{"id":17714,"date":"2023-09-26T16:41:45","date_gmt":"2023-09-26T20:41:45","guid":{"rendered":"https:\/\/www.ashtonesia.com\/intl\/?p=17714"},"modified":"2023-09-28T11:45:30","modified_gmt":"2023-09-28T15:45:30","slug":"badmoney","status":"publish","type":"post","link":"https:\/\/www.ashtonesia.com\/intl\/badmoney\/","title":{"rendered":"Bad Money"},"content":{"rendered":"<p><!--more--><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7886\" src=\"https:\/\/www.ashtonesia.com\/intl\/wp-content\/uploads\/div_small_bot1.png\" alt=\"divider\" width=\"508\" height=\"20\" srcset=\"https:\/\/www.ashtonesia.com\/intl\/wp-content\/uploads\/div_small_bot1.png 508w, https:\/\/www.ashtonesia.com\/intl\/wp-content\/uploads\/div_small_bot1-300x11.png 300w\" sizes=\"auto, (max-width: 508px) 100vw, 508px\" \/><div  class='hr av-u1qra4-11c0e1b9a8fb7d975bb9d16c3c4cb57b hr-short  avia-builder-el-0  el_before_av_heading  avia-builder-el-first  hr-center'><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div><\/p>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-3lk7i4-3babfaa5b67860b9b5ebe4ebc5f9d4cd\">\n#top .av-special-heading.av-3lk7i4-3babfaa5b67860b9b5ebe4ebc5f9d4cd{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-3lk7i4-3babfaa5b67860b9b5ebe4ebc5f9d4cd .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-3lk7i4-3babfaa5b67860b9b5ebe4ebc5f9d4cd .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-3lk7i4-3babfaa5b67860b9b5ebe4ebc5f9d4cd av-special-heading-h3 blockquote classic-quote  avia-builder-el-1  el_after_av_hr  el_before_av_hr '><h3 class='av-special-heading-tag '  itemprop=\"headline\"  >The $2 billion Powerball winner is making the worst mistakes financial planners warn people of after they come into a ton of money.<\/h3><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-1qwihng-789471fee6cf2697c237c38b66830450 hr-short  avia-builder-el-2  el_after_av_heading  el_before_av_hr  hr-left'><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<div class=\"row\">\n<div class=\"left-column\"><\/div>\n<div class=\"right-column\"><strong>Story by Paige Hagy. <\/strong><br \/>\n<span style=\"color: #ff6600;\">Sep &#8211; 19<\/span><br \/>\nArticle &#8211; <a href=\"https:\/\/www.msn.com\/en-us\/money\/realestate\/the-2-billion-powerball-winner-is-making-the-worst-mistakes-financial-planners-warn-people-of-after-they-come-into-a-ton-of-money\/ar-AA1gXkhB?ocid=msedgdhp&amp;pc=U531&amp;cvid=d364e4938cca434b8588085aaa70bba7&amp;ei=55\" target=\"_blank\" rel=\"noopener\">MSN<\/a> | <a href=\"https:\/\/www.evisos.com.pe\/noticias\/quien-es-edwin-castro-el-ganador-de-los-2-mil-millones-de-dolares-del-powerball\/\" target=\"_blank\" rel=\"noopener\">Who is?<\/a><\/div>\n<\/div>\n<div id=\"topcontinfo\"><\/div>\n<div class=\"framecontainer\">\n<div class=\"imgpix\"><img decoding=\"async\" class=\"bbox\" src=\"..\/..\/intl\/wp-content\/uploads\/articles\/burningmoney.jpg\" \/><\/div>\n<div class=\"num\">01<\/div>\n<div class=\"txtinfo\">Cool off from the hype. (<a title=\"Bigger Image\" href=\"https:\/\/ashtonesia.com\/intl\/wp-content\/uploads\/articles\/burningmoney.jpg\" target=\"_blank\" rel=\"noopener\">#<\/a>)<\/div>\n<div class=\"photog\">\u00a9 Ashton .W \/ Ashtonesia dot comm<\/div>\n<div class=\"spacer\"><\/div>\n<\/div>\n<p><span class='av_dropcap1 av-av_dropcap1-3cd9da5fea0ef5fb27aee617571c39a3'>T<\/span>he winner of the record-breaking $2 billion Powerball prize is breaking every financial planning rule in the book. Edwin Castro is buying up California real estate since\u00a0<a href=\"https:\/\/www.latimes.com\/california\/story\/2023-02-14\/winner-of-record-2-billion-powerball-jackpot-identified-altadena-ticket\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">winning the lottery<\/a>\u00a0in November, including a three-story\u00a0<a href=\"https:\/\/www.latimes.com\/california\/story\/2023-03-07\/winner-of-2-billion-powerball-jackpot-drops-25-5-million-on-hollywood-hills-mansion\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">$25.5 million mansion<\/a>\u00a0in the Hollywood Hills, the same part of Los Angeles that A-list stars like Leonardo DiCaprio and Ariana Grande call home.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">That\u2019s the exact opposite of what financial advisors recommend for lottery winners\u2014or any person who suddenly comes into great wealth. Rather, they suggest waiting until the emotional high of winning the jackpot cools off. One advisor counseled against buying up expensive homes altogether.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">\u201cI\u2019ve seen clients purchase large homes in faraway locations that they ultimately realize they will not use frequently and end up being a major ongoing financial burden that took several years to sell,\u201d Paul Karger previously told\u00a0<a href=\"https:\/\/fortune.com\/2023\/08\/14\/wait-to-buy-house-after-inheritance-lottery-windfall\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\"><em>Fortune<\/em><\/a>.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">Karger is a cofounder and managing partner at TwinFocus, a wealth advisory firm that manages over $7 billion for ultra-high-net-worth families. He recommends to clients, who range from\u00a0<a href=\"https:\/\/www.forbes.com\/sites\/henley--partners\/2022\/10\/18\/the-emergence-of-a-new-class-of-super-rich-the-centi-millionaire\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">centimillionaires<\/a>\u00a0to billionaires, to wait six months to a year before making any big buys.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">The value of second or third homes (or mansions) is\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/for-every-vacation-home-fantasy-there-is-a-harsh-financial-reality-11662900026\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">shrinking<\/a>\u00a0post-pandemic, and luxury real estate is\u00a0<a href=\"https:\/\/www.bloomberg.com\/view\/articles\/2016-12-02\/mansions-aren-t-such-great-investments\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">not known for being a great investment<\/a>\u00a0considering its vulnerability to economic conditions outside the owner\u2019s control. Plus, real estate is an illiquid asset, which can become a burden if the owners are careless about managing the rest of their wealth. The annual cost to maintain a home is roughly\u00a0<a href=\"https:\/\/www.usatoday.com\/story\/money\/personalfinance\/real-estate\/2022\/02\/12\/average-american-home-costs-3-k-per-year-to-maintain\/49780837\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">1% to 4%<\/a>\u00a0of the home\u2019s worth.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">By this estimate, the upkeep for Castro\u2019s $25.5 million Hollywood Hills home\u2014which has five bedrooms, six bathrooms, a game room, wine cellar, home theater, wet bar, gym, cold plunge, steam shower, and sauna\u2014will cost $255,000 to over $1 million annually.<\/p>\n<div  class='hr av-1qwihng-2-67adec51b9a299f8737cc4afc7e9f6d4 hr-short  avia-builder-el-3  el_after_av_hr  el_before_av_hr  hr-left'><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<div class=\"headermone\">More mansions and a vintage Porsche<\/div>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">And that\u2019s not all he bought. A couple weeks after buying the first mansion, he spent\u00a0<a href=\"https:\/\/www.latimes.com\/california\/story\/2023-03-24\/california-powerball-winner-buys-altadena-home\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">$4 million<\/a>\u00a0on a Japanese-inspired house in Altadena, Calif., his hometown in the Los Angeles suburbs and near the gas station where he bought the winning ticket.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">Earlier this month, he also bought a\u00a0<a href=\"https:\/\/www.usatoday.com\/story\/money\/2023\/09\/13\/edwin-castro-powerball-winner-buys-third-home-los-angeles\/70846125007\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">$47 million mega-mansion<\/a>\u00a0in Los Angeles, with seven bedrooms, 11 bathrooms, an infinity pool, koi pond, champagne room, wine cellar, home theater, and a view of the city skyline. Castro also purchased a vintage Porsche 911 costing $250,000, the\u00a0<a href=\"https:\/\/nypost.com\/2023\/04\/26\/2b-powerball-winner-edwin-castro-spotted-gleefully-cashing-out-at-bank\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\"><em>New York Post<\/em><\/a>\u00a0reported in April.<\/p>\n<p>&nbsp;<\/p>\n<div  class='hr av-1qwihng-1-ad881f95f21bda3df4a56a456d554f4f hr-short  avia-builder-el-4  el_after_av_hr  avia-builder-el-last  hr-left'><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<div class=\"headermone\">\u2018Just chill\u2019<\/div>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">Financial advisors heed caution to lottery winners and anyone coming into a large amount of wealth, whether that be through the\u00a0<a href=\"https:\/\/fortune.com\/2023\/08\/04\/billionaire-ray-dalio-great-wealth-transfer-boomers-millennials-economy\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">Great Wealth Transfer<\/a>\u2014an estimated $73 trillion that will be passed down from baby boomers to their heirs\u2014or by some other windfall. Instead of burning through cash, they recommend consulting a financial adviser, tax attorney, and other experts to create a plan.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">\u201cDon\u2019t make any visible life changes. Don\u2019t quit your job, don\u2019t go out and buy a Ferrari, don\u2019t buy a mansion,\u201d Emily Irwin, managing director of advice and planning at Wells Fargo\u2019s investing and wealth management division, previously told\u00a0<a href=\"https:\/\/fortune.com\/2023\/07\/12\/mega-millions-winners-financial-advice-tips\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\"><em>Fortune<\/em><\/a>\u00a0about coming into sudden wealth.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">\u201cMaybe you have student loans you want to pay off, that makes sense. But try to avoid that mega-purchase,\u201d Irwin added.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">Professional athletes are a cautionary tale of how sudden wealth can disappear. Nearly four out of five NFL players face serious financial stress after having been retired for two years,\u00a0<a href=\"https:\/\/vault.si.com\/vault\/2009\/03\/23\/how-and-why-athletes-go-broke\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\"><em>Sports Illustrated<\/em>\u00a0<\/a>reported in 2009. And that figure has only increased. In 2015, nearly 16% of NFL players filed for bankruptcy within the first 12 years of retirement, according to the\u00a0<a href=\"https:\/\/www.nber.org\/papers\/w21085\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">National Bureau of Economic Research<\/a>.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">The lesson here?<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">\u201cJust chill. Don\u2019t make any major decisions or big commitments. Let things digest,\u201d Karger added.<\/p>\n<p data-t=\"{&quot;n&quot;:&quot;blueLinks&quot;}\">This story was originally featured on\u00a0<a href=\"https:\/\/fortune.com\/2023\/09\/19\/2-billion-powerball-lottery-winner-edwin-castro-financial-mistakes-advisors-warn\/\" target=\"_blank\" rel=\"noopener\" data-t=\"{&quot;n&quot;:&quot;destination&quot;,&quot;t&quot;:13,&quot;b&quot;:1,&quot;c.t&quot;:7}\">Fortune.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":17742,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.ashtonesia.com\/intl\/wp-content\/uploads\/articles\/burningmoney.jpg","fifu_image_alt":"Bad Money","iawp_total_views":0,"footnotes":""},"categories":[619],"tags":[47,618,616,615,617],"class_list":["post-17714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-articles","tag-bad-decisions","tag-finance","tag-money","tag-spending"],"_links":{"self":[{"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/posts\/17714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/comments?post=17714"}],"version-history":[{"count":34,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/posts\/17714\/revisions"}],"predecessor-version":[{"id":17865,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/posts\/17714\/revisions\/17865"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/media\/17742"}],"wp:attachment":[{"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/media?parent=17714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/categories?post=17714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ashtonesia.com\/intl\/wp-json\/wp\/v2\/tags?post=17714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}