Ask the average person, anywhere in the world, and they are sure to admit that they harbour a desire to win the lottery. Some gamble for years, combining numbers of significance received through dreams or using the birth dates of loved ones to try their luck at winning the game. Lottery winning however remains a game of chance, with only 1 in 175 million people who play actually winning the jackpot.
Despite the statistics, it’s not a deterrent. The idea of collecting a large lumpsum of cash, millions in any currency, to end all money worries is attractive to many persons. For some the money worries would be over, for others, maybe not. According to Play USA Lotteries, only 55% of lottery winners say they are happier after their win, and 44% lose their fortune within a short period of time.
For that 44%, lottery winnings disappear for many reasons. For some, it’s overspending, excessive profiling or other kinds of money abuse while for others the lottery winning is ‘easy come, easy go’. So, what can future winners do to secure their winnings? Financial Advisor, Jacqueline Lloyd- Carter offers a few suggestions.
I have found that persons who acquire money from winning the lottery, usually don’t think consciously. Their first response is usually to do something they’ve never done before, but my suggestion is to identify a Financial Advisor or someone who has their best interest at heart to help with financial decision making,” she declares. “Taking a trip or making a big purchase like a car are not necessarily bad decisions but care must be taken to put the money to work for you,” she added.
GET RID OF DEBT
“The first thing I would encourage a lottery winner to do is to get rid of debt. Eliminate loans and the accompanying interest rates. Paying off debts removes the mental burden from the individual and frees up their thought process and prepares them for investing or putting the money to work for them in other areas,” she says.
DIVERSIFY YOUR PORTFOLIO
A diversified portfolio consists of investment products with different risk levels and yields. It has a mixture of stocks, fixed income and commodities. According to Mrs Lloyd-Carter, it is never a good idea to put all your money in the bank for it to sit.
“A qualified Financial Advisor will encourage you to look at the stock market and other investment vehicles and apportion the funds based on your needs. A diversified portfolio puts your money to work and helps you to earn more on what you already have,” she stated.
ACQUIRE LIFE INSURANCE
“In this instance, the lottery may not see the need for acquiring life insurance, but it also a way to diversify their portfolio. This is another way to put their winnings to work for them and to ensure that their loved ones are cared for in case of a medical emergency or sudden death.”
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Ask the average person, anywhere in the world, and they are sure to admit that they harbour a desire to win the lottery. Some gamble for years, combining numbers of significance received through dreams or using the birth dates of loved ones to try their luck at winning the game. Lottery winning however remains a game of chance, with only 1 in 175 million people who play actually winning the jackpot.
Despite the statistics, it’s not a deterrent. The idea of collecting a large lumpsum of cash, millions in any currency, to end all money worries is attractive to many persons. For some the money worries would be over, for others, maybe not. According to Play USA Lotteries, only 55% of lottery winners say they are happier after their win, and 44% lose their fortune within a short period of time.
For that 44%, lottery winnings disappear for many reasons. For some, it’s overspending, excessive profiling or other kinds of money abuse while for others the lottery winning is ‘easy come, easy go’. So, what can future winners do to secure their winnings? Financial Advisor, Jacqueline Lloyd- Carter offers a few suggestions.
I have found that persons who acquire money from winning the lottery, usually don’t think consciously. Their first response is usually to do something they’ve never done before, but my suggestion is to identify a Financial Advisor or someone who has their best interest at heart to help with financial decision making,” she declares. “Taking a trip or making a big purchase like a car are not necessarily bad decisions but care must be taken to put the money to work for you,” she added.
GET RID OF DEBT
“The first thing I would encourage a lottery winner to do is to get rid of debt. Eliminate loans and the accompanying interest rates. Paying off debts removes the mental burden from the individual and frees up their thought process and prepares them for investing or putting the money to work for them in other areas,” she says.
DIVERSIFY YOUR PORTFOLIO
A diversified portfolio consists of investment products with different risk levels and yields. It has a mixture of stocks, fixed income and commodities. According to Mrs Lloyd-Carter, it is never a good idea to put all your money in the bank for it to sit.
“A qualified Financial Advisor will encourage you to look at the stock market and other investment vehicles and apportion the funds based on your needs. A diversified portfolio puts your money to work and helps you to earn more on what you already have,” she stated.
ACQUIRE LIFE INSURANCE
“In this instance, the lottery may not see the need for acquiring life insurance, but it also a way to diversify their portfolio. This is another way to put their winnings to work for them and to ensure that their loved ones are cared for in case of a medical emergency or sudden death.”
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