Maybe you?
Our whole life is a lottery, nothing is already written and entrusted to the book of your life, every small step forward is a carefully thought out choice by everyone. But also no, it could also be a choice to live the day.
Whether it is the case that decides for us, or luck, everything must be properly weighted to get the maximum possible.
If you are one of the lucky ones who have recently enjoyed a brazen and blind luck, here is a list of what you will need to do to conserve the capital over time and not lose it too soon. If instead you have not won but hope that sooner or later it will happen to you, read this article, it will help you not lose everything too quickly. Enjoy the reading.
STEP 1: Sign your lottery ticket
If your win is in the form of a ticket, the first
step you need to take from the start is to sign the winning ticket. Indeed, a
lottery ticket is a bearer title, which means that whoever signs the ticket and
presents an ID card or passport can claim his winnings. This practice is not
very well known and yet if you have not signed the ticket and lose it, you will
have no way of recovering your due.
STEP 2: Stay anonymous
Stay anonymous if circumstances allow. Once the
people around you know that you are suddenly wealthy, you will be harassed by
requests for association, friends you haven't seen for a long time, car and
boat sellers, not to mention all of them. saying "financial experts"
who will come to you to "sell" their "products" without
putting in place any real coherent investment strategy. You can therefore dodge
all these problems by remaining anonymous.
STEP 3: It is urgent to wait before the big expenses
Avoid sudden changes in your lifestyle. During the first six
months, do nothing definitive, like quitting your job, buying a big car, moving
to a big house, even if the temptation is strong. Schedule major purchases for
later.
STEP 4: Pay off all your non-performing debts
Pay all your non-performing
debts, there is no better investment! Whether it is your car, consumption, work
or principal residence loans, your net rate of return is equal to the interest
rate on your financing. With increasingly low financial returns today on
conventional investment products (bank investments etc...), paying off your
debts is a great idea.
On the other hand, if you have productive credits,
for example for real estate investments, be careful not to repay too quickly,
because the loan interest is deductible and with a marginal tax bracket rising
sharply, you risk giving back to the tax more than 50% of your income. To be
studied on a case-by-case basis.
STEP 5: Build a team of Independent Consultants
In such situations, it is very difficult to know
who is trying to scam you and who is trying to seriously help you build a
stable and efficient wealth in terms of income. Rather than signing your eyes
closed with a single financial advisor who risks selling you only
"products" and not investments, I recommend that you choose the best
lawyers, accountants, wealth management advisers and notaries for them. force
to work together. Before describing your financial situation, be certain of
everyone's references and do not hesitate to contact some of their customers to
verify.
Indeed, the team that you put together around the
table will function like the board of directors of a large group. Nothing
prevents you from setting up an investment plan with a good advisor and then
asking your advisor team for validation. I have been offering this type of
operation for several years to my important clients, because in addition to
avoiding abuse, this operation makes it possible to use the skills of each of
the professionals in an optimal manner, which is never too much especially for
technical arrangements (SCI, Holding, etc.)
STEP 6: Train yourself in wealth management
One of the best ways to avoid mistakes and find the
best opportunities is to train yourself in wealth management. This area
includes financial investments, real estate, financial management, taxation,
wealth creation and transmission and other exciting areas. By following a
suitable training, which can sometimes take 2 to 3 years, you make sure you
make the right choices. Today, we must be aware that with a heritage of only 1
million euros, some manage to generate revenues of 7 to 8,000 euros per month
without touching the capital, while others can squander this amount. in less
than 2 years… for a low or zero result in the end. Imagine what you can do with
several million euros. For this, investing 7 to 10,000 euros in training is
often an excellent investment.
STEP 7: Invest prudently
It is important to put your earnings in a safe
place in the short term and then ask your team of advisers to put in place a
well-balanced heritage. An investment portfolio cannot be improvised, avoid
overly speculative investments (stocks) or debts (bonds, funds in euros),
unless you have a clearly defined investment strategy, a money management
system (preservation of capital) and a crash strategy. Don't fall for
investments that you don't understand or that seem too good to be true.
STEP 8: Avoid all risk-free finance
I can already hear you say: "I put it all in
the bank, in guaranteed euro funds, and I only live on interest"!
Great idea on paper, but bad idea in fact!
Let me explain. To believe what the banker tells
you is to believe a carpet merchant on the quality of the carpet! This is a bit
excessive, but in fact the first thing to consider when receiving a large sum
is what is called "money management", it is
about managing and preserving your capital.
By investing in funds in euros, you invest in
bonds, that is to say debts of over-indebted countries like France, Italy,
Spain, etc. The risk of loss is not zero, France has already gone bankrupt 8
times in its history. A debt may be blocked at first, then canceled a few years
later as was the case with Russian loans.
Financial savings are not an investment
On the other hand, financial savings are a placement, not an investment. Rather than go on any investment, it is better to
choose "investments", real and tangible assets that generate cash
flow and therefore regular income.
STEP 9: Don't put all your eggs in one basket
You know this rule on diversification of course. But
be careful, sometimes, we believe that there are 3 or 4 different baskets and
it is actually the same. For example, you diversify between Europe stocks, US
stocks, emerging stocks, bonds, euros funds and other FCP; in the event of a
crash, all your values will go in the same direction, the financial markets
are correlated with each other, so watch out for false diversification!
STEP 10: Avoid intensive diversification
It is important not to invest the whole in the same
place, as we have just seen, but be careful not to fall into the opposite
excess. If you spread yourself apart, management risks becoming very complex
and above all ineffective. Choose tangible real assets (real estate, forest,
shops, gold, etc.) rather than dispersing your assets on investment “products”
that will not protect you in the event of a banking crisis, stock market crisis
or systemic crisis (monetary system and financial). Intensive diversification
therefore remains to be avoided.
STEP 11: Live with a budget set in advance
Especially if you are not used to having a lot of
money, it is important to maintain a certain budgetary discipline to preserve
your earnings and avoid the buying spree. One way to hold back is to live only
on the income generated by your investments. Today, you will need a lot of
capital to generate net income and if you start by attacking your capital, the
great story may turn sour. Learn how to manage your starting capital, this is
called Money Management. Also favor the cash flow to the consumption of your
capital.
STEP 12: For your cash savings, choose at least 3 or 4 banks
Note that cash savings stored in a bank are debts,
not assets. Saving is not an investment in general, keep only what is necessary
for current operation (purchase of car, household appliances, etc.)
Open several bank accounts so as not to be
dependent on a particular bank, and do not hesitate to use certain alternative
payment sites for your internet purchases; thanks to online payment, some sites
offer services comparable to banks.
STEP 13: buy no products or debts, only assets
A "product" (banking product) is a
packaged investment, decorated with a lot of marketing, which always seems a
good idea on paper, but it is often difficult to determine the real risks of
this type of investment. Please note, some "products" such as
guaranteed euro funds are actually debts!
Debt is not the best
investment!
So know how to differentiate a debt from an asset.
Funds in euros, money market funds, bonds, bond funds are made up of 100% debt.
A bank account is also a
debt!
When you deposit your assets in the bank, the bank
gives you a claim in the form of a piece of paper. The money is gone, but the
bank admits you owe a certain amount. This is what happened in Cyprus. If you
have large amounts, do not leave them in the bank, it is the bank's debt to
you, and the debts are often made to not be reimbursed, even if this has not
happened in France since loan of a century.
STEP 14: prioritize investments that generate cash flow
A share, unless it generates a large dividend, does
not generate cash flow. You only win by making a capital gain. In real estate,
you buy an asset (a building) that will change in value (gain or loss on
resale), but the enrichment is mainly thanks to the cash flow (rents). So, even
if you sell a building at half its value after 20 years, with a good return,
you will still gain.
STEP 15: Choose investments, not positioning
A positioning is a store of value (bank, debt,
etc.) that loses value with inflation while an investment generates regular
income that follows inflation.
STEP 16: Establish a multi-year plan
It is important, in any property decision, to avoid
investing everything in 6 months. I remind you that if investing is something
new for you, an idea that may have seemed good at the start can turn out to be
a real disaster a few years later! You will learn on the job and the experience
will come as you go. You will make mistakes for sure, so don't be like some top
athletes who have invested everything in one place in one place without
following the advice in this article.
STEP 17: Set up an estate plan
In your team, you will need a top notary,
experienced people, but not too close to retirement, because these notaries are
often exceeded by new standards and practices. If you suddenly become wealthy,
now may be the time to plan your estate tax. If you want to share some of your
earnings or income with family and friends, this is the perfect time. Your
notary (with the approval of your team) will be able to pass on heritage to
those you love by limiting taxation and protecting you from the risks of
dependence. The idea here is to keep control of your wealth and anticipate when
you will no longer be able to make management decisions.
STEP 18: Understand and avoid the "house money"
effect
We pay less attention to the money earned from
games or inherited than the money earned from our work. In reality, we treat
money earned quickly in a more casual and less reasoned way than money obtained
by our work. The house money comes from the expression of economist Richard
Thaler: "House money effect". We are more willing to take risks with
gains made by gambling or speculating, hence the popular expression:
Quickly earned money will be quickly gone!
This is why the lottery winners are often poorer
after several years than before having pocketed significant winnings.
STEP 19: make your dreams come true ... without necessarily
focusing on spending!
Is it possible to have fun today without thinking
of "Expenses"? Of course, yes!
With an almost unlimited purchasing power, the
temptation is strong to “have fun” as we say, but I can assure you that
spending will not increase your pleasure, on the contrary, it will increase
certain frustrations that you didn't have before: some sort of wealthy issues.
Wealth brings you an important element: the freedom not to go to work and
therefore time to realize your dreams, take advantage of it!
CONCLUSION:
With your fortune, you have time, independence,
financial means to realize yourself. Avoid focusing on spending and start by
learning in all the areas that make you vibrate, money is never a life goal,
but only a way to achieve it. This gain, whether by chance or by hard work,
must be invested effectively so that it can permanently protect you. Take the
time to make your decisions, and if you apply these 19 steps, it's a safe bet
that your children and grandchildren will also be able to take advantage of this
great opportunity…
Do the right thing and good luck!.