How to Spend your 800M Lotto Without Touching your Winnings

As a Financial Consultant and a Wealth Planner, I am used in talking to a  lot of people in a very personal level.  I try to know  their current financial state, their fears, their hopes and their dreams.  With that, I try to educate them on how to use the different financial tools available to them right now that can help them reach their dreams, in a smarter and faster way.

Finally, one test that I always give them to know if they actually learned something from the truths I shared with them.  I ask this question:

What would you do if you won 100M Pesos in Lotto?

In one question, I received varied answers.  Even if they have different answers, the things that they will buy are much the same:

They will buy these things:

• Buy a house and lot
• Buy cars
• Give to relatives and charity
• Give to church
• Buy a franchise of an established business (like Jollibee or McDonald’s)
• Save some in the bank or Invest some

When they tell me all those answers, I just grin, quietly thinking: “They didn’t learn a thing from what I have just discussed with them.”  Well, I don’t suppose they can learn something that easy by just mere telling them.  The default settings will still be much stronger than a simple speech.

Let us illustrate first their answers before I go any further.

After they answer me those things, I tell them this:

“Do you know that, there is a study done among lottery winners around the world.  The study revealed that it will only take an average of 38 months, before a “typical lotto winner” goes back to his original net worth after winning the lottery?  And with your kind of answer, maybe it will only take 28 months.  (That one last part is a half-meant joke)”

Shocked, they ask me: “Why?”

I tell them: “Do you know that you can buy all those things that you like, without touching a single cent from your Lotto winnings?  And you never need to work a day in your life if you managed your money wisely?”

Curious and confused.  They ask me, “How?”

Are you curious too?  Then let me tell you this:

If you have a 100M.  Don’t spend it right away.  Put it in an investment that will give you 6-8% annual compounding interest.

Let me ask you:  How much are you spending in a year right now with your current lifestyle?

1M? or 3M?

If your money will generate 6-8M/year to spend, would that be ok with you?  This is a classic example on how MONEY CAN WORK FOR YOU.

Let me tell how it can be done:

As for the business?

Let me ask you this:

Should you still buy a 35-40 Million Franchise of an established business like Jollibee or McDo, if you are already earning 6-8M/year already?  They say, those kind of Franchise businesses, even those are already established, usually have an ROI (Return of Investment) on its 5^th year of running, if it will be a successful hit.  Should you still aim for that?  It’s up to you actually.

What if you ask me now:  “What if it did not earn the projected 6-8M/year?”

Of course, this concept is never perfect, there would be “bad years,” when you only earn less than the projected, but there will also be “good years”  that you will earn more than the 6-8M projected.  There are years that it will earn 15%-20%, so that would be 15-20M of money to spend in a year.  Some may not spend it all and keep it invested to cover those bad years that might come.

Let me ask you now, “What if you part  of the 99% who are not that lucky, and did not win the lottery, will there still be hope for you?

My answer is Yes.  That is why you need financial literacy and financial planning.  There is a way how to get to the 100M, without even winning the lottery.

It always goes back to how much do you know?  If you don’t know that much to begin with, that’s the reason why financial experts like me exist.  We are here to help you out.  If you don’t have the knowledge you need, then, ask and consult us.  We can tell you:  HOW TO GET TO YOUR 100M without winning the lottery or Robbing a bank!  There are ways, you only have to ask the right person.  Go ahead look for that person who can help you.

Now, since, the lotto has hit the 800M mark, let me ask you a hypothetical question:

What would you do, should you win this 800M today?

If we did it in a 100M,  What more can a 800M do?  Let’s have fun, comment below and let us know.

Be smart!

To the winner of the lottery, If you don’t know that what to do, contact me here. Let’s talk.

To the person who wants to build his 100M, contact me too.  I’ll show you.

Credits to Mr. Jong Merida of Wealth Management Center in teaching us this concept.

Read More:

• Saving Millions in Bank, How Safe it is?
• Single Pay Investment with Life Insurance (A Super Product for Lazy Investor)
• What Type of VUL plans do you have? Protection-focused or Investment-focused?
• Where do UITF, Mutual Fund, and VUL Invest your Money?

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Pinky De Leon-Intal, MD, RFC

Doc Pinky is a licensed Medical Physician, Internationally Registered Financial Consultant, Certified Investment Solicitor and Associate Wealth Planner and Estate Planner of the Philippines. She loves to educate and spread financial literacy. She is a Lactation Consultant. She loves to travel. She is a devoted wife and mother.

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