My Cousin Won the Lottery
Posted By Randy Jones on March 12, 2009
I have never personally known anyone to win the lottery—until now. Recently my first cousin and her husband won the Georgia Lottery, to the tune of $133 million. That sum will go a long way, especially in these recessionary times, in Carrollton, Georgia, population 22,000. They are now the richest folks in town. On hearing the happy news, my reaction was one of elation— Heck, who am I kidding? Of course I was remarkably jealous! But the money could not have been bestowed on two more wonderful people. I thought that even before they won $133 million, I swear. Once the excitement subsided a bit, though, I found myself concerned, because at Worth we once published a compelling story on the long-term success of lottery winners, and it was not a pretty picture.
Most lottery winners we tracked were destitute within three years of claiming their cash. Our reporting showed that managing money is a critical skill set that many simply have not mastered. My relatives, however, were smarter than the average lottery winner. My cousin is a financial adviser, so he had a head start. They waited to claim their millions until they had met with smart financial advisers and even smarter tax lawyers, and set up the entity that would receive their winnings. They saved more than $10 million in taxes. And I’ll bet you a free copy of The Richest Man in Town that three years from today, they’ll still be in the high cotton of Carrollton. More later. I’m off to buy a lottery ticket.
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