how fast could you spend a million? Lottery winner was broke within 2 years. now dead

[Demovictory9]

A sad ending out of Michigan to a story that should've had a happier one. MLive.com reports that a body was found last Saturday floating in the Tittabawassee River, near Northwood University in Midland. Police have now IDed the body as 69-year-old Leroy Fick, an Auburn resident who won a $2 million jackpot 11 years ago on the Michigan Lottery's Make Me Rich! TV game show.

Authorities haven't disclosed the cause of death, but they say it doesn't appear Fick's death is suspicious. After his June 2010 win, Fick took home about $1 million after taxes, but what happened next now serves as a "cautionary tale" to other lottery winners, notes Play Michigan. ClickOnDetroit.com notes that Fick, who ended up on TLC's Lottery Changed My Life program, dumped about $200,000 into the construction of a new home, as well as $200,000 into annuities.

More money was spent on investments, as well as such items as a new Chevy Camaro, swords, slot machines, and a "significant amount of fireworks," per MLive.com. Just two years after he'd won, Fick was broke.

It emerged that he and another lottery winner had been collecting government assistance despite their wins, prompting state lawmakers to change the criteria on who can apply for food aid. Fick also struggled with legal troubles, with a 45-day jail stint in 2012 for a drug conviction, followed by another prison sentence later that year for convictions of larceny of a firearm and felon in possession of a firearm. "The whole thing just blew up in my face," Fick told the judge in the latter case at the time. "I thought people would love me if I helped them out some. I had the wrong idea, I guess. They all turned on me and that was it." The Midland Police Department is asking anyone with information on Fick's death to call 989-839-4719.

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https://www.newser.com/story/307292/he-hit-it-big-in-the-lottery-then-blew-it-all-now-a-tragic-end.html



https://www.dailymail.co.uk/news/article-9679691/Michigan-man-69-continued-receive-food-stamps-winning-2-million-jackpot-dead.html

"He likes fireworks," Wilson said. "That's where a lot of the money has gone, frankly."

https://www.lotterypost.com/news/241226

[Hugh_Lebowski]

1. This isn't the 1950s (or before), $1M after taxes is not that life-changing

Anyone who conducts themselves like it is is bound to run into trouble, and quickly.

As we saw here.

Sounds like he was 58 at the time ... should've kept working til 65, at which time it should've been approaching $2M, esp. if he'd added to it as he went.

You retire at 65 with $2M in the bank, you're set up reasonably nicely.

[Shermann]

8. It would be life-changing for most

But that's not to say you'd be set for life.

I don't see anything too alarming in the list of things he bought, but to retire early at 60 with $1 million would necessitate a modest retirement plan.

[Marrah_Goodman]

9. For many it would be life-changing

I live on 1100 dollars a month in new england. It would definitely change my life.

[dawg]

18. If you invested it at the risk-free 10-year rate ...

your income would increase to $2,318 per month. I think that would definitely be life changing to you so long as you actually handled it that way and didn't go on some kind of "millionaire" spending spree.

[Hugh_Lebowski]

44. I said not 'THAT' life-changing. But I think we have different definitions of 'life-changing'

At a bare minimum to me it means I don't have to work another day in my life if I don't want to and also up my standard of living considerably.

Obviously everyone's going to have their own definition.

Helps if you know I'm from the Bay Area, so I kinda think of money in terms of it's value in that region

[Polybius]

17. It would be hugely life changing for me

I could make it last for 40 years.

[Dave says]

41. It would be life-changing for 80% of us

[Hugh_Lebowski]

43. I didn't say not at all, I said not THAT life-changing

To me life-changing money means I can quit my job, up my standard of living considerably, and not have to worry about money the rest of my life unless I'm really stupid with it.

I think a person would be unwise to quit working if they only got a million dollars. The MUCH smarter thing to do would be to keep working, sock that money away, and consider it your retirement fund.

You let it sit for awhile w/o touching it, then you're going be set up for MUCH more comfortable retirement when the time comes.

In this situation, the main increase in your standard of living involves not really needing to set as much aside every month for retirement. Whatever that buys you.

[PoindexterOglethorpe]

2. The truly sad thing about most lottery winners

is that they spend themselves into oblivion very quickly.

What's genuinely sad is that most people haven't any kind of long term plans. Have no long term plans means that people who have a sudden windfall haven't a clue how to deal with it.

[Journeyman]

3. A guy in my neighborhood won $40+ million. Within a half dozen years, he, his wife, and . . .

their daughter were all dead. They divorced quickly, then both degenerated into high living and foolishness. The daughter died first, of an overdose. If I remember right, the wife was murdered by someone looking to steal her money. And the fella spiraled into drunken madness, spending his days and nights trying to connect with the strippers at local T&A bars. In the years leading to his death, he continued to get his hair cut by the local barber, so we all got secondhand insight into the families decline.

Almost makes you want to swear off ever wanting a lot of money. But I gotta say, if I ever played the lottery again, I'd still like to win, just to prove I could handle it better. (Or so I like to amuse myself.)

[mahina]

4. Chasing dopamine, seratonin, oxitocin, endorphins and

the mystery.

Sean Carter, June 8, 2018


“I thought it was impossible to have a better life than Anthony Bourdain. But his final bittersweet gift just knocked me on my ass with the stark reminder that adventure, love, prosperity, prestige…anything we aspire to at all…is really just the currency we use to buy the four things that really matter: dopamine, serotonin, oxytocin, and endorphins. Realizing that even that kiss that melts your heart… only melts it because those four fairy godmothers waved their magic wands and turned your brain into a freakin princess. But if our brain hits us with a really shitty exchange rate, if suddenly winning that Academy Award only buys us a day’s ration of serotonin, then how the hell are we supposed to stock up for our whole lives? That Anthony Bourdain can stand on the highest mountain and feel nothing but a desire to move toward oblivion is all I need to kick me in the ass and ask the most important question, how’s my exchange rate? What can I do to get more joy out of everyhting I’m presented with, big or small? How does anyone do that? I guess there begins one’s lifelong quest for God, psychedelic drugs, transcendental meditation, or whatever the hell else you need to do to bring true value to the external pleasures of the world. Anything that promises, not pleasure, but perspective. There's a good case to be made that those are the things worth seeking first, before even love and success. Because watching my little boy flood his brain with happiness because he found a cool stick on the lawn is all the evidence I need that “how you experience” is so much more important than “what you experience.”

[renate]

30. This is amazing... so much to think about here

Thank you.

[mahina]

31. I thought so too. I'm not the author in case that's unclear.

I found it thought provoking.

[renate]

32. You did make it clear!

I should have been clearer in my thanks... Thank you for sharing it!

[mahina]

33. My joy, aloha renate.

[Hekate]

48. That's wonderful. Mahalo, Mahina.

[mahina]

49. My joy.

Aloha Hekate

[JI7]

5. This seems to be not that unusual among some lottery winners. The thing is the money they won is

just one time . This is different from other wealthy people like big name entertainers and business people that continually have money coming in .

For many it's a lot of money and it seems endless but it's not. And then there are the scammers .........................

I think the lottery in the US should be more like some in Europe where they award smaller amounts but to many more people. I would be more likely to play if I had a better chance of winning even if it was a much more smaller amount than those hundreds of millions of dollars prizes where the chances are very small.

[Hortensis]

6. Fraudulently collecting pubic assistance after winning?

The guy was always a dysfunctional jerk, and people almost certainly always "turned on" him, and note that he lived to 69 anyway.

I don't believe the narratives that winning big typically destroys the lives of previously sensible people or that it's normal to blow it all and end up as before. Sure, considering selection is among people who buy lottery tickets, perhaps bad outcomes could be somewhat more likely than among people as a whole.

But I suspect this narrative has become so dominant, beyond the simple envy dynamic, because it satisfies people uneasy that unearned wealth by people of lower status is a violation of the natural order. Belief in a natural order that rewards good behavior and punishes bad (this guy a prize example) is common among conservatives as well as reflected in most religions, and it underlies the belief that social programs tend to degrade society.

[LiberatedUSA]

7. If he has invested the $1 million...

...he could have lived off of $40,000 to $50,000 a year on interest.

[alphafemale]

10. Taking a partial amount per year is an option in some lotteries.

People would not get the interest, but they at least would have money coming in the next year and not blow through it all.

[LiberatedUSA]

12. I would do the lump sum.

If I won something like $2 million after taxes, I would invest $1,500,000. I would put $300,000 in a savings account, $100,000 in my checking account and the last $100,000 would be for whatever the hell I want. Maybe bet it all on black at the casino and see what happens.

[Demovictory9]

20. I would distribute $100,000 to family members

$100,000 fun money

Use the rest to setup annuity and savings

[alphafemale]

22. Some crazy families would demand more.

Winning the lottery is said to be good way of finding long lost distant cousins.

[alphafemale]

21. Most people who play and therefore win the Lottery have no idea how to deal with money.

It is really a shame how so many blow throgh millions in a few years with nothing to show for it.

[Tanuki]

23. Jack Whittaker of WV had already come from humble beginnings to become

a self-made multi-millionaire in construction contracting when he won a huge jackpot. Based on his business success, he seemed like someone who would manage it well, but his life fell apart.

https://en.m.wikipedia.org/wiki/Jack_Whittaker_(lottery_winner)

[JI7]

46. He was targeted by thieves many times and looks like he ended

up having gambling problems.

I think it also affects people differently to win such a large amount of money compared to the money made though hard work.

I would rather 1 million than win a huge amount like 100 million and become known in public for having won that much.

[csziggy]

37. Uh, no - investments nare paying about 2-3%

So $1 million would bring in half what you suggest, at best.

Sure, there are some equities that might make more, but those are also the types of investments that can dive with little warning.

[iemanja]

39. Saving accounts don't keep up with inflation these days

but he certainly could have gotten an investment advisor who would have recommended a mixed portfolio.

[alphafemale]

11. I see lotteries as a tax on people who are bad at math and have no clue about statistics

Except for maybe once or twice a year when the Super Lotto is ridiculously high where I will put in a dollar.

Because. One dollar.

Seeing people with a ten foot long streamer of scratch off tickets outside a convenience store is one of the saddest things. And it is always people who look like they have little in the way of disposable income.

Chasing the dream is addictive.

[kcr]

42. Some of those scratch off tickets are now 30 bucks a pop

I had no idea until I read an article about a winner recently and it mentioned how much she spent on the ticket. One ticket.

[alphafemale]

45. I can't imagine.

I thought the 5 and 10 dollar ones were bad.

[ProudMNDemocrat]

13. Money never buys happiness.. it provides options.

Investing wisely is important during one's working years if possible for a comfortable future.

[kacekwl]

14. A certain personality trait jumps out

at me when I read he really like fireworks. Could have predicted the outcome.

[Demovictory9]

19. That is so weird. Spend $500 on fireworks, not the whole wad

Just how many firewirks did he need?

[HipChick]

15. If folks are bad at managing money, winning the lotttery

will focus on that trait..

[underpants]

16. Mo money, mo problems

Sad but it happens all the time.

[FakeNoose]

24. The article says he won the money in 2010, went to prison twice after that

.. on drug charges and firearms convictions. He was collecting government assistance even after he won the lottery. Bought stupid stuff and paid cash. Sounds like this guy had a LOT of problems that money doesn't solve.

[Silent3]

25. I wonder if winning a lottery often goes badly not because of the sudden influx of money itself...

...but because playing the lottery, in and of itself, is often a symptom of being bad with money, bad with math, and bad at knowing how to plan for the long term.

They don't call it the Redneck 401k for nothin'.

Full disclosure: I occasionally buy lottery tickets myself, usually $10 at a time when the jackpot is high. The most I've every spent was $20 at a time, and that's something I can very easily afford. I have a solid retirement fund already, I know the odds are quite against me, but don't mind the small price for a little "what if?" day-dreaming.

[BGBD]

26. With a million bucks

I could spend It in a week if I had to. I could also live on it for 20 years.

[NickB79]

27. A coworker won the lottery about 10 yr ago

$600K after taxes.

He had $50K in medical bills to pay that our insurance was fighting him over (helicopter Medivac ride to the Mayo Clinic for heart problems). He could have won, I was telling him the steps he had to take to appeal it, but just paid it for convenience.

Sold his old house, bought a newer house on 15 acres for $400K, then promptly gutted and remodeled it for another $100K to make his wife happy.

Gave away money as loans to family and coworkers. Most never repaid him.

All the while he kept working at the factory. Really sweet guy, loves his wife with all his heart, always smiling.

Now he's back to living paycheck to paycheck, 60 yr old, no real retirement to speak of other than our measly pension and SS, and his wife just got melanoma. He'll be working until he dies.

[Demovictory9]

29. I guess some of his lottery winnings are in the value of the property

He purchased..so he is ahead there.

Assuming he didnt mortage it

[I_UndergroundPanther]

28. Depending on how much I win

It would go into high interest savings.
I would live off the interest which would be more than I get on ssi Would basically keep living the way I live. And a modest house of my own . And I would get dental implants.

[RANDYWILDMAN]

34. They all break break rules 1&2

First rule, don't tell anybody you won. Don't claim it publicly, create a trust and have the trust claim the money.

Second rule, Invest first, don't spend the money, unless it's coming off the investments


simple rules but hard to follow.

[Mosby]

35. It's surprising common for lottery winners to go broke.

https://www.cnbc.com/2017/08/25/heres-why-lottery-winners-go-broke.html

Eta I think post 6 makes some really good points.

[Stuart G]

36. Stupid is really ..."Stupid"...The safest investment in the world pays 2.2% interest a year..

Eleven years ago it paid 3 to 4 %...(I don't know)...but the safest invest is a 30 year U.S. govt.
bond...Once you set up an account...you can purchase direct from the Federal Reserve Bank...

Yes, that is....."The BANK"...If "The Bank" doesn't pay interest on its Bonds ......well guess what???

All your money is................WORTHLESS.....!!!

30 YEAR BONDS ...pay the going rate..It ain't difficult
to set up an account...all you need is ....money...secured money....then the bank lets you buy its
bonds or whatever...a wide variety of bonds and notes...Remember this bank prints and distributes
all our money...It is part of the U.S. Treasury Department
.........No, I don't know what part?..But this is a source for money...Banks use it, and in the 80s it was set up so private citizens can get an account. I heard about it on a financial TV show..Yes, if you buy one of these 30 year bonds, they will automatically deposit the interest twice a year into an account which you specify.. No, I didn't make this up...you can find more info on the internet ..."30 Year U.S.Govt Bonds..".

[iemanja]

38. that's sad

It shows the sickness of consumption capitalism. The man was obviously poor all his life and then spent like crazy once he got money. May he rest in peace.

[Klaralven]

40. He was on foodstamps 2 years after winning for the same reasons he was on foodstamps before

[GulfCoast66]

47. If your bad with money before winning the lottery you will be after winning it.

1 million dollars is not rich today. It can provide security if you are content keeping your former lifestyle or increasing it slightly.

But it only works if you don’t spend the capital. Otherwise it’s a few years bender then back to being poor. I’ve seen it in some of my relatives after an inheritance. Rather than insuring they were secure for life they blew it all thinking they were rich. Then right back to poverty.

And someone above hit the nail on the head. Don’t tell anyone. Especially family. They will suck you dry.

The reason so few good money managers win the lotto is because they don’t play, understanding statistics.

I only play when over 20 million. Then 1$.

[Buckeye_Democrat]

50. Definitely a different personality than me.

I tend to keep my "needs" to a minimum. Spending involves a kind of bondage, especially big spending, for me. I'd better be damn sure it will result in long-term happiness before doing it.

[brooklynite]

51. Just to clarify: he did NOT "spend a million"

If he got all the cash up front, he got about $600,000 (the "million" is always an annuity payment over several years), then paid about $240,000 in taxes (top marginal rate). So he burned through closer to $360,000.

[Demovictory9]

52. he won 2 million and received 980,000