- I recently won the lottery!! I'm about to start getting weekly
payments for the rest of my life. After taxes, it looks like I'll
pull in just under $5,000 each week. I'm 30, my husband and I have
steady jobs, retirement accounts, $400,000 left on our mortgage
and almost $80,000 in student loan debt. What's the best thing to
do with this money? - Marianne
Hey Marianne - That's some exciting news! Even more exciting
is that you're asking for advice now instead of waiting until after
you made some poor financial decisions, which is what most lottery
winners do. You're off to a great start, and here's how I think
you should proceed.
down your loans. If you only paid the monthly minimum, the
student debt you have would last a couple decades. If you put
the majority of your winnings toward the loans over the next year,
you can be free of that burden. That will save you a sizeable
amount on interest payments, further boosting your cash flow.
With the student debt gone, you can speed up mortgage payments
and start investing the rest of your weekly earnings.
2. Fill your retirement accounts. After the debt is gone,
increase the contributions to your retirement accounts. Now is
a great time to build up your retirement savings, as the money
you put in still has a few decades to work and grow. Between your
paychecks and lottery winnings, you should be able to maximize
these contributions and still have money left over, assuming you
have paid off your loans.
3. Have fun investing. Not a lot of people have the opportunity
to invest free winnings, so you should take advantage! What interests
you? Do you want to get into real estate, either with a rental
property or by flipping a house? Real estate is one of the best
investments you can make, especially when you're able to pay in
cash. You can also look into financing small businesses or personal
loans, and I'd recommend you open a brokerage account and start
buying quality stocks. There's no short, simple answer to the
question of where you should put your money, but there are plenty
of good investment options for you to look into. Talk to a financial
advisor and see what piques your interest. Without acting rashly,
you can still get creative with your investment techniques and
have fun with it.
| This is an exciting
time for you and your husband. Do your best to stay grounded, make
smart decisions and take care of that debt. Congratulations and good
© Taylor Kovar
June 8, 2018
More "Go Far With Kovar"
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