Big money winners, why risk it all by investing in something dodgy?

[dave50]

The number of times I hear of people coming into a large sum of money either by winning it, inheritance or whatever, which is more than enough to live very comfortably for the rest of their life without having to work ever again but insist on putting it into some dodgy investment in order to make more money. Why? I don't understand the mentallity. Why risk it all when you have more than enough anyway? Is it greed? Someone please explain.

[factor-fiction]

Is it that common then? I can't think of any examples

[boxtops]

I believe that a host of financial advisors come after you when you win big money, and some people are just beguiled into risky investments.

[emmie]

the grass is always greener, so they think that they can have more by investing, and don't know the pitfalls. After all why would you if you have never had any money before to play with. So inexperience plays a part, but greed too.

[THEMOTLEY1]

I don't understand why they go for the publicity.

[Davethedog]

If you win £1m and left it in the bank I don't think you get more than about 5% and you would have to pay tax on that so thats 50k - about 13k so about 37k not bad but if someone said I can get you 7.5% wouldn't you consider it?

[dave50]

The reason I ask the question is because there was a story in the paper the other day about one of the members of a famous boy band who is now bankrupt because of dodgy investments. He made a small fortune in his time but now it's all gone. He must have been very foolish.

[MarkRae]

Homer: You're the richest man I know.
Mr Burns: Yes, but I'd trade it all for a little more.

[emmie]

bit more complicated than just being greedy

http://www.guardian.c...one-declared-bankrupt

[HowardKennitby]

Quite a bit of it about

http://www.worldoffem...s-you-will-hate-them/

[heathfield]

The value of money gets smaller all the time due to this thing called inflation. The elderly may recall the days when they paid one shilling for a pint of bitter, (yes, 5p!) These days it may cost them £3. Not much point in having kept that shilling in a jar for all these years. Placing money where it will gain interest is a way of maintaining the worth of that money. The hope is that by investing that shilling all those years ago, it might be worth £3 today.

[VHG]

>>>He must have been very foolish.

Plenty of far cleverer (and richer) people than him got their fingers burned in the Irish property crash.

The problem is that the Irish government (and banks) encouraged a property boom by lending money to anyone and everyone, then it all crashed around their ears.

In Ireland loads of housing estates were started during the boom, and now lie unfinshed, with some houses occupied and many other houses unfinished or not even started.

The price people paid for these houses has halved and some people now have mortgages twice what the house is worth.

It is very easy to say he made "dodgy investments" but he just got caught up in the whole Irish property crash.

[Booldawg]

maybe its not just about greed, possibly the need to live a successful life and be purposeful. I'd like to be in that situation to find out!