With the Euro Lotto games all enduring yet another rollover, fans of their favourite lottery will be looking forward to the next draw in the hope that they will become the next millionaire. The Irish Lotto is now at €5,500,000 after its seventh draw without producing a win and the German Lotto remains at €5,000,000. The Euro Jackpot is at a steady €10,000,000 and the Euromillions is currently boasting a €17,000,000 top-tier prize. However, it is still the SuperEna Lotto which takes the cake of all the Euro Lotto games at a massive €163,000,000.
Although these huge jackpots will undoubtedly set the imaginations of would-be millionaire alight, few people ever think of how they would make sure they remain financially well-off after a big win. According to the Reader’s Digest, about 70% of lotto winners lose their money within 5 years or even less, in ways that could have been avoided. There are countless examples of winners who have been exploited not just by strangers, agents, and investors, but by those closest to them. So here are a few tips and pointers on how to evade the pitfalls in which many have fallen.
Keep Your Win A Secret
Easier said than done with media coverage looking to create headlines, however, it is of paramount importance that you give yourself some time to plan your future before requests for handouts start accumulating at your front door. Vice president of Charles Schwab, Colleen O'Brien, insists that opening the floodgates to your new found wealth will invite scammers, opportunists, and shady investors.
What's the first thing that happens? All the friends and family feel like it's an open pool and the person who won feels an obligation to them. I would try to get my ducks in a row, wrap my head around it. If you don't tell anybody, it’s just you and your spouse who're dealing with it," she says.Take Your Time - Your Money Won't Go Anywhere If You Don't Spend It
Start taking the time to scout reputable lawyers and financial advisors. Once you have done that, select your own lawyer, accountant and investment advisor to create a team of people you create that future you envision. Be sure to do extensive background checks to see if they are legitimate. How? By checking broker records and seeing if any complaints have been filed against them.
Setting all of these plans in motion before your start spending will automatically get you into the right frame of mind right from the very start. It will most likely dissuade you from sporadically purchasing those dream items like the Ferrari you've had on a poster perched above your bed when you were 10. It goes without saying that you need to give yourself the time to acclimatise to your new wealth.
"In the first year, you're going to have to settle in with what this is and not make a lot of decisions about spending," says O'Brien. "Make more decisions about taking care of your tax bill and planning for how you're going to retain this wealth over time."
There is no better idea you can have than eradicating those pesky bills and mortgages. However, this does not mean that you can start splashing the cash just yet. It is wise to start thinking of your retirement fund. Speak to your financial advisor and start planning for your future immediately. Unfortunately, life has a way of throwing curve balls while you're making plans. One such unforeseen inevitability is someday needing serious medical attention for you or a loved one. For this reason, the most important thing you can invest in is your health. So don't forget to have a look at good medical aid packages. Set up an emergency fund for those unanticipated dark days ahead.
Once all of these details are clearly marked and ironed out, don't forget to have fun. After all, you've just won the lottery!