Every year millions of pounds are won in the United Kingdom and around the world in various lotteries. We all know the odds of winning the lottery are low, yet the prize is life-changing. We know millions of people will play the lotteries and few will win, and we will hear a lot of information on the media about the games and the winners. The glimmer of hope that this year the winner will be us is enough to keep us playing.
Why did you want the money?
Of course, you are going to spend some money if you win the lottery. Sure, you will have some dreams to live out and some things that you always wanted that you will buy. But, what then? Before you answer that, answer this. Why did you want to win the lottery?
The answer is obvious. You wanted to have a lot of money and the comfort that comes with that. You wanted to go where you wanted to go and do what you wanted to do and not worry about the price. You wanted to provide a nice home and nice things for your family. You probably still do. If that is the case you need to put some effort into some information that explains how to invest lottery winnings. Learn how to let your winnings keep on growing for you. Below you will find some expert tips on how to invest your winnings. Investing 1-million is usually enough to keep you financially comfortable for the rest of your life. But, no investment is fail-proof, so expert guidance is recommended.
We asked some experts how to begin since we are talking about unexpected lottery wins. Here is what we were told. Of course, before you even take your money you should seek the advice of financial advisors and banking experts. Most casinos will provide these experts for you. For example, Lottoland requires this for all winners for their safety. Be sure you require that for yourself.
Terence Thomas Kevin O’Leary is a Canadian businessman, author, politician, financial expert, investor, and television personality.
Kevin tells us to take the lump sum. Do not waste it, O’Leary recommends putting the money to work by investing in “low volatility, dividend-paying stocks.”
Mark Cuban is an American billionaire entrepreneur, television personality, media proprietor, and investor, whose net worth is an estimated $4.3 billion, according to Forbes.
Marks’ advice is, do not invest right away. Put it in the bank and live comfortably for a while. Keep the news very quiet and personal and give yourself and your family time to reflect on what you want to do, for at least a year.
Investment Tips You Should Consider
Invest in property
It is not uncommon for lottery winners to buy new, elaborate houses. This can be a good thing. But, you need to look at it as an investment. Have a professional look at the location and the future value of the property. Do not spend a fortune turning the house into a house that is only special to you. The house should be worth more money when you are finished with it than it was when you moved in it. You may think a living room designed to look like a Star Wars Ship is really cool, but it will make your home very hard to sell and will lower its value.
Consider buying property to rent out or property that will be zoned commercial in the near future. Be sure you get expert advice on this and do not assume you can figure it out on your own.
Invest in stocks and bonds
For someone who doesn’t understand the business of stocks and bonds, they should consider placing their winnings in premium bonds. Go for an NS&I savings account or a bank building society account. The whole balance is protected by the Government. If the money is in a bank or building society, only £85,000 is protected by the Financial Services Compensation Scheme if the institution goes bust.
You can speak to your financial advisor about medium-risk stocks as well. This could include:
- Equity funds
- Government fixed-interest accounts
- Precious metals (gold)
This is just a few safe and easy ways to begin your financial portfolio to ensure your security. There are other considerations such as taxes, inheritances, and donations that will probably need to be addressed at some point. It is a good idea to make your plans for the future as soon as possible.
You will have a lot of plans when you win the lottery. There will be a lot of people that will seek you out to ask for your help with their plans too. Family members, friends, community leaders, and charities will try to touch your compassion for needed funds. No matter how much money you win, there will be more than enough causes to cover it. Be sure to take care of yourself first, then enjoy your winnings any way you choose.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.