How to Invest Lottery Winnings
Winning the lottery. The most abrupt change your financial life could face. With all that extra cash, you may wonder what to do with it all! Therefore many people come up with plans of what they would do with their winnings. As the saying goes, “you need money to make money.” Therefore, if you are wise, you could turn your lottery winnings into an empire! Here is some advice from top financial advisers on how to invest your lottery win.
First of all, check out your tax situation
Lottery wins can vary from draw to draw. Sometimes you may have the choice between taking the prize money all at once or having it paid out in installments. In some countries, a lump sum payment, means you must pay tax. Therefore it’s important to look at the terms and conditions attached to the ticket. You have 60 days from the time you claim your lottery prize to weigh the pros and cons of what is best and will save you money. During this time, ask advisers to crunch the numbers and help you decide which type of payment suits you best.
Get rid of any debts
There is no better investment than paying off debts. Debts can create even more debts. If it is a credit card debt or a mortgage, it is important to stamp out these debts as soon as possible.
Save in the right bank accounts
It is important to meet with your bankers and financial advisers to find out what type of bank account could be the most beneficial to you. You may be entitled to a high interest account which would really help you to increase your wealth with hardly any effort.
Don’t make any drastic financial investments
It can be tempting to invest your money in the big spends you have always wanted. However we would say to err on the side of caution. For the first six months after you win the lottery, don’t do anything drastic. Many lottery winners quit their jobs and buy properties. However this can be destructive for your financial investments. Take you spending easy. Rent a property first in the area you were thinking of buying. See how you like it before investing all of your money.
Look after the future generations
You may want to secure the future of your family and children. If you have young children, the best way to pass on money to them while ensuring you retain control is to put the money into a discretionary trust. You can oversee the accounts by becoming a trustee. You can choose how much to put into the accounts every few years. This will be subject to tax at the rate of 6% every 10 years but will then be free from inheritance tax when you die. In this way, all the children and future grandchildren could be included as beneficiaries.
Keep meeting with a financial adviser
You may get financial advice as soon as you win the lottery, and then become lazier after time. However this is the wrong attitude. It is very important to keep meeting with a financial adviser to keep up with investing your winnings in the correct way. Every three years is normally an adequate amount of time.
Now you know what to do when you win the lottery, all you need to do now is win! Take a look at the lotteries you can play with us today and choose the perfect Jackpot to invest!