It could be YOU – top financial tips if you come into a surprise windfall10 October 2019
With a UK ticket-holder having won the full £170 million Euromillion jackpot this Tuesday, Tilney financial planner Graham Dixon, who has specialised in advising lottery winners for 12-years, shares his top tips for those who find themselves unexpectedly the recipients of life changing wealth.
“Winning this amount of money can be completely overwhelming but there are plenty of people around to help you through it. So take a deep breath and don’t panic.”
Avoid making knee-jerk decisions
“I often advise lottery winners who come to me to go on an incredible holiday to get away from it all and also put things into perspective for the future. It is very easy to make knee-jerk decisions before you have actually come to terms with your new fortune. If laying on a beach calms you down, go to the Caribbean. If you clear your head through hiking, go on a walking holiday. Then you will be better prepared to make some important decisions.”
Get some financial advice
“The importance of getting professional financial advice cannot be overstated. Friends, work colleagues and people you meet down the pub will all have plenty of ideas of what you should do with your newfound wealth, but a professional adviser, regulated by the Financial Conduct Authority, will be able to help you make the right choices. Your financial planner will help you decide how to manage your wealth across your lifetime. Before rushing out and buying a mansion, super car, yacht or country estate it is important to understand the future costs of maintaining your new lifestyle and making sure appropriate investments are put in place to fund this.
“Obviously £170m is an incredible amount of money but not all lottery wins are so enormous. For example, a £2m jackpot will be viewed very differently for a couple in their 60s to a couple in their 20s. The two couples will need completely different financial plans to ensure they can live the lifestyle they want and not have the money run out.”
Make some priorities
“Decide what you want this money to do. Is it purely to pay off debts? Give as much to charity as possible? Help out friends and family? Simply enjoy your retirement at the highest level you can? Or leave something for your loved ones when you die? All lucky winners will have different priorities so it is very important to get these straight in your head at the outset. If you choose to have 5 years of extravagant holidays and then decide to put money aside for your family, the circumstances will obviously be different than if you had looked at this from the outset. The same is true for charitable giving. A financial planner will be able to help you understand how much you can afford to give away whilst retaining your desired lifestyle.”
“This is (you would assume) a once-in-a-lifetime, life-changing event. Once your planners has helped you understand all the options, as well as any tax implications, now is the time to make that bucket list and enjoy yourself.”
Tilney is a leading investment and financial planning group that builds on a heritage of more than 180 years. Our clients are private investors, charities and professional intermediaries who trust us with over £23 billion of their assets. We offer a range of services including financial planning, investment management and advice and, through our Bestinvest service, a leading online platform for those who prefer to manage their own investments.
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