By DENISE BALGOBIN Sunday, November 25 2007

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Trini-born Florida resident Donna La Guerre Campbell is suing her husband who walked out on her after winning part of a US lottery. ...

In the wake of recent claims by Trini-American Donna Campbell that her husband Arnim Ramdass “went into hiding” after winning part of a US lottery, Sunday Newsday decided to take a look at the local Lotto Plus game, and the general changes which a winner may undergo in coping with such a windfall.

We all dream of being winners, whether it’s from game shows or lotteries or investments. We all dream that if we’re smart enough, or lucky enough, we’ll strike it rich. A lottery ticket facilitates wishful thinking, offering people hope and a chance to dream, according to financial experts.

But is winning the lottery really a lucky event?

Not for many, especially if you lose the money, say experts. It also does not restore health or improve your personality.

Most of the time, winners remain fixed in their own patterns, although with nicer houses, nicer cars and nicer vacations. Winners have also been reported to experience extreme emotional and mental rollercoasters as they try to live with a huge win.

There are many scenarios which take place when someone comes into a large sum of money unexpectedly. Windfalls could create real strife and conflict where none existed before. People have been known to do the strangest things.

Trinidad-born American housewife Donna Campbell is reportedly pursuing legal action to stake her claim of half her husband Arnim Ramdass’ winnings, which he never told her about before he fled their Florida home. He has not contacted her and she has not been successful in locating him.

An older person once told me, “Money doesn’t buy you happiness. It just allows you to be miserable in comfort.” And these words have tons of insight.

Since the identities of winners are not revealed to the public in Trinidad and Tobago (and many other countries, unlike the United States where winners are often made into media celebrities), it was not possible to interview any of the local winners.

Since the game was introduced in Trinidad and Tobago in July 1994, there have been 143 millionaires created, with five unclaimed jackpots (up to November 14, 2007). According to information from the National Lotteries Control Board (NLCB), if these are ever claimed, this will push the number of local Lotto millionaires to 148.

The largest jackpot for 2007 was drawn on July 14 according to the NLCB. The amount was a whopping $12,477,398.51 and was won by one ticket holder.

The original Lotto game was restructured in July 1998 and renamed Lotto Plus, when the guaranteed minimum of $1 million was introduced.

That year, the highest ever jackpot was won, when $15,287,674.31 was won by one ticket holder in the draw of September 19.

A few months later on February 13, 1999, one player won the second largest jackpot of $14,948,920.47.

Nine jackpots have crossed the $10 million mark, with the first being won by two persons in April 1997. This was valued at $10,077,097.72, followed by one winner in October the same year taking home $12,002,315.29.

Also in 2007, one winner took home $11,010,050.84 in January and another took home $6,184,661.46 in April.

Financial consultant Lloyd Ince of The Consulting Interface Limited of Port-of-Spain told Sunday Newsday that usually when someone receives a large sum of money unexpectedly, the first reaction is one of elation and ecstasy, which generally leads to temporary irrational behaviour.

He stated, “If someone who won the Lotto came to me for advice, I would tell them to take some time to regain their composure and have an opportunity to think. The person should place the money into a low risk account like a money market account. This should accrue interest on a daily basis equal to or near to the prevailing inflation rate.

“They should also allow a few days to pass, while they formulate a plan that considers a few things. First, their long-term objectives or life mission as an individual, next, their primary or most important financial goals (ie education for self or dependents, home purchase, debt service management, developing an investment portfolio etc). Then short term needs or obligations.”

According to Ince, before considering investments, he would advise the winner to determine their normal monthly budget, then work out what they would earn on a monthly basis, if they invested the lump sum at 6%.

“For example, if the lump sum were $1,000,000, the monthly investment income will be $5,000 (i.e. 60,000/12months). Then they should ask themselves, ‘Given my monthly salary, would life be comfortable for me, if I received $5,000 more per month?’

“If the answer is yes, then one will be well advised not to spend any of the lump sum winnings, but to seek to invest it.”

He added though, that if for the person life “has been very restrictive because of existing debts, generally it will be better to pay off or reduce those obligations, such as mortgage or car loan.”

The objective, according to Ince, is to put oneself in a position whereby one can have a budget surplus each month, while having substantial investments. “In this way, one can become richer and richer, by possibly adding to investment capital from time to time. Then you can consider saving and investing. One possible plan for this was to put aside money to meet non-monthly expenses, such as annual car and home insurance, quarterly school fees, repairs, vacation etc. It is also advisable to set aside an emergency fund equal to six times one’s living expense needs.”

In terms of clients who after receiving unexpected windfalls, may not have taken his full advice, and thus lost some of their money, Ince said he has dealt with such persons.

“I have had clients who celebrated by indiscriminately adjusting to an upward lifestyle, or granted unsecured loans to family and friends, or purchased a maxi or taxi, not having a licence of their own thus depending on the good nature of a friend or stranger to run the vehicle for hire, on their behalf.”

Though stating he does not have the full research on persons who believe they can handle a windfall themselves without professional financial advice, Ince stated that, “there are certainly those who believe they can do so without professional help. I believe, however, that few of those who think they can are really capable of doing so.”

He added that the downside to winning unexpected lump sums in a lottery or any other form of gambling is the belief that it can happen again. “This creates a desire to gamble further and at higher stakes, in order to win more. Herein lies the biggest trap which leads to huge loss or reckless spending.”

Similar to the Ramdass/Campbell scenario, there are persons who join with family members, work colleagues and friends to purchase “syndicate” tickets, with fixed numbers every week, or their own particular strategy for choosing numbers.

There are also many myths surrounding the numbers chosen by lottery machines. Some of these include the belief that there are “hot numbers” which are drawn more often than others, operators know which tickets are winners and thus sell these to family and friends, there are proven set methods to picking winning numbers, new tickets are luckier than those from a previous week, and most common among gamblers is the belief that you can “chase” and recoup your losses.

Sunday Newsday contacted a Port-of-Spain online gaming lottery operator who spoke on the condition of anonymity.

“These are mostly not true,” he said when asked about the myths. “Lottery draws are random so there are no hot numbers. Each number has an equal chance of being drawn, so any set of numbers has the same odds of winning. “The NLCB has strict guidelines for all operators, so there is no way we can sell winning tickets to anyone before the draws. As for getting back money you’ve spent, this is generally impossible. It is a fact that the more lottery tickets you purchase, the more likely you are to lose money.”

The agent admitted he also plays a number of tickets every draw. “But people need to realise this is mostly a form of entertainment, not a smart way to invest or make money,” he stated bluntly.



Spending Lotto money



If you won the Lotto, what would you do?

Newsday asked this question of a few people on the Brian Lara Promenade last Thursday and got these replies:



Sherry, 34, Carenage

“If I was lucky enough to come across that kind of money, then everyone who has been supportive of me my whole life and has been there for me should be just as lucky as I was.”



Vashti, 22, St James

“I would wait at least a month before I collect. With all the crime taking place right now, I would arrange for myself and my family to migrate as quickly as possible.”



Roger, 46, Tacarigua

“Buy a house. I have been waiting for about three years on HDC and I don’t know how much longer they will take.”