How this Kentucky Lottery winner died alone and penniless

[GwinnettNole]

Does this seem to happen more times than we would assume? Is this a matter of taking people that have no idea how to manage money, instantly give them millions and watch them just squander it? Sounds similar to some athletes...

From the article:
David Lee Edwards, from Ashland, Ky., won $27 million in 2001. He lost it all by 2006.

Edwards bought a $1.6 million house in a private tennis and golf community in Palm Beach Gardens, Fla., and spent another $600,000 on another home. He also bought a $1.9 million LearJet, three losing racehorses and two businesses worth $4.5 million.

Edwards and his wife contracted hepatitis from their needle drug use and both were arrested multiple times for possession of crack cocaine, pills and heroin, according to the New Times.

Full article: https://www.usatoday.com/story/news...cky-lottery-winner-alone-penniless/595927001/

 

[GwinnettNole]

One other thing-- reading the article-- the first thing that signaled to me that this isn't going to end well is he is from Kentucky-- it then has pictures of him in Palm Beach. Now this may have nothing to do with it but going from the Blue Grass to south Florida, as a new-millionaire is a recipe for disaster.... Maybe I'm wrong and had nothing to do with it....

 

[SeaPA]

The typical mistake most seem to make is dumping large amounts into totally nonproductive assets, or even worse dumping large sums of money into assets that take additional money to maintain (like a 1.6m house, a 600k second house, a 1.9m jet...). If he'd parked all of his winning into something paying 1 percent interest, he could've smoked $750 worth of crack a day without touching his principle

 

[speechteach]

The typical mistake most seem to make is dumping large amounts into totally nonproductive assets, or even worse dumping large sums of money into assets that take additional money to maintain (like a 1.6m house, a 600k second house, a 1.9m jet...). If he'd parked all of his winning into something paying 1 percent interest, he could've smoked $750 worth of crack a day without touching his principle

This.

 

[FSUTribe76]

Does this seem to happen more times than we would assume? Is this a matter of taking people that have no idea how to manage money, instantly give them millions and watch them just squander it? Sounds similar to some athletes...

From the article:
David Lee Edwards, from Ashland, Ky., won $27 million in 2001. He lost it all by 2006.

Edwards bought a $1.6 million house in a private tennis and golf community in Palm Beach Gardens, Fla., and spent another $600,000 on another home. He also bought a $1.9 million LearJet, three losing racehorses and two businesses worth $4.5 million.

Edwards and his wife contracted hepatitis from their needle drug use and both were arrested multiple times for possession of crack cocaine, pills and heroin, according to the New Times.

Full article: https://www.usatoday.com/story/news...cky-lottery-winner-alone-penniless/595927001/

So the idiot wasted $2 million (not counting upkeep, fuel and pilot hours) after getting maybe $17-18 million after taxes and fees? Let me break out my tiny violin for the third time today.

The billionaire (with a B) that is one of my partners has a couple of Gulf streams and some King Airs. He's also got a couple of high six figure low seven figure dollar cars that he rides around in and about 50-100 million plus dollar cars that are just decoration for his office (plus a way to stash money without paying taxes on it as those are investment class cars which are maintained in what would be museum condition). But the quarter to half billionaire I'm working with on a different project doesn't have a personal plane nor grossly overpriced cars just some really nice ones, but I've seen his networth as we used it to secure a $17 mil construction loan. Nor does my main partner who "only" barely cracks about $100 mil. Both of the hundred millionaires I work with just drive decent/nice cars but not million dollar cars and certainly don't have personal jets.

Basically your personal travel equipment shouldn't constitute a tenth of your net worth until you're in the B for Billionaire club. Once you're in that club, sure go ahead. But $17 mil isn't Buy whatever you want money.

 

[ericram]

Everyone in the LR knows not to buy the jet. You lease that thing! Rookie move!

 

[OrlandNole]

In some cases (not all), there's a reason people are poor. Throwing a big wad of cash at them isn't going to change t hat.

 

[seminole97]

In some cases (not all), there's a reason people are poor. Throwing a big wad of cash at them isn't going to change t hat.

“Only the man who does not need it, is fit to inherit wealth–the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him.
... Money will not serve the mind that cannot match it."

 

[JohnnieHolmesNole]

Pretty typical really. This is why I cringe when people here jump up and down about FSU athletes making big donations to the school. Easy, buddy. Maybe wait until you are 50+ years old and have a better vision of how much money you really have. A guy with a few million dollars at age 25, but no marketable skills after he quits playing football, can easily go broke. Believe it.

 

[Gonolz]

Pretty typical really. This is why I cringe when people here jump up and down about FSU athletes making big donations to the school. Easy, buddy. Maybe wait until you are 50+ years old and have a better vision of how much money you really have. A guy with a few million dollars at age 25, but no marketable skills after he quits playing football, can easily go broke. Believe it.

Jamnolfin's reaction to your post:

 

[goldmom]

The typical mistake most seem to make is dumping large amounts into totally nonproductive assets, or even worse dumping large sums of money into assets that take additional money to maintain (like a 1.6m house, a 600k second house, a 1.9m jet...). If he'd parked all of his winning into something paying 1 percent interest, he could've smoked $750 worth of crack a day without touching his principle

So, would you say it was his lack of principle led to heroin use, thus causing him to deplete his principal?

 

[ParNole]

Give a broke person $5 million dollars and they'll be broke in 10 years.

Take away all $5 million from a person who earned it and they'll have $10 million in 10 years.

People are what they are. Doesn't matter if it's $5 or $5 million.

 

[RangerNole]

I read years ago hat 75% of lotto winners are broke in less than 10 years. Not all that surprising when you take a look at how so many of these folks play the lotto as if there is some magic system. It is pure luck; but if you think that if you follow some system that it will increase your chances then you are already likely low on the IQ chain.

 

[RTM58]

This only ever ends one way.

 

[kelleynole#1]

I laugh at these idiots, there is no shot, NONE that I or my friends would waste money like that. Racehorses? A Jet? WTH? Just stupid. Anyone I am not close to asks for some cash and I tell them to start running or I punch them in the neck.

 

[1handsomenole]

From the article:
David Lee Edwards, from Ashland, Ky., won $27 million in 2001. He lost it all by 2006.


It sounds like Mr. Edwards had a stellar 5 year run....

 

[JohnnieHolmesNole]

From the article:
David Lee Edwards, from Ashland, Ky., won $27 million in 2001. He lost it all by 2006.


It sounds like Mr. Edwards had a stellar 5 year run....

My guess is that his net lump sum take home of the $27MM was about $9MM. As noted, blowing that amount in 5 years involved some incredible recklessness. But people mistakenly assume you actually get the full (or even substantial) amount shown on the billboard. Not the way it works. Nevertheless, your underlying point is spot-on.

 

[AllNoles]

Tax free bond at 3% would give the guy 270k a year. That's likely 3-5 times more than he'd made before. But... greed.