You know how you always hear about the latest lottery winner that has spent all of their winnings in a matter of months? They decided that they’d build a rocket ship with the money, or buy a car for each day of the week. Maybe they buy their mother a house, or buy cars for all their friends and family. I’ve read stories about some pretty extravagant vacations too. It seems like their newfound wealth is too hot to hold. It’s like they are afraid that if they don’t spend it in record time that someone will come take it from them.
Well, I’m happy to highlight an article about a 34 year old guy that has broken all the lottery squandering rules. Meet Brad Duke. He pocketed a lump sum of $85 million in 2005 and guess how much he has left: Between $128 to $130 million. He completely gets it. Check out what he did with the money:
- $45 million: Safe, low-risk investments such as municipal bonds
- $35 million: Aggressive investments like oil and gas and real estate
- $1.3 million: A family foundation
- $63,000: A trip to Tahiti with 17 friends
- $125,000: Mortgage retired on his 1,400-square-foot house
- $18,000: Student-loan repayment
- $65,000: New bicycles, including a $12,000 BMC road bike
- $14,500: A used black VW Jetta
- $12,000: Annual gift to each family member
See how he bought a used VW Jetta? Yeah, it’s a 2002. He bought that after he gave away his 2005 Jetta. No I didn’t mix up the dates. He actually bought an older car. He recognized that the best thing he could do with the money is use a little but save a lot and get that money working for him. Now that he’s amassed $130M, he can generate over $6.5M a year at 5% interest. I’m sure he can figure out how to live on that. SMART GUY.
Check it out: http://money.cnn.com/2007/02/20/magazines/fortune/…
[...] Original post by Hazzard [...]
[...] A Lottery Winner That Understood What To Do With the Money You often hear a lot about the lottery winners that squander away the millions they win and are left with nothing, but not the ones that handle their money correctly. Money.com has a case study on one man that did and has turned his $85 million prize into $128 to $130 million. We’d like to see more stories like his… (via Everybody Loves Your Money) [...]
[...] I’d just like one chance to handle a chunk of winnings from a lottery. I know that, with basic personal finance skills, I could responsibly invest the money for the future like Brad Duke did. [...]
[...] I just care about you and your pile of cash. I want you to be successful like my good friend Brad Duke. (okay, he’s not my good friend and he doesn’t even know me, but I have a lot of [...]
[...] By Hazzard You know how I love reading about the trials and tribulations of lottery winners. Brad Duke is the example of someone that knew how to turn his lottery winnings in to a life long [...]
What a rarity! Good for Brad, that’s really cool and it leads me to have to alter my prejudices against the nouveau riche. The only thing I cannot figure out is how a guy this smart ended up buying lottery tickets to begin with. That much money in the right kinds of investments, insurance, and all that can do a lot of good in this world and for his family. I noticed that he also started a family foundation… pretty good stuff!
Jerry