard to trust people. New friends tend to like them because of their money, and the old ones are just part of the past. Apparently, million dollar jackpots are a frequent reason for losing our good old friends. I’d share my money with my best friend. Well, I said I’d share it, not split it. Something like a 5% of the jackpot should do the trick.

Bear in mind people, keep your friends. Don’t forget them at the cost of a few millions. That sounds weird, right?

Anonymous Jackpot Loser is better than an Identified One

Some lotteries allow the winner to decide if he wants to go public or stay anonymous. The chances of failing and losing all of the jackpot money are slim, but they’re there and we can’t deny the fact that it’s possible. We know for a fact that there were jackpot winners who failed, but their names were never published. They continued with their lives as nothing happened.

On the other hand, there are those who went public and failed. The shame with which they have to live every day can be impossible to take. People judge them, at least those who are aware of what has happened with them. Now they can’t move on with their lives. Million dollar jackpots can make your life better, but they can also make it bitter if you’re not careful.

Lesson to learn, million dollar jackpots have two faces. One when you have them and the other when you don’t. You’d be surprised how fast the tables can turn. If think you can’t handle the pressure of million dollars always stay anonymous.