Winning advice - what to do with your Lotto millions

With this weekend's Lotto Powerball jackpot hitting $35 million, you could be excused for asking yourself “what if?” and “how would a win like that change my life?’’

 ANZ’s Craig Offwood has worked with some of Lotto’s biggest winners and has this advice:

There is no question winning the big prize is a life-changing event.  It’s definitely not a time to make any rash decisions. From our experience, it’s clear what winners do with their prize has a huge impact on the rest of their lives.

At ANZ we’ve had the privilege of working with a number of Lotto winners. Among them, New Zealand’s second biggest Lotto winner (a $33 million dollar jackpot) and another who took home $17 million.

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And it’s not just Lotto winners who can suddenly find themselves having to decide what to do with a sudden windfall. Many people will inherit money at some point in their life, and although the sum may be less than a Lotto jackpot, the challenge is always the same.

Here are some tips we give customers who find themselves coming into a significant amount of money:

• Consider putting the money into an interest-earning bank account.  This will give you the opportunity to take time to work out your long and short-term plans. Don’t rush out and start spending. By all means treat yourself to a nice dinner or bottle of champagne. But carefully consider your options before you make any big decisions.

• Seek professional advice. It is important to find legal, investment and accounting experts who have proven experience in helping people who have experienced a similar life-changing event.

• Keep your circle of trust tight. It can be a big mistake to tell too many people, including sometimes relatives. They may expect you to share your winnings with them and this can lead to problems.  It’s up to you to decide how you want to help your family and friends.

• Consider investing in assets that will provide a steady income. Get advice on assets that provide income that will grow and compound over the long term and could provide you with income for the rest of your life.

"It’s definitely not a time to make any rash decisions."

~Craig Offwood, Regional Manager, ANZ Private Bank.

Over the years, we have seen some great success stories. Equally, there have been some cases where they have squandered their jackpot.

After failing to heed advice, they have gone on a spending spree with the unfortunate belief the winnings would last forever. The last thing you want is to find yourself with no money in 10 years’ time.

Some of the winners we’ve helped didn’t have much money to start with and it’s been really satisfying to see them make smart decisions with the money.

Many have been able to go on and enjoy some of their passions in life. It has enabled them to make choices, have greater financial freedom and achieve their goals – making the windfall a truly life-changing event.

Recently I spoke to TVNZ's 1News about a unclaimed $17 million lotto prize and here's Lotto New Zealand's advice for winners.

Craig Offwood is a Regional Manager at ANZ Private.

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