$2 billion Powerball winner buys California

19 Sept 2023 · 1 min

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In this brief commentary, Jerry Taylor warns that the recent $2 billion Powerball winner is making financially reckless decisions. The winner chose the cash option, receiving roughly $1 billion before taxes, which translates to about $628 million after taxes. Within a short period, he has already spent roughly $75 million on three California properties—a $47 million Los Angeles mansion, a $25.5 million Hollywood Hills home, and a $4 million Altadena house—plus unknown additional purchases. Taylor emphasizes that the ongoing upkeep for these properties will cost several million dollars annually. He advises anyone in a similar windfall to let the “dust settle,” giving themselves time to adjust before making large, potentially unsustainable purchases.

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The recent $2 billion Powerball winner is doing all of the things with that money that you should not do. He took the cash payment of about $1 billion, which resulted in about $628 million after taxes. But he's already spent about $75 million on real estate in California. This includes a $47 million mansion in Los Angeles, a $25.5 million home in Hollywood Hills, a $4 million home in his hometown of Altadena, California. And I'm sure no telling what else. The upkeep on $75 million worth of homes will be several million dollars a year. Look, if this were to happen to you, let the dust settle. Give yourself time to adapt to this total life change before you run out and buy up half the planet.