Winner of largest powerball in history criticized for extravagant purchases.. [View all]
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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