What to do if you win the lottery
Here’s what our financial experts say to do if you hit the jackpot:
“Winning the lottery is a long shot but holding on to the money is the real challenge. In one study of Florida winners, 70% of them had spent every last dime of their jackpot within 5 years of winning.
It is important to realize your own ability to manage money early on. If you’re confident in your abilities to manage it, and you want to do that, you could possibly afford to do that. Otherwise, opting for the annuity is typically a smarter choice for the average person who doesn’t have experience managing and investing significant sums of money. Receiving a fixed amount will prevent you from blowing all of your earnings right away.”
— Cynthia Greenhalgh, Market Analyst
Since 2019, our clients have earned as much as 15% per month on investments with little or no effort on their end.
“You should definitely pay yourself an annuity! then you should invest the rest. You’ve just won yourself some financial freedom so try to keep it that way.”
— Paul Hurst, Client Support Manager
“It really just boils down to choosing whether to keeping the lump sum or paying yourself an annuity. the key factor behind your choice should be trust. Do you trust yourself to manage all that money properly?
In my opinion, it’s always better to play it safe. Now that you can afford it, you should hire the services of reputable and trusted financial professionals to make sure your money outlives you.
It’s important to remember not to fall into the trap of ‘over-generosity’. A study of 3,000 British winners who won $1 million or more found that a staggering $1.8 billion was handed over to friends and family. If you were feeling guilty for having so much money, over-generosity will surely make that a very short-lived feeling”
— Xi Chen, Head of Fixed Income Strategies
“Have you heard the quote “To lose patience is to lose the battle”. This is very applicable to lottery winnings. When it comes to managing your winnings, don’t do anything right away.
You need to carefully figure out what is right for YOU. Take time to reflect and discuss with people you can trust and come up with a plan to make your winning create a more fulfilling life, make an impact and — importantly — make it last. In such times, you really need to ignore the noise from those around who are just looking for their share of the pie.”
— Julius Dreysse, Financial Advisor
Our mission is simple: to deliver attractive investment performance over the medium-to-long-term, enabling clients to meet their investment goals in a cost-efficient and simple manner.
“No matter how much you think you know about money management, DO NOT manage that lump sum yourself. There’s a reason you were playing the lottery in the first place. Having money now doesn’t suddenly make you a smart investor. Your first line of action should be to employ the services of experienced and certified financial advisers.
You will sleep a lot better knowing your money is making more money and not just on a race to the finish.”
— Tyler Zucker, Senior Investment Analyst
There’s more to the lottery than just a giant check. For some people, winning the lottery is a big blessing but for others, life continues much as it always has. Ultimately, whether winning turns out to be a dream come true or a total bust all comes down to how savvy the winners are when it comes to managing their newfound wealth.