Playing lotteries are almost as popular as hockey and potentially a lot more rewarding. Everyone dreams of hitting a big jacket and how that would change their life. However, it may be a good idea to consider how you would invest your winnings to ensure the comfort of your family for years to come.
Your biggest concern should be how to preserve the money. After all, at some point, the payments will end and you’ll need to save enough money for a comfortable retirement and to accommodate the needs of your family. One of the best ways to do this is investing in a diversified portfolio to grow your wealth and hedge against losses.
Setup a Self-directed IRA or Gold IRA
One of the issues you’ll find over the years is that, although your payments are consistent, the money is worth less over time, thanks to inflation. One of the best ways to protect the value of your money is to invest in gold. You can do this in a self-directed IRA or a gold IRA. This combination works well because gold tends to continue going up in value and can sometimes explode, generating income.
Buy Rental Real Estate
Real estate tends to increase in value over time. Even though recessions and down markets occur, it’s still one of the most reliable ways to make money over time. Rental real estate is attractive for a number of reasons. First, it’s an income generating property. This means it’ll be worth more when you sell it and you can earn a generous income while you hold the property.
If you don’t want the responsibility of property management, REIT mutual funds give you an ownership interest without the hands-on job of managing individual properties.
Buy a Whole Life Insurance Policy with Dividends
Once you win the lottery, a life insurance policy that protects your beneficiaries is more important than ever. You can purchase a whole life policy that generates dividend income you receive while you’re still alive. This permanent policy pays also pays out the life benefit to your beneficiaries once you pass away.
Invest in a Business
A business of your own lets you pursue your passion and make money without taking orders from anyone else. Winning the lottery may make this possible. While it’s not a great idea to invest all of your money in a business venture, it’s a rare opportunity that you should take advantage of — especially if an autonomous business has always been your dream. You’ll also be able to deduct tax expenses related to the business once it’s up and running.
Winning the lottery is a great windfall and a happy occasion for any player. If you can turn a once in a lifetime win into a stable income for your family, the victory is even sweeter.