This Powerball winner bought 3 California mansions — here are better ways to invest a cash
September 28, 2025
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What would you do if you won big in the lottery? How about buying a $50 million mansion, complete with a champagne room and DJ turntables?
That’s apparently what Powerball winner Edwin Castro did in late 2023, according to USA Today.
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But those dreams almost came to an abrupt halt when Castro was accused of stealing the winning ticket in a 2022 lawsuit filed by someone who claimed to have purchased the ticket.
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It seems that Castro’s luck struck again when a judge ruled in his favour, dismissing the case due to the plaintiff’s lack of response to a court motion, according to an October report.
Since winning the historic $2.04B jackpot in 2023, choosing a lump sum payout of $997 million, Castro has purchased a luxury Los Angeles property for $47 million, a $25.5 million home in the Hollywood Hills and a $4 million home in Altadena, California.
But were these wise investments for such a large cash windfall?
Paul Karger, co-founder of wealth advisory firm TwinFocus, told Fortune that luxury homes often become “a major ongoing financial burden that [can take] several years to sell.”
Simply maintaining a home can cost 1% to 4% of its value annually, which means Castro could potentially spend millions of dollars each year just to hold on to these properties.
So, even if you have the funds to buy three luxury properties, you need to understand the overall expenses of owning and maintaining a home. Also, you need to budget for these maintenance expenses and property taxes. Understanding your finances and proper budgeting can help you mitigate any financial burden that may arise from impulsive purchases.
Advisor.com can help you find a vetted financial advisor who can help you manage your finances and make smart investment choices. All you have to do is answer a few basic questions and Advisor.com will match you with a certified expert within minutes.
You can then set up a free, no-obligation consultation to see whether they’re the right fit for you.
Tying up your fortune in large properties isn’t necessarily the best way to build wealth. Check out other ways to invest in real estate here.
Buying million-dollar homes may not necessarily be wise for lottery winners, but clearly nobody told Castro about alternative real estate investments. Commercial real estate has a long history of adding stability to your portfolio, outperforming the S&P 500 over a 25-year period.
For accredited investors who are looking to make a larger investment in this sector, platforms like First National Realty Partners (FNRP) offers access to institutional-quality commercial real estate deals that can allow you to passively collect distribution income.
As a private equity firm, FNRP acts as the deal leader and offers white-glove service to investors, providing expertise and doing the legwork. The team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart, and Whole Foods, and provides insights into the best properties both on and off-market.
While the FNRP takes care of sourcing new deals, you can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.
For those without accreditation status who are seeking an opportunity to get into the real estate market, you can do so through Arrived.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in fractional shares of vacation and rental properties without the responsibilities of property management or homeownership.
You can choose from Arrived’s curated selection of properties and start investing with a minimum investment of just $100.
Read more: Here are the 7 top habits of ‘quietly wealthy’ Americans — how many do you follow?
While spending money after hitting the jackpot seems inevitable, alternative assets are another thing you should consider when you have a large sum of money to invest.
Precious metals — particularly gold and silver – have been go-to assets for protection against inflation thanks to their scarcity and inability to be mass-produced, unlike flat currency.
Over the past six months, the price of gold has risen approximately 20%, according to a Forbes report. In fact, gold has increased in value sevenfold over the last 100 years.
These factors are especially important for retirement planning.
A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.
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 the significant tax advantages of an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
Billionaires don’t invest in art just for a pretty picture on the wall, but because it can be a lucrative addition to their portfolio.
In fact, with over $67 billion in annual transaction volume and a total estimated global value of $1.7 trillion, art represents a massive asset class, according to Deloitte.
Though some art pieces can sell for millions of dollars at auction, you don’t need to win the Powerball to invest.
With Masterworks, you can access fractional investing in blue-chip paintings by iconic artists like Banksy, Basquiat, and Picasso. Simply browse the pieces in their impressive portfolio and choose how many shares you’d like to buy.
What’s more, Masterworks does all the heavy lifting, from scouring the market for the best deals to the storage and sales of the artwork itself — making elite art investing both accessible and hassle-free.
Sign up today and you can skip the waitlist for Masterworks next offering.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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