|Unlucky lottery winners who lost their money
"My understanding is she has no assets," says Kidd.
Back to the basics
Ken Proxmire was a machinist when he won $1 million in the
Michigan lottery. He moved to California, went into the car business with his
brothers and within five years, Ken had filed for bankruptcy.
was just a poor boy who got lucky and wanted to take care of everybody,"
explains Ken's son Rick. "It was a hell of a good ride
for three or four years, but now he lives more simply. There's no more talk of
owning a helicopter or riding in limos. We're just everyday folk. Dad's now back
to work as a machinist."
Willie Hurt of
Lansing, Mich., won $3.1 million in 1989. Two years later, he was broke and charged
with murder. His lawyer says Hurt spent his fortune on a divorce and crack cocaine.
Riddle of Belleville, Mich., won $1 million in 1975. Afterward, he got divorced,
faced several lawsuits and was indicted for selling cocaine.
Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, particularly
politics, education and the community. But according to published reports, eight
years after winning, Lee had filed for bankruptcy with only $700 left in two bank
accounts and no cash on hand.
One Southeastern family won
$4.2 million in the early '90s. They bought a huge house and succumbed to repeated
family requests for help in paying off debts.
house, cars and relatives used up all their winnings. Eleven years later, the couple is
divorcing, the house is sold, and they have to split what is left of the lottery
proceeds. The wife got a very small house and the husband has moved in with the
kids. Even the life insurance they bought ended up getting cashed in. "It
was not the pot of gold at the end of the rainbow," says their financial
Luck is fleeting
sad-but-true tales are not uncommon, experts say. "For
many people, sudden money can cause disaster," says Susan Bradley, a certified
financial planner in Palm Beach, Fla., and founder of the Sudden Money Institute,
a resource center for new-money recipients and their advisers.
our culture, there is a widely held belief that money solves problems. People
think if they had more money, their troubles would be over. When a family receives
sudden money, they frequently learn that money can cause as many problems as it
solves," she says.
Craig Wallace, a senior funding officer
for a company that buys lottery annuity payments in exchange for lump sums, agrees.
broke is a common malady, particularly with the smaller winners. Say you've won
$1 million. What you've really won is a promise to be paid $50,000 a year. People
win and they think they're millionaires. They go out and buy houses and cars and
before they know it, they're in way over their heads," he says.
you really a 'millionaire'?
Part of the problem
is that the winners buy into the hype.