The richest Powerball winner in the US has reportedly bought an extremely luxurious $47 million mansion in Los Angeles, but financial planners believe it is a “terrible” purchase, as are a vintage Porsche 911 and other properties he now owns. 31-year-old Edwin Castro became an overnight billionaire after getting $2.04 billion in a California lottery. $997.6 million was thus added to his bank account.
After the win, Edwin bought two large multimillion-dollar mansions in California in one month. His first purchase was a $25.5 million estate in the Hollywood Hills, and then a $4 million mansion that offers a stunning view of the San Gabriel Mountains.
Now, Edwin's new home is set on a 4700-square-metre block. It has as many as seven bedrooms and 11 bathrooms, as well as various other remarkable amenities.
The home houses DJ turntables that rise up from the ground. There is a champagne tasting room, a wine cellar, a suspended glass walkway, a theatre, as well as an infinity pool that overlooks Los Angeles.
Why do financial advisors think Edwin Castro’s purchases are ‘terrible’?
However, financial advisors do not recommend such investments. Financial advisers believe that it is better for winners to collect their massive lottery payouts through annual payments, and not the lump sum. They also believe that people suddenly getting such a huge amount of wealth must consult with a financial planner, tax lawyer, or other expert to come up with a proper plan, Fortune reported.
“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,” said Emily Irwin, managing director of advice and planning at Wells Fargo’s investing and wealth management division.
{{/usCountry}}“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,” said Emily Irwin, managing director of advice and planning at Wells Fargo’s investing and wealth management division.
{{/usCountry}}“Maybe you have student loans you want to pay off, that makes sense. But try to avoid that mega-purchase,” she added.