How should I invest my lottery winnings?

Answer 1

he best way for you to invest depends on a lot of things.

First, if you don't have an emergency fund worth 3-6 months of expenses, establish one first, maybe in a money market fund so you can get at it in an emergency. It won't pay back much, but it's better than having to borrow money in an emergency and getting into debt because your money is locked up. Nor do you want to sell your investments during a temporary downturn to pay for something like a new roof. Then you'll have lost that money permanently.

Next, if you haven't done the 401(k) thing and the IRA thing, do it. Tax-free or taxed deferred savings are good.

Finally, if you've already done all those things and still have money left to invest, there's still more stuff to think about. Long term, stocks will grow faster than anything else, but can be very risky short term. They're a terrific investment if you're young and have a long time line. If you're older, you have to think more about safer investments, because you don't have as much time to recover from a downturn in the market.

Anyway, there is no "best" way to invest a sum of money. What's best depends on a lot of different circumstances. If you really want a good investment, go buy a book on investing so you can decide what makes sense for you. Sure, you could give your money to a financial advisor but how do you know he's not just in it for the fees and commissions he charges you? How do you know his advice is any good? You need at least a foundation so you can make an informed decision. Personally, I like "The Only Investing Guide You'll Ever Need" by Andrew Tobias. It'll give you the basics. Good luck.

Answer 2

I don't believe all the people answered your questions are greedy. Either they are just saying for fun or serious. If you win a lottery, then there are billions who lost. YOU DESERVE IT ALL. Entropy has chosen you.

Now, investment is another question. Read a few books on stock valuation. Investing in QUALITY dividend paying stock will give you limited risk and very good return. Make sure to diversify your portfolio. Don't buy every stock, choose carefully based on earning, dividend and the potential to grow. You can also buy bonds and Treasury Bill being the safest of all. The government won't get bankrupt.

My recommandation is 10% T-Bill. 30% Corporate Bond. 60% stock.

Choose five to twenty good companies and invest for long-term.

If you are a beginner in Bond, then try to avoid junk bond or high yield bond.

If you really want a no brainer investment, then try to find a reputable hedge fund with a proven track record.

I hope these help you to eventually make even more money. Remember there is never too much money. The more money you have, the more careful you need to plan. May luck be with you forever!

Answer 3

You did not specify the amount you won which makes a big difference in what you do with your money. If you won millions like most of the posters assume you will want to protect your money rather than invest for growth. This means conservative investments such as banks and credit unions where you know your money will be safe. Look for high interest cds and park your money there for now while you become more financially literate and can invest in confidence in stocks and real estate. If your winnings are in the thousands I say take some time off and enjoy a nice vacation or two or three!

Answer 4

Sorry for the caps, but I think it is important here. Remember that MOST PEOPLE WHO WIN THE LOTTERY GO BROKE. It is not easy to learn how to invest the money and how to avoid all the requests and demands that all your friends and relatives will put upon you.

Unless you are really knowledgeable about the subject, you should talk to a financial planner. Your focus should be how to use your money to accomplish your life goals, to set a reasonable budget, and to establish long-term investment plans, as well as managing your taxes and risks.

Be careful of "financial planners" who are really stock brokers or insurance agents. You are probably better off paying a fee than getting "free" advice.

Answer 5

If your lottery winnings are more than $2,000.00 I suggest you to open a brokerage and margin account at TD Ameritrade and invest in the Stock Market with the help of a Portfolio Manager like myself if you can afford it or at least a Financial Advisor.

Top 3 Answerer in Business & Finance. (Vote for me)

Answer 6

Get a professional.
Use a SMALL amount of the money to get your life straight. After that put the REST in several (5-10) good mutual funds. If the winnings are substancial (>1000000) you will easilly be able to live off the return of the funds for the rest of your life.
Get a professional.

Answer 7

Give to your favorite charity first,Speak to a financial adviser about your taxes, if you hold on to your money all year you keep the interest instead of paying your taxes first.Treat yourself,church, diversify a nice portfolio for your future & your children. I would help my parents also. Calm your mind & ask the universe or higher power for the wisdom to your question. The answers will come to you if you are calm & patient. Have fun, don't change who you really are.

Answer 8

spend it on your friends, lottery is not meant for investing. Hard earned money should be invested.

Answer 9

Buy more tickets. You can't win if you don't play. Also you could go to Vegas and put it all on Black or Red or Even or Odd. Cmon you already beat the odds and won. Live a little.

Answer 10

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