Money Rehab with Nicole Lapin - Encore: Confession$ of a Lottery Winner

Episode Date: May 21, 2022

Originally aired on October 21, 2021. We’ve all dreamed about winning the lottery, but what is it actually like? Today, Nicole calls up Powerball winner Timothy Schultz to find out.

One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that

I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime. Feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.

I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your

reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k?

You don't do it? No, I never have. You think the whole world revolves around you and your money. Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg.

The only financial expert you don't need a dictionary to understand. Nicole Lappin. Speaking openly about money is so taboo. It's super uncommon to ask people questions like, how much do you make at your job? Or have you ever been in debt? If so, how much? Right? at your job? Or have you ever been in debt? If so, how much? Right?

Have you ever been asked those questions? However, one money question that people aren't skittish about is asking what you would do with the prize money if you won the lottery. It's something we've all daydreamed about. So I wanted to talk to someone who did live that dream. So I called up Powerball winner Tim Schultz to hear more about what his experience was like. I wanted to get into the ways that winning the lottery changed his life, the amazing outcomes, and the challenges. Of course, any challenge after winning the lottery

is kind of a champagne problem, and not just any champagne problem. It's like a Dom Perignon problem. Winning the lottery is one of the luckiest, if not the luckiest, things that someone can experience. But you know me, I wanted to dig a little deeper and get the full story. And talking to a lottery winner really gets to the heart of how money changes relationships and everything. Here's our conversation. Tim, welcome to Money Rehab. Yeah, thank you so much, Nicole. I really, really appreciate it. Thank you for having me on. Thank you for being here.

So you're here to talk about the time that you came into a little bit of extra money. $28 million, I believe it was. Yes, it was in 1999. It was I won the Powerball. 1999, I won the Powerball. And so it's one of the most life-changing, surreal, crazy things that's ever happened to me. And I was 21 years old. So it was really a life-changing thing. Can you tell me a little bit about the day you found out you won the Powerball? Yeah. Well, I was working at a gas station and I sold myself the winning ticket. And so it's in a small town, Des Moines, Iowa. And so it was pretty big news that someone had won

the Powerball back then. And I basically sold the ticket. Everyone knew that I had sold the ticket. And so my boss called and left a voicemail on the answering machine. I was living in my parents' basement at the time. And so my father knew. He heard the message that someone had won at the gas station. And he knew that I played the lottery fairly regularly at that time in my life. And so he went down and was banging on the door. He said, Tim, get up, get up, get up.

And someone won the lottery. Someone won the Powerball. You might have won it. And so immediately, I jumped out of bed and was just panicked. First of all, I thought that I probably had won it. That's just what my gut instinct was telling me. And so I started panicking, looking for the ticket. I was looking everywhere. And I had little pieces of paper scrunched up all over the place. And I wasn't the most organized person at the time. And I finally found this.

I found the ticket. And it was curled up in this little ball. And I unraveled it and ran upstairs and saw my father. And this was 1999. So the internet is not what it is today. So we looked in a newspaper. And I'm sort of aging myself here, but we looked in the newspaper and compared the numbers of the ticket with the numbers in the paper and they matched. And I looked at it a few different times and it was just really,

really surreal. And we started hugging and jumping up and down. And it was just, it was very, very exhilarating. I can only imagine. So how many times had you played the lottery before winning? Well, I was 21 years old. And in that state, you have to be 21 to play. So probably for, this was February, my birthday was in a few months prior, so probably seven or eight months. February. My birthday was in a few months prior, so probably seven or eight months. And I played fairly regularly. Were you looking at this as an investment or were you really, really gung-ho thinking you were going to win?

I mean, I believed that I was going to win, but I was willing to accept it, of course, if I didn't win. And I was just basically just having fun with it, which is my advice. I have a lot of advice for people that play the lottery. But that's one thing is to have fun with it. And if it hurts you to spend the $1, the $2 that it costs to play, then don't play. But if you can afford it, know that you have a chance because you do have a chance if you play. And I played fairly consistently. And also, working at the gas station, I was consistently selling tickets to people. So, it was always on my mind to be playing. And I just felt like I need to be in it. I was in it to win it. But maybe it was just mere luck. but regardless, it was extremely, extremely life-changing and it really flipped my world upside down overnight.

I'm sure it did. And what are the other little pieces of advice you give people who are starting to play or already playing? Well, I would say that, of course, to only spend what you can afford to lose, but also to know that you do have a chance if you play. And if you do win, then, you know, really consider whether to claim a prize anonymously if you have the option. Because there isn't always, but there can be a darker side with people coming out of the woodwork and people really coming after you for money. And I know there's people talk about that all the time about that sort of thing, but I experienced a fair amount of that. And I didn't have the option to claim a prize private anonymously, but if I had had the option, I would have considered it. So you alluded to some of the darker things that happened to you,

people coming out of the woodwork. Can you tell me a little bit more about that? Yeah, I have a stack of, I should have brought them here to show you, but from over the years, I have a stack of letters from people, pleas for money. Some people would say,

you're gonna be broke in a few years and you're 21. I just tried not to listen to that, but that did terrify me. So I tried to be frugal and have an understanding of how much I can and can't spend and understand that I can't just get whatever I want all the time or else I would go broke eventually. And I'm assuming you're not broke now. No. No, I'm not. I'm not broke. From the financial standpoint, did you have a financial advisor or a planner that you went through? I did. Yeah. One of the first things I did was contact an estate attorney and work with some financial

advisors. And because I had no understanding, no concept at all of what to do with that kind of wealth, with that kind of money. And so that's one of the first things I did because of that. I mean, what do you... I don't think the average person knows unless you have a background in education and that sort of thing. And so that's one of the first things knows unless you have a background in education and that sort of thing. And so that's one of the first things I think you should do if you do happen to win a major jackpot is, or it doesn't even have to be a major jackpot. Or inheritance or something like that. Yeah. Some windfall. Hold onto your wallets, boys and girls. Money rehab will be right back. One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under

control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a time checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes

at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.

I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests.

Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble. So I don't end up making time to make my house look guest friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host.

Now for some more money rehab. I'm scared to ask, but what were your taxes like oh oh my gosh horrendous how horrendous i believe it was at least at least a third of the prize possibly more it was i mean it was really high so get $28 million? No, no, I didn't get close. And I try to be transparent, but I didn't get anywhere close to $28 million. And how did it change your friendships? Or I don't know if you went on to date and not be a bachelor. How did that change your experience with love?

Did it change your family experiences? Yeah, it really, I would not have anticipated this one when before prior to winning the lottery, but it really changed so many relationships. And when it came to intimate relationships and that sort of thing, I had a really hard time for a long time trusting people to date. And I think my dating life was much better as a bachelor working at the gas station for a little over minimum wage, believe it or not. I met so many people there and I really had a thriving dating life. But after winning the lottery, and this is not what people

would think, but after winning the lottery for myself, anyway, it was very difficult to trust people. And so I couldn't really, I did date, but I didn't really give anyone a real chance because I didn't know. I had so many people coming to me, hoping that I would give them money or thinking that treating me like I was a walking, talking ATM machine. That's how I felt that I just felt it was just very difficult to trust someone that they had good intentions, even if they did. And I'm sure most of them did. So it took a few years for me to relearn how to trust new people in my life. Because I had so many people that were trying to use me. And it wasn't all awful. And painting it was this awful thing.

But that wasn't easy, that aspect of it. You talked about some of the amazing experiences you've had. What were some of those? I was able to, I mean, I did traveling, went to Europe a few times, and I have been able to meet, I'm really into film and journalism and that sort of thing. So I've been able, I feel very blessed to be able to meet a lot of people that I respect in the industry that have really been very supportive. And I just, I wouldn't have met those people probably had I not won the lottery. I mean, that's just one little aspect of it, but it really has opened a lot of doors and

opportunities that I don't, I mean, I was able to pay for a college at a major university. I couldn't do that. I mean, I could have taken out loans, but I just feel very, very fortunate and blessed that I was able to do that. I don't take that for granted, you know, because I didn't always have that. So that was, that's an amazing thing. If you value, if you value college. I mean, it's ridiculous how much they charge for people to go to college these days, in the United States anyway, in my opinion. And what have you learned through doing interviews with other winners that you were surprised by? That's a good question. I think a lot of lottery winners are optimistic people. One thing that surprised

me is that a lot of lottery winners do believe that they're going to win before they win, that not everyone, but a lot of them do. And I get, I mean, one person, you could argue that that's just when you, you wouldn't play the lottery if you didn't think you had a chance. But a lot of the people that I've interviewed have had experiences that have led them to believe that they were going to win before they won. And I find that very interesting, whether it be, in my case, it was a dream, but I haven't interviewed anyone else that's had a dream about it and then won, but there are other people. With other premonitions or something. Yeah, that sort of thing. And so I find that sort of thing fascinating whenever I interview someone that's had an experience similar to that.

But another thing that I really find very interesting and compelling with some of the people that I've interviewed are how it's changed relationships with them. Because I compare it to my own. I compare it to my own. Some of these people also have had others come out of the woodwork and come at them for money and they've had some negative experiences and relationships ruined and that sort of thing. And I certainly did. Most of the relationships that I've had stayed intact and were positive and people that really loved me and believed in me, were supportive. But some of the closest relationships to me were ruined, including some family that were previously close to me. And I don't name names or anything like that. But that was one of the most difficult things was having people that I loved and cared about want money and keep asking

for money. But I had this understanding that I couldn't just give and give and give, or I would be in trouble eventually, but they didn't necessarily understand that they viewed me. You know, one thing about winning the lottery, a jackpot is that for some people, they will have less respect for you because they view it as you getting money, something for nothing, rather than it being earned. And so, that is real. That happens with some people. And luckily, thankfully, most people didn't view it that way. They're just happy for me and supportive. But some people that I was formerly very close with did view it that way. You get something for nothing. You just got lucky. So you should help me out more. And that can't go too far.

If you want to be smart financially, if you want to keep anything, you can't just give and give and give. And your means really varies depending upon whether you win half a million dollars or whether you win $10 million or whether you win hundreds of millions of dollars. Your means really, really varies. But you do have a means. I mean, look at the famous sports athletes out there, too, that come across millions of dollars and then get in financial trouble.

It's easy to do. So you have to be smart. For today's tip, you can take straight to the bank. Don't be afraid to break up with your financial advisor. I know breakups are hard, and this kind of breakup can feel especially difficult. Because as a client, you are probably hyper aware that your financial advisor makes money from your partnership. But don't forget that you are supposed to make money from your partnership too. Your relationship with your financial advisor

should ultimately be win-win. So if you don't think the relationship is working out, you have every right to move on to bigger and better things. Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team, Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering, and sound design. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.