Once famous lottery winner now broke
The New York Daily News has a cautionary story worth reading, especially to anyone who has come into a bit of money lately.Consider the story of Lou Eisenberg, who became a $5 million lottery winner in 1981, at the age of 53, and who today is 81-years-old and living in a mobile home, his lifestyle funded by a small pension and Social Security. He makes $250 a week.
When he hit the jackpot 30 years ago -- and $5 million was the biggest lottery payout at the time -- Eisenberg briefly became a household name (and the envy of every households as well). At the time he was a humble lightbulb changer, earning $225 a week changing bulbs in a midtown office building. The media loved his rags to riches tale. Chatting with Johnny Carson or Regis Philbin, they called him "Lightbulb Lou," or "Lucky Lou." Eventually, of course, he faded from national consciousness, left alone to live happily ever after. Well, sort of. As The New York Daily News reports, he's now living in a mobile home in Lake Worth, Florida, living on a considerably reduced income -- $250 a week from Social Security and pension checks -- about what he made back when he won the lottery.
But he seems happy, looking great in a photo that the Daily News provides and telling the paper: "I wouldn't have done it any other way. I wish I had $200 in my pocket. Now I have $18 or $19."
So where did the money go? Well, with his $219,000 a year (that's $130,000 or so after taxes), he embarked on the lush life -- he bought an ocean view condo, took lavish vacations to California, Hawaii and Europe, gave a lot to his second ex-wife, wooed and married a third time (that didn't last either), etc. etc. Fast forward 20 years, and Eisenberg cashed his last check and kissed his life as a man of resources goodbye.
Since then, Eisenberg has lived a somewhat surreal life with the media occasionally looking in and reporting how well, or not well, the former lottery winner is doing.In June, 2001, The New York Times did a story on Eisenberg, who explained back then what happened. "I started saving, then got whacked out with the divorces." By then, Eisenberg was living in West Palm Beach, Florida, and he admitted to losing a lot at the track. But he wasn't unhappy then either, saying, "I didn't work for 20 years, and there were all the trips and spending."
And last year the Palm Beach Post did a feature story on Eisenberg, who disclosed that he feels like a very lucky man, despite having gone from being broke to being rich to being broke again.
After all, Eisenberg has survived two double-bypass heart surgeries, and he had no bad feelings toward his ex-wives. He is extremely proud of his 57-year-old son. And as he had told the Times years before, he had two decades of living it up. And while Eisenberg is a cautionary tale, you might argue that he also has the right attitude about monetary wealth:
As he told the Palm Beach Post, he had a best friend from Brooklyn, Herbie Berman, who "worked his guts out for money, never spent a penny. And he died of a heart attack at age 59. He left me his savings. He never had time to enjoy it."
Reader Comments (Page 1 of 32)
10-05-2009 @ 7:37PM
Janna said...
While this might be hard for some to grasp, 5 million dollars can go quickly. Not surprised. Now if you would have said 10,15,20 million I would have thought "what, now thats just stupid!!!". Look you invest in someone's company for say 1 million, buy a home for 850,000-1 million.(Don't forget you've got to pay property taxes on that home every year, maybe HOA fee's, insurance, all bills it takes to keep up the place) oh and lets not forget he didn't get 5 million. After the taxes were taken out he probably ended up with 2.5 or maybe 3 not likely though. Then you give a little to family here, little family there, oh and the business that he invested in goes, you got it, belly up.All that investment money gone... Not to mention some more it might take to clear the debt... I could go on and on.. So you see its not that hard to say "here today gone tomorrow."
Reply
10-07-2009 @ 12:59AM
Rob said...
5 million$ in 1981 would be about 12 million$ now. The guy was an idiot, and blew it all. After all, he was a light bulb changer before he won. Dumb people do dumb things with money.
10-07-2009 @ 6:05AM
Lena said...
I have always been very afraid of aging, you know, becoming old and useless and unattractive. When I turned 50, I decided to do something about it. I've spent fortunes on face creams and anti-aging serums… but using GenFX is the first time I've tried turning back the clock from the inside out. It's also the last time I'll spend a fortune on face creams! Now everyone says I look 35! http://www.antiaginggenfx.com/
10-07-2009 @ 8:55AM
redconvoy said...
If you invest the money, you can make it grow. People just don't know how to handle that much money when they have it.
10-07-2009 @ 8:46AM
mike said...
Show me a house that costs $1million in 1981?
Neverland ranch didn't cost that much back then!
BTW: If he would have put his 2 million into a savings account at the going rates of 3.75% = $75,000 per year.
Doesn't sound like much, but for a guy that was making $225 per week. $1,442 would be great!
Take anyone and ask them if they made 7x their salary would they be happy and I'm sure they would be!
Dumb people do dumb things..that sums it up.
10-07-2009 @ 8:55AM
Joy said...
He is happy so what difference does it make. He has lived his life to the fullest and experienced things many of us only talk about doing. I am happy for him and happy that he is happy.
10-07-2009 @ 9:10AM
EL said...
I AGREE..........ANYONE THAT WINS THE LOTTERY AND ENDS UP BROKE A FEW YEARS LATER IS A JERK.
ALL HE HAD TO DO WAS INVEST, AND NOT GO ON A SPENDING SPREE......
PEOPLE BECOME GREEDY AND SPEND MONEY ON EXPENSIVE HOMES, CARS, ETC.
BE HUMBLE, MONEY WILL LAST LONER
10-07-2009 @ 9:37AM
jpvkind said...
Your talking 5 million in 1982. That is the equivalent based on the real ratio of 22 million dollars today. Your numbers are using the 5 million from then with the cost of living for now.
10-07-2009 @ 9:47AM
Kevin Key said...
5 million dollars in 1981 was a huge amount of money. Baseball's average salary was $181,000 compared to 2009 which is $3.6million. HIs 5 million in 1981 would be about 95 million compared to baseball salaries
10-08-2009 @ 9:51AM
Frank said...
It's not so much he was stupid and didn't invest, as soon as I saw "exwife" then "exwives" in the article I knew where the money went.
btw, this so called 'journalist' needs an editor.
10-07-2009 @ 3:01PM
David said...
Janna,
You are as stupid as this idiot, selfish, light bulb changer. This guy had the perfect opportunity to make a difference and contribute something positive to society. What did he do? He did nothing!!!!!!!!! 5 million was a considerable sum almost 30 years ago....but then again you are to stupid to know this because you are an idiot. It's no wonder this world is so messed up.
10-07-2009 @ 11:07AM
Steven said...
I think anyone who enjoyed there life and has no regrets I applaud them. The man is nearing his death bed and in his last 20 plus years hedid more than many of us can say we did.
10-07-2009 @ 11:11AM
MORRIS said...
This is the same story over and over again. Why is it that this is the normal turnout in each Big Lottery Story ? Let me right now enlightens you. Everyone always have their reasons why this went bad, and I have read many stories and yet to hear someone come up with a solution. So since I have the solution it is fit that I share it with you. This way you will not be broke years later after winning the Lottery:
Now lets start out with 5 million dollars because Mr. Lou had the same amount. The number of millions really doesn't matter as long as you follow this one basic principle. How much money did you make before the Lottery ? Get that amount and write it down. This number is important because this is what you was making after taxes. Your allowance you are allow to spend it less than what you made. Let me explain. You make 40,000 a year after taxes. Now this is real simple divide what you made into 12. That amount is 3,333.33. You shouldn't spend more than 4,000 a month especially when you are not earning more than 4,000 on an investment. Real simple math here.
Someone mention 10 million same principles. How much did you make before the lottery ? Do you know the first thing you should do ? Of course after thanking the Supreme Being. Wait at least 30 to 90 days I really recommend the 90 days. It gives your mind time to really absorb what is really going on.
10-07-2009 @ 11:12AM
bevsaves3 said...
Poor guy.
10-07-2009 @ 11:34AM
alex said...
Either way you look at it, you don't blow 5 or even 2.5 million.
10-07-2009 @ 12:12PM
woodyhall17 said...
To All :
What good is 5,10, 50 million ........... IF you just leave it in the bank , never use any ....... then die ?
My Grandaddy , and Dad , both multi-millionairs , never " enjoyed the fruits of their labor " , just worked , until they died .
Yes , I've made several million working and now , old , sick , and fighting " family " members who want it all , NOW ! Each one , wants it all ! Greed .....
I gave to the needy , the Church , and spent a hundred thousand , racing stock cars . You're not going to take any with you , when you go ! Enjoy it .
10-07-2009 @ 2:15PM
Rick said...
Janna, you must prepare your plans before you win , even if
it never happens, you probably dont remember, but the boxer
who took the tile from Casius Clay(Mohama Ali), he got
$100,000.00 for the fight and wen and bough 6 Cadillacs,
he did not have money for gas.. If you win millions on a lotto,
why in the hell you want to invest on anything? Sure you want to get a new car, pay all your bills,and improve your living a bit
and put your money in cert. of deposit and or treasure certificate
and have a good time with the interest without any worries
10-07-2009 @ 3:05PM
lulu said...
I believe minimum wage in 1985(?) was $5. an hour... if you worked 40 hours a week=$200 a week...gimme a break--$5million even today is plenty of money to live extremely comfortable on!
10-07-2009 @ 3:08PM
Iusemybrain said...
People living above their means is the problem and he is an idiot. Of course we know he didn't get the full 5 million but still. Okay people here we go............when you get a lump sum of money you need to do the following:
1. Put 1/2 in the bank right away
2. Invest 1/4 in the money market, yourself (education), stocks, bonds and or put half of this fourth into an account for your children's college fund.
3. Re-model and fix up your home...(don't go out and act like a dumbass and buy a 2 million dollar home idiots)....
4. Continue to work and act as if you never came into this money.
Gee...if only people had more of a brain, this economy wouldn't be in the trouble it is now!
10-07-2009 @ 4:47PM
Jewel said...
You are so right!!!!!!!!! He didn't get 5mil. an for that to survive 2 x-wives, and 30 years he did great!!!!!!!!!
The dumb and stupid are the ones that have not WON the lottery!
HELLO!