Posted on 03/24/2023 4:30:51 PM PDT by ChicagoConservative27
The luckiest guy around is at it again -- buying up property with the record-setting $2 billion Powerball jackpot he won in November, CBS Angeles reports.
After claiming his win last month, Edwin Castro bought a $25 million Hollywood Hills bachelor pad. And records show he just bought another home, for $4 million, in Altadena -- a short distance from the gas station where he purchased the winning ticket.
Dirt.com describes the 1953-built five-bedroom, four-bath home as modern, with Japanese influence and Palm Springs vibes. Two of the bedrooms were configured as an art studio and a soundproof movie theater, respectively. The outside features a pond and patio as well as a saltwater swimming pool.
(Excerpt) Read more at cbsnews.com ...
“$2 billion Powerball winner buys $4 million home after gobbling one up for $25 million”
Yeah, sure. They’re not “homes” as much as they are just houses.
He will be broke in 5 years.
John Whitaker II
Well, $25M out of $2B is like $25 out of $2000.
So, he’s not broke.
Yet.
He never won $2B.
After all the stories of previous lottery winners losing all their money within a few years, how do these people continue to make such bad decisions? The initial cost of the home is only a part of the expense of such a purchase since upkeep, utilities, and maintenance of such a property is more than the average worker in our nation makes in a year.
The first thing a lottery winner should do is hire an accountant and financial adviser. If they hired one and he or she advised that these purchases were a wise decision, then the winner should fire that person and find someone more intelligent and experienced in handling sudden cash windfalls.
Gobbling up?
You’re supposed to live in a home, not eat it.
Yeah, there had to be 10%+ CA income tax, 30%+ Federal income tax.
California does not tax lottery winnings.
He took the money and ran, so he got a cheque for $628 million.
What isn’t understood is that the wealthy have monetized their homes. That is why they can afford to live in mansions.
I would never advise anybody to buy a mansion, under any sort of circumstances. Buy a nicer home that is one step up from what you can normally afford and fix it up so it is optimized for your enjoyment, but stay away from mansions.
If I had that kind of money I’d buy a huge ranch in Harding County NM. It 2000+ square miles with only 600 residents.
I think the problem with all ofthese folks is that they don’t have a financial plan for investment and capital preservation. If you had $1.2B after tax, you would think you would want to divide it 6 or 10 ways with different investment houses and let them know they are competing for some ill-defined combination of safety and capital growth. It’s a lot of money and if you only expect to spend something like 1-2% of the capital per year in having a good time while keeping the rest invested you should be able to have a great life and do just fine.
It seems that the first thing these guys do is buy things they want,but don’t need rather than get the funds into a diversity of places so it is safe and productive. And make sure say $100M or so is in absolutely safe places [is there such a thing anymore] like short term treasuries and/or gold and/or oil stocks or some such. So even if everyone else is a crook and whipes out your account, you still have a nice comfortable life ahead of you even you are now reduced to living on a mere $1M a year or something.
Well same principal applies. 2% for "living expenses" is still $12.5 M per year, which is a lot of money.
I’m told the general principle is that, if you are looking to grow your money, it is 1% of your investment for income purposes with the rest being reinvested.
So, in his case, it’s about $6.3 million and the rest being re-invested. It’s still enough to live almost anywhere in the US of your choosing.
Doubtful.
The "rags to riches and back to rags" lottery stories are the people who win $2 million and proceed to spend like they won won $20 million.
This guy cleared nearly a billion dollars.
He can blow through cocaine and hookers like Hunter Biden and he's not even going to make a dent in his mountain of cash.
He'll just squander the rest.
If I had that kind of money, I'd buy the same huge ranch, except twice the size, an army of 20,000 Rhodesian mercenaries, and declare it my own sovereign nation.
Nobody would touch me.
These mega-winners need to think big!
Actually, CA doesn’t tax lottery winnings, but the Fed bite is probably 39%.
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