Seven Great Ways to Invest Your Lottery Winnings

Ideas to help make your jackpot go further.
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  • Author:
    Shaun Greer
  • Published:

Imagine you’ve woken up to discover you’ve won the Powerball lottery. It’s a great deal of money.

Most people wouldn’t have a clue what to do with so much money. In all honesty, would you?

Buying a boat or spoiling your loved ones is easy enough, but what would you do with the rest? You certainly can’t blow it all (well, yes, we all could, but would you want to?).

Research shows that rather than getting out of financial trouble, a lottery windfall often gets people into more trouble, with bankruptcy most likely between three to five years after winning.

Fortunately, there are plenty of opportunities to invest your new-found riches.

Here are just seven ways to be smart about it all.

1. Invest in Real Estate

There’s no denying that real estate has been a top investment for centuries. But, consider investing in real estate that has the potential to earn you a current income via rent and long-term capital appreciation.

One of the easiest and most effective forms of investment in real estate is a small-income rental property. As a lottery winner, you could buy a rental property for cash and start enjoying an immediate income. Or think bigger and invest in a commercial property, like a retail space—your very own mall!

2. Invest in Stock

Stock’s probably the first thing that comes to mind when you think about investments. Rightfully so. It offers the best potential for growth.

Take Ronald Wayne, one of the Apple founders, for example. He didn’t believe the brand would succeed, so he sold off 10% of his shares for just $800 way back in 1976. Today, the infamous brand is worth more than $800 billion. So, imagine what 10% of Ronald’s shares would be worth today!

You don’t have to have billions to invest, though. You could invest in a couple of start-ups and still enjoy a pretty impressive ROI.

3. Invest in Bitcoin

Bitcoin is the future. Within a year, Bitcoin was worth 10 times what it was just 12 months previously. Imagine what could happen to its price within the next couple of years.

Picture it: you win the Powerball jackpot and decide to invest $1 million into Bitcoin. That would get you a little more than 178 Bitcoins. Then, four days later, Bitcoin skyrockets and you are sitting pretty with more than $1.2 million. That’s nearly $300k profit in less than a week!

4. Invest in Debt

Well, not exactly, but rather clear your debt. If you want to enjoy your new-found riches, you need to be debt-free.

Whether it’s tuition, a house or car that needs settling, pay it off immediately and do away with unnecessary monthly interest.

5. Invest in Your Heirs

Some of what you receive may eventually be passed down to your heirs, so find out how to secure that. Even if you think you’ll spend all your winnings during your lifetime, an unfortunate accident or health scare could change things in an instant.

Make sure you update your will, too, to reflect your new wealth status. Depending on the size of your estate, you may want to establish a trust to ensure your wishes are carried out once you are gone.

6. Invest in Infinite Banking

Even if you do win the lottery, you do need life insurance. And if that’s the case, you might as well purchase the kind of insurance that provides living benefits—not just cover for final expenses and medical bills.

You can easily do this with a dividend-paying insurance policy. It’s a permanent policy that pays out dividends while you are still alive. These policies also build up cash value that can accumulate wealth up until you retire, at which point they convert to a retirement income.

7. Invest in Businesses

Many lottery winners go on to build their own business empires. Others buy their own sports teams or invest in local businesses to help their community flourish.

So, if your dream is to get into, let’s say, the ice cream business, now’s the time to do it.

Just because you won big doesn’t mean you have to hang up your work boots and thinking cap. Keep busy, otherwise you’re just going to get bored and blow your fortune.

You Could Always Buy More Tickets

If you’re really stuck for ideas, you could always invest in another 500,000 Powerball tickets and try to increase your chances of winning again.

In all seriousness, you can’t lose if you are clever about the way you invest your lottery winnings.

Be sure to consult with financial advisors and create a plan that covers all the essential areas of focus for you and your family. By doing this, you can pay off your debts and have plenty left over to continue growing your assets.

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