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Location: Pantego, Texas, United States

Wednesday, September 13, 2006

Here is an interesting article about the misfortune of lots of people who have won lotteries:

http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/8lotteryWinnersWhoLostTheirMillions.aspx?page=2

I haven't been buying lottery tickets, but I have thought about what a winner should do. The first thing is to not have a picture taken holding the big check. Don't let anyone know you won. Remain anonymous. The next thing is, don't buy anything for six months or so. The next thing is, live off the interest, not the principal. I think people over-estimate the value of $1 million. It takes about $4 million these days to be able to safely live off the income from your money, especially considering the impact of taxes and inflation. A person with $4 million can live comfortably, but not like a rich person. The rich people today have incomes of $4 million per year.

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