Tuesday, December 1, 2020
Man who became a millionaire after living on $200 a month says these are the downsides of a windfall
Prior to selling the blanket, Loren was unemployed and survived off of monthly disability checks. Loren lost his leg in a terrible car accident that was nearly fatal. It is safe to say that the sale of the blanket saved Loren's life has he want from a little shack in California to a $250,000 home.
However, Loren made it clear that windfalls do come with unexpected challenges like "tax hurdles and family drama."
Loren stated that he is losing close to $10,000 a year in insurance and property taxes. Also, Loren's disability checks were cut off and with no source of income, he will have to move somewhere with a lower cost of living.
Loren stated that him and his wife are planning on selling their house and moving to Idaho, where taxes are lower and living is more affordable.
On top of the taxes, Loren stated that as soon as his family members found out about the windfall, they began asking for a cut of the money, creating a lot of anxiety for Loren. Loren's sister even threatened to sue him.
Seems that Loren's family does not understand that even with the windfall, he is not rich and cannot just blow the money and buy his children whatever they want.
Apart from buying a Dodge Challenger SRT8 from West Coast Customs and a new home, Loren said that he spent wisely and even invested part of the money.
Loren says that although his life became easier after getting the money, he has not changed.
“I firmly believe I’m here because years ago I turned my life around,” he says. “The things I’ve been through, I tell people it’s a strong faith and a strong mind. Without those things you’re not going to make it.”
See Zack Guzman, Man who became a millionaire after living on $200 a month says these are the downsides of a windfall, CNBC, November 30, 2020.
Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.