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AuntieDiane6

My Lottery Dream Home

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Editor's Note:

Discuss My Lottery Dream Home Here!

 

I've just started finding the re-runs on HGTV.  I've enjoyed it, but I am stunned that folks who've won a great deal of money are happy to have their names, cities and their new homes on TV! 

 

The one I just watched--the California couple who won $180 million--showed three gorgeous properties.  They said they had a $2.5 million budget but David Bromstead, who is a good host, ended up showing them a $5 million property.  Not only did they buy that, but then they bought another 800 acres from a neighbor!  

 

I hope they do follow-ups with these couples.  No mention of greedy kids, squatting relatives or the need for fences ... 

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I think that I've seen three episodes of this show so far and I've liked all of the winners because they've all seemed to be level-headed about what they want to buy and why. There's none of that fake granite-stainless steel drama, because it's a non-starter. As David tells them, they're millionaires, they can afford to do whatever they want to whatever home they buy.

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I've seen about 3 episodes too. I enjoyed the California couple a lot and you could tell David did too. I thought it was kinda funny that she thought $5 mil would be too much to spend. Then they bought the $5 mil house anyway and the ranch and all those extra acres, etc. So now they're probably down to $170 mil :)

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Then they bought the $5 mil house anyway and the ranch and all those extra acres, etc. So now they're probably down to $170 mil :)

 

After taxes, they're probably down to $70!  I'm enjoying the show. Still ... I would be scared to death if I was up at that house ... alone.  Although maybe her father is a spry old guy!

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I only saw the young woman who won $5 million and bought a new townhouse in Indianapolis that was around $350k.  That was a good amount to spend on housing with a lottery win that size.  After taxes, the amount left over is not that huge, (though I would be very happy with it), so I was glad to see that she was smart about her spending.  I thought she was lovely and seemed very level-headed about her situation.

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I can understand how people who win "small" amounts of money, clearing less then $15 millionish, end up bankrupt. Say you are about 40 years old and think you might have to stretch the money out another 30 years, so a half million a year. You figure you will collect some interest on your winnings and your only big purchase will be a house. So you look at around $300,000. But then you see something that looks great at only $315. So you up the budget a bit. Then along comes another at only $335, which, come on, is only $20,000. But you would have to furnish it, which brings you up to $350. So then you see something move in ready in your absolute dream location. You've already adjusted your mindset to thinking $350 is OK. It would be the last house you ever buy and it's only $400,000, so only $50,000 more. So you end up buying a $410,000 house after thinking $300,000 was a reasonable budget.

Using the same "It's only a few dollars more" logic when buying furnishings, cars, vacations, clothes and treats for you and other family members and that $15 million that was supposed to last for 30 years is mostly gone after five. And how could that have happened? You only splurged a little, here and there.

Edited by Mittengirl
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Am I the only one who thinks this show is stupid?  I know it's staged, but they are not even looking at the houses with a realtor, just David!  What's the point of having him there?  Just call it house hunters for newly rich people.   

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I'd never seen this show before but caught an episode last night and while I think it was about as faked as any of these shows are I really liked the couple they featured. They won a $1,000 a day for life in a New Jersey lottery (never heard of this kind of lottery - I could cope with a $1,000 a day)!  While I didn't agree with the house they chose I liked their reasoning and I liked when one of the guys said "we don't want to spend millions on a house we plan to stay millionaires for life".  Good for them!

Edited by CherryAmes
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On 2/13/2016 at 9:21 PM, AuntieDiane6 said:

I've just started finding the re-runs on HGTV.  I've enjoyed it, but I am stunned that folks who've won a great deal of money are happy to have their names, cities and their new homes on TV! 

The one I just watched--the California couple who won $180 million--showed three gorgeous properties.  They said they had a $2.5 million budget but David Bromstead, who is a good host, ended up showing them a $5 million property.  Not only did they buy that, but then they bought another 800 acres from a neighbor!  

I hope they do follow-ups with these couples.  No mention of greedy kids, squatting relatives or the need for fences ... 

Exactly. I watched an episode last night with a male couple in Florida. There was a nice "twist" where the lottery winner changed his mind in the middle of house hunting and decided to look for a less expensive house so he could buy a house for his sister. It was an entertaining change of pace, but it makes me wonder:

  • How long has it been since the winners won the lottery? I can't believe this is the  man's first gesture of generosity toward one of his family members. So why was he crying like this is the first dime he's given to anyone?

 

  • The winners of "small" amounts--this gentleman won $9 million--never ask about HOA fees. Maybe it doesn't matter right now, but you have to pay those fees forever (or as long as you own the house), and unless the winners have an ongoing source of income or they have a great financial planner, future costs of the home will indeed be an issue. 

I also watched an episode where a couple won a "paltry" $1 million, and they bought a $400,000 home. That wasn't extravagant, I suppose, but I do wonder if the couple is still employed. Because a million dollars is nothing in the long run. After taxes, helping family members, and paying off debts--the couple mentioned that they'd faced some tough financial times--there won't be much cash left. Again, I hope they have a great financial planner. Or that they still work and have an ongoing source of income. 

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I also watched an episode where a couple won a "paltry" $1 million, and they bought a $400,000 home. That wasn't extravagant, I suppose, but I do wonder if the couple is still employed. Because a million dollars is nothing in the long run. After taxes, helping family members, and paying off debts--the couple mentioned that they'd faced some tough financial times--there won't be much cash left. Again, I hope they have a great financial planner. Or that they still work and have an ongoing source of income. 

Absolutely! The show also doesn't mention that if you win $1 million, you end up with $600,000 AFTER taxes.  

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They're repeating these again, and I'm not sure why they did this "special" edition.  Except for the couple who won $180 million, the houses weren't that different from others we've seen over the years. 

Eagle's Nest -- beautiful setting and maybe a beautiful house, but there was so much furniture, it was hard to tell.  One room looked like a furniture store.  I was disappointed that they chose that one, and disappointed that they added to the acreage.  The tax bill will be huge, and that's a lot of maintenance. 

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On 7/10/2016 at 7:13 AM, AuntieDiane6 said:

Absolutely! The show also doesn't mention that if you win $1 million, you end up with $600,000 AFTER taxes.  

This! I work in a college tutoring lab & for a lark, had on the board the choice between having your dream job & winning $1 million. Everybody took the million. I finally wrote on the board to think outside the box. In my state, if you win the million, you get $676,000 after taxes. My dream job entails designing web sites for 4-6 a day in Hawaii while making $200,000 a year. And yet, most of the students were still going...but all that money.

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When I was around ten years old, I thought $10k was a lot of money. Well, to a ten year old it is. But, in my mind, I had all these thoughts of sharing it with family, friends, buying things for them and myself, and donating some to charity such as $5k. Obviously, I thought that amount would stretch and last. As an adult, if I win a $1 million dollars, I cannot imagine sharing it with anyone other than my immediate family and it would be a very small amount. The rest would pay some bills and be invested.

When I have watched these lotto winners buy a home and cars with their $1 million, I cringe. Especially if they buy an expensive home, one with HOA fees and what is likely high property taxes.

I really enjoyed the couple who won the $180 million lotto. I enjoyed looking at the homes. Great house porn.  I wasn't sure though if there would be other family members living with them.

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When I was around ten years old, I thought $10k was a lot of money. Well, to a ten year old it is. But, in my mind, I had all these thoughts of sharing it with family, friends, buying things for them and myself, and donating some to charity such as $5k. Obviously, I thought that amount would stretch and last. As an adult, if I win a $1 million dollars, I cannot imagine sharing it with anyone other than my immediate family and it would be a very small amount. The rest would pay some bills and be invested.

When I have watched these lotto winners buy a home and cars with their $1 million, I cringe. Especially if they buy an expensive home, one with HOA fees and what is likely high property taxes.

I really enjoyed the couple who won the $180 million lotto. I enjoyed looking at the homes. Great house porn.  I wasn't sure though if there would be other family members living with them.

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On 2/16/2016 at 4:59 PM, roseslg said:

Am I the only one who thinks this show is stupid?  I know it's staged, but they are not even looking at the houses with a realtor, just David! 

Just saw this for the first time......I would rather tour a house with David than any old realtor. And, yes, definitely as staged as they come.

On 2/16/2016 at 4:59 PM, roseslg said:

 What's the point of having him there? 

Cuz he's hot???

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At the show we watched tonight at the very beginning David said he was working with a local real estate agent and had lined up some houses for them to see. My husband wanted to watch it because he is from Alabama and has vacationed in Gulf Shores where they were looking.

Love David - he's adorable.

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On 12/16/2016 at 10:02 PM, drafan said:

Just saw this for the first time......I would rather tour a house with David than any old realtor. And, yes, definitely as staged as they come.

Cuz he's hot???

I think he's more cute than hot, and unfortunately for me, he plays for the wrong team.

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On 12/16/2016 at 10:02 PM, drafan said:

Just saw this for the first time......I would rather tour a house with David than any old realtor. And, yes, definitely as staged as they come.

Cuz he's hot???

Wait! He's hot? He's too goofy & giddy for me. Yes, the show is beyond staged. At least, use an actual realitor. There are millions and they've been on HGTV. I would love to see a Mike Aubry again. He's no longer bald and looks totally different. That said, I liked him bald and with his mustache. 

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I saw three shows. Two with middle-aged couples ($1-2 million) who seemed to be spending most of their money on a home. I could see how some of these new millionaires lose all their money so quickly. The 33 year old woman living at home who won more money ($5 million) than these couples....I really admired her. I could see her holding onto--and building--her fortune. Anyone else wonder if she has to fend off gold-digging suitors? I wonder what that's like.

I think the host is there because he hopes to be their designer. 

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I have a friend who won $16 million in the state lottery.  It doesn't go as far a you think after taxes.  She was very careful and conservative with her spending.  After giving some $$ to a close relative who needed some financial assistance, she provided college educations for 2 nieces, and then she bought a $350,000 house for cash, which she recently sold for more than double that price.  She then retired about 10 years before she thought she would and lives quite comfortably.  No fancy jewelry, expensive cars, or crazy stuff.  It doesn't make sense to buy a million dollar house if you haven't won very much in the overall scheme of things.  If I won the lottery, I'd probably follow the same path as my friend and be conservative, so that I could live comfortably for the rest of my life.

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I just did the math on netting $10 million, after taxes.  I am fifty, so I divided by 40 to see how much I would have per year, assuming I live to 90.  (My mother is 89.)  I took one million off the top for initial spending/splurging.  $9 million spread over 40 years is $225,000 a year.  A tidy chunk of change, but hardly enough to go crazy with.  Looking at it that way, on one hand I can see how people can burn through it.  But on the other hand, billions of people live on a lot less a year.  I think you just have to focus on the annual number, rather than thinking about the mind boggling total number.  In other words, live on $225,000 rather than ten million.

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On 12/20/2016 at 6:44 PM, Mittengirl said:

I just did the math on netting $10 million, after taxes.  I am fifty, so I divided by 40 to see how much I would have per year, assuming I live to 90.  (My mother is 89.)  I took one million off the top for initial spending/splurging.  $9 million spread over 40 years is $225,000 a year.  A tidy chunk of change, but hardly enough to go crazy with.  Looking at it that way, on one hand I can see how people can burn through it.  But on the other hand, billions of people live on a lot less a year.  I think you just have to focus on the annual number, rather than thinking about the mind boggling total number.  In other words, live on $225,000 rather than ten million.

You typing this out actually makes it so much clearer. I've always thought of the number but not the amount. I'm 52 & would be quite happy with $225,000 a year for a good 40 years. Now, I just need to win. That said, I don't think I'll be calling David Bromstead for real estate advice. LOL!!!

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I'd put a great deal of money aside for medical expenses. Medical insurance sucks.

I might just trick out my current home and make the neighbors wonder why I'm out of town yet again for a week or two.

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On 12/20/2016 at 5:44 PM, Mittengirl said:

I just did the math on netting $10 million, after taxes.  I am fifty, so I divided by 40 to see how much I would have per year, assuming I live to 90.  (My mother is 89.)  I took one million off the top for initial spending/splurging.  $9 million spread over 40 years is $225,000 a year.

True but this is also assuming you don't invest any of it.  You can find conservative and safe (for now) investments and even if you only yield 1%/yr, that's still an additional 100K (minus taxes of course.)  And for many people, that's a salary. You could also earn more than that.  So the interest, plus the split, could lead to very comfortable living. 

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Absolutely.  My point was that while netting ten million dollars is a lot of money, if you look at the "yearly income", so to speak, maybe people wouldn't be so quick to fork out millions of dollars on houses, cars and family members.  

I could live very, very, very well on $200,000 a year (no spouse, no descendants, one sibling), but when people think about the huge sum of $10 million and start spending without looking at the long-term, that is when they end up bankrupt in a few years wondering where it all went.

I suspect what it comes down to is looking ahead, being prudent and also somewhat selfish.  I can only imagine how many people think you should kick them a little cash.  After all, you are a millionaire, you can afford it.

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1 hour ago, Mittengirl said:

Absolutely.  My point was that while netting ten million dollars is a lot of money, if you look at the "yearly income", so to speak, maybe people wouldn't be so quick to fork out millions of dollars on houses, cars and family members.  

I could live very, very, very well on $200,000 a year (no spouse, no descendants, one sibling), but when people think about the huge sum of $10 million and start spending without looking at the long-term, that is when they end up bankrupt in a few years wondering where it all went.

I suspect what it comes down to is looking ahead, being prudent and also somewhat selfish.  I can only imagine how many people think you should kick them a little cash.  After all, you are a millionaire, you can afford it.

Yeah I always say that if I ever won the lottery, unlikely since I never by a lottery ticket, before I told anyone I would meet with my financial planner and make a plan before I even got my hands on the money that way you are less likely to spend it in a impetuous manner.

Edited by biakbiak
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I suspect what it comes down to is looking ahead, being prudent and also somewhat selfish.  I can only imagine how many people think you should kick them a little cash.  After all, you are a millionaire, you can afford it.

I once read a great idea featured in a magazine article about lottery winners.  This one couple said that they told their relatives that they would give them $5000 a year, every year.  They also would provide generous wedding/graduation/baby gifts.  If anyone complained, the whiner would be cut off and his or her share would be divided among the others.  They said that after that, nobody complained.  

New episodes have just started. The first was a Filipino couple (I think) who wanted a place on the water for their children and grandchildren to visit.  They ended up with a tiny 2-bedroom place right on Chesapeake Bay.  David reminded them that, because they bought at the bottom of their budget, they could add a second floor etc.  But the ending didn't show them doing any remodeling.

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It seems that most lottery winners have never had much money, live month to month, don't have any financial plan at all. We have worked hard all of our lives, saved and invested and are very comfortable in our older ages. We've never bought a lottery ticket in our lives. I guess we just figured it was up to us to take care of ourselves and our children, educate them and save for our retirement. We have a family member who buys lottery tickets every week and doesn't have an extra dime to pay his bills. Go figure. 

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I work hard, live paycheck to paycheck, pay all my bills, but don't have a lot left over, and I spend $6 on lottery tickets every week b/c it's fun to dream about what-if. That said, I don't smoke, use drugs, wear make-up, or go to bars, so it's not like I'm wasting money on other useless habits.

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2 hours ago, Gam2 said:

It seems that most lottery winners have never had much money, live month to month, don't have any financial plan at all.

The lottery winners who make the news are usually unpolished but I don't know that we can really extrapolate what kind of financial lives they live.  It's true that most likely don't have a plan in place for a financial windfalls.  Few of us do.  But I think there are unexpected demands that come with winning the lottery from charity demands, family requests and a desire to be generous or satisfy whims that seemed out of reach before. It's easy to say that we'd take a tough stand but if you have a heart, it's hard. (I don't so I think it'd be easy.) 

And actually, from the episodes that I've seen of this show, I don't get the impression that they're irresponsible with their money.  We didn't get a look at their bank account but most of them have jobs.  Most of them owned their own house. 

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I have often talked about this with friends. Everyone is like I would give you a million or so. Then you start thinking about saying that to several friends and then it adds up. LOL!! I can see where people run into trouble. The other day there seemed to be a new episode. The couple "only" won a million dollars who were grandparents. In the end, they picked the smallest house on Chesapeake Bay. It had amazing view and fron patio. It was reasonably priced in the $300,000 range (I think). They had a nice forever home they were still keeping, too. So, with a million dollars before taxes which was probably something like $800,000 minus the new house that money doesn't last long. I wouldn't turn it down but I could see blowing it all and then being back where they started from.

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3 hours ago, ByaNose said:

I have often talked about this with friends. Everyone is like I would give you a million or so. Then you start thinking about saying that to several friends and then it adds up. LOL!! I can see where people run into trouble. The other day there seemed to be a new episode. The couple "only" won a million dollars who were grandparents. In the end, they picked the smallest house on Chesapeake Bay. It had amazing view and fron patio. It was reasonably priced in the $300,000 range (I think). They had a nice forever home they were still keeping, too. So, with a million dollars before taxes which was probably something like $800,000 minus the new house that money doesn't last long. I wouldn't turn it down but I could see blowing it all and then being back where they started from.

I think the tax bill on $1 million would be a lot higher in the US.  An online federal tax calculator puts the federal amount owed at around $350,000.  And most people would also owe state income taxes, and possibly other city or county income tax.  I wouldn't count on having more than $600,000 net after winning a million dollars.

I think a lot of people don't really consider how costly the property taxes and insurance can be on increasingly expensive real estate, especially in certain locations.  Even a jackpot of a few million doesn't go as far as some people think it will, which is why so many end up bankrupt within five years.  I would be extremely conservative with my lottery winnings.

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1 minute ago, AnnaRose said:

I think the tax bill on $1 million would be a lot higher in the US.  An online federal tax calculator puts the federal amount owed at around $350,000.  And most people would also owe state income taxes, and possibly other city or county income tax.  I wouldn't count on having more than $600,000 net after winning a million dollars.

I think a lot of people don't really consider how costly the property taxes and insurance can be on increasingly expensive real estate, especially in certain locations.  Even a jackpot of a few million doesn't go as far as some people think it will, which is why so many end up bankrupt within five years.  I would be extremely conservative with my lottery winnings.

but obviously you would give me a million if I asked, right? LOL!!!

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I think a lot of people don't really consider how costly the property taxes and insurance can be on increasingly expensive real estate, especially in certain locations. 

It's funny you say this, because a financial magazine once did a big article about the people who win the HGTV Dream House.  Everybody had to sell it because the upkeep was so costly.  One couple said the utility bills were $1,000 a month -- mainly because of all the family visitors!  And property taxes were around $15,000 a year.  And the neighbors signed a petition that didn't allow them to turn it into a bed and breakfast.  

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11 hours ago, AuntieDiane6 said:

It's funny you say this, because a financial magazine once did a big article about the people who win the HGTV Dream House.  Everybody had to sell it because the upkeep was so costly.  One couple said the utility bills were $1,000 a month -- mainly because of all the family visitors!  And property taxes were around $15,000 a year.  And the neighbors signed a petition that didn't allow them to turn it into a bed and breakfast.  

Yes, also the whopping income tax bill on the estimated value of the dream home with all the furnishings, car etc.  That's why they started including a bit of money to help with the tax bill (a little bit anyway)... they were getting a lot of bad press about how nobody who won it could afford to keep it.  I don't know if anyone has been able to keep it since then.  Probably not unless they were already very wealthy.

PS: I think lottery winnings in some countries are income tax free.

Edited by AnnaRose
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18 minutes ago, AnnaRose said:

Yes, also the whopping income tax bill on the estimated value of the dream home with all the furnishings, car etc.  That's why they started including a bit of money to help with the tax bill (a little bit anyway)... they were getting a lot of bad press about how nobody who won it could afford to keep it.  I don't know if anyone has been able to keep it since then.  Probably not unless they were already very wealthy.

PS: I think lottery winnings in some countries are income tax free.

You can now just take the a cash equivalent of the house/prizes instead of ever claiming the house.

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10 hours ago, biakbiak said:

You can now just take the a cash equivalent of the house/prizes instead of ever claiming the house.

Oh that's right.  I forgot about that.  I bet that is what most dream home winners do.

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And unless the dream home is in a location close to you, you'd have to pull up stakes, quit a job, and move to an entirely new area.  That's just nuts.

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15 hours ago, AnnaRose said:

PS: I think lottery winnings in some countries are income tax free.

They are here in Canada.  I've never paid a penny in taxes on all the tens of dollars I've managed to win over the years :).   But even the big winners don't pay tax.  Not paying taxes on winning a dream home would be nice of course but even here you'd still likely have the same issue of owning a house that costs way more to maintain than the average Joe or Jane could afford.  I don't know the stats but I wouldn't be surprised to learn that most who win the dream homes that various hospital fundraisers offer end up selling them or taking the cash equivalent if that's offered.

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Even if the dream home was in my area, I'd probably take the cash equivalent and buy a home I could afford on my current income.

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I was excited to see the episode with the house that was on the Chesapeake Bay, since we looked at Chesapeake Bay front homes in MD, but settled on a home off a river emptying into the Bay. Seeing it was in VA was a disappointment, but they were so right to choose the home right on the Bay. The views are spectacular, I have friends with homes that face the Bay, and always admire their views when I visit. The house next door was 2 or 3 (?) stories, so it seems they could most likely build another story or 2. Most often you can change the house, but that location was killer. Good for them.

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Did anyone see the Salt Lake City, UT episode?  I think they did need a big house with all that family but did I hear it correctly that they offered, and had accepted, an offer that is 100,000k less than the asking price?  That was a full 25% off.  Is housing there like Vegas during the recession?

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Yes ... I saw that Salt Lake City episode.  I was surprised that they went for the large, most expensive home.  But even more surprised when they said that they offered $100K less than the asking price.  Glad they got it, though because it was the best fit for their multi-generational family.

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I don't get this show.  It's good that the winners have budgets, but I expected they would be buying luxury homes, not in the 175 to 350k price range.   Just put them on regular House Hunters.

 

Also, the host is unctuous and pisses me off.  

Im surprised by people thinking you take your winnings and spread them out over a period of years.  It's smarter to take the lump sum, and invest it conservatively to live off the interest.  I'm sorry, but anyone who won 16 million, even after taxes who can't live a very comfortable life doesn't have a good financial planner.   You make money off the money.  

Edited by Mu Shu
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On 2/24/2017 at 8:41 PM, Mu Shu said:

I don't get this show.  It's good that the winners have budgets, but I expected they would be buying luxury homes, not in the 175 to 350k price range.   Just put them on regular House Hunters.

Also, the host is unctuous and pisses me off.  

Im surprised by people thinking you take your winnings and spread them out over a period of years.  It's smarter to take the lump sum, and invest it conservatively to live off the interest.  I'm sorry, but anyone who won 16 million, even after taxes who can't live a very comfortable life doesn't have a good financial planner.   You make money off the money.  

I don't like the host either, and this they should just include these people in the regular House Hunters show.

For many people, if they have a choice between cash and an annuity, the annuity will be a better deal.  The cash amount is significantly less than the advertised amount which is what you get if you choose the annuity.  For example, in my states lotto drawing, if you win the $16 million dollar jackpot and choose to receive cash, you only get 50% or $8 million instead of $16 million.  And additionally, the whole amount is taxed at once, so the majority is taxed at the highest tax rates (state and federal) which would not be the case if you received the annual disbursements.

Also... most people just cannot properly manage such a large windfall, which is why so many end up bankrupt within five years.  At least if they take the annuity, they are forced not to blow it all straight away, and hopefully, by receiving a nice amount each year for thirty years... even if it takes them a while to learn how to manage wealth, they'll likely gain some sense and wisdom while they still have money left... rather than lose it all making stupid 'I just won the lottery!' choices that most people who take the cash seem to make.

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I remember when I was a kid some woman won a state lotto and netted 2 million.  She was broke in a couple years, buying trailers.  Huh?  Trailers.  Each one about 7-10k.

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I would take the annuity because, while I pay all my bills, I'm not a saver; I have 5 kids, 9 grandkids, 10 siblings, 45 first cousins, and a million nieces and nephews, many of who would suddenly remember how much they love me and a set amount every year would limit my ability to give to them; I can logically budget for up to $2 million a year, after that I'm lost; I have no idea how investments work and I'm pretty sure that lack of knowledge is a good way to lose all my money.

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2 hours ago, Nysha said:

I would take the annuity because, while I pay all my bills, I'm not a saver; I have 5 kids, 9 grandkids, 10 siblings, 45 first cousins, and a million nieces and nephews, many of who would suddenly remember how much they love me and a set amount every year would limit my ability to give to them; I can logically budget for up to $2 million a year, after that I'm lost; I have no idea how investments work and I'm pretty sure that lack of knowledge is a good way to lose all my money.

 

On 2/25/2017 at 11:25 PM, AnnaRose said:

For many people, if they have a choice between cash and an annuity, the annuity will be a better deal.  The cash amount is significantly less than the advertised amount which is what you get if you choose the annuity.  For example, in my states lotto drawing, if you win the $16 million dollar jackpot and choose to receive cash, you only get 50% or $8 million instead of $16 million.  And additionally, the whole amount is taxed at once, so the majority is taxed at the highest tax rates (state and federal) which would not be the case if you received the annual disbursements.

But I think (correct me if I'm wrong) you're better off getting the lump sum and putting it into your own investment vehicle. I think you'd be able to find a fund that would provide a bigger rate of return than you'd get from the state's (or Publisher's Clearing House's) annuity. Plus I always worry about companies going under or changing their rules and not being able to continue the annuity. 

But I don't know how I'd manage relatives constantly asking for money. They do that now, and I have nothing!!

If I won the lottery, I wouldn't have to purchase a mansion. I'd be fine with a nice home like one of the nicer ones from House Hunters that I can't afford in real life but has the features I like: media room, library, panoramic windows, updated bathrooms and kitchen. Jeez, I sound like a House Hunter: Where's my granite? Where's my screened in porch for the cat? Where's my room for the turtle?

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