For your information I'm a lotto winner and my investments are just fine so are my friends and family. Pat your so out of range with understanding certain people & lifestyles jumping to childish conclusions with goofiness and with your so called nitwit humor your a thievery Stock Piler Farce Counterfeit Fake User! your a only a shadow of a real man...
You should make a video about how to handle lottery win properly and right way? Everyone tells bad lottery win stories, but no onne is making a video about if you win how to handle it properly and right way. Major tips and advices how to manage lottery win in the right way.
Years ago I was watching one of the lottery award ceremonies. Some guy was standing behind a giant check, impassive. A reporter asked him if he was happy. He was monosyllabic in his response. The reporters were a bit taken aback. "What are you going to do now?" He considered his answer for a moment, the room quiet, then said, "I'm going to disappear. None of you people will ever see or hear from me again." "That man is a genius," I thought.
Well, that's $17 more than I won any time this year! The jury has returned a verdict of "loser" in my case. Thank god I'm not planning on using lottery winnings as my retirement fund!
Fantastic! I have never ever won any lottery money. Of course the odds are stacked against me ever winning since I have never purchased a lottery ticket.
I would seek a financial adviser ASAP. I Have been lucky enough to us Maureen McChicken Jones. Check her out on the internet and arrange an appointment, ideally near Stonehenge.
I used to work at a small investment bank in the Netherlands and we had a special desk for lottery winners. From what I understood of the coworkers who were in direct contact with the lottery winners, for most of them the effects of the lottery on their life happiness was neutral after the initial high of winning the lottery had passed. Money truly isn't the instant ticket to happiness most people think it is. Also, if you can hide the winnings from your friends and family you should. Apparently friends and family members demanding money is a really common problem.
Not true. Money will help you be more happy but you need to be intelligent and know what you want. You can have the money and just spend, or you can have the money and stop working and live your life to the fullest. That is why so many people now are retiring so early, with 30 or 40 years. Because they know what they want to do with their lifes and they work for that, to stop working as quickly as possible.
@@mikatu I guarantee you if you made 2x what you make now your happiness would not increase that much. Maybe if you're super broke. In the long term it absolutely will not make you substantially happier.
Another amount that is mentioned sometimes is about a few hundred K. You can buy your dream house, cover all debts, start a business etc. These things can be live changing for people and increase their happiness significantly. But beyond that it becomes a big pile of money which sometimes comes with its own problems and doesn't increase happiness so much.
I think the key as to why its commonly believed that lottery winners become unhappier with their increase in wealth is survivorship bias, since most people will recieve news only about that specific sort of winner and assume its the norm
Back in 1995 my friend won 1.1 million on a progressive slot in Vegas on his 21st birthday. He bought 3 properties to rent out and a house for himself. Other than that nothing changed. In 2001 he won another 100k on a scratcher. Lucky guy.
Your friend was very financially astute for a 21 year old. 1.1m in 1995 is equivalent to 2.2m today, adjusted for inflation. Very fortunate, not just for the win, but his acumen.
He would have succeeded in life regardless with that kind of intelligence and discipline. Of course that head start put him way ahead..some are born with huge inheritances but in his case he just has the gamblers luck I guess?
Back in 1982 a worker in the cafeteria where I was employed hit a million+ dollar lottery. He was a nice guy but also very basic intelligence. The story through the grape vine was he was under a lot of pressure from family and friends looking for handouts. He was dead within 6 months. Heart attack or stroke, I can't remember exactly.
Bob D: Re some of the books documenting how winning large lottery payouts ruined a lot of peoples' lives, "friends" and relatives, etc. demanding large financial gifts were a significant part of the overall problem.
You need some cue cards to ward of the vultures: 'eh I'll talk to my financial account mananger, he says no.. ', 'Sorry, all the money is invested in real estate!' etc.
This is why lottery winning should be allowed to win without releasing your name. Its a horrible thing that many states in the US require one to publicise their winning; I think that's super dangerous. I make money at a job, a great work, investment, etc. I'm not chattering about that. For the same reason you don't buy something expensive and stick it in your window that doesn't have any security or stick money on sticky on windows. You're just asking for bad things to happen. So it's criminal that lottos even exist, the odds are horrible next to zilch. But even for the winners to use them as advertising the tax on the poor lotto stupidity. I think a lot of gamblers found out that gamble trading on the stonck market via short term expiring options has better odds than slot machines, poker, blackjack or the major lotto ball stupidities. Because you do have better odds depending on how adapt you are at recognizing certain things like a potential gamma squeeze on AAPL for instance thus buying a call contract for 0.20 or $20 and maybe buying 100 of them for $2K as it finally gets in the money near the end of the week and dumping it for 0.80 or even $1.00 ($80 to $100) a contract... suddenly that $2K is worth $20K. And you can do this repeatedly during certain stupidity periods of the stock market. You can't really get any remote edge like that in casino gambling. Well, you can count cards, but that eventually gets you thrown out of the casino and blacklisted from every casino around.
You will quickly find out who your true friends are, I imagine. Unfortunately people with large extended families tend to come under a LOT of pressure to "look after" everyone (but themselves). Some ethnic and religious communities in particular have large familial networks that come with an expectation of shared support. If you become the richest person in the family overnight you suddenly are expected to fix everyone's financial problems, and they will all have some kind of "problem".
Not everyone who plays the lottery dumps their life savings into it. Lots of people like me at the grocery store spend no more than 5 or 10 bucks because we like to dream but aren't delusional. I don't bother playing large lotteries just the small state ones where the minimum is 5 million and tickets are a buck instead of two and the chances to win are 12x less terrible. Beating 1 in 26 mill is already a tall order but one can get lucky still. The pb and mm are 1 in 300 so screw that. Not wasting my money. Basically no one wins one you consider how many people across the whole US dump money into it daily just for 1 person to win after 2-4 months. That's just maddening. But very small lotteries aren't as impossible and still yield a good chunk after tax and cash value even at the lowest possible payout. Still though. Spend just a little and hope to be lucky. Spending more won't make you luckier.
I had a fantastic math teacher in high school, the one lesson I remember most was his explanation of how absolutely insane the odds of winning were. He called the lottery a tax on the poor and uneducated.
But then that's interesting right? This is a group that self-selects for bad money management skills, and as the video notes they only wind up slightly more likely than average to wind up in bankruptcy. Which then implies that good money management skills only have a fairly small impact on the likelihood of bankruptcy. There may be, and I would expect there is, a stronger correlation between good money management and wealth growth over time, but that then would imply bad money management is more about missing opportunities than it is defense against going bust. Which should then also imply that while being very wealthy can be helped by money management, going bust is largely just bad luck.
One of my teachers won the lottery about 6 years ago He hit around $2,000,000 MXP after taxes He gave it all away to charity after just buying a car and a house because everybody wanted a piece of it, either by trying to con him or by a handout
Um, he SAID he gave it away. I can admire the sentiment... but he'd have to be more than human to not keep a hefty chuck to ease his old age. I'm not ashamed to admit that I'd tell people I gave it away... and still keep enough to ensure I'll never be broke or homeless.
You can tell that a lot of people only watched the beginning of the video before commenting, since the comments section seems to be divided on the fate of lottery winners, and both sides seem to believe the video agrees with them.
I would say gambling in general is foolishness. I'd get more entertainment setting a few dollar bills on fire than playing a lotto with impossible odds.
It is a guilty pleasure to think that all that money is really a curse, but it's actually a relief to know that most people are just better off, so maybe good things do just happen to average people every now and then.
The Garbage King truly an inspirational story. Because setting yourself for life with low risk investments ain't that easy when you are hooked on drugs, gambling and escorts.
He's one guy I don't think it changed it all. The money just allowed him to indulge himself like he always wanted to. He went back to his old life pretty smoothly.
A mate who was a lawyer met an Adelaide man who won $45milion. He said he was an average guy with no family from a lower class (though not poor) background. He saw him two years after the win and all he had bought was a nice (though not flashy car) and a $2million dollar house in one of Adelaide's nicer suburbs. These were purchased only because others said 'this is what you should do. My mate's involvement was via property developers who as he described were circling him like sharks in the water. he gave him 5 years before his money would have been gone.
at least if he's not getting out right stolen from or addicted to drugs he'll still have a nice car and a mansion at the end of it. can't complain too much about that.
As a former investment bank lawyer I had reason to interact with two different lottery winners who were clients of the bank. One lived in Kentucky and one in Florida. Both had won over $50 million each. Neither were bankrupt after 15 plus years, though their holdings were down around $5 million. But each one had 30 + dependents (mostly family) living off there money. Few of their kids has jobs and each one had multiple kids with substance issues. In each matter I was dealing with, it was the drug addicted eldest son who was gin-ing up trouble for the bank, because mom was tired of their antics and was turning off the spigot
Yeah, I can believe it. When I play the "if I won the lottery" game in my head, I plan to NOT give my kids a giant pile of money until they are old enough to handle it. At least, less likely to blow it on hookers and drugs... at some point it's going to be their money anyhow....
we mostly hear about the flameouts - your example is one of the 'success' stories. instead of losing it all, they became a dysfunctional rich family. i promise that if i ever win anything like that, i'll go look up your old job and use them or a similar firm and be the quietest rich church mouse you ever forgot about
I think it can significantly boost egos. I've seen it happen in my own family. But that house of cards will always come crashing down in one way or another
An interesting crossover to this subject would be looking at the financial health of professional athletes once they retire. ESPN did a very interesting 30 for 30 documentary called Broke mainly focusing on NBA and NFL players I believe. The statistics were similar to the supposed lottery curse, something like two thirds declare bankruptcy within 5 years of retirement. I guess they won the genetic lottery so to speak.
Pro athlete managers get a cut on every business deal. They encourage lavish spending to create monetary pressure so their clients will say yes to every business offer. Edit: Maybe Patrick can make a video about moral hazard and use the relationship between manager and client as an example.
Bankruptcy is such american concept! It is not real. In the rest of the world people get to pay their debts. No one get bankrupt and keeps spending like nothing happened. Trump declared bankruptcy at least 6 times already....
I know this kind of video would do terribly in the UA-cam algorithm but I wish you would do more hardcore niche finance videos! You and the Plain Bagel were my first forays into finance, and I’m now a finance attorney wishing I could learn more of the nitty gritty from someone this knowledgeable and personable!
Reminds me of that James Gregory bit where he asks his Uncle what he'd buy if he won the lottery. " well I'd buy a 2 story double wide trailer " was his answer. But Uncle Joe they don't make 2 story trailers....." well they should for people who got money ".
With regards to the swedish study, the sums while certainly large, but relatively speaking, somewhat small at the same time could also be a contributor of why they mainly maintained or improved on satisfaction. Those amounts are likely to be used on buying a house, starting a safe investment portfolio and making small improvements on quality of life while still maintaining previous employment. Leaving little to no room for opportunists to try to sway the winners into anything and also winners themselves not engaging riskier ventures as those amounts wouldn't be seen as a never ending resource.
I once gave my uncle who was broke, 20k dollars, hoping it will get him by for at least a year or so. He spent all of it in 3 weeks. It was like giving heroin to an addict. He then came back asking for more. What was surprising was his grandioisty, delusion and entitled attitude that this windfall exposed. When asking for more money, in an arrogrant and entitled way, he would talk about how he was very rich and only became poor because he was helping other people and it was everybody elses fault. I cut him off, because I cannot have people take my charity and then be desrespectful to me. you really cannot help some people.
Your uncle must be delusional if he didn't see the irony of asking people for money while bemoaning the fact he's poor because he gave out money. I had to do something similar with a friend I went to boot camp with. He fell on hard times during the pandemic when the resturants he worked at closed. He initially asked for money for rent and groceries so I gave a few hunderd over a span of a few months. Then his requests became more frequent and mundane, like asking for $10 to buy a pair of work boots at 2 AM for a new job in the morning. He also suddenly mentioned he had a girlfriend and kids to support out of no where and write whole essays about his dying mother to get money for an Uber to see her. I had to stop responding to his texts. While I still believe he was ikely using the money for actual needs, I came to the realization he was using me as a piggy bank and for some reason he can't seem hold down a job.
Janaka: Yup. A lot of it is a self-discipline / self-control problem. I tried to help several families get bootstrapped into not being under the pressure of short term debt. They just wouldn't stop doing things that got themselves into financial trouble. Like not going to work if they had food in their home. Or buying more things (which they didn't need, especially short term) if they had money in their pocket. We'd likely be FAR better off helping "the poor" with education, psychological support, basic money handling information, etc. than handouts -- and I'm talking for basically healthy people who aren't mentally handicapped, etc. But we give lots of money away, which buys certain politicians lots of votes, but doesn't help the fundamental problem much. The "War on poverty" has been ongoing since the 60's, and here we are with many claiming "poverty" in the US is worse than ever. (I think that's nonsense, with programs like the EIC (Earned Income Credit) very much a thing for low wage earners) -- but here we are.
@@rogergeyer9851 This is why I don't believe in poverty. Helping those who can't help themselves is not mine or anybody's problem. Yet, we all have to pay taxes on someone else's debt. Tax fraud should be encouraged in a broken system.
@@kylecrane5751 I believe the best way to help someone poor is to given them tools and opportunities to improve themselves rather than money. As the saying goes "if you give food to a man, he will be feed for a day. If you teach him how to hunt, he will be feed for the rest of his life"
Consider this as well: Wealth can reduce stress in many but not all cases. Numerous physical and psychological illnesses are either caused by or worsen with stress.
Pessimists like me do not gamble. I have contingencies within contingencies..took me over 20 years to get "rich". I always laugh at the gurus talking about thinking positive, that's not how I did it.
Retired CFP here: If you win the lottery, you need to do three things: 1) Hire a Lawyer, 2) hire an accountant, 3) hire a financial advisor that doesn't sell products. If possible, claim the winnings ANONYMOUSLY!! Resist the urge to tell anyone/everyone. Once the word is out, people will hunt you down begging for money. Friends, relatives, strangers, people with 'ideas for a business', banks, investment salesman. They'll show up at your front door, begging for money. You need to disappear. Hire a security specialist to set your life up anonymously. (Example: Have your home be owned by a trust or corporation) However, all of this won't help if you're the "King of Chavs". (As an American, I don't know what a Chav is.)
I mean if you think about it, even some of the least financially savvy individuals understand that wiping out their debts with their winnings is probably a no-brainer thing to do. That alone probably contributes to their long term financial health even if they blow all the winnings unsustainability.
@@EcclesiastesLiker-py5ts yeah, some financially illiterate people who don't understand how debt = leverage wouldn't understand how to effectively use it
The majority of lottery winners have a routine in life, a circle of friends and associates that they go by even after a major win. It's interesting to see certain people change their habits after a lottery win like going to a casino frequently or taking up drugs that they wouldn't do before the big win. People who have no business experience all of a sudden spend their millions on a business venture that would go bust when they'd be better off putting the money in the bank and doing nothing with it.
yeah it's funny how these winners would live off the money itself being a bank account. but that's also very, very boring. it would be more fun start your dream business even if the chance of failure is above 50%.
I’m not sure if they corrected for survivorship-bias, people who feel they have squandered a miraculous opportunity might be less likely to fill in questionnaires. It is like the alumni research of a prestigious school: 85% of the respondents claim to have gotten an excellent job in their field of study. Response rate of the questionnaire: 30%.
except there are financial advisors for lottery winner. who state in their exp lump sumers go bankrupt while the annuity takers don't. same for those who win a payout in a lawsuit. the annuity gives you a major safety net. other studies contradict those that Patrick cited. Estimating the Effect of Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players Guido W. Imbens Donald B. Rubin Bruce I. Sacerdote AMERICAN ECONOMIC REVIEW VOL. 91, NO. 4, SEPTEMBER 2001 Abstract This paper provides empirical evidence about the effect of unearned income on earnings, consumption, and savings. Using an original survey of people playing the lottery in Massachusetts in the mid-1980s, we analyze the effects of the magnitude of lottery prizes on economic behavior. The critical assumption is that among lottery winners the magnitude of the prize is randomly assigned. We find that unearned income reduces labor earnings, with a marginal propensity to consume leisure of approximately 11 percent, with larger effects for individuals between 55 and 65 years old. After receiving about half their prize, individuals saved about 16 percent. August 01 2011 The Ticket to Easy Street? The Financial Consequences of Winning the Lottery Scott Hankins, Mark Hoekstra, Paige Marta Skiba Author and Article Information The Review of Economics and Statistics (2011) 93 (3): 961-969. Abstract This paper examines whether giving large cash transfers to financially distressed people causes them to avoid bankruptcy. A comparison of Florida Lottery winners who randomly received $50,000 to $150,000 to small winners indicates that such transfers only postpone bankruptcy rather than prevent it, a result inconsistent with the negative shock model of bankruptcy. Furthermore, the large winners who subsequently filed for bankruptcy had similar net assets and unsecured debt as small winners. Thus, our findings suggest that skepticism regarding the long-term impact of cash transfers may be warranted.
And when you are not the curse, other people can be the curse. From friends and family continuously asking for handouts to criminal elements trying to rob you
@@dx-ek4vr Control is a very important word for success. If you ever win a lottery, never give any of your winnings away. If, say, you have an aging mother who needs a condo, invest in the condo yourself, and allow her to live there. Just say "no" to friends and family. First step after winning? Change your phone number. As for criminal elements, check before investing. All investment advisors or projects are registered with the relevant authorities - and even some of them are on the make. No registration, then no go. Don't put all your winnings in one account or one bank. On and on...just common sense.
Some people struggle to quantify large sums of money, if you're used to getting by with very little left over it doesn't take a huge sum for it to feel infinite. My mum used to work as a cashier in a bank when property prices were going nuts years ago, people would remortgage and get thousands dumped into their account and she'd watch them fritter it away in very little time, obviously ending with them having the same lack of cash flow as they were used to, but a larger and longer mortgage on their property.
some people just have the knack for making viewable youtube video's and some people dont, i have watched quit a few of this dudes video's, they are easy to follow and not cluttered with superfluous or boring content !!!
Laurie Penner: You're far better off statistically buying and holding, say, the S&P 500 index, than lottery tickets. But the S&P 500 index WILL NOT pay off millions to one or even tens of thousands to one if a few days or a few decades. Trade-offs. And statistically, the poor buy a huge proportion of the lottery tickets, and lottery tickets have a TERRIBLE payout ratio overall.
@@rogergeyer9851 Which makes sense. If you are poor, receiving ~4% interest on your investments, which are by definition small, will not help you much. Investing 5000$ into the stock market and walking away twenty years later with a bit above 10k is almost meaningless. You may pay your cost of living for one year with that money if you're extremely cheap, but at the end of the day, you're still poor. Spending 5000$ on lottery tickets meanwhile gives you a chance to rapidly and substantially change your fortunes. Yes, most likely you will not win anything, but at least there's a chance.
Love your take on Florida, where being from California, (NorCal), we got that ribbing ad nauseum. Happy to pass it on, of course a lot of people from California moved to Florida, so there ya go, it's contagious!!!
You’d think it would be similar last to large inheritances and large income changes after post secondary. You quickly realize that money doesn’t make you happier but the volatility often results in higher life satisfaction.
Thank you Mr. Boyle. This post confirmed what I intuitively believed. Except for extreme misfortune such as befriending a latent embezzler - murder, the winner's life couldn't help but improve. When other's would attempt to convince the general public a lottery win is a curse in disguise I would think, they may possibly be correct. All the same you know I'd like to take my chances and show you I can do a better job of winning than others have. There are many dynamics at play when a family member wins the lottery. It happened in my family when a relation by marriage won. My immediate family did not want to intrude nor appear to be acting out of ulterior pecuniary motivation. Call it pride if you will (it was certainly not envy). Estrangement was ossified by the win. The family (as a family) never visited the home of the winner again as there was to the best of my knowledge, never any invitation. Additionally, there is a certain smugness that accompanies the lucky, that attributes their luck to intellect rather chance. Some might call that poison envy. Smugness on the part of the winner however is just as unpalatable to relationships.
Mr Beeley a consultant surgeon in Dublin Ireland won the Irish lotto twice both amounts in excess of €1 million, I was alway surprised that a man of such stature and income would bother doing the Lotto 🤷♂️.
Like that $233,937 NFT I just bought? That's not a sound investment? It's not like someone can't just COPY the image onto their own computer or anything.
I ended up with a surprise inheritance (modest in comparison to these lotteries). It did not make me rich or thin but it allowed me to move to another state. I still have some of it left but won’t waste it on clothes or vehicles or even remodeling my home. Unfortunately with inflation and the housing market craziness all wealth is rapidly losing its value now. I’m glad I know how to live simply because God only knows what’s coming next.
The key is that having some money gives you options. You're not forced to take the first available job because you need their health plan, or have to live in a place you don't like because it's all you can afford.
1. setup a blind Trust to collect the money. you remain anonymous 2. talk to a psychologist about the hedonic treadmill, materialism & happiness to make sure you don't progressively seek more excitement using your wealth. 3. talk to fund managers about investing in stable low yield investments. You only need tiny percentage returns to fund your lifestyle 4. Prioritize health, peace of mind and fitness with your annual returns
This video makes me feel a whole lot better with my choices, investments and mental attitude towards protecting my future financially in light of lottery winners. I reduced my friends to 2 people and kept all social related connections along the lines of business. It's so true about connections with other financially successful people. You will make better decisions overall for long term financial ease
“Trailer Park Dude Wins $10 Million, Files For Bankruptcy One Year Later” makes a much more interesting news story than “Trailer Park Dude Wins $10 Million, Ten Years Later Is Still Doing Really Well”.
Great detail in this video Patrick, many refer to the study into Florida Lottery winners (The worst? I'll tell Mark Houghton that next time I see him.) however I wonder why "they" never reveal or comment that the lottery winners in that study won from $50,000 to $150,000 IIRC, also the American format of winning the lottery means that choosing the lump sum (instead of an annuity) they only get 50% of the "jackpot" prize from which they loose almost another 30% in federal, state and local taxes. One of the big name winners to declare bankruptcy won $112 Million but only had about $14 Million after taxes and a split with relatives. Yet the followers and the winner themselves only talked about the $112 Million jackpot win, the mentality spent their money for them. I note of the Swedish study the average win was only $92,333 I understand that the biggest lottery available in Sweden is the Euro-Jackpot with a capped jackpot of €120 Million.
I know it's impossible, but perhaps rules should exist to save folks from the lottery curse. Like requiring money management classes or mandating a small percent be set aside for awhile (w/ interest, of course!) Won't ever happen and probably shouldn't, but people often need rules to protect them... from themselves!
So far, I've found all your videos to be both very informative and pretty hilarious. I'm a big fan of the overwhelming snark in a world that has a serious lack of it.
Wow, thank you for debunking many of those failed lottery winner urban legends. I suspected a lot of those stories were BS, but it's good to see some real data to back it up. Thanks Patrick!
When I played the lottery, I would calculate the interest income at 4 or 5 percent for investments like money markets. If the investment income was 250k or more per year, I would play. I figured with that kind of return on investment, I would never have to touch the principle. Unfortunately, I never won the lottery, so now I gamble my money in the stock market. In the future, I hope I'm not writing a comment where I lost all my money in the stock market. In all things, due diligence is underrated.
The study has a flaw, it studied SWEDISH citizens, in a time when most people are well off and the social system in place was balanced. The curse of the lottery affects the poor and different cultures differently, if you were well off before the win, you will be only even better off after. If study was concetrated on other countries and hemispheres it could bring different results. Edit: and getting more "friends" when becoming rich on its own is a red flag...
@@matthewmatthew638 also true, getting 100 millions as dirt cheap person can ruin a person, as they say - pray you never really get what you really want, else you remain a shell of a man once been.
Indeed, I have never uncounted anyone who turned the lottery fortunes into something meaningful, but more often than not, people squander them at the blink of an eye.
Similarly schools are where you're forced to be around people you're told to be around and you aren't picking the information and how to learn it, like a jail. Dependency on others too. Less money = less choice of surroundings.
Your life skills and personality do not change with a lump sum payout. For those less able, it only allows your propensity for destructive behavior to be unregulated!
I think one take away here is that some people with an inclination toward gambling don't understand the concept of 'quitting while you're ahead.' Because chasing the momentary thrill of winning seems to be of greater importance to them than the comfort of lifelong financial security.
Yeah I'm of the quitting while I'm ahead type. Those who cheated at the casinos wouldn't have gotten caught if they would have quit while they were ahead.
Not a comment on this subject, but perhaps a new one. Is there an economic term that explains the difference between cost of usually a luxury and its quality. So X axis is increase in quality and Y axis is price. So, is the car or wine or thing that costs 200k that much better than the one at twice the price? A top end mercedes compared to a mclaren, a 150 dollar burgandy and a 500 dollar burgandy. it would be a J curve plotted on the graph. thank you , I do enjoy your videos.
Head to brilliant.org/patrick/ to start your free 30-day trial, and the first 200 people get 20% off an annual premium subscription.
Patrick!!!! Please make a video about the very recent charges against Binance & Coinbase!!!!!! Very interested to hear your thoughts
For your information I'm a lotto winner and my investments are just fine so are my friends and family. Pat your so out of range with understanding certain people & lifestyles jumping to childish conclusions with goofiness and with your so called nitwit humor your a thievery Stock Piler Farce Counterfeit Fake User! your a only a shadow of a real man...
Pat your so possessed a demonic garçon. You need a cleansing by a father. At (Church).
You should make a video about how to handle lottery win properly and right way? Everyone tells bad lottery win stories, but no onne is making a video about if you win how to handle it properly and right way. Major tips and advices how to manage lottery win in the right way.
Years ago I was watching one of the lottery award ceremonies. Some guy was standing behind a giant check, impassive. A reporter asked him if he was happy. He was monosyllabic in his response. The reporters were a bit taken aback. "What are you going to do now?" He considered his answer for a moment, the room quiet, then said, "I'm going to disappear. None of you people will ever see or hear from me again."
"That man is a genius," I thought.
What a true legend.
This is the only correct answer to coming into life-changing amounts of money. That dude has it all figured out.
I won $17 on the lottery last week, the jury is still out on whether my life is enhanced or not
Pleaze senx me 1 million dallahz pls and thanks
Well, that's $17 more than I won any time this year! The jury has returned a verdict of "loser" in my case. Thank god I'm not planning on using lottery winnings as my retirement fund!
Fantastic! I have never ever won any lottery money. Of course the odds are stacked against me ever winning since I have never purchased a lottery ticket.
I would seek a financial adviser ASAP. I Have been lucky enough to us Maureen McChicken Jones. Check her out on the internet and arrange an appointment, ideally near Stonehenge.
I used to work at a small investment bank in the Netherlands and we had a special desk for lottery winners. From what I understood of the coworkers who were in direct contact with the lottery winners, for most of them the effects of the lottery on their life happiness was neutral after the initial high of winning the lottery had passed. Money truly isn't the instant ticket to happiness most people think it is. Also, if you can hide the winnings from your friends and family you should. Apparently friends and family members demanding money is a really common problem.
Happiness is only a figment of your imagination, life isn’t meant to be happy, unless you are on drugs…
Not true. Money will help you be more happy but you need to be intelligent and know what you want.
You can have the money and just spend, or you can have the money and stop working and live your life to the fullest.
That is why so many people now are retiring so early, with 30 or 40 years. Because they know what they want to do with their lifes and they work for that, to stop working as quickly as possible.
@@mikatu I guarantee you if you made 2x what you make now your happiness would not increase that much. Maybe if you're super broke. In the long term it absolutely will not make you substantially happier.
Another amount that is mentioned sometimes is about a few hundred K. You can buy your dream house, cover all debts, start a business etc. These things can be live changing for people and increase their happiness significantly. But beyond that it becomes a big pile of money which sometimes comes with its own problems and doesn't increase happiness so much.
I would tell them all to go fuck off...
I think the key as to why its commonly believed that lottery winners become unhappier with their increase in wealth is survivorship bias, since most people will recieve news only about that specific sort of winner and assume its the norm
Back in 1995 my friend won 1.1 million on a progressive slot in Vegas on his 21st birthday.
He bought 3 properties to rent out and a house for himself.
Other than that nothing changed.
In 2001 he won another 100k on a scratcher.
Lucky guy.
Your friend was very financially astute for a 21 year old. 1.1m in 1995 is equivalent to 2.2m today, adjusted for inflation. Very fortunate, not just for the win, but his acumen.
He would have succeeded in life regardless with that kind of intelligence and discipline. Of course that head start put him way ahead..some are born with huge inheritances but in his case he just has the gamblers luck I guess?
Looks like he secured for himself some sweet passive income. How's he doing today? Have you been in touch?
Just wanted to say we have very similar names
@@lollipop99a Now that's funny.
Back in 1982 a worker in the cafeteria where I was employed hit a million+ dollar lottery. He was a nice guy but also very basic intelligence. The story through the grape vine was he was under a lot of pressure from family and friends looking for handouts. He was dead within 6 months. Heart attack or stroke, I can't remember exactly.
Bob D: Re some of the books documenting how winning large lottery payouts ruined a lot of peoples' lives, "friends" and relatives, etc. demanding large financial gifts were a significant part of the overall problem.
You need some cue cards to ward of the vultures: 'eh I'll talk to my financial account mananger, he says no.. ', 'Sorry, all the money is invested in real estate!' etc.
There is an Asian saying that relates windfalls to bad karmas.
This is why lottery winning should be allowed to win without releasing your name. Its a horrible thing that many states in the US require one to publicise their winning; I think that's super dangerous. I make money at a job, a great work, investment, etc. I'm not chattering about that. For the same reason you don't buy something expensive and stick it in your window that doesn't have any security or stick money on sticky on windows. You're just asking for bad things to happen.
So it's criminal that lottos even exist, the odds are horrible next to zilch. But even for the winners to use them as advertising the tax on the poor lotto stupidity. I think a lot of gamblers found out that gamble trading on the stonck market via short term expiring options has better odds than slot machines, poker, blackjack or the major lotto ball stupidities. Because you do have better odds depending on how adapt you are at recognizing certain things like a potential gamma squeeze on AAPL for instance thus buying a call contract for 0.20 or $20 and maybe buying 100 of them for $2K as it finally gets in the money near the end of the week and dumping it for 0.80 or even $1.00 ($80 to $100) a contract... suddenly that $2K is worth $20K. And you can do this repeatedly during certain stupidity periods of the stock market. You can't really get any remote edge like that in casino gambling. Well, you can count cards, but that eventually gets you thrown out of the casino and blacklisted from every casino around.
You will quickly find out who your true friends are, I imagine. Unfortunately people with large extended families tend to come under a LOT of pressure to "look after" everyone (but themselves). Some ethnic and religious communities in particular have large familial networks that come with an expectation of shared support. If you become the richest person in the family overnight you suddenly are expected to fix everyone's financial problems, and they will all have some kind of "problem".
Its unfortunate because a lottery is self selecting for people with terrible money management skills.
Never thought about that, but it is actually very true
Self imposed tax and the most uninteresting topic in modern Western society.
Not everyone who plays the lottery dumps their life savings into it. Lots of people like me at the grocery store spend no more than 5 or 10 bucks because we like to dream but aren't delusional. I don't bother playing large lotteries just the small state ones where the minimum is 5 million and tickets are a buck instead of two and the chances to win are 12x less terrible. Beating 1 in 26 mill is already a tall order but one can get lucky still. The pb and mm are 1 in 300 so screw that. Not wasting my money. Basically no one wins one you consider how many people across the whole US dump money into it daily just for 1 person to win after 2-4 months. That's just maddening. But very small lotteries aren't as impossible and still yield a good chunk after tax and cash value even at the lowest possible payout. Still though. Spend just a little and hope to be lucky. Spending more won't make you luckier.
I had a fantastic math teacher in high school, the one lesson I remember most was his explanation of how absolutely insane the odds of winning were. He called the lottery a tax on the poor and uneducated.
But then that's interesting right? This is a group that self-selects for bad money management skills, and as the video notes they only wind up slightly more likely than average to wind up in bankruptcy. Which then implies that good money management skills only have a fairly small impact on the likelihood of bankruptcy. There may be, and I would expect there is, a stronger correlation between good money management and wealth growth over time, but that then would imply bad money management is more about missing opportunities than it is defense against going bust.
Which should then also imply that while being very wealthy can be helped by money management, going bust is largely just bad luck.
One of my teachers won the lottery about 6 years ago
He hit around $2,000,000 MXP after taxes
He gave it all away to charity after just buying a car and a house because everybody wanted a piece of it, either by trying to con him or by a handout
That might have been a smart decision unfortunately cuz he couldn't keep it for himself
Um, he SAID he gave it away.
I can admire the sentiment... but he'd have to be more than human to not keep a hefty chuck to ease his old age. I'm not ashamed to admit that I'd tell people I gave it away... and still keep enough to ensure I'll never be broke or homeless.
@@markpukey8That's what I'd do too. I'd TELL everyone that I gave it away lmao
You can tell that a lot of people only watched the beginning of the video before commenting, since the comments section seems to be divided on the fate of lottery winners, and both sides seem to believe the video agrees with them.
There's a video?
Yeah
It is really obvious people watched a few minutes max
I would say gambling in general is foolishness. I'd get more entertainment setting a few dollar bills on fire than playing a lotto with impossible odds.
It is a guilty pleasure to think that all that money is really a curse, but it's actually a relief to know that most people are just better off, so maybe good things do just happen to average people every now and then.
4:31 seeing Patrick outside is like seeing your teacher at the grocery store when you're in high school...
It *should** be normal but it's just...not
The Garbage King truly an inspirational story.
Because setting yourself for life with low risk investments ain't that easy when you are hooked on drugs, gambling and escorts.
Got to pick 1 vice and stick with it.
He's one guy I don't think it changed it all. The money just allowed him to indulge himself like he always wanted to.
He went back to his old life pretty smoothly.
Exactly. The correct thing to do is often boring, and people generally don't like boring stuff 😂
honestly I admire his dedication
a coward would play it safe: diversified mutual funds & discreet purchases
This guy lived the dream
Reminds me of the guy who spent his bitcoin on papa johns.
A mate who was a lawyer met an Adelaide man who won $45milion. He said he was an average guy with no family from a lower class (though not poor) background. He saw him two years after the win and all he had bought was a nice (though not flashy car) and a $2million dollar house in one of Adelaide's nicer suburbs. These were purchased only because others said 'this is what you should do. My mate's involvement was via property developers who as he described were circling him like sharks in the water. he gave him 5 years before his money would have been gone.
at least if he's not getting out right stolen from or addicted to drugs he'll still have a nice car and a mansion at the end of it. can't complain too much about that.
As a former investment bank lawyer I had reason to interact with two different lottery winners who were clients of the bank. One lived in Kentucky and one in Florida. Both had won over $50 million each. Neither were bankrupt after 15 plus years, though their holdings were down around $5 million. But each one had 30 + dependents (mostly family) living off there money. Few of their kids has jobs and each one had multiple kids with substance issues. In each matter I was dealing with, it was the drug addicted eldest son who was gin-ing up trouble for the bank, because mom was tired of their antics and was turning off the spigot
This video did mention how larger amounts of money could result in bigger problems. That's a small sample but there's no doubt it can happen.
Yeah, I can believe it. When I play the "if I won the lottery" game in my head, I plan to NOT give my kids a giant pile of money until they are old enough to handle it. At least, less likely to blow it on hookers and drugs... at some point it's going to be their money anyhow....
we mostly hear about the flameouts - your example is one of the 'success' stories. instead of losing it all, they became a dysfunctional rich family.
i promise that if i ever win anything like that, i'll go look up your old job and use them or a similar firm and be the quietest rich church mouse you ever forgot about
Money doesn't change you it shows who you really are.
I think it can significantly boost egos. I've seen it happen in my own family. But that house of cards will always come crashing down in one way or another
It can definitely change people's attitudes and give them a sense of entitlement.
Money and alcohol
An interesting crossover to this subject would be looking at the financial health of professional athletes once they retire. ESPN did a very interesting 30 for 30 documentary called Broke mainly focusing on NBA and NFL players I believe. The statistics were similar to the supposed lottery curse, something like two thirds declare bankruptcy within 5 years of retirement. I guess they won the genetic lottery so to speak.
Pro athlete managers get a cut on every business deal. They encourage lavish spending to create monetary pressure so their clients will say yes to every business offer.
Edit: Maybe Patrick can make a video about moral hazard and use the relationship between manager and client as an example.
Bankruptcy is such american concept! It is not real. In the rest of the world people get to pay their debts. No one get bankrupt and keeps spending like nothing happened. Trump declared bankruptcy at least 6 times already....
The UK tabloids have stories of actors and models who become addicted to drugs or alcohol and ruin their lives.
@@george6977 that's every tabloid
@@seriosertyp8145 agents only get a cut of the playing contracts and the endorsement deals....they aren't making a cut off of business investments
Money doesn't turn you into a jerk. It simply enables you to be what you've always been without restriction or shame.
Like Musk!
I know this kind of video would do terribly in the UA-cam algorithm but I wish you would do more hardcore niche finance videos! You and the Plain Bagel were my first forays into finance, and I’m now a finance attorney wishing I could learn more of the nitty gritty from someone this knowledgeable and personable!
There is a structure to this request that gives the impression of the opposite of what you desire.
Reminds me of that James Gregory bit where he asks his Uncle what he'd buy if he won the lottery. " well I'd buy a 2 story double wide trailer " was his answer. But Uncle Joe they don't make 2 story trailers....." well they should for people who got money ".
I thought Patrick has won the lottery and has changed, he's gonna flex on us 😂😂.
He would never tell us, but there will be signs
You know Patrick is a quantitative hedge fund manager, right?
I don't think a hedge fund manager is out buying scratchers lol
Who would have thought that a person who plays the lottery would end up losing any winnings on gambling?
With regards to the swedish study, the sums while certainly large, but relatively speaking, somewhat small at the same time could also be a contributor of why they mainly maintained or improved on satisfaction. Those amounts are likely to be used on buying a house, starting a safe investment portfolio and making small improvements on quality of life while still maintaining previous employment. Leaving little to no room for opportunists to try to sway the winners into anything and also winners themselves not engaging riskier ventures as those amounts wouldn't be seen as a never ending resource.
Good point. Most people already have an idea of what they would spend a surprise 100k € on. 10M € on the other hand, not so much.
I once gave my uncle who was broke, 20k dollars, hoping it will get him by for at least a year or so. He spent all of it in 3 weeks. It was like giving heroin to an addict. He then came back asking for more. What was surprising was his grandioisty, delusion and entitled attitude that this windfall exposed. When asking for more money, in an arrogrant and entitled way, he would talk about how he was very rich and only became poor because he was helping other people and it was everybody elses fault. I cut him off, because I cannot have people take my charity and then be desrespectful to me. you really cannot help some people.
Your uncle must be delusional if he didn't see the irony of asking people for money while bemoaning the fact he's poor because he gave out money.
I had to do something similar with a friend I went to boot camp with. He fell on hard times during the pandemic when the resturants he worked at closed. He initially asked for money for rent and groceries so I gave a few hunderd over a span of a few months. Then his requests became more frequent and mundane, like asking for $10 to buy a pair of work boots at 2 AM for a new job in the morning. He also suddenly mentioned he had a girlfriend and kids to support out of no where and write whole essays about his dying mother to get money for an Uber to see her. I had to stop responding to his texts. While I still believe he was ikely using the money for actual needs, I came to the realization he was using me as a piggy bank and for some reason he can't seem hold down a job.
Hey it's me your uncle
Janaka: Yup. A lot of it is a self-discipline / self-control problem. I tried to help several families get bootstrapped into not being under the pressure of short term debt. They just wouldn't stop doing things that got themselves into financial trouble.
Like not going to work if they had food in their home. Or buying more things (which they didn't need, especially short term) if they had money in their pocket.
We'd likely be FAR better off helping "the poor" with education, psychological support, basic money handling information, etc. than handouts -- and I'm talking for basically healthy people who aren't mentally handicapped, etc.
But we give lots of money away, which buys certain politicians lots of votes, but doesn't help the fundamental problem much. The "War on poverty" has been ongoing since the 60's, and here we are with many claiming "poverty" in the US is worse than ever. (I think that's nonsense, with programs like the EIC (Earned Income Credit) very much a thing for low wage earners) -- but here we are.
@@rogergeyer9851 This is why I don't believe in poverty. Helping those who can't help themselves is not mine or anybody's problem. Yet, we all have to pay taxes on someone else's debt. Tax fraud should be encouraged in a broken system.
@@kylecrane5751 I believe the best way to help someone poor is to given them tools and opportunities to improve themselves rather than money. As the saying goes "if you give food to a man, he will be feed for a day. If you teach him how to hunt, he will be feed for the rest of his life"
Consider this as well: Wealth can reduce stress in many but not all cases. Numerous physical and psychological illnesses are either caused by or worsen with stress.
I would be willing to take that risk of winning. But I am not willing to spend money on a ticket that surely will not win.
Exactly, the vast majority of people don't win. They're financing the winner with the price of the ticket.
You just buying that little hope that comes with the ticket.
Pessimists like me do not gamble. I have contingencies within contingencies..took me over 20 years to get "rich". I always laugh at the gurus talking about thinking positive, that's not how I did it.
"I've spent most of it on drugs, hookers, fast cars and parties. The rest I squandered."
Who quoted that?
@@sybentley6675I think it was george best, football player
George Best I believe.@@sybentley6675
Oh, thank you for the timely advice! I'm just planning to win a lottery next week
Retired CFP here: If you win the lottery, you need to do three things: 1) Hire a Lawyer, 2) hire an accountant, 3) hire a financial advisor that doesn't sell products. If possible, claim the winnings ANONYMOUSLY!! Resist the urge to tell anyone/everyone. Once the word is out, people will hunt you down begging for money. Friends, relatives, strangers, people with 'ideas for a business', banks, investment salesman. They'll show up at your front door, begging for money. You need to disappear. Hire a security specialist to set your life up anonymously. (Example: Have your home be owned by a trust or corporation) However, all of this won't help if you're the "King of Chavs". (As an American, I don't know what a Chav is.)
Or just don't tell anyone and don't blow it..
British version of trailer trash.
Council house and violence = chav
A chav is like a poor British working class person, stereotypically a bit stupid, rude and violent
@@JohnDoe-ef3wo sorry but in most states in the US you cannot be anonymous. They will put your picture on every newspaper.
I mean if you think about it, even some of the least financially savvy individuals understand that wiping out their debts with their winnings is probably a no-brainer thing to do. That alone probably contributes to their long term financial health even if they blow all the winnings unsustainability.
LOL you are assuming people are carrying debt! Typical american mentality!!
@mikatu people in other countries don't have credit cards, loans, mortgages...? They're never behind on paying their bills?
Depends on the interest rate. If it's a rock bottom rate, may as well leave it invested, you'll make more money in the long run.
Not everyone has debt.
@@EcclesiastesLiker-py5ts yeah, some financially illiterate people who don't understand how debt = leverage wouldn't understand how to effectively use it
The majority of lottery winners have a routine in life, a circle of friends and associates that they go by even after a major win. It's interesting to see certain people change their habits after a lottery win like going to a casino frequently or taking up drugs that they wouldn't do before the big win. People who have no business experience all of a sudden spend their millions on a business venture that would go bust when they'd be better off putting the money in the bank and doing nothing with it.
yeah it's funny how these winners would live off the money itself being a bank account. but that's also very, very boring. it would be more fun start your dream business even if the chance of failure is above 50%.
Good to know most people benefit from their wins over the long term!
I’m not sure if they corrected for survivorship-bias, people who feel they have squandered a miraculous opportunity might be less likely to fill in questionnaires. It is like the alumni research of a prestigious school: 85% of the respondents claim to have gotten an excellent job in their field of study. Response rate of the questionnaire: 30%.
Thx for confirming what I suspected all along and backing it up with studies
except there are financial advisors for lottery winner. who state in their exp lump sumers go bankrupt while the annuity takers don't. same for those who win a payout in a lawsuit.
the annuity gives you a major safety net. other studies contradict those that Patrick cited.
Estimating the Effect of Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players
Guido W. Imbens
Donald B. Rubin
Bruce I. Sacerdote
AMERICAN ECONOMIC REVIEW
VOL. 91, NO. 4, SEPTEMBER 2001
Abstract
This paper provides empirical evidence about the effect of unearned income on earnings, consumption, and savings. Using an original survey of people playing the lottery in Massachusetts in the mid-1980s, we analyze the effects of the magnitude of lottery prizes on economic behavior. The critical assumption is that among lottery winners the magnitude of the prize is randomly assigned. We find that unearned income reduces labor earnings, with a marginal propensity to consume leisure of approximately 11 percent, with larger effects for individuals between 55 and 65 years old. After receiving about half their prize, individuals saved about 16 percent.
August 01 2011
The Ticket to Easy Street? The Financial Consequences of Winning the Lottery
Scott Hankins, Mark Hoekstra, Paige Marta Skiba
Author and Article Information
The Review of Economics and Statistics (2011) 93 (3): 961-969.
Abstract
This paper examines whether giving large cash transfers to financially distressed people causes them to avoid bankruptcy. A comparison of Florida Lottery winners who randomly received $50,000 to $150,000 to small winners indicates that such transfers only postpone bankruptcy rather than prevent it, a result inconsistent with the negative shock model of bankruptcy. Furthermore, the large winners who subsequently filed for bankruptcy had similar net assets and unsecured debt as small winners. Thus, our findings suggest that skepticism regarding the long-term impact of cash transfers may be warranted.
chefs kisses to the editing on that Brilliant ad
The win is not the curse. Many winners are the curse (against themselves).
Yes exactly. People rather put the blame on the money
And when you are not the curse, other people can be the curse. From friends and family continuously asking for handouts to criminal elements trying to rob you
@@dx-ek4vr Control is a very important word for success. If you ever win a lottery, never give any of your winnings away. If, say, you have an aging mother who needs a condo, invest in the condo yourself, and allow her to live there. Just say "no" to friends and family. First step after winning? Change your phone number. As for criminal elements, check before investing. All investment advisors or projects are registered with the relevant authorities - and even some of them are on the make. No registration, then no go. Don't put all your winnings in one account or one bank. On and on...just common sense.
Some people struggle to quantify large sums of money, if you're used to getting by with very little left over it doesn't take a huge sum for it to feel infinite. My mum used to work as a cashier in a bank when property prices were going nuts years ago, people would remortgage and get thousands dumped into their account and she'd watch them fritter it away in very little time, obviously ending with them having the same lack of cash flow as they were used to, but a larger and longer mortgage on their property.
So now Im not afraid to win the lottery. Thanks, Patrick ..... now just to win
Its good to hear that generally people are not dumb.
I love this channel, but it's much more entertaining on youtube because it has all the funny clips in there which contrasts with the narration!😂
His sense of humor is really entertaining I very much enjoy this channel.
some people just have the knack for making viewable youtube video's and some people dont, i have watched quit a few of this dudes video's, they are easy to follow and not cluttered with superfluous or boring content !!!
Thanks for the advice! No catapulting while fishing!!
I always think I'd do great as a lotto winner because I'm pretty frugal with my money. But then I remember I'm too cheap to buy lotto tickets...
I think you mean too smart to buy lottery tickets.
Laurie Penner: You're far better off statistically buying and holding, say, the S&P 500 index, than lottery tickets. But the S&P 500 index WILL NOT pay off millions to one or even tens of thousands to one if a few days or a few decades.
Trade-offs. And statistically, the poor buy a huge proportion of the lottery tickets, and lottery tickets have a TERRIBLE payout ratio overall.
the fun question remains if they are poor because they spend unwisely, or the other way around 😮
@@rogergeyer9851 Which makes sense. If you are poor, receiving ~4% interest on your investments, which are by definition small, will not help you much. Investing 5000$ into the stock market and walking away twenty years later with a bit above 10k is almost meaningless. You may pay your cost of living for one year with that money if you're extremely cheap, but at the end of the day, you're still poor. Spending 5000$ on lottery tickets meanwhile gives you a chance to rapidly and substantially change your fortunes. Yes, most likely you will not win anything, but at least there's a chance.
Seems very odd to handle evidence from Sweden and Florida without any reference to income inequality in the two environments.
Always enjoy a Patrick Production!
Fun to see pictures of SSE and Stockholm University (my alma matter) in your videos, Patrick!
As a Warrick, I truly appreciate your correct pronunciation of Warwick.
I always thought I don't talk to my neighbors because I'm introvert. Turns out, I just have mindset of a wealthy person!
Thank you!
Love your take on Florida, where being from California, (NorCal), we got that ribbing ad nauseum. Happy to pass it on, of course a lot of people from California moved to Florida, so there ya go, it's contagious!!!
You’d think it would be similar last to large inheritances and large income changes after post secondary. You quickly realize that money doesn’t make you happier but the volatility often results in higher life satisfaction.
Thank you Mr. Boyle. This post confirmed what I intuitively believed. Except for extreme misfortune such as befriending a latent embezzler - murder, the winner's life couldn't help but improve. When other's would attempt to convince the general public a lottery win is a curse in disguise I would think, they may possibly be correct. All the same you know I'd like to take my chances and show you I can do a better job of winning than others have.
There are many dynamics at play when a family member wins the lottery. It happened in my family when a relation by marriage won. My immediate family did not want to intrude nor appear to be acting out of ulterior pecuniary motivation. Call it pride if you will (it was certainly not envy). Estrangement was ossified by the win. The family (as a family) never visited the home of the winner again as there was to the best of my knowledge, never any invitation. Additionally, there is a certain smugness that accompanies the lucky, that attributes their luck to intellect rather chance. Some might call that poison envy. Smugness on the part of the winner however is just as unpalatable to relationships.
Yea yea it wouldn’t be like that for ME though
Mr Beeley a consultant surgeon in Dublin Ireland won the Irish lotto twice both amounts in excess of €1 million, I was alway surprised that a man of such stature and income would bother doing the Lotto 🤷♂️.
Very insightful short video
Rich people still gamble frequently though just on stuff like the meta verse, stadia & sbf
Like that $233,937 NFT I just bought? That's not a sound investment? It's not like someone can't just COPY the image onto their own computer or anything.
You mean stocks and real estate.
Yeah. Coffeezilla's recent investigation is exactly about these eich people being scammed of millions.
Very sad it is
You're easily one of the better channels.
I hope you succeed 10x over what you've accomplished thus far. Keep it up.
Reading 10x reminded me of that scammer Grant Cardone(?)
I ended up with a surprise inheritance (modest in comparison to these lotteries). It did not make me rich or thin but it allowed me to move to another state. I still have some of it left but won’t waste it on clothes or vehicles or even remodeling my home. Unfortunately with inflation and the housing market craziness all wealth is rapidly losing its value now. I’m glad I know how to live simply because God only knows what’s coming next.
If i had excess cash I would park my money in a good index fund like vanguard. And still live a modest life. Thats just me. Not a financial advice.
The key is that having some money gives you options. You're not forced to take the first available job because you need their health plan, or have to live in a place you don't like because it's all you can afford.
60% into gold 30% into silver and 10% into platinum. And then let them continue to print awsy.
1. setup a blind Trust to collect the money. you remain anonymous
2. talk to a psychologist about the hedonic treadmill, materialism & happiness to make sure you don't progressively seek more excitement using your wealth.
3. talk to fund managers about investing in stable low yield investments. You only need tiny percentage returns to fund your lifestyle
4. Prioritize health, peace of mind and fitness with your annual returns
@@rockwithyou2006that clearly is financial advice 😂😂😂😂
Interesting vid. Thanks Patrick
This video makes me feel a whole lot better with my choices, investments and mental attitude towards protecting my future financially in light of lottery winners. I reduced my friends to 2 people and kept all social related connections along the lines of business. It's so true about connections with other financially successful people. You will make better decisions overall for long term financial ease
Thanks!
Thanks Henrik!
'If you took all the money in the world, and divided it equally amongst everybody, it will soon all be back in the same pockets.'
Jim Rohn.
Your videos are great. I enjoy watching them. Very educational with variety subjects.
Good one!
Fascinating. Thank you! (Note to self: remove "play the lottery" from your bucket list, and instead add "win the lottery".)
Great research!!
“Trailer Park Dude Wins $10 Million, Files For Bankruptcy One Year Later” makes a much more interesting news story than “Trailer Park Dude Wins $10 Million, Ten Years Later Is Still Doing Really Well”.
Thanks
Great detail in this video Patrick, many refer to the study into Florida Lottery winners (The worst? I'll tell Mark Houghton that next time I see him.) however I wonder why "they" never reveal or comment that the lottery winners in that study won from $50,000 to $150,000 IIRC, also the American format of winning the lottery means that choosing the lump sum (instead of an annuity) they only get 50% of the "jackpot" prize from which they loose almost another 30% in federal, state and local taxes. One of the big name winners to declare bankruptcy won $112 Million but only had about $14 Million after taxes and a split with relatives. Yet the followers and the winner themselves only talked about the $112 Million jackpot win, the mentality spent their money for them. I note of the Swedish study the average win was only $92,333 I understand that the biggest lottery available in Sweden is the Euro-Jackpot with a capped jackpot of €120 Million.
I know it's impossible, but perhaps rules should exist to save folks from the lottery curse.
Like requiring money management classes or mandating a small percent be set aside for awhile (w/ interest, of course!)
Won't ever happen and probably shouldn't, but people often need rules to protect them... from themselves!
Great video 💪❤ Life lessons ❗
The real win here is the sponsorship deal Patrick has struck with "the lottery". Great product video - one might call it "Brilliant".
My most unexpected take away from this video: If you want to avoid community service, seek the advice of a fisherman. Great vid. Cheers
Thank you and and I enjoy your videos but I decied to watch a video about the Admiral Scheeer. Look forward to your next video. Regards Joe
Great video. Interesting subject
So far, I've found all your videos to be both very informative and pretty hilarious. I'm a big fan of the overwhelming snark in a world that has a serious lack of it.
My favourite Saturday treat. Sit in the sunshine, coffee and cigarette in hand and listen to Patrick Boyle
Wow, thank you for debunking many of those failed lottery winner urban legends. I suspected a lot of those stories were BS, but it's good to see some real data to back it up. Thanks Patrick!
When I played the lottery, I would calculate the interest income at 4 or 5 percent for investments like money markets. If the investment income was 250k or more per year, I would play. I figured with that kind of return on investment, I would never have to touch the principle.
Unfortunately, I never won the lottery, so now I gamble my money in the stock market. In the future, I hope I'm not writing a comment where I lost all my money in the stock market.
In all things, due diligence is underrated.
Gotta love Patrick. Love his style and content!
The study has a flaw, it studied SWEDISH citizens, in a time when most people are well off and the social system in place was balanced. The curse of the lottery affects the poor and different cultures differently, if you were well off before the win, you will be only even better off after. If study was concetrated on other countries and hemispheres it could bring different results. Edit: and getting more "friends" when becoming rich on its own is a red flag...
First thing I thought. Using a single country to expound on the entire world was dumb.
3000 winners over $277 million means that the average winning studied here isn't exactly huge...
@@matthewmatthew638 also true, getting 100 millions as dirt cheap person can ruin a person, as they say - pray you never really get what you really want, else you remain a shell of a man once been.
the numbers cannot be true because they disagree with what you want to believe. so insightful. thanks. notice you have zero sources.
Yea the curse affects only the retard plebs with 0 financial education
Higher economic status gamblers dont do lottery but options.
Hey Patrick great vid, but I'm curious; what would your advice be for someone who won say a million pounds?
"You're not meant to do that." Thanks, I'll take that into consideration.
Hm, much to consider. hadn't ever fully explored the topic. Thanks for the high level info!
It’s always good to hear that money doesn’t buy happiness
great content as usual
Indeed, I have never uncounted anyone who turned the lottery fortunes into something meaningful, but more often than not, people squander them at the blink of an eye.
Similarly schools are where you're forced to be around people you're told to be around and you aren't picking the information and how to learn it, like a jail. Dependency on others too.
Less money = less choice of surroundings.
Dankula has a great video about Michael Carrol
Isn't it weird that there are so many studies on lottery winners? I don't understand what's the point of all these studies.
this has been a fun departure. my personal advice: if you're 94 years old and win the lottery, spend it as fast as you can.
And leave your descendants with nothing?
@@anonanon7497if they want money, they should win the lottery themselves
Your life skills and personality do not change with a lump sum payout. For those less able, it only allows your propensity for destructive behavior to be unregulated!
taking the annuity does give you a giant safety net and more money long run.
Exactly, that's how fortunes that have lasted for generations have been lost.
i always wounder why its so hard for most ppl to coppy the all weather portfolio when rich?
My wife and I hardly socialise anymore, most peoples noses get out of joint when you do well in smaller communities
I think one take away here is that some people with an inclination toward gambling don't understand the concept of 'quitting while you're ahead.' Because chasing the momentary thrill of winning seems to be of greater importance to them than the comfort of lifelong financial security.
Yeah I'm of the quitting while I'm ahead type. Those who cheated at the casinos wouldn't have gotten caught if they would have quit while they were ahead.
Weeeee! What a treat, tnx!
Mr. Boyle, please tell us about Armand Hammer’s exclusive import license for graphite pencils from Russia. How did it come about?
Not a comment on this subject, but perhaps a new one. Is there an economic term that explains the difference between cost of usually a luxury and its quality. So X axis is increase in quality and Y axis is price. So, is the car or wine or thing that costs 200k that much better than the one at twice the price?
A top end mercedes compared to a mclaren, a 150 dollar burgandy and a 500 dollar burgandy.
it would be a J curve plotted on the graph.
thank you , I do enjoy your videos.
Did these studies have controls? Especially with life satisfaction? Cause that also increases with age...
A lottery win is typically the worst thing that can happen to a person. Andrew Carnegie wrote a small book on money that talks about this.