$1m gone in one year: Widow of killed Changi Airport worker is now broke

[flinger]

I don't understand this statement from the news article,

"That last $400,000 she withdrew lasted her five months."

400,000 in five months??

She spent 3333 per day for 5 months?

Who does that?

[GPD]

Rubbish! She is not uneducated and to think that she is trained in accounting. The kind of money she had, most people don't even get near in their whole life. I hope her children grow up with the right thinking.

[Temperament]

Rubbish! She is not uneducated and to think that she is trained in accounting. The kind of money she had, most people don't even get near in their whole life. I hope her children grow up with the right thinking.

I agree RUBBISH! Who says uneducated or lowly educated (NTC 2 only - me) can't have a business mind? If you have you will slowly educate yourself. What books are for?

[d.o.g.]

In some ways she won the lottery, albeit at the tragic cost of her husband's life. The subsequent story arc nonetheless tracks that of lottery winners uncomfortably well: sudden wealth ignites a spending spree to fulfill long-held fantasies and to help out friends and family, and all too soon the money is gone. 10 years later too many such people are back where they started, minus the friends and family, so they are actually worse off. It doesn't always take 10 years, sometimes 5 years or even 3 years are enough to lose it all. In this particular case it seems two years sufficed.

This article from Business Insider focuses on just one lottery winner, but provides additional insight that unlike professional athletes, another group of people prone to "sudden wealth syndrome", there is little help provided to lottery winners.

http://www.businessweek.com/articles/201...ing-ticket

The UK lottery operator, however, does ask a former lottery winner - who blew it all - to advise new lottery winners. His story is also interesting reading.

http://www.dailymail.co.uk/femail/articl...d-why.html

As for the widow in question, it will probably be very hard for her to get donations from the public in future. Her children may be able to get vouchers or waivers for school fees and books. But probably no cash ever again.

[LionFlyer]

LionFlyer,
I don't think you understand what Yeowiki is saying.

If he does meant to talk about CPF, that would leave his post as a somewhat of a strawman no? Since the CPF situation does not really apply to the said article and if he wanted to talk about fixed payouts, he could have used an annuity as his starting point. I would leave it to him as the ultimate arbitrator.

Anyway, as others pointed out, there are gaps in the story (whether as a result of creative, space saving editorial or deliberate omissions), the basic premise remains the "sudden windfall, inability to manage" story remains the same.

It's less about education IMO, but more about prudence and common sense. My mother didn't have education, but followed basic principles of fiscal discipline, saving for a rainy day, investing in education (mine), investing in what she knows (FD) and diversification (some unit trusts which didn't pan out, but it was just a small investment). I always felt her best investment were the two sets of encyclopaedias she bought for us, even thought she didn't know English.

It will be my last post on this topic since there is nothing else much to discuss, except to mull over the choices we make in our lives. I just hope she will get out of this rut.

[yeokiwi]

LionFlyer,
I don't think you understand what Yeowiki is saying.

If he does meant to talk about CPF, that would leave his post as a somewhat of a strawman no? Since the CPF situation does not really apply to the said article and if he wanted to talk about fixed payouts, he could have used an annuity as his starting point. I would leave it to him as the ultimate arbitrator.

I was replying to the following question.

I wonder why the paper publish this?

It might be mere coincidence that the article was published with the CPF being a hot topic recently and many singaporeans are asking for their withdrawal of CPF in lump sum. Hey, it is even featured in the first page of Sunday Times.

Actually, they can probably find a dozen Singaporeans that are in such dire conditions due to their squandering of their CPF money. But, I applaud them for finding a good example that is neither a Singaporean, nor anything to do with CPF money and at the same time, give a big hint of what will happen to those who are unable to manage their finance and yet will like to withdraw all their CPF at 55.

[Temperament]

In some ways she won the lottery, albeit at the tragic cost of her husband's life. The subsequent story arc nonetheless tracks that of lottery winners uncomfortably well: sudden wealth ignites a spending spree to fulfill long-held fantasies and to help out friends and family, and all too soon the money is gone. 10 years later too many such people are back where they started, minus the friends and family, so they are actually worse off. It doesn't always take 10 years, sometimes 5 years or even 3 years are enough to lose it all. In this particular case it seems two years sufficed.

This article from Business Insider focuses on just one lottery winner, but provides additional insight that unlike professional athletes, another group of people prone to "sudden wealth syndrome", there is little help provided to lottery winners.

http://www.businessweek.com/articles/201...ing-ticket

The UK lottery operator, however, does ask a former lottery winner - who blew it all - to advise new lottery winners. His story is also interesting reading.

http://www.dailymail.co.uk/femail/articl...d-why.html

As for the widow in question, it will probably be very hard for her to get donations from the public in future. Her children may be able to get vouchers or waivers for school fees and books. But probably no cash ever again.

No wonder there is a Chinese belief or saying, "If the GOD of FORTUNE wants to destroy someone, HE will make him rich beyond belief overnight".
i think it's the same simple saying of, "EASY COMES, EASY GOES".

[opmi]

The root problem is everyone has a 'hole' in their heart. The windfall money just provided the means to fill it. Others who don't have money, will fill it in other ways.


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[Temperament]

LionFlyer,
I don't think you understand what Yeowiki is saying.

If he does meant to talk about CPF, that would leave his post as a somewhat of a strawman no? Since the CPF situation does not really apply to the said article and if he wanted to talk about fixed payouts, he could have used an annuity as his starting point. I would leave it to him as the ultimate arbitrator.

Anyway, as others pointed out, there are gaps in the story (whether as a result of creative, space saving editorial or deliberate omissions), the basic premise remains the "sudden windfall, inability to manage" story remains the same.

It's less about education IMO, but more about prudence and common sense. My mother didn't have education, but followed basic principles of fiscal discipline, saving for a rainy day, investing in education (mine), investing in what she knows (FD) and diversification (some unit trusts which didn't pan out, but it was just a small investment). I always felt her best investment were the two sets of encyclopaedias she bought for us, even thought she didn't know English.

It will be my last post on this topic since there is nothing else much to discuss, except to mull over the choices we make in our lives. I just hope she will get out of this rut.

Ah....business sense (aka common sense) in this case for very large sum of money suddenly.

but more about prudence and common sense.

[opmi]

Rubbish! She is not uneducated and to think that she is trained in accounting. The kind of money she had, most people don't even get near in their whole life. I hope her children grow up with the right thinking.

I agree RUBBISH! Who says uneducated or lowly educated (NTC 2 only - me) can't have a business mind? If you have you will slowly educate yourself. What books are for?

VBs here should educate their wives and their children on financial literacy. No point leaving a huge fortune to be squander away in X years.

And don't be 'geow' to your wife and children, hoping they will learn thrift. After you passed away, they will have a party. See the life of Hetty Green.


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