Sometimes I feel awful when I read about lottery winners.
It seems that no matter how much money these winning players make, most of it is used within a few years.
Or, to quote George Best, data bullseye a footballer: “I spent most it on booze broads and fast cars.” The rest, I wasted.”
These are three things that you need to think about before millions of dollars start falling into your bank account and you get all the unasked guidance you receive.
1. Do not pay attention to your friends. They will rarely have the expertise to advise you on how to invest your millions. They will not be able to help you.
You should visit a bank-backed financial advisor to discuss your options. HNWI accounts are managed by a high-net worth individual. These individuals are usually assigned a different division in most global banks.
2. Spending break: Put your wallet away and don’t spend one cent. You know what I mean. Your natural instinct is to give money to your family and pay everything off. Don’t do that yet.
In some countries or states, gifts may attract tax as I stated in an earlier article. It is possible to end up paying a tax bill that could wipe out all your hard-earned dollars. Before you throw your greenbacks away, you need to understand all of this.
3. Here’s my personal answer. This solution is not often discussed because it is a significant step in today’s world of instant everything. It is based upon wisdom gleaned over many centuries of experience…
This: Never run out of your winnings!
Secure it and keep it safe
Instead of spending it, I suggest that you make your prize, once-in-a lifetime, a permanent income stream like this…
Let me explain.
The rule of the wealthy was in place in the past.
It was as simple as this: “Don’t touch the capital.”
All earnings were derived from capital, which is money or buildings. These funds and property holdings were the source of constant income.
These sources will continue to pour cash out like a never-ending stream.
The capital was never touched by the wealthy, but the rent or interest paid by the rich was enough to sustain them.
Their golden goose would continue to produce no matter what the circumstances. The smart among them would continue to feed that stream into the capital, increasing its size until it reached a torrential level.
You can join the elite few who are in this position by investing your winnings in commercial property, bonds, or any other financial instrument recommended by your HNWI advisor and living off the income. You can live forever.
Robert Kiyosaki, an investor and author of “Rich Dad”, is a global bestseller.
It will never run dry.
However, once your capital has been lost it can’t be restored to its former glory.
You don’t have to be afraid if you turn on the money tap