How Gamblers Invest Their Winnings

Likewise, many gamblers have won progressive jackpot prizes from free spins for Canadians from slots like Mega Moolah, Age of Gods, and many more. Despite the prospects, most gambling winners go broke fast. The only ones who don’t have mastered the art of investing. If you have a good amount of money stored up from gambling, read the top ways to invest your winnings and secure your funds below.

Mickey Carroll went from winning $11.8 million to working at a slaughterhouse, while William Post raked up $1 million in debt a year after winning $16.2 million. Gerald Muswagon won the $10 million Super 7 jackpot in Canada but eventually took a job doing heavy lifting on a friend’s farm.

History has shown that the lives of various gambling winners can take a turn for the worse after hitting the jackpot. The outlets for losing money are endless, from funding expensive lifestyles like buying houses to evading taxes and giving handouts. A smart gambler understands that investing the money is the most prudent financial decision for the following reasons:

• Preservation of newfound wealth;
• Pathway to long-term financial growth;
• Financial stability for the future;
• Compounding generates additional returns over time;
• Investment aids portfolio diversification;
• It encourages responsible financial behaviour;
• It builds a legacy and assists in achieving financial goals.

Investing can be complicated for individuals who don’t know about it. As a result, we recommend you consult a financial advisor to develop an investment strategy tailored to your needs and goals. That said, below are popular investment vehicles you can try:

If you are an entrepreneur or have the spirit, use your gambling winnings to start a business. The only problem is that starting a business carries more risk than traditional investment. For example, Massachusetts resident Lisa Arcand won $1 million and opened a restaurant that closed within a few years.

Despite the failure, it was better than wasting it on material excesses. To avoid encountering a similar problem, only start a business you’re confident of succeeding at. The investment can yield substantial returns and contribute to personal fulfillment.

Saving for rainy days is an investment that can never go wrong. Think of it as a safety net of financial security in case of unexpected expenses like medical bills. Suzanne Mullins won the $4.3 million Virginia lottery jackpot but spent it all on an uninsured relative’s lengthy illness until she went deep into debt.

Ensure the emergency fund covers three to six months’ worth of living expenses. Meanwhile, we recommend you keep it in a high-yield savings account that guarantees low risk and easy access.

If you have kids or plan to in the future, consider investing in their education. In fact, you can do so for yourself. Callie Rogers was only 16 years old when she won $2.3 million but had only $2,500 left in the bank ten years later.

By 33, Britain’s youngest lottery winner was penniless and living on government benefits. Consider college saving plans in Canada like The Registered Education Savings Plan (RESP). Your money is sheltered from tax and has more time to grow.

Annuities guarantee an income stream over a specified period or for life. You make a lump-sum payment or a series of payments to the insurance company. In return, the insurer pays regularly over a period.

So, if you’re looking for a steady income, try it. Earnings within an annuity grow tax-deferred, which aids compounding. Plus, you can structure it in different ways to suit your financial goals.

Deposit your money into an investment account, such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA). This strategy reduces your taxable income while your retirement contribution grows tax-free.

Real estate is a valuable investment you can add to your portfolio. You can buy rental properties or flip them for profit. If you don’t know about buying properties, invest in Real Estate Investment Trusts (REITs) in Canada. In this case, money is pulled from several investors to purchase and manage profitable real estate investments.

Investing in stocks is one of the most popular in the world, as it allows your wealth to grow over time. You can invest in individual company stocks or exchange-traded funds (ETFs). Individual stock is riskier but offers high returns, provided you choose successful companies.

In contrast, ETFs offer more diversification and lower risk. Lastly, for stocks, try mutual funds. Mutual funds pool investors’ money to buy various portfolios of stocks, bonds, and other assets. Bonds are less risky and suitable for conservative investors or individuals seeking steady income.

You can also invest in precious metals like silver and gold. They allow you to hedge against economic uncertainty and inflation. Although metals won’t grow like stocks, they are more stable.

When it comes to gambling, the best way to keep your winnings secure is through investment. Instead of jewelry, flash cars, expensive trips, lodging, and handouts, put your money to work. Meanwhile, an investment does not have to be complicated. The ideas above are easy to follow. From simply depositing money in education funds or retirement savings to buying stocks and real estate, there are many ways to retain your winnings.