Source: The Mercury, 31 March, 2001, p.??

Spend your win wisely


PUNTERS fortunate enough to 
come away with a win have two 
choices. Blow the cash on some 
short-term fun or put it to good use 
and jump on the fast track to riches. 
   We all dream about what we would 
do with if we hit the jackpot -take a 
trip, buy a car, pay off the mortgage 
or even quit work. 
   But the Financial Planning 
Association says most people are 
not capable of coping with a big 
   Financial planner Ken Taylor says 
the first thing to be wary of is 
making a quick decision. 
   With all the excitement and 
emotion people can get carried away 
and waste the opportunity, he says. 
   It's important to enjoy your good 
fortune and treat yourself but 
then you should map out a strategy 
to get the most out of your winnings. 
   Careful planning is 
necessary to get the most out of 
the lump sum. How you invest 
your money will depend on your 
stage in life and how much you need 
to live on. 
   The Financial Planning 
Association makes the following 
If you win $1000 
   · Pay off existing personal debts 
such as credit cards and make a 
commitment to change poor 
spending habits. 
   · Open a cash management account 
or trust and commit to a savings plan 
to top it up each month. 
· Develop a comprehensive, 
written financial plan with a 
financial adviser to set some 
investment and savings goals. 
If you win $10,000 
   · Make a home loan payment and 
consider re-drawing funds for long- 
term investments. 
   · Open a cash management trust for 
upcoming commitments. 
   · Top up your superannuation or 
make a spouse contribution. 
   · Invest in a managed fund or unit 
If you win $50,000 
   · Put the money towards your home 
loan and consider re-directing 
a portion of your funds to long-term 
   · Make a deposit on an investment 
   · Buy shares in 
telecommunications, banking and 
media in $5000 parcels. 
   · Get a margin loan for shares or 
managed funds. 
   · With managed funds, consider 
international share exposure. 
If you win $250,000 
   · Consider direct share 
investments and managed funds with 
international exposure. 
   · Pay off your existing mortgage 
or buy an investment property.

Where to next?

Student Questions for this article
Teacher Discussion of this article
Index - Related articles
Index - Chance and Basic Probability
Main Index - Numeracy in the News