Certainly not.It always makes me ferocious when I hear that. Footballers also suffer after their careers. I would estimate how many years I have left for the bow and then share the amount by that number of years. Then you know how much you can format per year. Then you can live carefree. Incidentally, I am not a big publisher anyway. My happiness is not really there.
The biggest reason that lottery winners go bankrupt is that the money is not earned and if you suddenly get such a lot of money, of course, Je’t doesn’t know how to handle so much money.Therefore, you should always seek help for that has happened and there are however financial advisors and Advocaat’s that can better advise you on how you can settle the money. So if I ever win the lottery, I’ll do that exactly.
But it is easy to say that we will never do that or that but you don’t know the certainty until you are really in the same situation.Many people try to win the lottery their whole life and the one time they do, they will forget all the rules and then the problems can begin. So if you play with lottery, you should always do your ‘ research ‘ and when you win something, you know what to do.
Thanks for the A2A.
Most lotto winners are rather poor and bad with money (the Lotto is a bad investment).
It is therefore not surprising that when they suddenly get a large amount, they do not know how to deal with it.
If I win the Lotto, which is rather unlikely since I do not play, I would buy a (modest) house and invest the rest in a way that gives me a certain amount monthly (e.g. rental income).Chances are I would seek professional advice on how best to tackle this.
The financial independence would be much more valuable to me than (temporary) exuberant luxury.
The problem is that you are suddenly being overwhelmed by a large amount of money and there are suddenly other rules going to apply.Let’s assume that you participate in the Euro Lottery and earn 30 million tax-free, while you normally have a net income of 1.400 euros with 5.000 euro savings…
The first problem is that you will have to pay a wealth tax.That’s because the tax authority assumes that you have to be able to achieve a certain return with so much money to earn more. That is income and tax is levied on it. In short, your money will suddenly have to earn more money for you! For example, by investing…
Another problem is that most banks do not pay interest on savings over a certain amount.Where you may get 1% or 2% interest on your savings account of 5.000 euros, the interest on your savings account of 30 million is just 0%. Banks don’t want to pay interest on that, but want you to invest this money.
In short, if you suddenly get a lot of money you will be forced to invest it somewhere.Well, a new house, a new car and maybe some other nice stuff and a part of your money is then securely invested. Your house may be worth more over time and an expensive car will not quickly lose its value, provided well maintained. But yes, you might give up 2 million and you have 28 million left…
With 1.400 euros per month you should normally have to be at 20.000 euros a year enough with your old lifestyle.But do luxury and increase it to 50.000 per year. Then with 1 million you can easily live 20 years comfortably. With 28 million about 560 years. Even with the power tax included you would have to get around well, provided you keep doing it wisely and put your money away in a safe way.
But the problem is to make sure your money remains stable.For example, inflation is the biggest threat to your money. Your home is still worth a lot over 20 years of inflation can ensure that in 10 years the price of a very white bread is around 100.000 euros. And then you don’t spend long time with your money. And that’s another reason to invest in things that remain value-stable. Issues that still have the same value in 20 years compared to your daily groceries. After all, currency is not very stable…
So you always have to start investing.Your money has to be converted into something that will retain a fixed value. As long as you do not need your money it is invested and if you need the money then you sell your investment and you have again currency to spend.
But that is precisely the problem.You have to start selling but then you have to find a buyer who wants to pay a nice amount for it. Basically someone else who wants to invest. You have bought e.g. a second house worth 500.000 Euro and 10 years later you want to sell it again. By inflation, that house would then have to yield 600.000 to have the same value financially, but find someone who is going to pay for it. After 6 months in the sale you can find that you do not get it sold and the price has to go down. But all this time you have no currency and any debts accumulate further on. Over time, you may have to accept every bid to get to your money so if someone then offers 400.000 euros then you have to take it to have money to return again V To be able to live.
You can also start investing in stocks.But the people who have shares Intertoys wish me good luck as the company seems to go bankrupt and their money also disappears. You may have a few tons of shares and go down that in smoke…
Many people also like to invest in their own company.That’s nice if you have 28 million and invest 1 million of them in a small business as a self-Employed without staff. But some just take over a business with 20 man staff and then fail to make a profit. But the staff must be paid for. So you can quickly lose a million a year with this company and your money flies out the door. But if you keep paying close attention and try to minimize the losses, it still retains its value for some time. But making a business profitable is not easy!
For instance, most investment forms are not free of risks.You could also invest in art. Buy your paintings of Rembrandt or Karel Appel for 5 million and then hope you can sell them again in 20 years for a similar value. But yes, well insure because otherwise you will have a huge damage to fire or theft. Same problem as you invest in precious metals like gold, silver and platinum. They remain reasonably stable but can be stolen. And your insurance will only be reimbursed if you have a good security for your belongings and only up to a maximum amount.
In any case, jewellery and jewelry are poor investments because their value is determined by the amount of precious metals and jewels, but the price is determined by the jeweler who still throws a substantial amount on top of labor.Your golden pendant of 100 euros is perhaps only worth 50 euros in gold.
And then there is the problem of relationships.You are married in community of goods and you win 30 million. Then your wife gives 6 million away to the family, takes a lover and asks for a divorce whereby she claims half the money. Then you suddenly have only 12 million left… Probably much less because of the legal costs due to divorce and other matters. Your money will go up tremendously quickly. And if there are other relatives to beg money and get this then there is really too little left. And this often happens because people like to share their prize money within the family, but nothing to get back.
And then there are also people who give money to charities.That’s very nice but then you are actually voluntarily away from your money.
But there are also many people who seek advice from financial advisors and then follow up on advice that proves to be completely wrong afterwards.Or even scammed by their adviser. People who hire an accountant in which the accountant obscers substantial money. People who put their money on a bank in Iceland after which the bank goes bankrupt and they recover a maximum of 100.000 euros from a bank guarantee fund. Good if you have just deposited 20 million.
The biggest problem is just that many people will think that they will not do crazy things with so much money but in reality still go wrong because dealing with lots of money knows very different principles than dealing with little.It requires a completely different mentality because you suddenly have to stand still at the value of your money and this value has to be maintained. You have to put your money to work and manage it yourself. And with that manage, many people are going to mistake it. Because of course you can put those 30 million on your ING account. Only if the ING goes bankrupt then most of that money is really gone. And when a super-inflation suddenly arises and banknotes get 6 zeros in a short time, then your money is hardly worth anything.
Dealing with “little” money is very different than dealing with lots of money.Many people can only cope well with little, not with much…
Would I go bankrupt?No idea. I would be very careful with my investments. A reasonable amount in a piece of land with a house on it, some fruit trees asking for little maintenance and yielding a little harvest, couple of sheep and chickens there and in my house decorate an office place to be able to run a simple company in my uppie. Invest Extra Money in value-added products and see if I can buy a pension that will pay me a pension immediately. In any case, I keep an income. No more crazy things to do and I should be able to sustain it for a very long time.
The one who says that it will befall him or her noooooiiiit is the first to kick in the trap.So yes, it could happen to me, but I am very much able to make it considerably smaller by learning to deal with money.
A lot of people make plans about what they would do if they win the lotto.In The English Language forum I came across a question that gave me “my” solution to the issue. Remains just about whether a human being could also realize it humanly.
What would you do if you got the choice from 鈧? million in cash or 鈧? million in gold?
Frankly I would not hesitate for a second.I would go for the gold. I explain why.
鈧? million is so much that it would take Jaaaren to spend the money if you are economical.
In the years ‘ 70 there was a television series called “The Man of Six million dollars”.It was about an astronaut who had survived a terrible accident, but with the help of advanced technology and a lot of money, rebuilt and changed into a super strong man who worked for the government.
What I want to say is that six million dollars at that time was an astronomically high amount, a bit like six billion today. Now it is “only” a large amount.
Inflation eats the purchasing power of the 鈧? million in cash.
On the other hand, no matter what they all tell about gold.In Roman times, in the 19th century and today, one can buy a hand made costume for an ounce of gold. Inflation has no effect on the purchasing power of gold in the long term.
Let’s say I could buy about 770 ounce of gold with the 鈧? million and that I estimate that I will use 100 years to spend that gold.That means I allow myself to sell 7.7 ounces of gold every year and that there will still be a lot of gold when I die. By the way, I’m old enough to make 100 years 50 years and spend 15 ounces of gold a year.
If the inflation rate rises about ten per cent for about ten years, as was the case in the 1970s, I can still have the same lifestyle today.With the 鈧? million in cash, it will be impossible.
I do not give any financial advice.You must act on your own responsibility.
As long as I’m not in the situation itself, it keeps guessing.I really have no idea if I would go bankrupt. But when I go out of the dreams and desires I have, I’m not really demanding. I have from childhood to a natural aversion compared to the luxury commonplace. I would probably afford something more and some of my family or acquaintances could benefit from that. But if I only look at materialistic plane? I don’t think so. If I were to buy a new car, it would not be more specific than the current one. Luxury brands such as BMW, Mercedes, Porsche are not in my wishlist anyway because of being too impersonal. My house could use some refurbishment work, but more it doesn’t have to be. But I could, for example, hire a gardener and a cleaning star.
If I were to do a follieke, it is me buying a V-Max, a Rickenbackerbass and a new MTB (all relatively inexpensive).
The most important thing would be not to worry about not being financially involved.But I could just as well go on holiday with the tent instead of booking a 5 star hotel.
It continues to speculate.Maybe I’ll be bankrupt 5 years later.
I always say “never say, never!”.You don’t know what the future brings. I want to believe that it would not happen to me. Because I can deal with money. But that’s not a guarantee.