$2B Powerball winner wipes out 76M on big house – but experts call it ‘burden of money.’ Better investment strategies instead

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What would you do if you won big in the lottery? How about splurging on an assortment of multi-million dollar cars and vintage cars?

That’s what Powerball winner Edwin Castro did, according to the New York Post (1).

Since winning the historic $2.04B jackpot in 2023 with a cash payout of $997 million, Castro has purchased an exclusive Los Angeles estate for $47 million, a $25 million home in the Hollywood Hills and a $4 million home in Altadena, California — not to mention a $250,000 vintage Vorche 1911. about $60K.

But all was not going well for the lottery winner. Castro’s $4 million home was destroyed in the 2025 Palisades Fire, prompting him to spend another $10 million to buy fire-ravaged lots in Altadena with plans to rebuild those properties, the New York Post reported (2).

Are these smart investments for that much money?

Paul Karger, founder of financial consulting firm TwinFocus, told Fortune that luxury homes tend to be “a huge financial burden [can take] several years to sell (3).”

Just maintaining a home can make 1% to 4% of its value annually, which means Castro can spend millions of dollars each year to maintain his assets.

So, even if you have the money to buy a luxury property, you need to understand all the costs of owning and maintaining a home. It is important to budget for renovation costs and property taxes. Understanding your finances and proper budgeting can help you reduce any financial burden that may arise from reckless purchases.

Advisor.com can help you find a certified financial advisor who can help you manage your money and make smart investment decisions. All you have to do is answer a few basic questions and Advisor.com will match you with a certified professional within minutes.

You can then set up a free, no-obligation consultation to see if they are right for you.

Tying up your wealth in large buildings is not the best way to build wealth. Check out other ways to invest in real estate here.

Buying multi-million dollar homes may not be smart for lottery winners, but apparently no one told Castro about another way to invest in real estate. Commercial real estate has a long history of adding stability to investors’ portfolios, more than the S&P 500 over 25 years (4).

Multifamily rentals are a great option for mortgage investors to consider, as the mortgage market tightens in 2026 (5).

If diversifying into multiple rental properties appeals to you, you may consider investing with Lightstone DIRECT, a new investment platform from Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multi-family properties in its portfolio.

Since they cut out the middlemen – brokers and crowdfunding middlemen – popular investors with as little as $100,000 to invest can get direct access to multi-family-type opportunities. This streamlined model can help reduce costs while increasing transparency and control.

And with Lightstone DIRECT, you invest in single-asset multifamily contracts alongside Lightstone – a true partner – as Lightstone invests at least 20% of its capital in each offering. All Lightstone investment opportunities undergo a rigorous, multi-step review before being approved by Lightstone Executives, including Founder David Lichtenstein.

How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to review your investment opportunities. From here, all you have to do is verify your information to start investing.

Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted market returns with a 27.6% historical net IRR and 2.54x historical net equity multiple on identified investments since 2004. All told, Lightstone has $12 billion in assets under management – including in commercial and commercial real estate.

As such, even if multifamily rentals don’t appeal to you, Lightstone can still serve you as an investment vehicle for other real estate verticals.

Get started today with Lightstone DIRECT and invest with experts who have experience and skin in the game.

For those who do not have an approved position and are looking for an opportunity to enter the real estate market, you can do so with Asvika.

Backed by global investors such as Jeff Bezos, Asvika allows you to invest in small vacation units and rental properties without the responsibility of property management or home ownership.

You can choose from Arrived’s curated selection of properties and start investing with as little as $100.

Read More: I’m about to turn 50 and have no retirement savings. Too late to catch up?

Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10

While spending money after hitting the jackpot seems inevitable, other assets are worth considering if you have a lot of money to invest.

Precious metals – especially gold and silver – have become hedges against inflation due to their scarcity and inability to be produced in large quantities, unlike fiat currencies.

These factors are especially important for retirement planning and long-term wealth preservation.

Following the record-breaking 2025 in which the price of gold rose almost 65%, the price of the precious metal continues to rise – increasing more than 20% in January 2026, according to the Forbes report (6). In fact, gold increased in value it increased 58 over the last 100 years (7).

Another option for building your retirement fund is an inflation-hedging asset? A gold IRA.

Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing important tax advantages to the IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Additionally, the company will match up to 10 percent of eligible purchases in free silver.

If you want to know if this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

While volatility in traditional markets is driving interest in non-traditional investments like gold and other precious metals, there are other asset classes that should be considered.

Some such assets have recorded good returns over 20 years, indicating strong long-term investment potential. And with a moderate relationship with traditional markets, this alternative investment can provide a hedge against inflation, especially in the midst of global economic uncertainty (8).

You may be surprised to find this beautiful art treasure.

In fact, this asset class has long been favored by the ultra-rich as a solid and lucrative addition to their portfolios. And with approximately 100 billion dollars in annual trade volume and an estimated global value of more than 200 million dollars, technology represents a major asset class, according to Deloitte (8).

Although some pieces of art can sell for millions of dollars at auction, you don’t have to win the Powerball to invest.

With Masterworks, you can find money to invest in blue-chip paintings by iconic artists like Banksy, Basquiat and Picasso.

Just look at the shares in their attractive portfolio and decide how many shares you would like to buy.

Also, Masterworks does all the heavy lifting, from searching the market for the best deals to the storage and sale of the artwork itself – making high-end art investing affordable and stress-free.

Masterworks has sold 25 crafts so far, giving annual net returns of 14.6%, 17.6% and 17.8%.

Sign up today and you can skip the wait for Masterworks’ next offer.

*Past performance is not indicative of future returns. Investing involves risk. See key Rule A disclosures at Masterworks.com/cd

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New York Post (1), (2); Luck (3); Investopedia (4); JP Morgan (5); Forbes (6); United States Gold Bureau (7); Deloitte (8)

This article provides information only and should not be taken as advice. It is provided without warranty of any kind.