Q: I recently won a considerable sum of money and for the first time in my life, I am in the position to invest. Can you offer any suggestions?
Ian – Daglish
A: I know we had two first division lotto winners in Perth recently that each won over $600,000, so if that was your win, congratulations! However, without knowing your current circumstances and the size of your win, it is a little hard to provide much in the way of specific advice. You really should discuss your goals with a financial advisor before making any decisions, but the fact that you are asking for advice on investment options is a very encouraging sign.
Individuals who win large cash prizes can sometimes be a bit overwhelmed with their newfound riches, spend unwisely and end up with nothing in a very short time. A quick word of caution. You may find people wanting you to invest in their ‘can’t miss, unbelievable returns’ investment if they know about your win. High returns are accompanied by high risks so you should get a second – independent – opinion before making any hasty decisions.
It sounds like you have won enough money to have a significant impact on your future and whether money comes from a sudden windfall or a long period of hard work, it’s primary function is to allow you to pursue your goals and aspirations, so feel free to take some time to really consider what you want out of life, then talk to your advisor about how your recent good fortune can help you achieve that.