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How to win $27 million dollars and blow it in 6 years


Redlambo
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I believe I have heard a story or two on here someone winning the lotto and running out and buying a couple exotic cars.

Curious if this is the sad story of that person? I guess he won part of the powerball 16 years ago today and ended up dead 12 years later.

 

David Lee Edwards is noted for winning a $27.1M (after taxes) share of the multi-state Powerball jackpot in 2001, and then blowing the entire sum within less than six years due to overspending and drug abuse.

 

David Lee Edwards was an out-of-work ex-convict living in Ashland, Kentucky when he won his $46M before-tax Powerball jackpot in 2001. Within days of winning, Edwards was a regular media fixture in his native Kentucky. During a Louisville press conference hosted by the Kentucky Lottery, Edwards promised to spend his winnings wisely: "And so I didn't want to accept this money by saying I'm going to get mansions and I'm going to get cars, I'm going to do this and that," said Edwards. "I would like to accept it with humility. I want this money to last, for me, for my future wife, for my daughter and future generations." Edwards chose to receive his winnings in cash rather than the annuity option, which left him with $27.1 million after taxes.

 

Before Edwards had even gotten his first lottery payment, he arranged for a short-term $200K loan from an attorney to take himself and then-fiance Shawna on an expensive Vegas vacation. Within six days, that money was gone. Shortly after getting his winnings, Edwards married Shawna in Hawaii.

 

Edwards went on to purchase a $1M-plus mansion in the BallenIsles development in Palm Beach, Florida, along with 18 cars (including a Bentley, Ferrari, and Lamborghini) and a house full of expensive luxury items and furniture----many of which were fake "antiques". Edwards also appeared in numerous TV interviews and TV specials for networks such as NBC, MSNBC, and The Learning Channel in which he bragged about his winnings and showed off all the expensive items he had purchased with his newfound riches. On these TV specials, Edwards showed off his solid-gold Rolex, luxury car collection, and many of the "antiques" for which he'd paid hundreds of thousands of dollars to buy from fly-by-night dealers; many of the items he purchased were later found to be worthless reproductions. Edwards also bought a private jet, several racehorses, a $600,000 home in Palm Springs, California and interests in several failed business ventures. He was also known to drive around his hometown of Ashland, Kentucky and hand large sums of money out to strangers.

 

Shawna Edwards was an active drug addict at the time of the lottery win; David Edwards also had a history of substance abuse. Within two years of the lottery win, both of them were abusing illegal drugs on a regular basis. Shawna used large amounts of crack and heroin, while Edwards used OxyContin. It is also rumored that Edwards supplied many of his old friends in Kentucky with large supplies of drugs following his lottery win; many of those friends later died of overdoses.

 

By 2004, David and Shawna Edwards were having marital and legal problems. Police were summoned to the Palm Beach mansion when Shawna stabbed David with a crack pipe. David Edwards paid for Shawna to go to drug rehabilitation several times, and asked a Broward County judge to commit her forcefully to rehabilitation. David Edwards also sued Jeffrey Chandler, a former financial advisor who Edwards said had bilked him out of hundreds of thousands of dollars. David Edwards filed for divorce from Shawna that year, but they later reconciled.

 

By 2005, it was clear the money was nearly gone, and both David and Shawna Edwards had become heavy drug users. Flordia Child Protective Services were called to investigate the couple for child abuse, since neither of their children were attending school and drugs were abused in the house in full view of the children. The state took the Edwards' children away and placed them in foster care. Charges were filed; Shawna and David later pleaded guilty to drug-possession charges and thus avoided jail. Shortly thereafter, The BallenIsles Community Association placed a property lien on their Palm Beach mansion because David owed $2,599.81 in unpaid maintenance fees and interest. In December 2006, Bank of America sued David to recover $170,787.74 that he owed on his Visa card. These bills were never paid.

 

In April 2006, with bills piling up, the community association forced the Edwards house into foreclosure; by now, David owed the association $8,642.75. David Edwards did not have the cash to pay the bill, so the community association took possession of the home and sold it at auction. Real-estate investors Gerti Kleicamp and Alfons Schmitt bought the Edwards home for $900,000, plus the late maintenance fees. When Kleicamp took possession of the house in early June, David was still residing there. Kleicamp had him and his belongings physically removed.

 

David and Shawna were forced to move into a warehouse storage unit in Riviera Beach, FL where their collection of cars and luxury items were stored. The couple lived in the warehouse unit for nearly a year, often without electricity, shooting up drugs.

 

By the time they were evicted in July 2007, the warehouse unit was filled with dirty laundry, used hypodermic needles, and human excrement. The Edwardses' remaining possessions (mostly gaudy furniture and fake antiques from the Palm Beach home) were auctioned off to pay for the back rent on the warehouse unit. The auctioneer estimated the entire lot of 104 items was worth no more than $140,000, though David Edwards had easily paid ten or twelve times that for the items.

 

David and Shawna Edwards are now broke and destitute and living with relatives in Ashland, Kentucky. David Edwards is severely ill due to complications from hepatitis and other issues related to his drug abuse. Shawna Edwards has been in and out of jail due to drug charges and nonpayment of child support. No trace of their $27.1M Powerball jackpot remains.

 

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Poor people are poor for a reason. They lack the knowledge to deal with money, and have value systems which are detrimental to success. It is often the case that is not resources they lack, but education.

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Ouch, wtf. I cringed at every sentence.

 

Unfortunately, he also won the stupid lottery.

 

What could possibly go wrong here.

 

Well, if there is still crack in the pipe, you lose your crack! And, you also break a good pipe. Hard to replace when the funds are low!

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I shouldn't have read that story, my god that was depressing.

Re: today's powerball winner. Can someone also help me understand this

 

The $758.7 million amount reflects the annuity payout option, in which the winner receives 30 payments over 29 years, increasing 5 percent annually.

 

Lottery officials said nearly all winners take the cash option, which would be around $443.3 million minus federal and state taxes.

 

REALLY? Why does she need that much money in such a hurry? 26 million per year isn't enough? My mind is blown.

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I shouldn't have read that story, my god that was depressing.

Re: today's powerball winner. Can someone also help me understand this

 

The $758.7 million amount reflects the annuity payout option, in which the winner receives 30 payments over 29 years, increasing 5 percent annually.

 

Lottery officials said nearly all winners take the cash option, which would be around $443.3 million minus federal and state taxes.

 

REALLY? Why does she need that much money in such a hurry? 26 million per year isn't enough? My mind is blown.

 

People like that should take the Annuity

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I shouldn't have read that story, my god that was depressing.

Re: today's powerball winner. Can someone also help me understand this

 

The $758.7 million amount reflects the annuity payout option, in which the winner receives 30 payments over 29 years, increasing 5 percent annually.

 

Lottery officials said nearly all winners take the cash option, which would be around $443.3 million minus federal and state taxes.

 

REALLY? Why does she need that much money in such a hurry? 26 million per year isn't enough? My mind is blown.

 

I always thought it had to be one of 4 reasons;

 

1. WInners age... will they live another 29 years

2. Payments and beneficiaries ... is it an issue to continue that to all the different kids, relatives, cousins, friends in need

3. Could Lottery ever default?

4. Financial Advisor who plans it out with a stronger reason (not just self interest) to invest

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I shouldn't have read that story, my god that was depressing.

Re: today's powerball winner. Can someone also help me understand this

 

The $758.7 million amount reflects the annuity payout option, in which the winner receives 30 payments over 29 years, increasing 5 percent annually.

 

Lottery officials said nearly all winners take the cash option, which would be around $443.3 million minus federal and state taxes.

 

REALLY? Why does she need that much money in such a hurry? 26 million per year isn't enough? My mind is blown.

 

Because they listen to their other poor friends/relatives... oh, you can make MOOOOOORE by investing *cough* in my business venture *cough*.

 

If they had a few functioning neurons they would have hired an attorney and estate planner before claiming the money. Get this all structured, try to minimize the taxes as much as possible with the annuity, and throw it all in an investment account. fcuk, if you dump $10m/yr (post tax) just into an S&P fund it won't take long to be clearing $10m/yr on the investment with a 9 figure slush fund.

 

You really have to look at the subject. I'm guessing the lady who won probably hasn't seen north of $75k/yr in her entire life, so this is in her eyes a never ending sum of cash. And it really should be, unless you try to live like a Cuban.

 

Most of *us* would be better off taking the lump sum and putting that cash to work. But then again we would probably have the restraint to live comfortably on the $15m/yr income that cash could easily generate.

 

If she can avoid jets and yachts she will be fine. If she starts down that rabbit hole all will be lost. A good drug habit is cheaper than those things. :lol2:

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People are poor for few reasons but the most important one is that they are bad with money.

 

Let me get this straight, the guy who won $27 mill bought himself a private jet? :lol2:

 

 

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REALLY? Why does she need that much money in such a hurry? 26 million per year isn't enough? My mind is blown.

 

 

CREDIT CARDS YO!

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Dude didn't stand a chance.

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People are poor for few reasons but the most important one is that they are bad with money.

 

Let me get this straight, the guy who won $27 mill bought himself a private jet? :lol2:

 

Once again....this reflects a total lack of understanding of money, buying power relative to reserves etc

 

A private jet is beyond the means of a person with $27m in assets.

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Once again....this reflects a total lack of understanding of money, buying power relative to reserves etc

 

A private jet is beyond the means of a person with $27m in assets.

 

Honestly I'd probably buy a house I could maintain, a nice garage, some select cars, invest the rest and live off of dividends. Then donate to charity.

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Once again....this reflects a total lack of understanding of money, buying power relative to reserves etc

 

A private jet is beyond the means of a person with $27m in assets.

 

 

WAAAY beyond not just beyond, final frontier beyond LOL

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Most lottery winners lose it all and go down in a ball of flames, alienating both friends and family. Many claim it was the worst thing that ever happened to them.

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A friend of mine has the same name as a lottery winner. The day the winner name is in the news, he got all sorts of solicitations, congratulations. It is unreal what happens. Your average joe turns into a celebrity over night.

 

It is easy to get out of control and get over your head. Ultimately, wealth is best when earned.

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A friend of mine has the same name as a lottery winner. The day the winner name is in the news, he got all sorts of solicitations, congratulations. It is unreal what happens. Your average joe turns into a celebrity over night.

 

It is easy to get out of control and get over your head. Ultimately, wealth is best when earned.

 

I would have had so many of those solicitors buy me dinner while I don't even listen to their sales pitches, lol.

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WAAAY beyond not just beyond, final frontier beyond LOL

 

 

Just for the edification of the masses, in your opinion and from your knowledge and experience what level of wealth and/or annual income would be required to own, maintain and operate and private jet??? Again just for edification in the most general of cases what would those costs be ???

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Just for the edification of the masses, in your opinion and from your knowledge and experience what level of wealth and/or annual income would be required to own, maintain and operate and private jet??? Again just for edification in the most general of cases what would those costs be ???

 

I looked into the costs but not that accurately, there are a few very knowledgeable individuals on this forum which are more than qualified to answer your questions, running costs are phenomenal also there is an added level of inconvenience unless you constantly fly, yes it's convenient to have it at your fingertips but you will have to maintain, store, have the crew on hand 24/7, now if you go out weekly or monthly it's fine but if you only use it once in a blue moon why would you deal with all that nonsense ?

 

I know that if you have enough dollars that you could move the earth nothing matters but it's a matter of common sense, would you keep a private jet if you fly once a year or would you just charter when you need to do so?

Travel requirements change, do you fly continental or do you fly intercontinental?

Today you fly with an entourage of two tomorrow you might need to bring 30 people with you, what do you do then? Have two planes ? etc.

 

IMO for continental flights if you are happy with a smaller plane the costs will be much lower but for intercontinental flights you moving to a different level of cost.

 

Just to pluck a number out of the sky I'd say you have to be worth VERY close to one bill before you start looking, don't get me wrong as we all know there are MANY ballers on a budget at any level.

 

IMO since I know quite a few at that level, at $27mil some of them are still too tight to spring for 1st class tickets buying a plane is the last thing on their mind.

 

Locally if you are worth $27 mil you will have a decent house and few nice cars, maybe a boat etc. if that's what you are into, few investments but that's about it, yes you can be an idiot like the guy in the story and living it large but if you are stupid enough with your money just like him you could be looking at social assistance in no time LOL.

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Just for the edification of the masses, in your opinion and from your knowledge and experience what level of wealth and/or annual income would be required to own, maintain and operate and private jet??? Again just for edification in the most general of cases what would those costs be ???

This is from a post i made back in 2010 so the numbers are a little old but it gives you an idea

 

Lets just put it this way

 

ALOT!!!!!

 

But I will do my best to give you an idea of just how much it would cost, I actually figured out the costs for a series of aircraft for a class I took these are the numbers from my findings (I updated the fuel costs but that's it so some of these numbers are about 8-10 years outdated)

 

A big factor is going to be Aircraft choice

 

Here are the stats for a Gulfstream GIV (4)

Fuel Burn: 490 Gallons Per hour

Fuel Cost : $5.00 a gallon (close to the current average)

Maintenance cost per flight hour (roughly): $330

Engine reserve cost per hour: $226

Annual insurance: $58,000 (conservative and variable)

Annual hangar space: $75,000 (again conservative and variable)

Annual pilot training cost: $35,000 (again conservative)

 

Annual fixed costs: $168,000 (not counting pilots salary)

Variable hourly costs: $3,000

If you figure about 250 Hrs a year that comes out to be $2,334 per hour again that's not counting pilots salary and the cost of the plane itself.

or about $585,000 a year

 

 

 

Heres for a lear 45

Fuel burn: 180 gallons per hour

Fuel cost: $5.00 a gallon

maintenance cost per flight hour: $210 per hour

Engine reserve: $160 per hour

annual insurance: $26,000

annual hangar space: $28,000

Annual pilot training: $35,000

 

Annual fixed cost: $69,000 (not counting pilots salary)

Variable hourly cost: $1270

Figuring 250 hours a year it comes out as $1550 an hour per hour again that's not counting pilots salary and the cost of the plane itself.

Or about $380,000 a year

 

Again these numbers are about 8 years old and probably not that accurate now but it will give you an idea of the costs that there are. Obviously you can pay more for insurance and maintenance etc etc but if memory serves me correctly these numbers were basically a bare legally required minimum at the time and have probably sky rocketed since.

 

For numbers for pilot salaries well that can be extremely varied. It comes down you how much experience you want your pilots to have, If you can deal with some fresh 500-1000 hour pilots you could easily hire them on as the First officer at <50,000 a year but if you want some old salt who's got 30,000+ hours be prepared to spend 120,000+ a year, Also if you want the pilots to be in charge of maintenance and inspections and all of the behind the scenes stuff tack on another 20%. So you could very easily spend in excess of $250,000 a year just on pilot salaries.

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Thank's gents!! Again I'm in no position to have a private jet ( yet) but is a good opportunity for those that aspire to accumulate wealth to get an idea of what that level of lifestyle will require.

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If I had a sudden major windfall, I'd stay where I am and hire an army of gardeners to use gas-powered leaf blowers to fcuk with my neighbor that complains about my gardener. He's a total dick. I mean, (revenge) it'd give me a reason to live if I never had to work again, and though I am in the "cheap seats" of 90210, I'm happy here if I can just get a garage built to put a few cars in.

 

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So is your personal pilot 'on call' status? You call him day before saying "I wanna go to Vegas tomorrow" and he shows up?

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Private pilots are generally on a much shorter leash. Couple hours to wheels up.

 

 

I wonder how that lifestyle is. I worked with the wife of Mel Gibson's pilot who unfortunately died during a military training exercise, and Steve Jobs' pilot lives near me I was told he still flies the family. The thing about Jobs' pilot is his home is about 400 miles from the Job's house so I wonder how on call worked.

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