Question of the Day: What percent of lottery winners eventually go bankrupt?
You gotta be in it to win it...but what happens after the win?
Answer: About 33%
- Since you now know the answer to this question, what financial advice would you give to a new lottery winner?
- After winning the lottery, if you were given a choice between a lump sum payment or receiving payments over time, what would you choose? Why?
Behind the numbers (CNBC):
The CFP Board of Standards says nearly one-third of lottery winners eventually declare bankruptcy, and lottery winners are more likely to declare bankruptcy within three to five years than the average American.
That’s often because winners can become reckless with their newfound wealth. In order to avoid a harsh fate, lottery winners should not make any hasty decisions.
Yanely's FinCap Friday episode, Powerball Tax Bill, tackled another consequence of winning the lottery.