Millions (and sometimes billions) are won globally in various lotteries every year. The odds of winning the lottery are high, yet we place our small bets knowing that winning the prize is life-changing. Millions of people will play the lotteries, and only a few will win, and we will absorb information from the media about the games and the winners. The slightest chance that the winner will be us this year is enough to keep us playing. It is a fun way to take a chance that could change your life, and if it doesn’t work out for you this time, there is always next time.
What if you are the winner? How will you invest if you win a big prize?
If you ask a recent winner why they wanted the money when they played, you would probably be met with a blank stare. Obviously, we all want the luxuries and comfort of having more than enough. When we first win, it is natural to spend some cash on things you always wanted. Maybe you would buy a new home, a car, or a new wardrobe. But then what? Consider the question again. Why did you want the money? The answer is financial security. So, to keep the economic security, you must invest the money so that it continues to generate money. That is the only way to ensure you have financial protection in the future. Money going out without money coming in soon drains your resources. So the next step on your journey is learning how to invest your money.
We asked some experts how to begin. Before taking your money, you should seek advice from financial advisors and banking experts. Most casinos will provide these experts. Lottoland requires this for all winners for safety. Be sure you require that for yourself.
Kevin O’Leary is a Canadian businessman. He is a published author, politician, respected financial expert, investor, and television personality.
Kevin’s advice is to take the lump sum. O’Leary recommends investing in “low volatility, dividend-paying stocks.” His advice comes with years of experience. You need the assistance of someone who understands the market.
Mark Cuban is an American billionaire. He is a long-established entrepreneur, television personality, media proprietor, and a major investor. His net worth is an estimated $4.3 billion, according to Forbes Magazine.
Mark tells us not to invest immediately. Put the money in an interest-paying account in the bank and live comfortably for a while. Keep the news of your wealth as quiet as possible so people will not target you for investments, gifts, and opportunities. Give yourself a year to reflect on the situation and decide what you want to do with your life and wealth.
Many winners immediately buy new homes in the best areas with all the latest decor trends. This can be a good move if you are smart about it. Look at the purchase as an investment opportunity. Have a professional assess the future value of the property. Do not spend a fortune turning the house into a house that is only customized for you. All improvements should make the home worth more money when you are finished with it than when you began. You may think a living room designed to look like a Fort Night Hub is great, but it will make your home hard to sell and will lower its value.
Another investment option is buying property to rent out. Also, consider a property that will be zoned commercial in the near future. Again, you need the advice of a good realtor before making a purchase of this nature.
Someone new to the business of stocks and bonds should consider placing their winnings in premium bonds. Speak to your bank specialist. They can advise you on bonds that the government covers. Ask your financial advisor about medium-risk stocks as well. This could include:
- Equity funds
- Government fixed-interest accounts
- Precious metals (gold)
Your financial advisors, attorney, and bankers can help you begin your financial portfolio to ensure your security. Other considerations include taxes, inheritances, and donations that will probably need to be addressed at some point. These are things that need your attention sooner than later.
You will have a lot of questions when you win the lottery. People will seek you out to ask for your help with their plans. You can expect family members, friends, community leaders, and charities to attempt to touch your compassion for needed funds. No matter how much money you win, there will never be enough to take care of all the needs and wants of people. Be sure to take care of your family first. When you choose to donate, do it wisely and contribute to something that matters to you. These steps will take you into the future you desire.
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