The dream of almost every person on this planet is to win the lottery and get rich overnight. Most of these people think that by winning that huge amount of money, all their problems would be solved. However, people who have really won the lottery have a different experience: pretty much everyone will tell you that the problems do not end here, but that just some of them end and new ones begin.
When you win the lottery you have to start thinking about what to do with all that money. If you are not careful enough, someone can steal your money or your money can lose value. That is why one of the key questions is ‘Where is best to keep your money after you win the lottery?’. In the article below you can read the answers to this question.
- 1 What are the key steps before you get your money prize?
- 2 What to do after you claim your huge money prize
- 3 Conclusion
What are the key steps before you get your money prize?
Before you withdraw your money, it is crucial that you take a few smart steps to ensure that your card is protected, as well as that you have a good plan for your money to serve you in the best possible way.
Protect your winning ticket
For starters, make sure your ticket is completely secure and that you have made several printed and digital copies, just in case. You do not want your future to depend on one single ticket, so it is wise to have them in several forms, and keep the original in a protected place. Imagine losing your winning lottery ticket – you would be totally screwed! It would be best to put it in a safe or in a home lockbox to make sure that no one can steal it and that you can sleep peacefully knowing that your money is coming.
Take one step at a time
The next advice is not to rush, but to give yourself enough time and space to get out of the initial shock and then carefully plan your finances. Of course, it sounds very tempting to take your money as soon as possible and start spending it, but it’s simply not a good idea. Keep in mind that for most people, this is a once-in-a-lifetime opportunity. Even though it’s a lot of money, your whole life is in front of you and you don’t want to spend a single dollar recklessly. Check how much time you have to collect your prize, and then take some time to plan where you will keep your money and what you want to invest it in.
Of course, after winning the lottery, you will want to honor yourself and your loved ones with some amazing gifts that you will truly enjoy. We are just trying to say that even such gifts should be planned carefully and slowly, to make sure you get the most out of your money. At lottonigeria.com you can read more about some interesting and expensive gifts you can buy as a lotto millionaire.
Make sure you have an amazing team to help you
In case you are not a licensed professional who knows how to best manage money, then we suggest you form a team of people to help you with that. There are 4 basic types of professionals you want to have by your side as a lottery winner.
These are tax attorney, financial advisor, as well as family law or estate planning attorney and certified public accountant. Each of these professionals has an important role to play and will help you organize your finances in the best possible way.
Decide if you want to take a lump-sum or an annual payout
Decide with your team whether lump-sum or annual payout is a better option for you. Whether you opt for a one-time payment or an annual payment over a long period of time, you should know that both have their advantages and disadvantages. Discuss with your financial professionals what would be a better choice in your specific case and why.
What to do after you claim your huge money prize
Organize your money wisely
When you take your money the last thing you want is to start spending it unreasonably. Talk to your financial experts about where it would be good to start. Generally speaking, it is a good idea to pay off all your debts first and start fresh. We suggest that you then set up your emergency fund. Although it may seem to you that you don’t need any emergency fund now that you have your lottery money, the truth is that everyone needs one. Set aside money that is enough for you to live 6 months without any income, with a new lifestyle that you will develop with new inflows.
And of course, don’t forget to set aside money for retirement. We recommend that at this stage you allocate a percentage of your winnings to tax-advantaged retirement accounts. You may be very young now and retirement seems light years away, but that doesn’t mean you shouldn’t think about it. Be sure that you will be able to live a comfortable life even when you are no longer able to work.
Do not keep all the money in the bank, but consider further investments
And lastly, when organizing your money it’s time to think about how it can work for you. Our advice is to take the time to have a long conversation with your investment advisor and decide where it would be best to direct your money: whether it is real estate, gold, cryptocurrencies, etc. Dovar’s investment plan will ensure that your money does not lose value over time, but creates new money.
Winning the lottery is indeed a dream come true, but that does not mean that all problems disappear with winning a cash money. Instead, you have new doubts about what to do with your money and where it is best to keep it. If you take the time to find top experts who will help you on this journey and make an amazing financial plan, you can be sure that you will enjoy the money and all the benefits it will provide for the rest of your life.