Most people who win the lottery make hasty financial decisions and start buying sports cars, yachts, helicopters, and other similar luxury items they do not actually need. Thinking they have been blessed with this divine gift of winning the lottery, they tend to look at it as free money they wouldn't have been able to gain or save otherwise. Since they weren't planning on coming across such a large sum of money, they don't truly have a plan and are clueless as to what to do with it. So they tend to ignore their adult responsibilities such as debts, mortgages, or home renovation plans, and step into a world of crazy spending, go on uncontrolled shopping sprees, lend it to anyone asking, and never or rarely thinking about making an investment.
Lottery winners can even opt for the lump sum alternative, or they can have their winning come to them in annual payments. The lump sum option means figuring out how to make the money last for as long as possible – maybe a lifetime. In other words, discover the best money investment strategy.
Idea #1: Invest In Real Estate Rental
Real estate continues to be one of the best investments you could make. You are highly advised to invest at least a certain percentage of your lottery win into real estate. Why? Because it will most likely earn you a current income through rents, as well as through the long-term capital appreciation, given the ascending path of property prices.
If you've just checked the most recent Elgordo Spanish lottery results and you've discovered you have won a huge life-changing, one of the very first investments you should make is to buy one or several properties and put them out for rent. Small income rental property is one of the best options out there, as it is simple to handle and extremely lucrative. Opt for 1 to 4 family residential properties and rent them out all year long. Since you have won the lottery, you should have no problem buying rental property for cash, so you can start collecting your income immediately.
Idea #2: Start A New Business
While you might think about quitting your daily job after receiving the news of having won the lottery, you are highly advised to find an activity to fill up your time. You can start a new business, especially if you have been thinking about something unique you never had resources for. Build your own company and start making extra money, on top of your fortunate lotto win. You will also be allowed to deduct a lot of numerous expenses related to your business income and even lower your tax liability. Selling the business a few years later for an important sum of money should also go on the same list of benefits.
Another huge advantage of setting up your own business comes from the fact that you will also get to set up your own self-employed retirement plan in case the business does prove to be profitable. Since a great deal of lottery winners end up broke, filing for bankruptcy, or worse, this sounds like a well thought of idea.
Idea #3: Invest In Gas/Oil
Have you noticed the incredible shale oil and gas boom in the U.S.? Shale oil and gas represent a huge investment play if you dispose of the right kind of money for it – usually a lot. As a lottery winner, chances are you can afford to make this investment. Focus on the upstarts, as they could be your next big investment opportunity that will return many times more than the initially invested amount.