{"id":331,"date":"2009-07-23T08:35:00","date_gmt":"2009-07-23T08:35:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=331"},"modified":"2009-07-23T08:35:00","modified_gmt":"2009-07-23T08:35:00","slug":"lo-que-habrias-hecho-con-tu-premio-de-loteria","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/lo-que-habrias-hecho-con-tu-premio-de-loteria\/","title":{"rendered":"What you would have done with your lottery winnings\u2026"},"content":{"rendered":"
In October two years ago, we wrote this article <\/a>in which we highlighted the mistakes made by a potential lottery winner and their plans for investing that money. Below, we can see what would have become of that fortune after just a couple of years, having spent the money as they wished:<\/p>\n
Chance has led me to a post by solobolsa<\/span>.org<\/span><\/a> in which he offers a simple thought on what to do if we win the lottery. Before getting into the subject allow me<\/span> Please fill in the figures for the percentages of the \u2018lucky ones\u2019 who have lost or spent it all within 5 and 10 years: 35% in less than 5 years; but the percentage of those who have gone bankrupt soars to almost 90% after 10 years. Terrifying, isn\u2019t it? However, these figures would need to be adjusted slightly downwards to account for the small number of cases where people may have evaded the tax authorities and moved their assets to opaque jurisdictions. paradises<\/span> prosecutors, joining the long list of those who have fallen on hard times.<\/p>\n

Apart from a few exceptions, I suppose the first thing you\u2019ve all thought on reading this statistic is that \u00abthat wouldn\u2019t happen to me\u00bb, because we believe we\u2019re capable of making far fewer mistakes than others. Perhaps that\u2019s true in some cases, but the fact is that those who make the most reckless mistakes, commit the most rookie blunders, and are the most naive and least prepared, end up ruined much sooner. These are the views of the article\u2019s author, and I fear they are shared by many who will probably never read our blog:<\/p>\n

\u2013 Share a 10% with family and close friends.
\u2013 Donate another 10% to charity.
\u2013 Pay off my house; that would clear my mortgage.
\u2013 Change the car; it\u2019s about time.
\u2013 25%. I would buy some shares \u2013 at least five of them, across different sectors \u2013 with a high dividend, which would allow me to earn a little more (if possible, quite a bit more) each month than I do in my current job.
\u2013 5% for investments in plots of land, flats or property funds.
\u2013 I would invest the remainder in global actively managed equity funds and at least 5% in fixed-income investments, with a focus on short-term instruments.<\/p><\/blockquote>\n

If you take a closer look at the author\u2019s plans, you\u2019ll realise that, in his case, he might have some money left after 10 years, but it will basically depend on the stock market and whether he has the nerves of steel to hold on when it falls, or whether he\u2019ll be tempted to invest in a business or enjoy life a bit more. But under no circumstances do his plans guarantee his future.<\/p>\n

\"\"<\/a>The first major mistake: spending small amounts straight away on family, friends and charity. The second major mistake is paying off any outstanding mortgage(s). The third is buying a car straight away. As for the rest, apart from a 5% in property investment and another 5 % in short-term fixed-income investments, it is to be invested exclusively in the stock market.<\/p>\n

But the crux of these mistakes lies not so much in how the money is spent, but in the way the wealth is structured. Let\u2019s take it step by step:<\/p>\n

When a lottery winner or heir receives a large sum of money that is set to radically change their life, for better or for worse, the first thing they should do is look for a Counsellor<\/span> or an independent adviser with experience in this type of role. Clearly, it is not possible to find such candidates in private banking, law firms or amongst asset managers or money<\/span> managers<\/span><\/span> investment firms. If one\u2019s wealth is not sufficient to engage the services of a multi<\/span>-family<\/span> office<\/span> And assuming that you are unable to find an independent adviser capable of guiding you towards safeguarding and growing your wealth in the medium and long term, we will attempt to provide some general guidelines that may help to clarify certain concepts for those who find themselves in a similar situation, whether through winning a prize draw or inheriting wealth.<\/p>\n

Firstly, you need to start by putting your money to work in liquid fixed-income investments from day one. That way, you\u2019ll have days, weeks or months to look for a good Counsellor<\/span> and make decisions \u2013 lots of decisions. Draw up a wish<\/span> list<\/span><\/span> which enables us to plan how we want to live from that point onwards. We need to work out the income required to maintain our desired standard of living and factor in the long-term mortgage repayments for the properties we wish to buy in the near future. Once this monthly or annual figure has been calculated, we must factor in unforeseen expenses, health insurance, financial support for others, medium-term care needs for family members, and overall wealth growth to IPCx<\/span>2 and a whole host of other things that we almost always forget when we carry out a wish<\/span> list<\/span><\/span> without proper advice. Of course, this list will vary considerably from one case to another, as we cannot apply the coffee for everyone<\/span><\/span> when it comes to shaping our future way of life.<\/p>\n

From now on, we must restructure<\/span> our assets to check whether they generate sufficient income to support our lifestyle, including, of course, any mortgages taken out to purchase the properties we wish to buy. If this is not the case, we will need to review our wish<\/span> list<\/span><\/span> downwards. Obviously, sound tax advice will enable us to structure our Global Wealth Plan in such a way as to minimise the tax liability.<\/p>\n

\"\"<\/a>There is a huge difference between receiving a prize or an inheritance and starting to spend small (or large) amounts so that you can invest what\u2019s left in RV<\/span>; or use the fixed income generated by all those assets to spend, provide financial support, plan for the future or purchase property with mortgages. Naturally, we must be able to invest our money in such a way as to generate returns that exceed mortgage costs whilst minimising risk. And we can achieve this through sound advice and proper de-taxation<\/span> and a minimum investment amount that allows us to access certain financial products and, of course, to pay for this comprehensive expert advisory service.<\/p>\n

Returning to the example of our friend from SoloBolsa<\/span>.org<\/span><\/a>, you\u2019ll see<\/span> that we could do practically the same thing: give money to family and friends, make donations, change our car, etc. We could even invest part of our earnings in the stock market. But neither should we pay off our mortgages nor leave the future growth of our assets in the hands of the RV<\/span>, as that growth must be safeguarded and secured.<\/p>\n

These protocols, which are designed for sudden windfalls (such as lottery winnings or inheritances), are essentially also applicable to any type of medium- to high-value wealth, even if it is newly acquired wealth resulting from the sale of property, shares or business profits.<\/p>\n

Even in the case of fortunes that are just beginning to take shape, without lotteries or inheritances, as we mentioned in our article Effect Cluster<\/span><\/a> back in April: <\/p>\n

\u00abAlthough many may not believe it, doing the right thing and working with diligence and wisdom attracts good fortune. Perhaps the good luck<\/span> \u00bbit is not as random as the fools would have us believe, and I would go so far as to say that, in economic terms, it is not even that unfair.\u2019<\/p><\/blockquote>\n<\/div>\n

Yet another case of a sudden fortune being squandered in the space of a few years. This time in the space of just a couple of years, and the final nail in the coffin was the crash in the equity markets, which he had unwittingly exploited, carried along by bankers and crafty friends. Cannon fodder\u2026<\/div>","protected":false},"excerpt":{"rendered":"

En Octubre de hace dos a\u00f1os, escribimos este art\u00edculo donde alert\u00e1bamos de los errores en los que ca\u00eda un potencial afortunado de un sorteo de loter\u00eda y sus planes para invertir ese dinero. A continuaci\u00f3n podremos ver lo que habr\u00eda sido de esa fortuna tan s\u00f3lo pasados un par de a\u00f1os, despu\u00e9s de emplear ese […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-331","post","type-post","status-publish","format-standard","hentry","category-sin-categorizar"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=331"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/331\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}