The 'Lottery Curse': The honeymoon, then the crash

ROBERT PAGLIARINI

There are two reasons why some are 'cursed' by a windfall like a lottery win. One is in the article below - People fail to understand that money is just a tool - one that takes talent to use, especially in large quantities. To use any tool we must first control it in our hand(s). The second reason for the 'curse' is selfish greed. Even if we control the tool of money and spend it all on ourselves we will be cursed. Therefor to defuse the 'curse' we will have to give most of it away. One last warning: set up legal foundations and trusts to do so, ones that will invest the money and reach far into the future (much like Benjamin Franklin did two hundred years ago).

- Mike Corthell

...As a sudden wealth financial adviser for over 15 years, I've had the chance to work with many clients who have received a windfall, and I've noticed there are predictable patterns - patterns of thinking and behavior that can explain how a multimillion dollar lottery winner can call the money a curse just a month after winning.

Immediately before or right after a sudden wealth event, many clients experience an almost out-of-body feeling. I refer to this as the honeymoon stage of sudden wealth. They are exuberant. It's an exciting time and they feel like they are on top of the world. Anything and everything is possible. They celebrate with family and friends. They may buy new cars and larger houses, jet skis and motorcycles. It's Christmas morning every day. But the thing that makes Christmas so special is that it comes just once a year. The honeymoon phase is an artificial reality that is not sustainable. Their emotions are high, and they are enjoying the charge of the novelty of their new life. But this "high" cannot last forever - typically a few days to six months -- and then reality hits.

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