You got me!  My thinking is very similar to yours, except I would put some of 
the principle (that I wouldn't need for 10 or 20 years) into longer range 
investments that earn a little more just to make sure I stay ahead of inflation.

I find it fascinating just how this happens.  Basically it is just very poor 
management of money.  But the exact details make for an interesting form of 
people watching to me.  Seems to usually be a combination of huge splurges 
followed by bad short term investments to recover the splurge tacked on to 
lending to too many family and friend who will never be able to pay it back.


--------------
Ian Skinner
Web Programmer
BloodSource
www.BloodSource.org
Sacramento, CA
 
"C code. C code run. Run code run. Please!"
- Cynthia Dunning

...-----Original Message-----
...From: Raymond Camden [mailto:[EMAIL PROTECTED]
...Sent: Friday, January 28, 2005 10:59 AM
...To: CF-Community
...Subject: Re: I now live with a millionaire
...
...That's one thing I never figured out - how folks can go broke after
...winning millions. If I understand right... and I may not... a normal
...treasury bill pays what.... 5% or so? That would mean a "small"
...lottery winning of 2 million dollars could generate 100k in interest.
...Taxes would take a third I think, leaving you with like 66k per year.
...That's a lot more than most folks make. If you don't quit your job,
...and you earn 50k - your now earning a 6 figure salary.
...
...If you win 5 million - it would be 250k before taxes, which would be
...over 100k a year. That is an insane amount of money to live with -
...live NICELY with. Why would you even bother touching the principle?

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