Lottery winner waits almost a year to cash in his ticket
Filed under: Extracurriculars, Investing
A Canadian lottery winner held onto his winning ticket in a C$3.6 million lottery for almost a year, deciding instead to "reflect" on what he was going to do with money. And all I can day is "DUH!"Peter Dushop won the lottery in August 2007, and put the ticket straight into a safety deposit box. He only told his mom about the winning ticket, and spent the last year just thinking about the money. He didn't even tell his girlfriend, and I'm wondering if he wanted to see if she loved him even without the money
But seriously... This was a really foolish move on the winner's part. Even if he took the money and put it straight into a savings account or certificate of deposit earning only 3%, he'd have earned over $100,000 in interest over the last year. If he needed time to "reflect" on his winnings, he could have put the money into a very safe investment and still kept quiet about it. And he'd have an additional $100,000. Heck, if he didn't want the extra money, he could have donated it to charity.
Why don't I ever win the lottery and get a chance to do something stupid like this? I promise I won't waste time thinking about what to do with the money. I'll put it right into an investment account and start earning some interest and dividends right away!
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Reader Comments (Page 1 of 7)
7-30-2008 @ 4:43PM
Jeff Burleson said...
While I agree with many of the points Ms. Coenen made, calling the move "foolish" may be an dramatic oversimplification. In fact, Mr. Dushop may be one of the wisest lottery winners in history. It stands to reason that if he ably manages his newly more complex financial and personal affairs over the long term, the opportunity cost was money well spent. Or in this case, money never made.
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8-01-2008 @ 11:02AM
Paul said...
I agree that he was not stupid to wait. Money and how it may affect your life is the issue. Making more money is not a solution to the original problem. Tracy is obviously focused on money and would not be the one to ask for advise in possibly the most important decision in your life.
8-01-2008 @ 4:38PM
krystal said...
I agree with jeff here. Things like that wouldn't have stayed quiet. It would have been in the newspapers, maybe even the news. Winning 3.6 million just doesn't stay quiet. either way, if he really wanted to keep it quiet he did the right thing. The fact he missed on $100,000 in interest isn't a big deal to me either. This obviously shows his character, that money isn't the most important thing to him. Calling it "stupid" is just plain harsh. We are entitled to our opinions, yes, but it was his decision and the writers opinion is a little out of line. either way, it's his winnings so he may choose to do with it as he wishes.
8-01-2008 @ 1:49PM
Billy Jo Couch said...
I wish I was so lucky to be in his shoes. I have Muscular Dystrophy and I have to scratch each day, week, month to get by. Congrats to the Lottery Winner, he is a wise man!!!
Billy
Elkhart, Indiana
7-30-2008 @ 11:54PM
MichaelmaxWayne said...
Tell me why it is so hard to post some comment's?
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7-31-2008 @ 7:11AM
Wireless Phil said...
Its not! As soon as you post, they send you an e-mail that you must confirm your post. Simple.
8-01-2008 @ 2:17AM
WARREN GARRISON said...
THE QUESTION WAS, WHY IS IT SO HARD TO POST, SIMPLE, BECAUSE THIS IS THE NOTHING BUT A SORRY ASS PIECE OF CRAP FOR A WEB SERVICE. I'VE BEEN IN, AND IN, AND IN, I'VE DONE EVERYTHING THEY TELL ME TO DO, I'VE WIPED AOL OFF, I'VE PUT IT BACK ON AND STILL, THE INCONSISTENCY OR POSTING, THE INABILITY TO GET INTO WEBSITES, THE TROUBLE I HAVE EVEN SIGNING OFF SOMETHINGS IS JUST HORRIBLE, HORRIBLE, HORRIBLE.
7-31-2008 @ 7:10AM
Wireless Phil said...
If it had been me, as soon as I had that cash in hand, I'd leave everything and disappear. No explanations, just vanish!
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7-31-2008 @ 8:18AM
RAS said...
I would not wait a year but i give credit to this guy for showing constraint and it is likely he will keep this money instead of blowing it in two years. If he invests it he will make enough interest to live comfortably and if he gets married..may i suggest a prenuptual?
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7-31-2008 @ 9:42AM
Phil L. said...
Given the large percentage of lottery winners who quickly blow their windfall, waiting and carefully considering the future was probably a good move.
Yeah, he could have simply invested it - and let the cash grow for a year untouched. But he probably also figured he wouldn't be able to leave it alone if it was easily accessible. Hiding the ticket away is simply a way to accomplish that. This is an expensive approach, but cash flow doesn't appear to be one of his current concerns...
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7-31-2008 @ 8:20PM
Mark Minnich said...
Some people just might not be as greddy as the person
who wrote this article. Wise decision on the person who will
probably invest anyhow and 3.5 mill is good for anyone who
has brains and good sense.
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7-31-2008 @ 9:05PM
Tracy Coenen said...
Mark - I don't know what "greddy" is, but I like to think of myself as money savvy. :)
8-01-2008 @ 1:27PM
vic said...
spellcheck???
7-31-2008 @ 8:25PM
Julie said...
I think he did the right thing. So many people who have won the lottery in the past are now broke and in debt. I don't know if I would of told my boyfriend/girlfriend either, it was his and only his. I hope with the help of his mother and some geat legal advice he stays a wealthy man forever.
And what did he truly lose? A bit of cash, but I would rather lose a bit of cash and know I am making all the right decisions for the cash I do have. I'm sure that if something had come up that this money was NEEDED for he would of claimed it before now.
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7-31-2008 @ 8:28PM
Donald Scott said...
The author is a hater and should be suspened for adding his negative bias opinions...his opinion belongs right down here with the comments...provide the facts; that all you need to do as a writer
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7-31-2008 @ 9:04PM
Tracy Coenen said...
Hi Donald - May I introduce you to blogging? It's this neat little thing in which the writers discuss a topic, including their own views and opinions. So my article belongs right where it is... up there per the management at AOL. Happy reading!
8-01-2008 @ 9:13AM
robert pacilio said...
THIS IS AMERICA MATE,WHY SHOULD HE BE SUSPENED FOR HAVING A DIFFERENT OPINION THEN YOURS IF HE WANTS TO BE A HATER THATS OK,,WRITER OR NOT.GO LIVE IN IRAN OR ?????????????????
7-31-2008 @ 8:50PM
teltech54 said...
You get 3.6 million dollars and this writer is worried about the $100,000 he lost in interest. If I get a big winner like that that is the first thing I would do. Take time to think about what I would do before going public. As soon as you do you will start to see relatives you never knew you had. You will all of a sudden amass all kinds of "friends". There are taxes to consider. Investments. Or maybe he was thinking about trading in his girlfriend for a newer, sleeker, younger model. He could afford one now. Big things to consider when you come into a large sum of money. Not something to take lightly.
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7-31-2008 @ 8:48PM
jane said...
You are a jerk. First of all, 100k is nothing if half might have been spent in the first year! This man who won is probably wiser than his years and you are ignorant and need another outlet to take out your frustrations.
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7-31-2008 @ 8:54PM
elvis aaron presley said...
coooommmmonn now leve the guy alone,iiiii think he did the right smart thing alyhough he sure could have bought a whole messoh deep fried peanutbutter n banana samwiches,but thats alright mama he did not git all shooookkk up he found out that true love is real than you thank you very much
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