Lottery winner lost money after investing funds

Comment #63

Littleoldlady — Tue, 02 Feb 2010 15:55:06 GMT

He should park it for the long term and aim for just 10% (safety) compounded interest. If he can get this, he will have his 1 million back by the time he is 34 or 35. The rule of 7.

Comment #62

jwhou — Sun, 31 Jan 2010 16:09:18 GMT

Hmmm, smart enough to invest but not smart enough to do dollar cost averaging and benefit from the down turn. If you invest it all at one time then you limit what you can do. Still $330,000 should give him a decent head start and the recession won't last forever, he'll get it back.

Comment #61

DC81 — Fri, 29 Jan 2010 17:12:23 GMT

The best part is this seems just like a repeat of the story about him over a year ago, which is conveniently linked over on the right side with the related stories.

https://www.lotterypost.com/news/183368

There are just as many things to take into consideration with taking the annuity as there are with taking a lump sum.

Comment #60

time*treat — Wed, 27 Jan 2010 15:46:54 GMT

A few lucky souls have even won a second jackpot.

Comment #59

savagegoose — Wed, 27 Jan 2010 11:33:53 GMT

i got my numbers wrong 3.25% was a busines sloan, interest on savings is only 1.25%!!!

330k at 1,25% = $4k a year!!!!

on 1 mill 12.5k a year

Comment #58

charmed7 — Tue, 26 Jan 2010 01:43:05 GMT

Smart kid, Bad idea off investing large sum of money in the market, its too risky now days.

He's young enough to regain his losses.

Comment #57

myturn — Mon, 25 Jan 2010 07:41:14 GMT

First, he should sit tight and wait for the market to rebound.

Second, he should stop talking to the media about his finances, it is a private matter; unless he is paid for the interview.

Comment #56

myzeus — Mon, 25 Jan 2010 00:54:35 GMT

I would have put the majority of the money into real estate and would have stayed far away from the stock market.

I was in Houston, Texas during the oil bust....so many houses and real estate in foreclosure....it was like it is now. If I had had the money during the oil bust to buy cheap real estate in Houston, Texas....I'd be sitting pretty right now because property values did increase but it took a few years.

If I won the lottery, the majority of it will go into real estate. The stock m... [ More ]

Comment #55

chuck32 — Sun, 24 Jan 2010 21:57:33 GMT

Life is gambling. The stock market is gambling for the big boys. Have no doubt, the advantage in the stock market is that it takes longer. It takes longer both to lose it and to get rich. There is no such thing as making smart investments . Darts do just as well (better, in fact, in studies) than experts . It takes years to move the money out of your pocket over to the big boys' pockets. In good times, they take their share, leaving you with a little more return than you pay out for your mortgag... [ More ]

Comment #54

chuck32 — Sun, 24 Jan 2010 21:32:47 GMT

That saying is simply moralist propoganda. It is an invented statistic. Like the common but nonsense statment that we only use 10% of of brains, or only poor an uneducated people play the lottery, etc. Over 70% of Americans have played the lottery. It makes no sense that over 70% of Americans have gone bankrupt (nearly everyone is a winner of some amount at some time).

The annuity option is the best choice for MOST people. Imagine that someone gives you $100 million in cash. You have two offe... [ More ]

Comment #53

time*treat — Sun, 24 Jan 2010 20:29:25 GMT

Investing with Buffett just got easier. The 'baby' Berkshire shares just did a 50-1 split.

Stocks, bonds, res. comm. real estate, metals, farmland all get their day in the sun. Just not every day.

Comment #52

rcbbuckeye — Sun, 24 Jan 2010 14:18:40 GMT

I always thought or assumed it was regarding jackpot winners, though I suppose it could be any winner . I cant remember ever hearing or reading 70%, that seems a little high.

fja, my definition of lottery winner is one who wins more than he or she spent. If I spend $1000 in one year on the lottery, and I win $500, I lost, if I win $1000, it's a wash, if I win $1001 or more, who hoo!!! I won! LOL. That hasn't happened.

Comment #51

fja — Sun, 24 Jan 2010 13:41:13 GMT

It's a number that has been around for awhile...What they don't tell you is what makes up that number. Could be a very high % of small winners....what do you think the definition of lottery winner is

Comment #50

Velocity — Sun, 24 Jan 2010 04:05:50 GMT

You know, I have to say, it's easy for Warren Buffet to say invest your savings when he has $50 billion dollars, and he can lose $20 billion and not bat and eye, he doesn't have to worry about having gas money for the week or worry that he has all of his money in the stock market. My point is, I'm not investing my money in the market for others to play with, their big thing isn't to make YOU money, it's to make THEMSELVES money and even if the price of the dollar falls, at least you know that yo... [ More ]

Comment #49

sully16 — Sun, 24 Jan 2010 02:24:14 GMT

I feel bad for this kid , he thought he was doing right. he's a little wiser now and i think he'll go far.

Comment #48

joshuacloak — Sat, 23 Jan 2010 22:17:17 GMT

am going to be the jerk here, and say he didn't invests the money fairly wisely

investing in the stock market for Capital Gains is flat out gambling, then again he got lucky once, so why not try it again LOL

now if you invested into companys THAT PAY a high dividend yield, that have little debt, lots of cash on hand, , and are their just to get money back to their owners share holders NOW THATS investing,

take a stock that is risky on capital gains, WWE,

its track record... [ More ]

Comment #47

jacal5 — Sat, 23 Jan 2010 20:35:50 GMT

dpoly1: Do yourself a favor and learn from my mistakes, I traded stock, mutual funds, options, etc. for years and without some of the pitfalls today's market has, I had some successes, but the financial losses were greater. A talented trader who showed me the ropes eventually lost every penny he ever made and started asking me if he could borrow cash so he could continue trading and make back his money ( I changed my phone number), very few traders are successful. Invest in dividend payers, use... [ More ]

Comment #46

dpoly1 — Sat, 23 Jan 2010 19:59:25 GMT

If I ever win, I will do my own investing. I will certainly diversify my investments. As for the Stock Market, I would start out small with on-line trading. If my research and strategy works I would continue. I have had a long time to think about what I would do and would welcome the chance to try some investing.

I would not buy an American car because of the way GM and Chrysler screwed their investors and took care of the unions!

I hope the young man does well!

Come on P... [ More ]

Comment #45

jacal5 — Sat, 23 Jan 2010 19:11:28 GMT

One more danger in the market is black box trading, trades done automatically by computer programs with no human intervention, even the fund managers are well aware of this danger to the stocks in their funds. Did anyone read the article about the Goldman Sachs super computer? It sees what trades are being made a few seconds before they go through, and trades accordingly. What can the average investor do about that? Individual stock buying today carries too many risks, if you make money you are

Comment #44

jacal5 — Sat, 23 Jan 2010 18:15:13 GMT

The problem I have is the average investor doesn't understand what short selling is and what the actual risks in the market really are. If I bet on the JETS and know the spread, I know what has to happen in order for me to win money, unless the game is fixed. Some people think the stock market is fixed and the odds are against the retail investor to make money, so we have three things in the market to cause an investor to lose money on individual stocks; company fundamentals going downhill, shor... [ More ]

Comment #43

ca-dreamin* — Sat, 23 Jan 2010 16:48:31 GMT

Although I realize everyone is different I think his first mistake was to start giving some of the money away.

In the article he states putting the bulk of his money in the stock market which was his second mistake. Anyone who knows anything about the stock market knows it's a risk. If he had done his homework he would have put the biggest chunk in safer investments and/or hired his financial team to start with.

All in all I think he's still doing pretty good! Face it most 19 year olds wou... [ More ]

Comment #42

KY Floyd — Sat, 23 Jan 2010 16:46:30 GMT

One cant lose that which they do not place up for risk

I guess you've never heard of inflation. Assuming you didn't lose money to a fire or theft, over the past 20 year you still would have lost about 3% every year. That means that every dollar you safely saved by not investing 20 years ago would be worth about 55% of what it was when you stuck it in your mattress, and you'd have about a zero chance that it would ever recover. For those who think that investing their money in a bank is safer... [ More ]

Comment #41

SmoothJuice — Sat, 23 Jan 2010 16:38:02 GMT

Wow, he lost alot of weight as well. Lottery winners should be like this guy. Unfortunately, many lottery players are low-income and received poor eduation so they blow it all away after they win.

Comment #40

universe — Sat, 23 Jan 2010 16:27:41 GMT

Everybody wants to make a killing in the stock market.Remember slow and steady wins the race.When i win the lottery i'll put my money in index funds and conservative dividends stocks.

Comment #39

Litebets27 — Sat, 23 Jan 2010 16:15:58 GMT

My daughter is a graduate of Towson University. Believe me, it would have been nice if she could have had that scratch off win while she attended Towson. Although, I doubt that she would have a cent left now. (she is the ultimate shopaholic)

At the time he invested, his mind was moving in the right direction. Trying to invest on his own, without professional help, while attending college is a big gamble. Too many things to concentrate on at once.

His best bet would have been to put it all

Comment #38

time*treat — Sat, 23 Jan 2010 16:08:40 GMT

With stocks, for every buyer there is a seller (and a commission collected from each).

When Trader Adam makes that historical average of 10% , it is because Trader Bob has lost that amount; and each pays a commission when they buy and again when they sell, whether or not the trade is a 'win' or 'loss' to the individual.

CEOs on TOUT-TV saying they think their company's stock could go up another 30% ... meanwhile they're selling.

(Sure they might go to jail, later, but the folks who lost... [ More ]

Comment #37

jacal5 — Sat, 23 Jan 2010 15:20:03 GMT

The problem is the stock market is a scam to take money away from retail investors, the average investor doesn't understand what goes on, and investing in individual stocks today is just like going to Vegas, it's a gamble, not an investment. This lottery winner may have purchased good quality stocks, but lost money anyway to short sellers.

Did you know that your broker lends your stocks out, without your knowledge, and then it is sold by the borrower, and then the borrower has to give it b... [ More ]

Comment #36

dopey7719 — Sat, 23 Jan 2010 11:30:24 GMT

Judging by my weakness for giving in to family members that need to borrow money when I don't have it to loan out in the first place, I would take the annuity option. It's safter for me because then I can say sorry, I only get a check once a year and I've got to live off of it...no lump sum in my bank account to give you money.

Plus, judging by my fiances at the moment and in the past....I'm playing it safe....money just goes too darn fast for me and I'd be severly depressed 5 years down the... [ More ]

Comment #35

savagegoose — Sat, 23 Jan 2010 08:40:28 GMT

interest on savings in USA 3.8% then there is the whole will my bank fail? when can i get my money ?

$330k sure isnt retire early, not a care in the world amount. at 3.8% thats $12.5k a year. dunno how thats taxed, but anyone here think of retiring on $12k a year? hes still got 330k and a degree, just dont tell your prospectivbe employers you won the lotto.

good luck kid

Comment #34

Nino224 — Sat, 23 Jan 2010 08:02:53 GMT

This kid was on TLC's Lottery Changed My Life. He was going on and on like he'd won 100 million. I have a feeling he'll be broke by the time he's 25.

The stat about 70% of winners ending up broke can't be right.

Comment #33

corius$1918! — Sat, 23 Jan 2010 07:23:45 GMT

DIFFERENT STROKES FOR DIFFERENT FOLKS!

A lottery winner deciding between choosing a Lump Sum vs Annuity like investing in stocks, bonds or planning retirement plans, is not one size fits all. Some people may be better with an annuity. Maybe they have not been successful with money matters in their past or are reluctant about having to plan large sum of money at one time, etc.

Lump sum may be preferable for those interested investing over the long term or living off the interest and re-inve... [ More ]

Comment #32

four4me — Sat, 23 Jan 2010 04:20:38 GMT

he won back in July - 07 i think.

https://www.lotterypost.com/news/183368

http://lotterywinnerbios.blogspot.com/2009/07/teen-student-wins-lottery-instant.html

Comment #31

GYM RICE — Sat, 23 Jan 2010 04:04:22 GMT

why are there no dates in this article

Comment #30

GYM RICE — Sat, 23 Jan 2010 04:01:21 GMT

Isn't this the kid who was on one of those Lottery curse TV shows or something?...If its him, it showed him at the stock exchange wearing a high priced suit. When I seen him on TV, I said to myself that this kid is doomed. No real basis behind it, just a feeling. Hope i'm wrong though. Seems like a good kid...

Comment #29

Think — Sat, 23 Jan 2010 03:52:15 GMT

Alternatively the moral is: if you win, win big so that you can just stuff all the money in a whole lot of insured money markets. I still believe that 500,000,000 to 600,000,000 dollar jackpots for a young person negate much of the need for investment planning. You would still need to plan on how to allocate disbursements over 65 to 70 years though.

(I personally don't need jackpots that big.

Comment #28

trenticle — Sat, 23 Jan 2010 03:48:03 GMT

I totally agree. The financial experts all say that You should take the lump sum. Wrong. Financial experts should take the lump sum. Average Joe needs a learning curve. This kids poor investment decisions cost him 34% loss his first year. Now the money its costing him in accounting fees, poor tax decisions and more poor investment decisions, he will probably not turn a profit for another 4 years. By year 5, he will have probably lost TOTAL another 34% of the $330,000 capital he has left, leaving... [ More ]

Comment #27

Think — Sat, 23 Jan 2010 03:43:07 GMT

Did you know that 70% of statistics are made up on the spot??

Notice how no source was quoted on that statistic

Comment #26

bashley572 — Sat, 23 Jan 2010 02:25:32 GMT

I will take the Jets ST8 up **no points

Comment #25

JONNIE — Sat, 23 Jan 2010 01:39:32 GMT

Ah, but quite the contrary.. You have investments (same as bets) that Coca Cola is a good company and will continue to earn profits. (Retuturns on your investments, or winning a bet) On the contrary, if Coca Cola's sales are down, and their stock tanks, you end up losig $$$. No difference in betting on the Colts or Jets this week. In fact at least with betting, I am always aware of my risk/return, not so with the market...

Comment #24

LadyMylena — Sat, 23 Jan 2010 01:26:30 GMT

My money will be staying at home, too.

My step-dad plays around some with the stock market game. That wasn't all that bad, until the economy really went South and he lost a lot...... and then I find out he is still playing with it!!! That is crazy!! Some people are a glutton for punishment.

My dad had stock in the bank he worked for all his life, and he nearly lost everything he had last year.

I will invest in lottery tickets. LOL

I believe we haven't seen a true crash in our life... [ More ]

Comment #23

time*treat — Sat, 23 Jan 2010 01:13:08 GMT

The annuity is better (for some people) because you are not putting all your money at risk in any single thing.

With the annuity option, if you make an investing blunder this year, you still have another check coming next year.

Comment #22

WilliamJohns — Sat, 23 Jan 2010 01:05:45 GMT

Again...70% of lottery winners go bankrupt within 5 years of winnng the money?

Another shocker is that the financial advisor quoted in the article said you'd do better to take the annuity then to take the lump sum - I've never heard that before.

Please enlighten me.

Comment #21

dopey7719 — Sat, 23 Jan 2010 00:55:48 GMT

At least when he graduates he won't have student loans hounding at his back. Unlike many, he gets to finish college without all of the debt. Good 4 him!!! He will be blessed again...he's a good kid with a good head on his shoulders.

Comment #20

AceKicka — Sat, 23 Jan 2010 00:54:31 GMT

This guy seems to be okay - but he needs another vehicle (and I don't mean another Malibu) to earn interest.

My question is -- how much interest or profit does he (or anyone) need to make? I'll tell you what, I'm available as a financial adviser right now.

It is STUPID to invest in ANYTHING, market or otherwise that can turn down on a whim. I'm a hands-on type of guy. There's NO doubt that I can make ANYBODY $$$$. But the market and all the rest of the norm is crap.

~Ace... [ More ]

Comment #19

hearsetrax — Sat, 23 Jan 2010 00:36:47 GMT

unlike most kids his age he seems to have a good sense.....

I just hope he remains level headed and learns to appreciate things even more

Comment #18

bashley572 — Fri, 22 Jan 2010 23:50:24 GMT

Buying American... nice!!

He sounds like he will do fine. We should be hearing about him for a LONG time as he grows his new found wealth.

Comment #17

Set4life — Fri, 22 Jan 2010 23:37:30 GMT

props to him for buying a Malibu

Comment #16

Velocity — Fri, 22 Jan 2010 23:10:47 GMT

If that's the case, then why don't people just save their money instead of depending on the stock market for their retirement. Those that can't rebound from losing all their money at the downturn, I'm sure, wish they hadn't of put their money in the market. I know investing is great for some people, but I'll play with my own money, save it in a bank, or buy a safe and keep it at home before I EVER put it in the stock market. My nerves would be shot, watching my money fly out the window in the st... [ More ]

Comment #15

maringoman — Fri, 22 Jan 2010 22:51:50 GMT

Over half of all start up businesses fail and I bet the ratio of bad investments in the stock

market is higher. I'd rather give my money to investment companies like Fidelity than going

it alone. Though Fidelity - and I dont work for Fidelity!- will charge a hefty fee, I think it's

worth it because they have a wide network of connections and lots of investing experience.

Comment #14

fwlawrence — Fri, 22 Jan 2010 22:41:32 GMT

The stock market is not gambling. You are buying part of a company. Take Coca-Cola for example. I own a very small part of that company. It may not always do well, but the company is still there. Gambling takes place in a casino. You go into a casino pretty much expecting to lose money. You are paying for the experience, not so in the stock market.

Comment #13

Rowen — Fri, 22 Jan 2010 22:17:22 GMT

The Stock Market is still your best bet for retirement especailly if you're still young enough to recover from downturn. Imagine if he had invested his money 4 months after the downturn instead of before. He would have double his money on the rebound. He's a smart kid. He'll be fine

Comment #12

time*treat — Fri, 22 Jan 2010 21:00:01 GMT

It's been drummed into our heads for generations that the stock market is the most 'respectable' place to 'invest'.

Few bother to ask why this is so or what else is out there.

We know a profit is made when you sell higher than you bought, but no one ever explains what the final buyer of that stock gets for their trouble any more than they explain why most people bother with a grass lawn.

Comment #11

Velocity — Fri, 22 Jan 2010 20:47:05 GMT

Can anyone tell me why they would put their money in the stock market, EVER? Considering these people in these banks can't do right with Federal money, do you really think they'll do right with your money? Take your losses and get out now before you have nothing left.

Comment #10

JONNIE — Fri, 22 Jan 2010 20:26:05 GMT

Looks like the lottery was a better investment than the stock market! Anyone who tells you the market isnt gambling, is simply lying to you. The only difference btw the market and a casino is that a casino has rules. But in fairness to him, this could have happened to anyone. But since it was a lottery winner, and not for ex. a person who inherited a large amount of $$ and then lost it in the market, it became news on how 70% of lotto winners end up broke..

Comment #9

ThatScaryChick — Fri, 22 Jan 2010 19:45:15 GMT

It sounds like this young man has a good head on his shoulders and just lost his money like so many others who invested in the stock market did. At least he has some of the money from his win left. It could have been worse, he could have none! Hopefully, he puts his money in something safer, so he has that money for the future.

Comment #8

four4me — Fri, 22 Jan 2010 18:53:05 GMT

He started his investments when the stock market was doing good then when it went belly up he should have pulled his money out, a good investor would have taken care of the cash since he invested so much of it.

I know people who have lost more than half of their stock portfolio's.

Comment #7

TheGameGrl — Fri, 22 Jan 2010 18:46:20 GMT

Accurately stated Todd.

Except for the invest part. One cant lose that which they do not place up for risk. Some material gains are just not worth it...better to be safe then sorry.

Comment #6

Todd — Fri, 22 Jan 2010 17:16:42 GMT

I think the point of the article is that even a lottery winner with a good head screwed on his shoulders, who invests the money fairly wisely instead of just blowing it, can still lose a substantial chunk.

Think of it as a moral to the story: if you win, even if you keep your head, be prepared to lose. But if you lose your head, you are certain to lose it all.

Comment #5

RollChris76 — Fri, 22 Jan 2010 17:08:34 GMT

Oh, poor, poor boy. He only has $330,000 left? What is he going to do, somebody help him? You know what, I'll take the $330,000 if he's not sure what to do with it. Maybe he's just too young to appreciate the value of money, but $330,000 dollars is still a lot of money these days, more than most people have considering the economy.

Comment #4

hjones — Fri, 22 Jan 2010 16:40:15 GMT

This is a great lesson for the kid . He'll be rich(er) in life.

Comment #3

dphillips — Fri, 22 Jan 2010 14:50:39 GMT

Although age is on his side, even then, he should have left the stock market alone -- leaving the money in the bank until he could get his bearings. What was wrong with investing conservatively?

I am surprised he did not go for the annunity: at least he would have a yearly income and not every winner can handle a fistful of dollars.

Finally, he has some money left and he is not flat out broke! I hope he learned from his risky investments.

Comment #2

plus40 — Fri, 22 Jan 2010 14:37:46 GMT

I'm sorry he's lost so much of his winning and I hope he gets it all back.

He seems like a smart kid. He'll be alright.

Comment #1

rdgrnr — Fri, 22 Jan 2010 14:34:38 GMT

70% of lottery winners go bankrupt within 5 years?

Whoa, I never heard that one before.

Lottery winner lost money after investing funds

Lottery Post — Fri, 22 Jan 2010 13:56:27 GMT

Includes video report

A Towson University student who hit it big on a Maryland Lottery scratch-off ticket said he's found out that a seven-figure prize is not necessarily a ticket to early retirement.

In many ways, Louis Jay's apartment is your typical college bachelor pad, but upon closer inspection, 11 News reporter Kerry Cavanaugh said the 21-year-old student has a state-of-the-art home theater system and stocks only top-shelf alcohol. She said he spends hours online tracking the stoc... [ More ]