He was the second winner of this type of game of chance in a week and by choosing wrong he lost more than $300,000.
Win the lottery and becoming a millionaire is the dream of many people. But knowing what to do with the prize money is not as easy as it seems. To become a millionaire it is not enough to just earn that sum of money, but you have to know how to manage it and the same thing happens to many people. Due to his bad decisions, he slowly squanders that fortune and quickly becomes ruined.
Michael Koldysa resident of Sheffield, Massachusetts, won $1 million with a lottery ticket by scratching his $20 ticket from the $5,000,000 100X Cashword game (similar to the Spanish Scratch Card) purchased at a local store.
However, their initial joy was accompanied by a difficult decision: choosing between receiving the million in annual payments or a lump sum. Koldys chose the second option, taking a one-time payment of $650,000 as a tax deduction.
National Lottery
Why Michael Koldys decided to set aside $300,000
Despite knowing that with this decision he would suffer a reduction of $300,000, Koldys accepted this alternative because he had in mind the idea of buying a boat, saving for his retirement and enjoying his fortune.
This decision reignited the debate about what is the best way to manage a sudden profit of this type, whether to accept monthly payments for a long time or the entire figure at once.
The eternal debate over lottery prizes
A lawyer specializing in cases related to the lottery described this choice as a common mistake. Speaking to The US Sun, he stated that around 90% of winners opt for the lump sum, often without the support needed to properly manage the money. Stoltmann, who has represented people he calls “lottery losers,” said a lack of planning can lead to big losses.
For his part, financial advisor Robert Pagliarini warned that lottery winners should think carefully before deciding to pay in cash, as this choice increases the risks of bad investments and financial mistakes. “If you hit the jackpot all at once and make mistakes, there is no turning back. “You are not going to win the lottery again.”
Pagliarini also highlighted the advantages of opting for installment payments, a modality that reduces pressure and allows winners to manage their money more calmly.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
