Important considerations for lottery winners.
The vast majority of us spend some time dreaming about winning big on the lottery and seeing all of our money troubles melt away. Of course, this is a common dream and sadly, for most of us, it will remain just that – a dream.
However, for the lucky few who are destined to enjoy incredible life changes, this dream becomes a reality and they suddenly find themselves going from having modest assets and wealth to being fabulously wealthy with enough money to do pretty much everything they have ever wanted to do and more besides.
Whilst most of us do spend a lot of time dreaming about what we would do if we won the lottery, most of us realise that it is unlikely that we will ever win bog and therefore do not make any serious plans or pay any real attention to what we would do if we did win. Therefore, most lottery winners suddenly find themselves plunged into a situation where they have shed loads of money overnight and have no real idea what they are going to do with it.
The natural reaction from most people is make plans to give some of the money away, usually to loved ones and friends who have helped them in one way or another, which is admirable and natural. However, in addition to this initial reaction it is important for lottery winners to look at the bigger picture and work out what they should and should not do as they are getting used to their new found wealth.
Things you should and should not do when you win the lottery
Winning the lottery is, of course, a life changing event and as such it is important to really take time to think about what you should do. Although many people are quick to tell the world or even the street they live on about their luck, many believe that it is best to keep this information between yourself and your closest family so that you have time to decide what to do without pressure from others. Some of the things that you should consider when you have had a big lottery win include:
- Whether to go public: Although some people cannot wait to have news of their win splashed all over the news, it is probably best to keep this to yourself for at least a while, as you need some time to get used to the idea yourself and to make sensible plans without being pressured by others who will want to get in on the action. Of course, telling your nearest and dearest is fine, as they will probably be able to help you to make plans and stay grounded but you may want to delay any public announcements at first
- Who to trust: Anyone with a decent amount of money will tell you that having money can make you paranoid, particularly in regards to who you can trust. If your lottery win becomes public knowledge and you suddenly find yourself being contacted by friends you haven’t spoken to in years, be on your guard. Sadly, you do have to take more time to consider who you can and cannot trust when you have a lot of money, as some people will invariably want to get their hands on some of your cash
- What to do with your money: This is, of course, a vital part of the excitement of winning the lottery – deciding what to do with the money. Most likely, you will want to give your loved ones enough to give them a comfortable lifestyle, which is fine. However, before you start writing out the cheques make long term plans and decide what you want to do with all of the money so you know how much you have available to give away and how much you need to invest in the things you want to invest in
- Getting financial advice: If you have never had large amounts of cash before and you suddenly find yourself rich beyond your wildest dreams, you should avoid trying to be your own financial advisor as it could end in tears! Seek advice from professionals who will be able to advise you on how best to invest your money to make it work for you rather than being one of the lottery winners who ends up squandering millions in the space of a few years
- Tax considerations: Those who have never had a lot of money and suddenly win the lottery will probably have little knowledge of what to expect regarding taxes. Again, you can get valuable advice from an expert financial advisor, which is another reason why you should seek financial advice as soon as possible so you can go through the options