The Powerball winner purchases a $47 million LA mansion; here’s why it’s a ‘terrible’ purchase.
Edwin Castro’s new home sits on a 4700-square-metre lot and has up to seven bedrooms and eleven bathrooms.
The US’s richest Powerball winner reportedly purchased a $47 million mansion in Los Angeles, but financial planners believe it was a “terrible” purchase, along with a vintage Porsche 911 and other properties he now owns. Edwin Castro, 31, became an instant billionaire after winning $2.04 billion in a California lottery. Thus, $997.6 million was added to his bank account.
Edwin bought two large multimillion-dollar mansions in California in one month after winning. His first acquisition was a $25.5 million estate in the Hollywood Hills, followed by a $4 million mansion with a breathtaking view of the San Gabriel Mountains.
Edwin’s new home is now situated on a 4700-square-metre block. It has up to seven bedrooms and eleven bathrooms, as well as numerous other remarkable features.
DJ turntables rise from the ground in the house. A champagne tasting room, a wine cellar, a suspended glass walkway, a theater, and an infinity pool with views of Los Angeles are all available.
Why are Edwin Castro’s purchases deemed ‘terrible’ by financial advisors?
However, such investments are not recommended by financial advisors. Financial advisers believe that winners should receive their massive lottery payouts in annual installments rather than a lump sum. They also believe that people who suddenly become wealthy should consult with a financial planner, tax lawyer, or other expert to develop a proper plan, according to Fortune.
Make no visible changes in your life. “Don’t quit your job, don’t 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, advised.
“Perhaps you have student loans to pay off, which makes sense.” “However, try to avoid that mega-purchase,” she added.