Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.

Just curious, how serious would you take the views of someone who made their money by winning the lottery when it comes to economics and business?

So picture this, 40 some year old couple with a yearly household income of around $200k suddenly has a windfall of over a million dollars in one year. Not from their job. Not from a business. Not from meeting some life long goal. The money just suddenly showed up.

What do you think their attitude would be towards other people who were rich? 


Comments
on Aug 05, 2012

That's not much to go on, but considering they seem to be fairly well-to-do 40-somethings means they're probably educated and successful, they're probably pretty "validated" as individuals.  So if I had a gun to my head I'd say that their attitude towards other millionaires are probably the same as they were before they got rich, whatever that was.

on Aug 05, 2012

I guess to be more specific, do you think that person would have any better of a grasp on what it normally takes to become rich?

on Aug 05, 2012

With a 200K / year income, they probably are already millionaires. (not saying that have that in cash, but probably in assets)

I'd be more interested in knowing what they intend to do with the windfall, because that would be more of a direct answer to your question.

At that level of income, they already can have all the amenities they desire, so really if they want to blow it, and continue on doing what they are doing, the only thing the money can buy is better versions of what they are interested in and already have. (in this case the more pertinent question is finding out what makes them worth 200K per year, and the lottery prize is largely irrelevant)

However, if you spot them reading Wealth of Nations and browsing fool.com, it couldn't hurt to ask what they are thinking.

edit: Of course you could also be secretly inferring that anyone who plays the lottery is an idiot, and should not be listened to...

 

on Aug 07, 2012

$200k/year is already a LOT of money, so the extra million only accelerates their revenue by a few years.

Now, the fact that they've been playing the lottery would seem to shed some doubt on their fiscal responsibility. I can understand a poor, uneducated person playing because their $20k/year income is a LOT less than what they might stand to gain, but if you're already making $200k/year and also playing the lottery, I'd consider that just being greedy as well as foolish. In this example it may have paid off, but for the most part it's a voluntary tax that encourages greed, especially exploiting the poor. A bad combo.

on Aug 09, 2012

Draginol this question sounds surprisingly condescending for you.  I have read and enjoyed your blog for years, and this post just surprises me.  I don't know you outside of your blog, but I have followed your company and your success(I've sent you a few bucks here and there). 

I do not know the couple involved, but to judge them on their level of income seems wrong.  As you have stated in the past(correct me if I'm wrong in this, I didn't spend much time googling and based it on my recollection of your columns, which may be faulty) Wealth is not directly correlated to your intelligence, many factors or involved.. the willingness to take risks is part of that.  

Risks sometimes pay out, sometimes not, there is a level of luck involved, it's not all luck, but there is some. It is about taking calculated risks, managing those risks, and if you are lucky you wind up on the plus side. Sure you can influence your overall luck, you chances may increase if you are smart about which risks you take, work hard to make it done, and plan appropriately.  But brains, hard work and a plan won't make money on their own.  

I think you should consider their views, but weigh it against your own experiences, and what you know about theirs.  It may not be good advice, and they may be blow hards, but to associate that with how they came into their recent money, or how much they earn would be foolish.

There are many ways to become rich, and likely many more ways to become poor.  Count your blessings for what they are, and don't be so quick to judge others.  

Maybe they needed or choose to to spend more time with their kids or help their family through rough times, rather than building a business.  Maybe they had a business that didn't succeed, and they had to start over.  Anyways, it could be good advice or bad advice, but I wouldn't discount it solely on their level of success, or how they got there

(ok, their success path would weigh on how I valued their view, but it depended on the view.  Look at our current Commander in Chief, he has made lots of money, I doubt I would take his advice on much of anything business related,  however I am sure he could offer good advice on getting votes, and influencing people)

(Lord, $200k is not alot of money(and shrinking daily), sure a person could live comfortably on that just as easily as be broke.  A fool and his money is easily parted.  $200k just means you can spend more a month than the guy making $100k and alot more than the guy making $20k, but it alone won't make you a millionaire.  Keep in mind the more you make, the more you pay out,  I'm sure Draginol can relate to that.  It's easy to find things to spend money on)

 

(The more I reread your original posting, maybe it's not as bad as my first impression, but I going to post this anyway, take it as you will.  I haven't won the lottery yet, they won't give me any free tickets!!)

on Aug 09, 2012

man.. I type too much..

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