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The winner of the record-setting Powerball jackpot is said to have made "terrible" expensive purchases with his fortune, according to financial backers.
Edwin Castro, 31, who won the $2.04 billion jackpot in November 2022 and was identified as the winner in February, was reported to have purchased a third mansion in Los Angeles earlier this month, having already bought two others since collecting the lump sum payout of his historic lottery win, according to Daily Mail. Financial advisers, however, have recommended that lottery winners accept their winnings through annual payments and consult with a financial planner, tax lawyer or other expert to create a steady plan for their newfound wealth.
“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,” Emily Irwin, managing director of advice and planning at Wells Fargo’s investing and wealth management division, told Fortune. “Maybe you have student loans you want to pay off, that makes sense. But try to avoid that mega-purchase.”
The latest purchase is a $47 million compound in Bel Air reported to have seven bedrooms, 11 bathrooms and an infinity pool overlooking the city, as well as DJ turntables, a champagne tasting room, a suspended glass walkway, a wine cellar and theater. Castro had previously purchased a home located in the Hollywood Hills and another in his hometown of Altadena within a month span collecting his one-time lump sum payment of $997.6 million.
The 31-year-old is estimated to have paid a combined $76 million on the three homes, while also purchasing several notable luxury items, including a $250,000 vintage Porsche he was spotted driving in April. In February, the California Lottery announced Castro as the winner of the record-setting November 8 lottery, with Castro accepting the lump sum prize of $997.6 million.
Three tickets in California, Florida and Tennessee won the $1.586 billion Powerball jackpot in January 2016, which set the record for the world's largest jackpot (cash value and annuity) and was the ninth largest cash value per ticket.
Mega Millions' jackpot reached $1.337 billion on Friday, July 29, 2022, before a player in Illinois matched all six numbers. The jackpot was the second largest cash value ticket in lottery history.
Both the Powerball and Mega Millions jackpots increase during each following game until there's a jackpot winning ticket matching all six numbers drawn, which includes the additional Mega Millions Gold Ball or Powerball in each respective game.