Austin Weaver is a recreational poker player who loves cricket and rugby, but his real passion is EuroMillions Lottery. He is a content and blog writer for theLotter, an online lottery website selling tickets throughout the world.
Managing a lottery windfall is a serious issue – and winners should take a measured approach to their finances.
Editor’s Note: I didn’t get this post in time for last week’s $640 million Mega Millions drawing, but maybe this could reach one of the three jackpot winners and help them out. I can wish!
Winning the Mega Millions, Viking Lotto, EuroMillions, or any other big lottery jackpot and taking home the sort of windfall whether that could afford you everything you’ve ever wanted can be like a dream come true, but the fact of the matter is, with such a huge fortune comes responsibility.
Lotto winners would do well to take a sensible approach to managing their cash and according to consumer watchdog Which?, the best way to do this is by seeking advice.
Assemble a team of professionals
In addition to hiring the expertise of a financial adviser, it is recommended that lottery jackpot winners also gather together professionals such as a tax expert and an attorney to help them understand how to make the best of their winnings.
Achieving financial freedom
The majority of lottery winners enjoy splurging a bit when they first get their windfall in the bank. Some like to go on holiday with their loved ones, while others will take the opportunity to fulfill a long-term ambition and buy a dream car or coveted designer item.
However, after a little indulgence, fortunate top prize winners should meet with their team of experts and tick off one of the most important things on their list – achieving financial freedom.
According to Which?, almost half of advisers suggest paying off short-term debts such as personal loans and credit cards as soon as possible after taking home a windfall, because these are usually an individual’s most expensive owings.
Furthermore, over one-third of financial experts think that paying off mortgages should be prioritized.
The finance watchdog argued: “By paying off your debts you’re getting a guaranteed return on your money. For example, if the interest rate you pay on your mortgage is six per cent, you’d have to get a guaranteed return on any money you invest of six per cent to match the return you’d get if you paid your mortgage off.”
If lottery jackpot winners are not averse to taking risks to boost their fortune, stocks and shares may be the best way to go, rather than sinking money into assets such as property, art and precious stones and metals.
Many of the advisers Which? polled who did not recommend paying off debts right away suggested this can be a lucrative investment opportunity.
“Investing in the stock market can get you a better return, but you have to be prepared to stick out the lows and to invest for at least seven-to-ten years. If there’s a chance you might need the money before then, consider very carefully before investing,” the watchdog remarked.
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- Why you don’t want to win the lottery… (joeydavid.me)
- $640 million question: Who are the lucky three to share record Mega Millions jackpot? (ldpaszli.org)
- Mega Millions Mania: What If You Win? Then What Do You Do? (npr.org)