$2 billion Powerball jackpot winner made 'terrible' purchases with prize money, financial expert says

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By James Kay

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The lucky person who won the $2 billion Powerball jackpot allegedly made "terrible" purchases with the prize money according to a financial expert.

Let's be honest with each other for a moment - we've all spent a large amount of time pondering what we would do if we won the lottery.

Personally, I would be buying houses all around the world and never staying in the same country for more than a month - alongside ordering takeout every night.

But what would you do if you won $2 billion? That amount seems almost too big to spend, but according to one financial expert, the winner of this huge amount wasted their riches.

Edwin Castro, the 31-year-old Powerball winner who bagged a staggering $2.04 billion jackpot in a California lottery last year, has been raising eyebrows with his purchases, as reported by the New York Post.

Castro, who skyrocketed to overnight billionaire status by opting for a lump-sum payment of $997.6 million, has recently acquired a jaw-dropping $47 million mansion in the exclusive enclave of Bel Air.

In a whirlwind spree of property acquisitions, Castro has previously made waves in the real estate market with two multimillion-dollar purchases in the span of just one month.

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Castro won his fortune playing Powerball. Credit: Gerville/Getty

His buying spree began with a $25.5 million Hollywood Hills estate, swiftly followed by a $4 million mansion offering breathtaking vistas of the San Gabriel Mountains.

However, his latest purchase takes extravagance to new heights. Nestled on an expansive 4,700-square-meter plot, Castro's new abode features a lavish seven bedrooms and an astounding eleven bathrooms.

Among its mind-boggling amenities are DJ turntables that emerge from the ground, a dedicated champagne tasting room, a climate-controlled wine cellar, a suspended glass walkway, a state-of-the-art home theater, and an infinity pool that provides awe-inspiring views of the sprawling Los Angeles landscape.

Financial experts are now raising red flags about Castro's spending choices, branding them as "terrible". Traditional financial wisdom advises lottery winners to receive their winnings through annual payments rather than a lump sum, the route Castro chose.

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Castro won the $2 billion jackpot. Credit: Tayfun Coskun/Anadolu Agency/Getty

Professionals in the field emphasize the importance of consulting with financial planners, tax lawyers, or other experts to develop a sound financial plan when suddenly accumulating immense wealth.

"Don't make any visible life changes. Don't quit your job, don't go out and buy a Ferrari, don't buy a mansion," cautioned Emily Irwin, managing director of advice and planning at Wells Fargo's investing and wealth management division, in an interview with Fortune. "Maybe you have student loans you want to pay off; that makes sense. But try to avoid that mega-purchase."

While it's probably sensible to not splash the cash all at once, it would be pretty difficult to resist with a sudden large influx of cash.

What would you do if you became an overnight billionaire?

Featured image credit: Tayfun Coskun/Anadolu Agency/Getty

$2 billion Powerball jackpot winner made 'terrible' purchases with prize money, financial expert says

vt-author-image

By James Kay

Article saved!Article saved!

The lucky person who won the $2 billion Powerball jackpot allegedly made "terrible" purchases with the prize money according to a financial expert.

Let's be honest with each other for a moment - we've all spent a large amount of time pondering what we would do if we won the lottery.

Personally, I would be buying houses all around the world and never staying in the same country for more than a month - alongside ordering takeout every night.

But what would you do if you won $2 billion? That amount seems almost too big to spend, but according to one financial expert, the winner of this huge amount wasted their riches.

Edwin Castro, the 31-year-old Powerball winner who bagged a staggering $2.04 billion jackpot in a California lottery last year, has been raising eyebrows with his purchases, as reported by the New York Post.

Castro, who skyrocketed to overnight billionaire status by opting for a lump-sum payment of $997.6 million, has recently acquired a jaw-dropping $47 million mansion in the exclusive enclave of Bel Air.

In a whirlwind spree of property acquisitions, Castro has previously made waves in the real estate market with two multimillion-dollar purchases in the span of just one month.

size-full wp-image-1263230461
Castro won his fortune playing Powerball. Credit: Gerville/Getty

His buying spree began with a $25.5 million Hollywood Hills estate, swiftly followed by a $4 million mansion offering breathtaking vistas of the San Gabriel Mountains.

However, his latest purchase takes extravagance to new heights. Nestled on an expansive 4,700-square-meter plot, Castro's new abode features a lavish seven bedrooms and an astounding eleven bathrooms.

Among its mind-boggling amenities are DJ turntables that emerge from the ground, a dedicated champagne tasting room, a climate-controlled wine cellar, a suspended glass walkway, a state-of-the-art home theater, and an infinity pool that provides awe-inspiring views of the sprawling Los Angeles landscape.

Financial experts are now raising red flags about Castro's spending choices, branding them as "terrible". Traditional financial wisdom advises lottery winners to receive their winnings through annual payments rather than a lump sum, the route Castro chose.

size-full wp-image-1263230465
Castro won the $2 billion jackpot. Credit: Tayfun Coskun/Anadolu Agency/Getty

Professionals in the field emphasize the importance of consulting with financial planners, tax lawyers, or other experts to develop a sound financial plan when suddenly accumulating immense wealth.

"Don't make any visible life changes. Don't quit your job, don't go out and buy a Ferrari, don't buy a mansion," cautioned Emily Irwin, managing director of advice and planning at Wells Fargo's investing and wealth management division, in an interview with Fortune. "Maybe you have student loans you want to pay off; that makes sense. But try to avoid that mega-purchase."

While it's probably sensible to not splash the cash all at once, it would be pretty difficult to resist with a sudden large influx of cash.

What would you do if you became an overnight billionaire?

Featured image credit: Tayfun Coskun/Anadolu Agency/Getty