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Lotto closes in on record jackpot, advisers urge winners to invest

Published:Wednesday | January 28, 2015 | 12:00 AM

Richard Mitchell, Staff Reporter

Five years ago, a farmer from Manchester won the record Lotto jackpot of $240 million. Today, with the jackpot at $215 million and climbing, financial advisers are urging potential winners to think hard about investing.

"If you were to get a windfall like winning the Lotto, for example, the first thing I would do is to sit down with a financial adviser," said Maria Beyna, executive wealth adviser at NCB Capital Markets.

When you sit down with an adviser, questions that need answering are, 'What are your long-term and short-term goals?"

Talking specifically about the options the wealth and asset management arm of NCB offers, Beyna explained that there were many choices, depending on whether someone is looking for short- or long-term returns.

"Winnings from the Lotto can definitely create income in the short and long terms," Beyna said. "For the short term, there are options like unit trusts. These products offer liquidity and accessibility to funds. For the long term, bonds and structured products like corporate notes are available, and these can provide quarterly and annual incomes."

DON'T ACT ON IMPULSE

The seasoned wealth adviser also urged persons not to run on impulse and "splurge" their winnings.

Similar sentiments were found at JN Funds when The Gleaner spoke with Delories Jones, vice-president of sales and business development.

"I have worked with Lotto winnings in the past, and I have seen where in the space of no time, the money disappears," she said.

"If you win the Lotto, first ensure the money is protected in an interest-bearing account and pay off all your debts," Jones advised. "Once you've cleared off debts, sit with a financial adviser."

When asked about specific investment opportunities, Jones highlighted real estate as a "good area of investment".

Taking it one step further, Marian Ross, assistant vice-president of business development at Sterling Asset Management, suggested that winners purchase real estate overseas.

Supreme Ventures was not able to comment on the demand for their products at this time due to auditing rules.

richard.mitchell@gleanerjm.com