Carnival of Financial Planning #172- Stories of Past Lottery Winners – February 12, 2011

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Welcome to the February 12, 2011 Edition #172 of the Carnival of Financial Planning!

The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security.

This edition is arranged by subject heading, so that you can browse efficiently.


The Skilled Investor, Editor

The theme of this week’s Carnival is “stories of past lottery winners.” Do you ever sometimes wonder what has happened to the lottery winners throughout the years? What exactly did they do with their money? Did they remain rich? Did the go-broke? Well, today is your day to find out! 
As you will see from the stories interspersed throughout the articles below, these lottery winners clearly did not employ adequate financial planning, and suffered as a result (to say the least!!!). 
So, sit back, grab a cup of coffee and enjoy this week’s edition of the Carnival of Financial Planning. And, I hope you can come back during my non-carnival days as well. 

Budgeting and Economics

MoneyNing presents 6 Ways to Avoid the Temptation to Eat Out posted at Money Ning, saying, “Do you always want to eat out? Here’s how to avoid always spending too much on food.”

The Skilled Investor presents How to Save More posted at Personal Financial Strategy, saying, “Budgeting and self-control in consumption is far more important than clever investing. Expenditure control and budgeting works, while “clever” investing usually is counter-productive.”

Moneyedup presents Save Up For College By Earning Extra Money posted at MoneyedUP, saying, “Whether you plan to foot the entire bill, or whether you plan to just help out in some specific areas, chances are that you will need to save up some money to help pay for kids’ college”

Financial Planning

N.W. Journey presents Understanding Your Financial Values posted at Networth Journey, saying, “Your 
financial values affect how you spend your money.”

Michael Pruser presents Is CNN’s List of Least Evil Banks Accurate? posted at The Dough Roller, saying, “CNN recently released a list of the least evil banks but that title is pretty inaccurate.”

Michael presents More Responsibilities With Less Pay posted at Consumerism Commentary, saying, “Seems backwards but with the tough job world out there, many employees re finding this idea a reality.”

Frank Knight presents Strategic Asset Allocation posted at Best Personal Financial Planning Software, saying, “When you are already there and invested in an asset class, you are following a passive asset allocation strategy. Tactical asset allocation strategy advocates suggest that you can anticipate the crowd, but flow-of-funds studies show that almost all tactical asset allocation fund flows are late money flows that chase performance after valuations have already moved.”

Jessica presents 401(k) Rollovers posted at MomVesting, saying, “When both of the original accounts were denied rollover, so Christa had to investigate the 401(k) rules to determine their best strategy. Take a look at what they found.”

Larry Russell presents No Load Mutual Funds posted at Best Index Mutual Funds, saying, “Superior past performance has simply not been shown to be a reliable predictor of superior future performance. However, low costs can lead you to the best mutual funds.”


Past Lottery Winner Story # 1

On 2007, Donna Campbell became suspicious of her husband, Arnim Ramdass, when he started to keep the television turned off and disconnected the phone line. Her suspicions rose when she found a postcard about a new home purchase.

But Campbell was unaware that her husband was hiding a $10.2 million secret from her until she Googled her husband’s name and lottery number. She found a Florida lottery press release that named 17 airline mechanics who won the jackpot, her husband was one of them.

The group of mechanics opted for the lump-sum payment of $10.2 million, meaning each of the 17 winners would receive about $600,000 before taxes. Since the winning, Ramdass took a leave of absence from work, according to his co-workers. He hasn’t shown up at the couple’s home and servers can’t find him to hand him the lawsuit papers: she wants half the money and out of the marriage. (Story from


Financing a Home

Mike @ Green Panda presents First House Related Expenses posted at Green Panda Treehouse, saying, “Costs for your new home that you should expect.”

Financing Education

Jim Yih presents Investment strategies for Registered Education Savings Plans (RESPs) posted at Retire Happy Blog, saying, “With an RRSP, you might have money in an RRSP from the day you start working to the day you die. That could be 50 or more years. With the RESP, the timelines are much shorter – typically 15 to 25 years at the higher end.”


FMF presents Free Money Finance: 25 Toughest Interview Questions of 2010 posted at Free Money Finance, saying, “When you interview, you should be prepared for almost any question. This post lists some of the more “out there” questions you might get.”

MoneyNing presents What Would You Do with a Million Dollars? posted at Money Ning, saying, “I know what I would do with a million dollars. How about you?”

FMF presents Six Tips for Job Hunting in Secret posted at Free Money Finance, saying, “How to job hunt when you don’t want anyone to know that you’re doing it.”

The Financial Blogger presents TFB Monthly Income Report posted at The Financial Blogger, saying, “My full income report.”

FMF presents How to Decline a Job Offer without Burning a Bridge posted at Free Money Finance, saying, “How to say “no thanks” to a job offer and still keep a solid relationship.”


Past Lottery Winner Story # 2

William “Bud” Post won $16.2 million in the Pennsylvania lottery in 1988 but now lives on his Social Security. “I wish it never happened. It was totally a nightmare,” says Post.

A former girlfriend successfully sued him for a share of his winnings. It wasn’t his only lawsuit. A brother was arrested for hiring a hit man to kill him, hoping to inherit a share of the winnings. Other siblings pestered him until he agreed to invest in a car business and a restaurant in Sarasota, Fla., – two ventures that brought no money back and further strained his relationship with his siblings. Post even spent time in jail for firing a gun over the head of a bill collector. Within a year, he was $1 million in debt.

Post admitted he was both careless and foolish, trying to please his family. He eventually declared bankruptcy. Now he lives quietly on $450 a month and food stamps. “I’m tired, I’m over 65 years old, and I just had a serious operation for a heart aneurysm. Lotteries don’t mean (anything) to me,” said Post. He died on Jan 15 of respiratory failure. (Story from



Arjun Rudra presents How To Adapt Your Investing Approach To Changing Market Cycles With Eden Rahim, Portfolio Manager at Jov Investment Inc. posted at Investing Thesis, saying, “Highlighting the importance of adapting your investing approach to changing market cycles with Eden Rahim, Portfolio Manager at Jov Investment Inc.”

Dividends4Life presents 28 Dividend Stocks Acting Like a Money Machine posted at Dividends Value, saying, “Readers of this space know that the primary focus of my investing efforts is to build an ever-increasing income stream by investing in dividend growth securities. This means that often, I will choose a lower yielding security with better dividend growth prospects over a higher yielding security. As one that values diversity, I also invest in some high yield securities.”

Money Beagle presents When Investing, Do You Invest In What You Use? posted at Money Beagle.

Intelligent Speculator presents Top 100 Dividend Stocks – February 2011 posted at Intelligent Speculator, saying, “The top dividend stocks for you guys to check out.”

DGB presents ScotiaBank BNS Dividend Stock Analysis posted at The Dividend Guy Blog, saying, “A look at this popular stock.”

Alexander presents Choosing Dividend Stocks: Company History posted at Dividend Stocks, saying, “When you are choosing dividends so that you can begin building an income stream, it is important to consider your options and choose carefully.”

The Skilled Investor presents Stock Market Timing posted at Personal Investment Management, saying, “Always stay invested to earn risk premiums. You must have your money invested and at risk to get risk premium returns. Jumping out and in or “timing the markets” doesn’t work.”

Barb Friedberg presents IS IT TIME TO SELL? posted at Barbara Friedberg Personal Finance, saying, “Learn how following the crowd can cost you!”

Arjun Rudra presents On A Quest To Turn $3000 Into $100000 With Trader Mark Li, DMS posted at Investing Thesis, saying, “An interview with equity and currency trader Mark Li who is attempting to turn Turn $3000 Into $100000.”

Tom @ Canadian Finance Blog presents The Five Big Benefits of Valuation-Informed Indexing posted at The Canadian Finance Blog, saying, “Valuation-Informed Indexing provides more wealth for 102 of the 110 rolling 30-year periods, challenging the theory of buy and hold investing.”

Ryan @ CML presents Investing Lessons From Warren Buffett posted at Cash Money Life, saying, “Warren Buffett is one of the world’s greatest investors. Find out some of his best investing tips in this article.”

Frank Vertin presents Best Index Funds posted at Index Mutual Funds, saying, “Top ten no-load index funds that track the Standard and Poors 500 composite index in terms of lowest costs.

Ryan @ MFN presents Understanding Tax Exempt Contributions and Withdrawals to the TSP posted at The Military Wallet, saying, “The Thrift Savings Plan (Govt. version of a 401k) allows military members to make tax exempt contributions when they are deployed to tax free combat zones.”

Hussein Sumar presents How to Examine a Mutual Fund’s Portfolio Turnover posted at Best Mutual Funds, saying, “Portfolio turnover is a great way to measure the investment quality of a mutual fund because a higher turnover means increased costs of trading, which is paid for by investors’ money and not the fund manager’s salary.”

Patty Pedersen presents Best Oil ETFs: Looking Beyond Energy Select SPDR XLE posted at AlphaProfit MoneyMatters – Investing Blog, saying, “Energy Select Sector SPDR ETF wins the contest among oil ETFs when it comes to popularity. This ETF however wasn’t the best performing ETF in this category in 2010. This article analyzes different energy ETFs and explains why energy service and natural gas ETFs have the potential to be top performers in 2011.”

Tomas Escent presents Stock Trader Automation posted at Nerds on Wall Street

Dave@50plusfinance presents Is the Facebook Bubble Coming? posted at 50 Plus Finance, saying, “Social Networking is a bubble like email was a bubble. It’s a core technology that changes the way we communicate. But investors get carried away and drive valuations way up till the day comes where it’s as common as email and the legs are kicked out from underneath it, and the the stock plummets. It’s like the dawn of AOL, a high flier, that got it’s wings clipped when one day it was only one of many email and data portals.”

Intelligent Speculator presents One more reason why AOL (AOL) will succeed where Yahoo (YHOO) will fail posted at Intelligent Speculator, saying, “Why we believe in AOL.”

DGB presents What Happened In the Dividend World in 2010 and What is Coming In 2011 posted at The 
Dividend Guy Blog, saying, “Our look at the world of dividends.”

The Financial Blogger presents How To Trade ETFs Using A Moving Average posted at Experiments in Finance, saying, “A look at how to perform this skilled investment.”

Frank Knight presents Muni Bond Retirement Software, posted at Best Financial Planning Software, saying, “Municipal bond investments and your state and federal marginal income tax rates: Some investors hold municipal bonds in an attempt to reduce their tax burden. This article discusses the relationships between tax-exempt municipal bonds, bond market returns, marginal tax rates, and investment asset tax location.”

Dividends4Life presents 16 Dividend Stocks Growing Future Yield posted at Dividends Value, saying, “Yield does not come without a price, usually in the form of added risk and/or complexity. Ultimately, dividend growth investors realize that long-term and sustainable high-yield investments are grown over time. This is accomplished by purchasing high-quality dividend investments with a reasonable yield and a long history of growing their dividends, and waiting for the yield on cost to grow.”

Mike Piper presents Investing Life Insurance Proceeds posted at The Oblivious Investor, saying, “How would you invest a portfolio if you were expecting to need to withdraw from it for potentially 50 years or more?”


Past Lottery Winner Story # 3

Suzanne Mullins won $4.2 million in the Virginia lottery in 1993. Now she’s deeply in debt to a company that lent her money using the winnings as collateral.

She borrowed $197,746.15, which she agreed to pay back with her yearly checks from the Virginia lottery through 2006. When the rules changed allowing her to collect her winnings in a lump sum, she cashed in the remaining amount. But she stopped making payments on the loan.

She blamed the debt on the lengthy illness of her uninsured son-in-law, who needed $1 million for medical bills. (Story from SaveMoney/8lotteryWinnersWhoLostTheirMillions.aspx)


Managing Debt

FMF presents There is No Good Debt posted at Free Money Finance, saying, “Borrower beware — there is no such thing as good debt!!!”

Jeff Weber presents Tips For Paying Off A Balance Transfer Before Your 0% APR Ends posted at Smart Balance Transfers, saying, “When managing credit card debt with balance transfers, it is vitally important to develop a plan that will get you out of debt before the interest rate increases.”

Jeff Rose, CFP presents Why Wielding a Credit Card is the Best way to Approach Credit Restoration posted at Jeff Rose, saying, “For those people looking to rebuild their credit standing, the answer is, perhaps surprisingly, use of a credit card.”

Tom @ Canadian Finance Blog presents New Cardholders Bear The Brunt of Fees posted at The Canadian Finance Blog, saying, “Cardholders with new credit card accounts paid average monthly fees of $15 and that this average decreased by 75% during the first four years.”

Jeffrey Weber presents Who Can and Can’t Benefit from the Citi Platinum Card posted at Smart Balance Transfers, saying, “The Citi Platinum Mastercard can be a useful tool in reducing debt, as it offers long 0% balance transfer periods and charges low fees.”

Silicon Valley Blogger presents Earn Points with the ThankYou Rewards Program from Citi posted at The Digerati Life, saying, “Tips on earning rewards via a popular rewards card program.”


Jeff Rose, CFP presents IRA Gifts to Charities – New Rules and How They Affect You posted at Jeff Rose, saying, “IRA gifts can be a great benefit to charities as well as the individual giving the gift. Here are some new rules you need to be aware and how they affect you.”

Consumer Boomer presents Social Security Survivor Benefits posted at Consumer Boomer, saying, “This article will help you find out if you are eligible for Social Security survivor benefits and what those benefits are.”

Mike Piper presents Protecting Your Private Files posted at The Oblivious Investor, saying, “How can you keep your sensitive documents (scanned tax returns, for instance) both backed up and protected in the event of computer theft?”

Pasadena Financial Planner presents Vanguard Index Funds posted at Top Mutual Funds, saying, “Compares Vanguard’s actively managed mutual funds and Vanguard’s passively managed index mutual funds. Vanguard investors should read and understand this study.

Joe Plemon presents How The Number One Personal Finance Principle Affects Two Diverse Families posted at Personal Finance By The Book, saying, “The stories of these two families illustrate that very little income is not an excuse to break this principle and that much income is not a guarantee that one will keep it.”

Ryan @ CML presents Should You Incorporate Your Small Business? posted at Cash Money Life, saying, “Incorporating your small business can be a great way to protect yourself by separating your personal and business interests.”

Jim Wilkerson presents Choose Mature Noload Mutual Funds posted at Best No Load Funds, saying, “Very young stock and bond mutual funds are more likely to put you into the position of being an experimental guinea pig of mutual fund companies and the ETF industry.”


Past Lottery Winner Story # 4

Missourian Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, giving to politics, education and the community. But according to published reports, eight years after winning, Lee had filed for bankruptcy with only $700 left in two bank accounts and no cash on hand. (Story from SaveMoney/8lotteryWinnersWhoLostTheirMillions.aspx)


Retirement Planning

Jeff Rose, CFP presents Is a 401k Enough For Retirement? posted at Jeff Rose, saying, “A 401k may not be enough for you to retire successfully. Find out what other options you may have.”

Joe Plemon presents Should You Borrow From Your 401(k)? posted at Personal Finance By The Book, saying, “Yes, you CAN borrow from your 401k, but SHOULD you?”

Walter W. Fouse presents Top 10 Large Cap Funds posted at Best Mutual Fund, saying, “This table of low cost top 10 S&P 500 mutual funds has been organized with the lowest cost index fund first. Nevertheless, each of these S & P 500 index funds is among the least costly on the market.”

Larry Russell presents Roth IRA Calculator posted at Retirement Planning Tools, saying, “Trying to decide about a traditional IRA to Roth IRA conversion without first having a comprehensive lifetime financial plan in place makes absolutely no sense. Without such a plan, you cannot figure out whether or not you are likely to achieve the tax savings in retirement that would warrant paying higher taxes now.”

Jim Yih presents What is Your Net Worth? posted at Retire Happy Blog, saying, “Your net worth is equal to all of your assets less all of your liabilities. It can be complicated depending on what you consider an asset and what you consider a liability.”

Sun presents Retirement Income Funds: Generate Steady Income in Retirement posted at The Sun’s Financial Diary.

Frank Knight presents Roth Conversion Retirement Planning Software posted at My Financial Freedom Plan, saying, “Whether to invest in a Roth IRA or Roth 401k versus their traditional retirement account alternatives is one of the most complex personal financial decisions. Roth accounts do not make sense financially for most people. They are a good deal, for a minority, but you need to do the analysis.

Jessica Bosari presents You Don’t Have to be Rich to Get Rich – Building Wealth from the Ground Up | posted at Billeater, saying, “Building wealth despite a small income.”

Risk Management and Insurance

June Tree presents Comparing Whole Life Insurance vs Term Life Insurance posted at The Digerati Life, saying, “I compare term life vs whole life insurance.”

PT presents When to Drop Full Coverage Auto Insurance posted at Prime Time Money, saying, “Do you know if it’s worth it to continue your full coverage auto insurance? This article from PT Money will help you decide if you’re paying too much.”

Jules Wells presents Investment Risk Questionnaire Investment Software, posted at Financial Answers saying, “There is a way for you to get a much better assessment of your risk tolerance than you would from a simple conservative versus aggressive financial industry investor questionnaire.”


Past Lottery Winner Story # 5

“Winning the lottery isn’t always what it’s cracked up to be,” says Evelyn Adams, who won the New Jersey lottery not just once, but twice (1985, 1986), to the tune of $5.4 million. Today the money is all gone and Adams lives in a trailer.

“I won the American dream but I lost it, too. It was a very hard fall. It’s called rock bottom,” says Adams.

“Everybody wanted my money. Everybody had their hand out. I never learned one simple word in the English language — ‘No.’ I wish I had the chance to do it all over again. I’d be much smarter about it now,” says Adams, who also lost money at the slot machines in Atlantic City.

“I was a big-time gambler,” admits Adams. “I didn’t drop a million dollars, but it was a lot of money. I made mistakes, some I regret, some I don’t. I’m human. I can’t go back now so I just go forward, one step at a time.”(Story from http://articles.moneycentral.msn .com/SavingandDebt/ SaveMoney/8lotteryWinnersWhoLostTheirMillions.aspx)



Miranda presents Are You Still Getting a Tax Refund? posted at Money Ning, saying, “Maybe planning for a tax refund isn’t the best idea. Think what you could be doing with the money if you had it all year.”

Madison DuPaix presents 5 Helpful Android and iPhone Tax Apps posted at My Dollar Plan, saying, “Filing your taxes is getting easier and easier – check out these cool apps for Android phones & the iPhone.”

Tommy John presents Ready for Tax Season? Learn the 3 Key Steps to Avoiding the Ire of the IRS | 2010 Taxes posted at 2010Taxes, saying, “These three tips can help you to avoid being audit this tax season.”

Craig/FFB presents Love and Taxes – Tax Filing Date Changed to February 14 For Some Tax Filers posted at Free From Broke, saying, “For some who file one of three particular IRS claims on their taxes, the first day to file your taxes is delayed. See if this affects you.”

Financial Freedom presents IRA Contributions Retirement Tool, posted at Financial Freedom, saying, “The Roth tax optimization puzzle for asset conversions, as well as for annual Roth contributions during working years, is one of the most complex decisions that the ridiculously complex US taxation and retirement planning system forces upon individuals.”

Ryan @ MFN presents Is The Military Homeowner’s Assistance Program Taxable? posted at The 

Ken presents 2009 Tax Benefits Extended in 2010 posted at Spruce Up Your Finances, saying, “The American Recovery Reinvestment Act has provided a lot of expanded benefits in tax year 2009. Some of those benefits have expired. Find out the ones that has been extended when filing your 2010 tax returns”

Mike @ Green Panda presents Taxes – Preparing for the Season posted at Green Panda Treehouse, saying, “How you can get ready for tax season.”

Well – that concludes this edition. Submit your blog article to the next edition of Carnival of Financial Planning using our carnival submission form. Past posts and future hosts can be found on the Carnival’s blog carnival index page.

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