“Winning the lottery is not the solution to all problems”: how do I spend cash if I win the jackpot? | Christmas Lottery 2025 | EUROtoday

In only a few days the Extraordinary Draw of the Christmas Lottery can be held and one of many 100,000 numbers that may spin within the drum on December 22 would be the one awarded with 4 million euros: the Gordo. Those who win this award can be tempted to depart their jobs or make extraordinary bills, however consultants advocate persistence and prudence when making these selections.

BBVA, to start with, asks for discretion in case you are one of many winners to keep away from “facing a situation in which family, friends and financial entities want to influence the fate of the prize.” Analysts at Santander Consumers, the monetary establishment specializing in client credit score of the Santander Group, additionally discuss with this affect, highlighting that when a big revenue is acquired, “you may experience more or less direct pressure from acquaintances to request loans or other types of financial aid.”

Before making investments or buying any asset, BBVA recommends that, when you have money owed, it’s best to settle them first “especially if they are executive, that is, those that have to do with non-payments” since “they involve very large late payment interest.” When it involves canceling a mortgage or different loans, they level out that it will likely be optimistic relying on the situations and the existence of a fee to amortize these credit. From the financial and monetary consultancy Vía additionally they wager on prudence and advise “not to make hasty decisions or make large purchases that could lead to too much debt in the future.”

From this consultancy they ask to keep away from “hook products”, those who supply excessive returns with out assuming nice dangers, since “they simply do not exist”. Thus, they warn that “70%” of those that win the Gordo “have much less money five years after winning the prize.” To keep away from this case, BBVA recommends “advice from a professional with experience in investment and wealth management.”

Can you reside off the revenue?

If you might be fortunate with the Jackpot, many will take into consideration dwelling off the revenue, the advantages obtained from investing this capital. The consultants at Gescooperativo, the collective funding firm of the Caja Rural Group, should not very optimistic. Firstly, specialists make clear that, of the 400,000 euros of a tenth winner, the primary 40,000 euros are exempt from taxes however the remainder is taxed at 20%, so the web quantity obtained can be roughly 328,000 euros.

If you determine to wager on mounted revenue funds, or combined mounted revenue funds, which might supply a return of round 2% or 4% per yr, you may get hold of capital good points of between 6,560 and 13,120 euros per yr, in line with Gescooperativo. The group highlights that it’s “an interesting complement to the monthly salary” however one thing that may not enable one to dwell off of those advantages.

In addition, we should add the results of inflation since, as these analysts level out, “it can erode part of the real performance.” Furthermore, within the case of funding funds, earnings are solely taxed when the cash is reimbursed, making use of the charges of 19%, 21% or 23%. in line with the quantity of the capital acquire.

Distribute the capital

When making investments, consultants agree that you do not have to threat all the pieces on one card. BBVA recommends distributing the capital in multiple vacation spot to “not unnecessarily increase the risk involved in entrusting the money earned to third parties.” Before making these bills, Santander Consumers highlights that “it is essential to have a good foundation in terms of financial education” and, in case you are undecided which merchandise to put the prize on, “seek the guidance of a good financial manager.”

The Santander Group’s finance firm additionally emphasizes that you need to be clear about what threat you need to assume. Those searching for safer property have choices equivalent to long-term financial savings deposits, pension plans, company debt, artwork or the acquisition of actual property. Those searching for larger returns can go for funding funds that enable them to construct portfolios with a larger weight in mounted revenue or variable revenue, relying on the extent of threat they’re prepared to imagine.

However, when finishing up these operations, not solely profitability and threat should be taken into consideration, but additionally the opportunity of making the investments liquid. BBVA consultants guarantee that you will need to additionally concentrate on “the taxation involved in the chosen modalities” and “the content of the fine print of the signed contracts.” Thus, additionally they counsel not investing all the cash earned since “life has unforeseen events that appear when you least expect them”, so “a part of the capital should be kept in a deposit “that allows for immediate liquidity.”

Santander Consumers advises, “not to radically change your lifestyle, especially if you do not know how to manage capital well.” For this purpose, they ask the winners of the December 22 draw that “winning the lottery, in most cases, is not the solution to all economic problems,” so “we must get rid of the fantasy of a millionaire drinking caipirinhas 24/7 on a Caribbean island.”