If you play the lottery jackpot
They say that being a millionaire is not as easy as we think, that forces us to make difficult decisions, so it is worth preparing for fortune knocking at our door on Monday, in the form of Christmas fat, or any other day, fruit of an inheritance or a stroke of luck
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Becoming a millionaire is one of the most recurrent dreams of people. And some will make it happen the day after tomorrow. Maybe you have already fantasized about what you will do if you are one of them, but keep in mind that normally you only anticipate the good, so perhaps your visualizations are not entirely realistic. Make a cut of sleeves to the boss, shout it to the four winds, give a party for friends, cancel the mortgage, give money to children … are some of the most expressed illusions . But, have you calculated well how much the prize must rise in order to stop working? Have you thought about the number of people who have been exploited and asked to call you as soon as you publish your fate? Have you estimated how much money will be taken from the money you donate to your loved ones?
Economists, psychologists, wealth managers and tax advisors warn that there are many things to keep in mind so that a rain of money does not end up becoming a source of problems.
Calm and stealth
The first advice of those who have lived in the second person (as advisers) the situation of being graced by an unexpected blow of economic luck thanks to the lottery or an inheritance is to maintain serenity and anonymity. Is not easy. The immediate impulse before a good news is to tell it, to explain it to someone to celebrate it. But experts warn that if you succumb to the shock of initial joy, if you proclaim your luck from the rooftops, if you boast about it on television or invite a round to everyone present in the office or at the bar, then you will no longer have margin for discretion, will multiply the pressures when deciding what to do with money, requests for help, invitations from banks and the possibilities of fraud.
The recommendation of the experts is to stealth to the point of not even telling the family until they have had time to digest the initial impact, to inform themselves, to think about what will be done with the money and to think about who really needs to know it. “When you make a fortune you get friends like mushrooms and many envies are generated, and many people with financial needs and children with problems who need help appear, so it is best to say only to two people of great confidence and wait That you spend the drunken to be clear to who you can explain and who better not, “says economist Vicenç Hernández , author of the book Personal Finance for Dummies (CEAC).
Beware of the bargains
The advisors warn that if anonymity is not maintained, it is easy to fall victim to the scam professionals who take advantage of the stunning and lack of initial information of the lucky one to benefit. The technical secretary of the Registry of Fiscal Advising Economists (Reaf-Regaf), Luis del Amo , warns specifically about the offers that can be received to buy the tenth winners. “There is no need to pay attention to anyone offering to buy the tenth for more money than the prize because it will be used to launder money and we will be left without justification of the increase in patrimony for that income, and if the Treasury checks our tax situation it will claim us for a profit not justified of patrimony and besides the quota it will be necessary to pay sanction and interests of delay “, emphasizes. The technicians of Finance grouped in Gestha explain it with an example: “If a person with an income of 30,000 euros a year gets 400,000 euros in a tenth of the fat man and sells it to a scammer for 450,000 euros, if he is caught by the Tax Agency You will have to pay more than 200,000 euros. “
To preserve anonymity it is not enough to keep your mouth closed in front of friends and family. You also have to take precautions so that the identity is not leaked at the time of collecting the money. The first advice of the estate managers is not to appear by the lottery administration where the tenth was purchased and where they will be expectant to meet the lucky ones. They also insist on not rushing and learning well before claiming the prize. “It is common sense not to make crazy decisions and take at least a week or fifteen days of rest to ask for advice and plan well what we are going to do because an opportunity like this probably will never happen again,” says Hernández. Among the information that should be gathered by the experts, for example, are those related to the confidentiality protocols of the bank to which we want to take the money. “It is interesting to go to a trusted bank office, ask about their confidentiality agreements and sign a paper whereby they promise not to reveal their identity if they process the collection with them,” says one of the managers consulted. Others suggest signing the confidentiality contract with a lawyer and it is a third party who processes the payment .
Before claiming the prize you also have to be clear about what you are going to do with the money. “It is not about having decided in detail what is going to invest or what will be spent, but have thought about whether something is going to be distributed and with whom, because it is important to determine the ownership of the prize before charging it”, indicate the experts “If the person who has the tenths has played with relatives or friends – very usual, or intends to distribute part of the obtained, it is important that they worry that the National Organization of State Lotteries and Bets (Onlae) certify the obtaining the prize for all the participants, otherwise, when the person who collects it hands over the money to their relatives, a donation will occur for which the taxpayer will have to pay taxes, at a rate of between 7.65% and 34%. % depending on the kinship and the autonomy where it resides “, explain sources of the Reaf-Regaf.
Sources of CaixaBank detail that, unless proof to the contrary, the ownership of the prize corresponds to those who are designated as beneficiaries in the management of the collection, for which they advise that if the prize is to be distributed -in equal parts or in different proportions- , go to a notary to make a record of demonstrations specifying the identity of the beneficiaries and the percentages of each one. It must also be borne in mind that since 2013 the awards of the Onlae, the Red Cross and the Eleven are no longer exempt from paying IRPF, so whoever collects the prize (unless it is less than 2,500 euros) supports a tax of 20%. “The tax levies the amount of the prize minus the 2,500 euros exempt, so that if we have a tenth prize with the fat we will have won 400,000 euros, we will retain 79,500 and receive 320,500 euros,” says Del Amo.
While all these decisions are made, some experts consider that it is worthwhile to keep the tenth or tenth prizes in the safe of a trust bank and, above all, to stop spending the money on account.
Leave the job? Travel around the world? To set up a business? Help the needy? Invest in the stock market? The economist Vicenç Hernández assures that at the time of specifying the use that will be given to the prize the first decision should be to settle debts and cancel any pending credit. The tax advisors warn, however, that it is not always interesting to cancel the mortgage. “People always say that if they play the lottery they will use the money to cover holes, but the hole in the loan for the house may not be canceled if we can take advantage of the deduction for housing, because if we amortize up to the allowed limit (9,040 euros to the year of interest plus amortization) we can deduct 1,356 euros in our annual income statement, “they say from the Reaf.
Regardless of the final destination of the money, experts say it is essential to plan well and make decisions calmly. “Our experience dictates that obtaining a fortune through a prize, after the initial euphoria, generates high levels of tension and uneasiness; but the hasty decisions of investment or consumption are usually not very efficient, and that is why planning is necessary, in order to introduce serenity in decision-making “, say CaixaBank managers. They add that the ideal is to seek specialized advice to reflect on each person’s personal objectives – forecast, savings, investment, risk coverage, etc. – and decide how to monetize the money to meet them.
Hernández thinks that for this planning it is convenient to resort to an independent adviser – “you have to make sure you are registered as Efpa on the web of this association”, he advises – and diversify “so as not to put all the eggs in the same basket”. And the tax advisors warn that this diversification must be done without losing sight of the Treasury, because each investment has a different taxation that weighs according to personal circumstances, just as the profitability and risk are weighed.
A good mattress
Another of the basic recommendations of the experts consulted is that, whatever the use of the bulk of the money, a percentage of the prize is reserved as an emergency fund in case the other objectives or projects fail. “Whether you give the prize or not, you dedicate it to start a business, you spend it to buy a car, you consume it in stop work or you deliver it to food, before making the calculations it is convenient that you keep a mattress for the future in products without risk ; So, if things do not go as you expected, at least you will have liquidity to live, “Hernández sums up.
Monitor life changes
If one does not want to be known that the lottery has touched him, he should be cautious with the changes he introduces in his life and not make ostentation of his consumption. But even if you do not mind that everyone knows that you are now a millionaire, experts warn that you should be cautious with the side effects of changes in habits. “If you spend the prize in a luxury car or in a huge house, you must be clear that afterwards you will have to pay maintenance costs that are much higher than what you are used to,” they say. But not all side effects are cheap. We also have to anticipate the emotional ones. “There are people who, as a result of fortune, change their homes and neighborhoods, move from one social group to another and end up not feeling comfortable in one or the other, and live with a strong sense of loneliness or constant doubt if the people who approach them are new friends or are only interested in their money, “says Anna Sangles , specialist in psychology and quality of life of ISEP Clínic.
Anticipate the emotional impact
Psychologists and economists warn that one of the usual side effects of receiving a fortune at a stroke is to experience feelings of guilt or unhappiness , on which it is convenient to be aware. “We often think that if we play the lottery we would be happy, and it is true that money solves some problems, but not all, nor makes you happy on your own, so when the initial binge of joy passes and you see that not everything is solved, it is easy to feel disappointed, “explains Hernández. Sangles, for his part, says that guilt often develops because he does not feel totally happy with that money or because he can not attend to everyone who asks for help.
The psychologist of ISEP advises to reflect and anticipate the emotional impact of the decisions that are made about money. “There are people who from one day to another choose to leave work and start a business without analyzing with whom they set up the company, how they will maintain it or if they have the skills to manage and direct that it requires, and then they may be distressed by the pressure or frustrated (and ruined) if the company fails “, exemplifies.
Sangles says that it is also convenient to anticipate the feelings that can trigger the decision to be generous with friends and acquaintances. “There are people who feel guilty for having been lucky and they balance it by being altruistic, but they have to protect themselves from the pressures that this can pose and set limits, decide how far they want to go; It’s like the list of guests at a wedding, at some point you have to close it and surely someone will be angry, but you have to do it, “he says.
Another dream that should be considered before making it a reality is to stop working . “Before saying goodbye to the boss, you have to think about what you are going to do, with whom you will spend your leisure time, how you are going to build your social relations, because if your personality is not very well founded, you may be idle while your friends work or coincide in your free time with those who are unemployed makes you feel bad and your social relationships are frustrating on both sides, “he warns.
But to stop working because you have touched a fortune is not enough to weigh your emotional solvency, you also have to be clear about the economic. Hernandez recommends “calculate your financial freedom, the number of months that fortune allows you to live without working while maintaining the current standard of living or the one you want to lead”. And it specifies that the calculations have to be done with the capital that is had, without considering the yields that can be obtained with it and once the money for the emergency fund has been discounted.
Taking advantage of the opportunity
That managing a fortune does not mean ending up with all the problems does not mean that you have to be bitter. “Money does not bring happiness but it calms the nerves, and helps solve many headaches in times of crisis,” Sangles recalls. That’s why experts say that if you become a millionaire you have to be aware of the opportunity it takes to enjoy life more, to help those who need it or to start the projects that had always been desired, either return to study, spend more time with the family or become a philanthropist. “A formula that can help to take better advantage of this opportunity and prolong well-being over time is not to have the money at once, but to withdraw an extra annual salary that is easier to manage, manage and enjoy,” the psychologist suggests.
The advisors explain that the recommendation not to make hasty decisions serves both when investing and sharing the money with others. One can opt for direct help to acquaintances or strangers, for making donations to NGOs or for designing their own solidarity programs by creating a foundation. Depending on the formula chosen, it will depend, among other things, to have more or less power to decide on the fate of the money, but also to enjoy or not tax benefits that result in more resources. However, experts warn that setting up a foundation of their own requires a very important heritage. “To talk about a foundation, your fortune should be between 60 and 100 million euros,” says Hernández.