World's richest lottery winner who won £1.6 billion jackpot criticised by experts after insane spending spree
A US man who became the world's richest lottery winner has been criticised by financial experts for his decision to splash the cash.
Edwin Castro's life changed forever back in 2022 when he made the decision to buy a ticket for the Powerball jackpot.
Most of us only ever lose money through playing the lottery. However, 31-year-old Castro made a huge return on his $2 investment after winning $2.04billion (£1.6billion).
No, that's not a typo. $2.04billion.
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It's hard to say what most of us would do if we found out such a large some of money was on its way to our bank account. Mostly crying, screaming, vomiting, or even a combination of all three.
However, once the shock wears off, it's time to start some serious spending.
And spending is exactly what Castro did.
After opting to take the $997.6million (£792.6million) lump sum rather than monthly instalments, the Californian decided to make a small dent in the Los Angeles property market by shelling out on a series of mansions. This included a house in Hollywood Hills for $25.5million (£20.3m), a comparably 'modest' $4million (£3.2m) home in Altadena, and a swanky Bel-Air mansion with views of the city for $47million (£37.4m).
Not content with just splurging on property, Castro upgraded his car and made sure to keep his new plush lifestyle safe by hiring security.
It seems like the 31-year-old is now set to enjoy is charmed lifestyle for the rest of his days.
However, financial experts don't agree with how Castro is splashing the cash.
Private Wealth advisor Jacob Turner shared his response to Castro's spending habits online, saying the winner had done 'everything you shouldn't do' when coming into a large sum of money.
"$76,000,000 of homes for those keeping track. In addition, he is reportedly rolling around in high-priced antique sports cars," he added.
So, how should lottery winners invest their money?
According to Property Saviour, some of the main reasons lottery winners end up going broke is due to lack of financial literacy and sudden lifestyle inflation, which includes splashing out on big houses, luxury holidays and fancy cars.
Instead, winners should look for investment opportunities to diversify their income as well as seeking advice from financial experts.
This view is shared by Wells Fargo's Emily Irwin, who urged winners to resist making huge lifestyle changes from the get go.
"Don't quit your job, don't go out and buy a Ferrari, don't buy a mansion," she told Fortune. "Try to avoid that mega-purchase."
Castro's insane winnings may have left him in a unique position, as Turner revealed he could feasibly maintain this new lifestyle if he 'invested the rest of the money in a diversified portfolio', which could leave him with over '$1,000,000 a month' to spend freely from interest rates.
Time to head out and buy a lottery ticket.
Brenna Cooper