How and where to invest the Lottery Prize

The Christmas Lottery prize's effervescence can quickly fade, just like the cava that the winners will enjoy this morning. There are not many cases where the millionaires who received the money have had to deal with financial difficulties for years or months. Why? It can be disastrous to make the wrong decision about where to place that prize. This could lead to financial ruin.

These are joyful days, but it is important not to let your emotions get out of control. Keep your feet planted on the ground. Don't make snap decisions that could lead you to the edge. The best financial decision is to get rid off debt. Personal loans, consumer loans, and'revolving' credit cards are the most expensive. These products have high interest rates, which can always be a burden on the family's economy.

The second is to take action on a large debt, the mortgage. The winner may be eligible to apply the habitual residence deduction in the IRPF (which subtracts purchases made before 2013) up to a maximum of 9,040 euro per year. It is in your best interests to repay the mortgage loan partially if this deduction is not available.

After the debts have been paid off, the winner can choose to save or invest. This is why it's not financially wise to leave all your money in a bank account deposit. The lowest interest rates are available, but only in commissions. With triggered inflation, this saving would lose its purchasing power. According to EFPA, the increase in inflation (which was 5.5% from January to November according to the INE), "is a reason to keep our capital in current and deposits." The increase in inflation associated with selecting this product to avoid taking on too many risks "harms conservative savings, can become unsustainable, and can cause us to lose our purchasing power."

It is not an easy task to invest. It is important to understand where your money is going, and to consult a financial advisor. The advice of family members, close relatives, and co-workers is not helpful. A professional who is independent and guides the winner.

In this instance, EFPA recommends that we exercise greater vigilance when there is more capital invested and greater risk. It is crucial to have a monitoring system and an evaluation system that can allow for the right decisions, taking into consideration factors like changes in markets, interest rates increases, personal circumstances changes, etc. organization.

Volatility has caused a small increase in the Spanish stock market to just 4%. It is true, however, that the Ibex-35 trading floor is one of the most profitable in the long-term. Stock market investing is a viable option, as are investment funds. They offer a more diverse path than direct shares purchase.

The last option is to start a business. But where? Experts in economics warn that it is best to start a business that is well-known and knows its operations. For example, it is not about opening a bar without knowing anything about the industry in which the millionaire will be working.