THE COUNTRY WAS SUPER EXCITED ABOUT POWERBALL WINNINGS, THE
POSSIBILITY OF COMING A
MILLIONAIRE IN THE U.S..
APPARENTLY THREE PEOPLE BOUGHT WINNING TICKETS, AND I WANT TO
RAIN ON THEIR PARADE BY TELLING THEM THAT THEY ARE LIKELY TO BE
MISERABLE WITH THE MONEY THAT
THEY HAVE WON.
THE WINNERS OF THE 1.3 BILLION DOLLAR POT ARE FROM
CALIFORNIA, FLORIDA AND TENNESSEE.
IT IS IMPORTANT TO REMEMBER THAT EVEN THOUGH WE HAVE BEEN
TOLD OVER AND OVER AGAIN THAT MONEY CAN'T BUY YOU HELP ñ
HAPPINESS, IT IS TRUE.
THERE ARE COUNTLESS CASES THE PEOPLE WHO HAVE WON
MILLIONS OF DOLLARS, AND THAT THEY ARE MISERABLE AFTERWARDS.
THIS IS A WAY TO MAKE EVERYONE FEEL BETTER ABOUT THE FACT
THAT THEY DIDN'T WIN.
"THE NATIONAL ENDOWMENT FOR FINANCIAL EDUCATION ESTIMATES
THAT AS MUCH AS SEVENTY PERCENT OF PEOPLE WHO ARE ABRUPTLY
FLOODED WITH CASH LOSE ALL THE
MONEY WITHIN SEVERAL YEARS."
HERE IS WHAT TYPICALLY HAPPENS,
AND HERE IS WHY I AM NOT REALLY IN FAVOR OF LOTTERIES AT ALL.
THE POOREST PEOPLE GET CONVINCED THAT THERE IS A POSSIBILITY THAT
YOU CAN BE REALLY WEALTHY, SO BUY A TICKET, AND A LOT OF
PEOPLE WHO HAVE NO BUSINESS
BUYING THAT TICKETS, WHO CAN'T WITH THAT MONEY, WILL END
UP DOING IT ANYWAY.
AND THEN SOMETIMES A POOR PERSON WINS, BUT THEY DON'T HAVE A
SUPPORT SYSTEM, THEY MIGHT NOT HAVE A FINANCIAL ADVISOR,
SOMEONE WHO HELPS THEM MANAGE THAT MONEY.
ALL OF A SUDDEN FAMILY MEMBERS THAT THEY HAVEN'T TALKED TO
IN DECADES COME AROUND, HEY WHAT'S UP I THINK I HAVE
CANCER, YOU WANT TO HELP ME OUT?
I'LL BUY YOUR CANCER OFF, I'LL BRIBE YOUR CANCER INTO
LEAVING YOUR BODY.
BUT ALSO PEOPLE WILL SPEND THE MONEY ON FRIVOLOUS THINGS.
FUN THINGS.
THERE HAVE BEEN CASES OF PEOPLE WHO BUY DRUGS AND
BECOME ADDICTED TO THINGS, OR THEY SPEND THEIR MONEY ON
STUPID THINGS LIKE JETS, OR CARS.
A BRITISH STUDY FOUND THAT FORTY-FOUR PERCENT OF
LOTTERY WINNERS EARNINGS WERE SPENT AFTER ONLY FIVE YEARS.
ANOTHER FLORIDA LOTTERY WINNERS WHO NETTED UP TO $150,000
FOUND THAT ABOUT ONE PERCENT WENT BANKRUPT IN ANY GIVEN
YEAR."
$130,000 IN FLORIDA IS LIKE $1 BILLION IN LOS ANGELES.
IF YOU ARE IN TALLAHASSEE AND USE CAME ACROSS $150,000,
YOU CAN BUY A HOUSE.
LET'S CONTINUE WITH THAT.
LOTTERY WINNERS WHO NETTED UP TO $150,000
FOUND THAT ABOUT ONE PERCENT WENT BANKRUPT IN ANY GIVEN
YEAR, ABOUT TWICE THE RATE OF THE GENERAL POPULATION, AND
WHILE THOSE WHO GOT LARGER POTS DIDN'T TEND TO GO BANKRUPT
AS QUICKLY, IT STILL ENDED UP CATCHING UP TO THEM.
LET'S FAST FORWARDED 2008.
THERE WAS NO STUDY HAS FOUND THAT AFTER SIX MONTHS AFTER
WINNING THE LOTTERY, PEOPLE WERE NO HAPPIER THAN THOSE WHO
DIDN'T WIN.
THIS IS RIDICULOUS.
I JUST LOOKED AT THE STUDY, AND THE WORDING ñ OH NO, I WAS
THINKING ABOUT THE 1978
STUDY, WHERE THEY WERE TALKING ABOUT RANDOMLY SELECTED PEOPLE,
AND EVEN TOOK SIGNIFICANTLY LESS PLEASURE IN EVERYDAY HAPPINESS,
SUCH AS TALKING TO A FRIEND AND RECEIVING A COMPLEMENT.
HOW ARE THEY MEASURING HOW HAPPY THIS PERSON IS?
HAPPINESS STUDIES ARE USUALLY A LITTLE WONKY WHEN IT COMES
TO ACCURATELY MEASURING HAPPINESS.
BUT THAT IS ONE OF MANY STUDIES THAT HAVE DELVED
INTO THIS ISSUE.
HOW MUCH MONEY DO YOU NEED TO MAKE ON A YEARLY BASIS IN
ORDER TO BE HAPPY, AND WHEN DOES IT PLATEAU?
WHAT IS YOUR INITIAL OFFER?
THERE WAS A STUDY THAT INDICATED THAT $75,000
IS WHAT YOU HIT THAT PLATEAU, AND AFTER THAT IT STARTS TO GO.
$75,000 IN LOS ANGELES IS NOT MUCH.
IT IS LIKE 920 BILLION ñ MILLION DOLLARS, WHATEVER THE
EXCHANGE RATE IS TO FLORIDA DOLLARS.
LET ME GIVE YOU SOME EXAMPLES OF PEOPLE WHO WON A LOT OF
MONEY AND IT DIDN'T WORK OUT FOR THEM.
JACK WHITTAKER ONE $315 MILLION IN POWERBALL IN 2002,
THE LARGEST JACKPOT WON BY A SINGLE PERSON AT THE TIME.
HIS CONSTRUCTION COMPANY WAS FLOODED WITH LAWSUITS RIGHT
AFTERWARDS, WHICH COST HIM $3 MILLION TO FIGHT.
ALSO, HE REPEATEDLY HAD LARGE SUMS OF MONEY STOLEN, AND
HIS GRANDDAUGHTER SPENT HER SHARE ON DRUGS,
UNFORTUNATELY DYING IN 2004.
MY GRANDDAUGHTER IS DEAD BECAUSE THE MONEY, HE SAID.
DID HE PUT THE MONEY UNDER HIS PILLOW?
HOW TO GET MONEY STOLEN THESE DAYS?
IDENTITY THEFT.
YOU THINK SOMEONE STOLE HIS IDENTITY?
I TOTALLY GET IT.
I GET THAT AS SOON AS PEOPLE HERE YOU HAVE MONEY PAID
SAY LET ME GET SOME OF THAT, AND YOU WANT TO GIVE IT TO THEM
BECAUSE YOU DON'T WANT THEM TO THINK YOU ARE A JERK.
HAVING MONEY IS A SKILL, DEALING WITH THE MONEY YOU HAVE IS
A SKILL.
LIKE ANYBODY, EVEN IF YOU HAVE FIFTEEN DOLLARS, YOU HAVE
TO KNOW HOW TO MANAGE THAT, AND IT IS UNFORTUNATE THAT PEOPLE
GET THIS INFLUX OF MONEY GO AND FEEL THAT THEY SHOULD SPEND IT.
IT SEEMS LIKE AN UNENDING AMOUNT OF CASH, AND THEY TRIED TO
BUY THE THINGS THAT HAVE ALWAYS WANTED, BUT OVER THE COURSE
OF YOUR LIFE YOU COULD WANT A LOT OF THINGS.
YOU CAN'T HAVE IT ALL, YOU NEED SOMEBODY SET YOU ASIDE AND SAY
HEY LISTEN, HERE'S HOW WE'RE GOING TO INSULATE YOU FROM THE
LAW, FROM LAWSUITS, AND HERE IS HOW WE'RE GOING TO INSULATE
YOU FROM DOING HARM TO YOURSELF.
IF YOU WIN $350 MILLION, GO BUY ONE HOUSE AND LIVE IN IT AND
THAT'S IT, AND PUT YOUR MONEY ASIDE AND HAVE SOMEONE TELL YOU
HOW MUCH INTEREST YOU WANT TO MAKE, AND THAT IS YOUR SALARY.
WHEN YOU ARE IN A TERRIBLE FINANCIAL SITUATION, IT IS
REALLY HARD TO BUY INTO THE NOTION THAT A TREMENDOUS
AMOUNT OF MONEY ISN'T GOING TO MAKE YOU HAPPY.
BUT ALSO, I LOVE THE PLACE I'M IN RIGHT NOW.
I COMPLAIN ABOUT THE FACT THAT I CAN'T OWN A HOME YET, I
COMPLAIN ABOUT THE FACT THAT I'M NOT MAKING AS MUCH AS I
WANT TO MAKE ñ
CENK ñ
ALL CENK'S FAULT.
BUT I FEEL LIKE A LOT OF PEOPLE THE COUNTRY ARE
STILL SEEKING TO BE MILLIONAIRES BECAUSE THEY ARE NOT HAPPY.
THAT IS NOT GOING TO BE YOUR TICKET TO HAPPINESS.
YES, I KNOW THERE ARE UNFORTUNATE PEOPLE OUT
THERE WHO DON'T EVEN HAVE THAT, BUT FOR THE VAST MAJORITY
OF PEOPLE WHO ARE OUT THERE BUYING THOSE LOTTERY TICKETS,
WANTING TO BE THE BILLIONAIRE, JUST COUNT YOUR BLESSINGS,
THERE ARE GREAT THINGS HAPPENING IN EVERYBODY'S LIFE.
SPECIFICALLY, BUYING THE LOTTERY IS A TAX, AND IT IS
AN AGGRESSIVE TAX ON THE POOR BECAUSE THEY HAVE LESS
MONEY IN THEIR POCKETS, SO EVERY DOLLAR THEY SPEND IS A
LARGER PERCENTAGE OF THEIR OVERALL WORTH, AND
STATISTICALLY THEY'RE NOT GOING TO GET IT BACK.
THE ODDS ARE EFFECTIVELY ZERO THAT YOU WILL WIN ANY MONEY.
THE ONLY POSITIVE SIDE OF A LOTTERY IS THAT A LOT OF
THAT CASH IS EARMARKED TOWARDS THINGS LIKE EDUCATION, THE
MONEY GOES TOWARD SOMEPLACE.
BUT IN A NATIONAL LOTTERY LIKE POWERBALL IT IS MORE
DIFFICULT, BECAUSE ALL THE STATES ARE FIGHTING OVER THAT.