Ideas to invest the El Niño lottery well and break the curse of the fat man

70% of those awarded with el gordo del Niño have much less money five years after having won

Taking advantage of the 200,000 euros per tenth that they can play in the El Niño lottery is the main objective that the lucky ones who win the prize should consider, according to experts in personal finance management.

But managing that money well, the sources consulted agree, it is not always easy and on many occasions making hasty decisions can lead to losing it.

According to a study by the European Financial Planning and Advisory Association in Spain (EFPA), 70% of lottery winners have much less money five years after winning the jackpot.

To avoid this, they must follow a series of steps and the first is, according to the experts at Abante, calculate the taxes they must pay on the money received. This amount is 20% as long as the prize exceeds 40,000 euros.


Financial planning

Once the money has been calculated and reserved to comply with the Treasury, they should avoid wasting what they earned, so, in the opinion of Cristina Estalella, financial advisor at Abante Asesores, they should “take some time before they start spending or investing it.”

The objective of this wait is that the graceful one gets used to living with a high amount of capital and that in those months he can reflect on what he really wants to achieve with it.

Lucien Nelson, financial advisor at Santalucía Vida y Pensiones, recommends “spending a third of the prize to carry out your most desired projects, another third to pay off your debts and help whoever you consider to need it and the last third to advise you with the help of a professional and save, investing in a balanced and prudent way ”.

How to invest?

The winners with a very conservative investor profile usually choose to leave their money immobile or place it in deposits that today hardly give a return.

According Estefanía Gonzalez, Kelisto’s personal finance spokesperson, “Today, the investment alternatives for the most conservative savers are scarce and not very profitable, they only have the option of deposits and remunerated accounts.”

But both options are yielding meager returns due to low interest rates. The time deposits of banks that operate in our country offer an average return of 0.27% NIR, according to data from Kelisto.

Therefore, if we take into account the forecasts of Funcas, which place inflation at 0.9% for the end of 2021, investing in this product would even make us lose money.

However, there is the option of investing in Deposits from foreign banks, which are somewhat more profitable, on average, their NIR stands at 0.86%.

Options for the riskiest investors

Savers with less aversion to risk, the first thing they have to do before going to the financial markets to take advantage of the prize is to set the profitability they want. This is determined by the difference between what you have and what you need.

This determines what level of risk can be assumed and which portfolio or which financial asset is the most appropriate.

As recommended from Abante, “To maximize the prize money you have to bet on diversified portfolios, both by geographic distribution, as well as by sectors and type of assets”.

In addition, if you have a long investment time horizon, you can take more risk with the investment.

For example, if you want to beat inflation by 3 points – that is, achieve an average annual return of 5% – you would have to invest in a portfolio with 50% of the investment in equities.

“And an option that allows diversification, that has tax benefits and that allows access to professional management are investment funds”, advise from Abante.

70% of those awarded with el gordo del Niño have much less money five years after having won

Taking advantage of the 200,000 euros per tenth that they can play in the El Niño lottery is the main objective that the lucky ones who win the prize should consider, according to experts in personal finance management.

But managing that money well, the sources consulted agree, it is not always easy and on many occasions making hasty decisions can lead to losing it.

According to a study by the European Financial Planning and Advisory Association in Spain (EFPA), 70% of lottery winners have much less money five years after winning the jackpot.

To avoid this, they must follow a series of steps and the first is, according to the experts at Abante, calculate the taxes they must pay on the money received. This amount is 20% as long as the prize exceeds 40,000 euros.


Financial planning

Once the money has been calculated and reserved to comply with the Treasury, they should avoid wasting what they earned, so, in the opinion of Cristina Estalella, financial advisor at Abante Asesores, they should “take some time before they start spending or investing it.”

The objective of this wait is that the graceful one gets used to living with a high amount of capital and that in those months he can reflect on what he really wants to achieve with it.

Lucien Nelson, financial advisor at Santalucía Vida y Pensiones, recommends “spending a third of the prize to carry out your most desired projects, another third to pay off your debts and help whoever you consider to need it and the last third to advise you with the help of a professional and save, investing in a balanced and prudent way ”.

How to invest?

The winners with a very conservative investor profile usually choose to leave their money immobile or place it in deposits that today hardly give a return.

According Estefanía Gonzalez, Kelisto’s personal finance spokesperson, “Today, the investment alternatives for the most conservative savers are scarce and not very profitable, they only have the option of deposits and remunerated accounts.”

But both options are yielding meager returns due to low interest rates. The time deposits of banks that operate in our country offer an average return of 0.27% NIR, according to data from Kelisto.

Therefore, if we take into account the forecasts of Funcas, which place inflation at 0.9% for the end of 2021, investing in this product would even make us lose money.

However, there is the option of investing in Deposits from foreign banks, which are somewhat more profitable, on average, their NIR stands at 0.86%.

Options for the riskiest investors

Savers with less aversion to risk, the first thing they have to do before going to the financial markets to take advantage of the prize is to set the profitability they want. This is determined by the difference between what you have and what you need.

This determines what level of risk can be assumed and which portfolio or which financial asset is the most appropriate.

As recommended from Abante, “To maximize the prize money you have to bet on diversified portfolios, both by geographic distribution, as well as by sectors and type of assets”.

In addition, if you have a long investment time horizon, you can take more risk with the investment.

For example, if you want to beat inflation by 3 points – that is, achieve an average annual return of 5% – you would have to invest in a portfolio with 50% of the investment in equities.

“And an option that allows diversification, that has tax benefits and that allows access to professional management are investment funds”, advise from Abante.