If you are one of the many people who purchase Euro millions tickets every week, then perhaps you do have a secret plan. Or not. The one thing that you probably swear to avoid is blowing it all in a short space of time. There have been much written about previous lottery winners who have done just that. So how can you try to avoid falling into that trap yourself? If you have been playing poker on your blackberry phone for some time and have earned considerable amount of money, chances are quite high that you already know the trick of go all in on your bb to make the most of it. It does not even matter whether you have earned a good sum from a lottery or from a poker game; all it matters is how you are planning to spend the winning amount.
The first thing you should do if you do win a large sum of money is get some good financial advice. This could be from your local bank or from an independent advisor. For example Alexandra Gordon, from Canterbury, Kent, is part of lottery operator Camelot’s advisory panel. She offers winners specialist advice on things such as estate planning, as well as discussing legal implications of winning the lottery including inheritance tax and wills. You can read more about Alexandra and the job she does by reading:
Some websites offer comparisons of various accounts and will inform you which is currently offering the best interest rate. Always read the terms and conditions associated with the account, as many will offer a rate that reduces or changes after an initial period.
Investments come in all shapes and sizes. You can take out tax-free ISAs, long-term savings accounts, invest in the stock market or purchase a property. The one thing that you should be considering is your tax situation. While your winnings from your Euro millions tickets are tax-free, the money that you make on them is not unless you choose the right type of account. Interest from savings accounts is classed as earnings and can be liable to tax when added to your normal salary. A quick telephone call to your tax office will clarify the position for you and also inform you of how to claim an annual rebate on the interest if you are eligible. Shares can be quite a good investment, but they can be risky. Recession causes share prices to drop and you could lose as easily as you could gain.
Property is always a good investment. If you have been lucky enough to find that your numbers are this week’s winning ones, then you have many options open to you. With mortgage rules tightening and affordability now becoming a yardstick for lenders, the rental market is becoming larger. Investing in a few small properties to rent will secure you a long-term income and also a way of raising extra capital through sales in the future should you need it. Financial advice should be taken as you will need a buy-to-let mortgage, and you need to be fully aware of what this entails.
Finally, remember this is a win. It is something you did not expect to have. No one says you have to stop working, although many may think you are a bit odd still working with millions in the bank. The choice is yours, but remembers to enjoy it while you can. Let yourself have that car or holiday you have always wanted, but then invest the rest for the future.