How to Invest Money if You Win the Lottery?

Posted by Grace under Investing on November 5, 2015

If you won the lottery, how to invest money? There are many questions arises when someone won the lottery. In the first place, is spending money for lottery tickets a good idea? I think no. But, why there are many people who are lured in playing lottery? Well, first, they want to get rich fast. Second, they want to get rich without any effort.

I know many people (specially you, the big time lottery winner), is asking and wondering where to put their money (their winnings). Lottery  to winning numbers are not easy to guess, you need to keep on playing the game until you get the jackpot. And when you win, you will realize that you’re lucky. And when you lose again, you will realize that you aren’t lucky that day. But, did you realized that if you invest the money you played in the lottery in stocks, mutual funds or save it on the bank, you will surely have profits? I know many of us wants to get rich, but for me, playing the lottery isn’t the solution.


Further Reading: Mega Millions (Lottery Numbers) isn’t the Solution to Get Rich

How to Invest Money if You Win the Lottery

The suggestions are just my personal thoughts and opinions. When you want to invest your winnings, you should still careful plan for it. Creating an investment plan is necessary and talking to a Registered Investment Advisor and Certified Financial Planner is a must.

Guide: If you want to invest your money (lottery winnings), try these;

  1. Decide how much money you want to invest. Determine your age, your investment goal and your target earning asset for your retirement. The guides are as follows;

(a). First, know asset allocation. The asset allocation is the proper distribution of your investments depends on your age, risks appetite and financial goal.

(b). Think about your financial goal. When do you want to double your money. As a guide, use the rule of 72.

If you want to double your lottery winnings, let say you won $1,000,000 one million dollars in the lottery and your investment goal is to double it within 5 years, you must invest your $1,000,000 in any investments that earn 14.4% percent per year within 5 years. (Use rule of 72).

There are many investment options you can try. In asset allocation, it is still wise to invest in different vehicle to minimize the losses and maximize the growth of your investment capital. You can invest your lottery winnings in;

  • Real estate investment property.
  • Buying company stock shares.
  • Investing in mutual funds.
  • Invest in savings bonds.
  • Start setting up your own business.

Questions: How to Invest Money if You Win the Lottery?

Other questions asking about the things to do when someone won the lottery are;

Question #1. If i win the lottery how long does it take to get the money?

Answer: It depends on how you present the documents and the rules given by the lottery companies.

Question #2. If i win the lottery can i give money to my family?

Answer: You can give your family, but not all your winnings. Maybe 5% of your winnings. Invest 95% and make it grow. If they ask you where did you put the money, tell them you invest the money for your future, for their future, just tell to them this line “I invest my lottery winnings for our financial future”.

invest money lottery winnings

Image Credit: Lisa Brewster on CC 2.0 – Lottery Money

Question #3. If i win the lottery where do i put the money?

Answer: Put some money in the bank for emergency purposes. Put your lottery winnings in investment accounts like stocks, mutual funds, etc. Buy savings bonds. If you are from Canada, read this guide; Canada Savings Bonds.

Other wise options is to invest money for your children’s education fund. Want some tips? Read the guide – Save Money for Child’s Education

I am laughing when ask my friend on what he should do when he won the lottery, he replied; Grace, if i win the lottery you’ll never see me again. I replied, okay, if that’s what you want. Just visit my blog Return on Investment blog at in case you are curious and don’t know what to do to your lottery winnings.

Question #4. If i win the lottery how much goes to taxes?

Answer: It depends on the state, countries, places you played. The lottery companies will surely informed you about the taxes you should pay.

Question #5. If i win the lottery can i remain anonymous?

Answer: When claiming your winnings, you should bring your identification card together with your lottery ticket.

Final Thoughts if I win the Lottery

If I win the lottery I would rather invest them all, stay simple, buy only he things I need. This is an opportunity to claim permanent financial freedom. If I win the lottery I would save and invest for my financial future. And this sis exactly what I would do;

  • 70% will invest for my family’s financial future.
  • 10% of my lottery winnings should give to needy, and unfortunate (charity).
  • 10% will be for my simple pleasure and enjoyment.
  • 10% will be for my daily needs.

Don’t buy a mansion, don’t buy a luxury car, buy car and mansion when your investment funds earns profits. Was that a good idea, it’s just not a good idea, it’s a great idea. I would rather invest my $1 that earns sure profits rather playing the lottery. I am not playing the lottery, I believe I can get rich fast but not in this way. Investing in stocks is my best bet!

Let me know what you want to do if you win the lottery today? Will you share some portions to charity, invest, give your family, play another lottery or spend the all and become poor again? Oh, don’t choose the last option. Try the suggestion above. It won’t hurt you, besides it will heal your pocket and achieve financial freedom, that’s permanent. Hey, don’t forget to share your money to in case you win the lottery. I’m just kidding, who know’s you win the lottery today. Good luck!

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3 comments on “How to Invest Money if You Win the Lottery?

  1. Patrick Drago says:

    Nice information Grace, great post. One more question, if i win the lottery can i give money to my family? Example, instead of giving them money, I would rather buy a property for them like house and lot or car. Is it a good idea?

  2. Grace says:

    YES of course, that would be nice. They will become happy to see you buying the things you want, but they will be more happy if you show how much you love them after you win the lottery. Prefer to buy income generating assets, like stocks and real estate rental properties.

  3. Rich Mindset Lottery says:

    if i win the lottery where do i put the money? I would rather spend 20% of it and invest 80% so that i would become rich permanently.

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