But, once you’ve won, then what? Buy yourself a new car, take your family on an exotic holiday, start collecting Fabergé Eggs?
In this article, we look at some ways to make your lottery winnings go further.
However, before we get into the different ways to invest lottery winnings, the first thing to do if you have won a big jackpot is take a breath and tell somebody you trust. Once you’ve done that, go ahead and actually claim your winnings!
Of course, if you do win the lottery, it is advisable to speak with a qualified financial advisor to carefully plan out what you would like to do with the money.
Now, let’s take a look at six sensible decisions you could make with your newfound fortune.
1- Pay off any debts
If you’ve just won some money, debts may not be the first thing on your mind. However, if you have outstanding student loans, bank loans or a mortgage then you could put your lottery winnings towards paying those off first.
Although this may not sound like the most fun way to spend lottery winnings, paying off your debts will reward you in the long run.
2 - Invest in property
If your winnings are big, then maybe it’s time to start thinking about moving house. Whether you have enough for a mortgage deposit on a new house, or enough to buy the house out-right, a new property is sure to be one of the top priorities for any lottery winner.
If you have won hundreds of thousands or even millions then you may look beyond just buying yourself a new home. You may have earned enough that you can actually invest in property. You could use your winnings to develop old properties to sell on for a healthy profit or look into buy-to-let investment schemes.
3 – Savings, stocks and shares
A sensible option for lottery earnings is to pop them into your savings account. This is a great way to see the benefits from small lottery wins, as over time they’ll all add up.
Another more adventurous option is to look to invest in stocks and shares. If you have an interest in the global stock markets, but don’t want to risk playing the markets yourself, then a stocks and shares ISA might be just the right choice, with a £20,000 annual deposit allowance. You can normally select your level of risk, without the hassle of the day-to-day stocks & shares investment management. Another bonus is that any interest made on a stocks and shares ISA is totally tax-free!
4 - Pay into your pension
Your pension may well be the last thing that springs to mind when you win a small fortune, but it is one of the best places to keep your money safe. You can deposit up to £40,000 a year without losing any tax relief.
Just remember, if you have won enough money to be able to retire early, then neither you nor your employer will continue to pay into your current pension pot. Your future self will thank you for putting some extra money into your pension and saving for your retirement.
5 - Invest in physical assets
As well as the larger assets that you may invest your winnings in like cars, boats and houses, consider smaller items that may also retain or even increase in value. For example, vintage wine, antiques, collectable art and even gold coins/bullion could all work out as great investments. These options add diversity to your wealth portfolio, whilst also providing enjoyment of being able to invest in a hobby or interest that you have.
6 - Give to charity
Regardless of whether you have won a few thousand or a few million, most people have good causes that are close to their heart. So, once you have planned your finances out, you may want to give back to your community or a charity that you have links to. You could even play more games from The Health Lottery, like The Big Win, All or Nothing, QuickWin, or one of our many Instant Win online scratch card games, as every ticket bought supports local health projects throughout Great Britain.
And you never know, you might get lucky again!
