Winner of largest powerball in history criticized for extravagant purchases..
Some say he will be broke in 5 years..others say " enjoy". 🤔
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Edwin Castro, 31, scooped up $2.04 billion in a California lottery last year and became an overnight billionaire, adding $997.6 million to his account after coming forward to collect the lump sum payment.
He has since invested in real estate, buying two multimillion-dollar mansions in California in just one month — a $25.5 million estate in the Hollywood Hills, shortly followed by a $4 million mansion with views of the San Gabriel Mountains.
Now, Castro has splurged on his most expensive property yet, adding a $47 million mansion in Bel Air to the mix.
The new home, set on a 4700-square-metre block, has seven bedrooms and 11 bathrooms.
But financial planners have, classing the three homes — as well as a vintage Porsche 911 he’s been seen driving to and from the bank — as “terrible” purchases.
Financial advisers typically recommend that winners collect their large lottery payouts through annual payments, rather than the lump sump Castro sprung for.
Financial advisers also recommend that lottery winners or anyone else coming into a large amount of wealth consult with a financial planner, tax lawyer, or other expert to create a plan, according to Fortune.
“Don’t make any visible life changes. Don’t quit your job, don’t go out and buy a Ferrari, don’t buy a mansion,” Emily Irwin, managing director of advice and planning at Wells Fargo’s investing and wealth management division, told the publication.
“Maybe you have student loans you want to pay off, that makes sense. But try to avoid that mega-purchase.”
https://www.news.com.au/finance/real-estate/buying/billionaire-powerball-winner-edwin-castros-terrible-buy-73-million-la-mansion/news-story/3e1598ff5ca37a9f0685143ed2a5eb46
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Wells Fargo will open a line of credit for him that he won't know about..........
I can’t even.
If this dude holds back even just one percent of his windfall, he will still have a ten million dollar rainy day fund to finance the rest of his life, not to mention all his real estate holdings. I realize that’s chump change in your circles but for everyone else it would be more than adequate.
“Don’t make any visible life changes. Don’t quit your job, don’t go out and buy a Ferrari, don’t buy a mansion,” Emily Irwin, managing director of advice and planning at Wells Fargo’s investing and wealth management division, told the publication.
It is apparent that Ms. Irwin has personal and professional motives for her unsolicited advice.
I'm in my late fifties with chronic health issues and a diminished life expectancy. There are only a few relatives or causes that I would consider leaving money to. In my situation it certainly makes more sense to take the lump sum rather than distribute the payments over multiple years. If I ever were to win a huge jackpot I would set aside money for the future, but I wouldn't hire Ms. Irwin for advice.
In addition, while Mr. Castro spending money on a vehicle may be extravagant (a few hundredths of a percent), the purchase of the property is an investment that may generate its own profit in the future. With the expenses listed above, he has put less than 8% of his windfall into real estate and still has a significant amount of money to invest so he shouldn't ever have any financial concerns for the rest of his life.
I have a list of who I'd share with. Last time there was a big lottery jackpot, I had fun with math. If I won 500 million dollars and gave $100,000.00 to each person on my list, it would be super hard to spend 5 million.
Any time the jackpot gets huge, I like to think about what I'd actually do. 
But definitely after today, I think we are getting the shaft.
Fuck that bullshit.
Right now I’d invest most of it in Treasury bill-based money market funds. Live off the 5 percent interest.
