Regardless from the state of the economy, something you can always count on is snaking queues outside Singapore Pools outlets within the lead-up to TOTO jackpot draws.
With the possibility to win life-changing amounts of money, are we able to be surprised? From 2021, the size of the 20 largest TOTO winning shares range between $9.7 million to $1.9 million.
While we know that playing TOTO is statistically unfavourable, we can a minimum of understand and sympathise with the psychology that drives pundits to hand over their hard-earned money to Singapore Pools.
Yes, it's unlikely it's that you'll wind up winning one of the big prizes. Consider there's a greater than 0% chance you will win if you purchase a TOTO ticket, we've put together this short article to help you step-by-step on what you want to do exactly after winning.
The same principles outlined in this article apply to receiving an inheritance, although the quantum will likely be smaller, unless perhaps you're related to a number of Singapore's richest individuals.
Thinking By what Related to A Windfall Is Valuable
In the path of writing this article, I found that it may be very valuable to seriously contemplate what I would use a large windfall – seriously being the key word here.
It is easy to fantasise what we'll do if we have lots of money – taking into consideration the places we'll go, the stuff we'll buy, and the things we'll stop doing.
But contemplating how we'll integrate a lot of money into our existing life and wondering how to make the most out of it takes deep soul-searching and study of what and who we value, which can yield interesting insights about ourselves. This alone is really a win, even if we don't ever win a TOTO draw.
Claim Your TOTO Prize Winnings
It might sound silly to state, however the very first thing you need to do would be to make your way to assert your prize money from Singapore Pools as soon as possible.
Winnings above $5,000 is going to be disbursed as cheques in the Singapore Pools Main Branch (210 Middle Road, Singapore 188994) from Monday to friday, 8am – 4.30pm, excluding Public Holidays.
You'll need to go down in person with your winning TOTO ticket along with your identification (NRIC for Singaporeans and PRs or passport for foreigners) that suits your bank records.
All unclaimed prizes are deemed to possess been forfeited and channelled to donations and charitable grants managed through the Tote Board after 180 days from the draw date (including weekends and public holidays).
You'll be glad to know that in Singapore, lottery winnings are tax-exempt, so you'll be able to keep every dollar of your prize money.
Congratulations You're Rich – But they're Not THAT Rich
Millions of dollars in cash may be the most you have ever handled – and that is probably true for almost all us. But it is important to stay grounded.
The majority of individuals with millions or millions of dollars, including entrepreneurs, celebrities, and savvy investors, don't merely quit their jobs and uproot from society, thinking they've managed to get in life.
To put things into context, even if you took home an awesome $4 million at age 40, you'll need your money to continue for about 50 years to be on the safe side. If you don't properly manage and invest your hard earned money and merely gradually draw down that sum, you’ll have this amount each month:
$4 million / Half a century / 12 months = $6,667
Now, don't misunderstand me. I'd love to have $6,667 every month for the following Half a century of my life – but that isn't so much money that I can spend frivolously, like purchasing a sportscar and travelling all over the world in first-class on a whim.
There are lots of heart-breaking stories read online about lottery winners who squandered their newfound wealth and were to living from paycheque-to-paycheque shortly after they won huge amounts of money.
Proper budgeting and investing of your finite wealth is vital in helping preserve it for a long time and decades to come. Towards this end, cultivating the right attitude and aptitude for managing cash is important, whether you have $1,000, $1 million, or $10 million.
Wealth Preservation VS Enhancing your Standard Of Living
After the euphoria of winning passes and you've adjusted to the reality, it is time to take a seat and start planning in earnest.
An obvious initial step would be to clear high-interest debts, since they would only eat to your finances with time.
You may then decide what to do with lower-interest loans, such as your mortgage or hel-home equity loans: you can either be debt-free, or maybe you're confident of getting more from investments compared to interest you're incurring, you could take your time and effort to pay them off.
Once you've decided what you desire to do with your loans, you need to see your trusted financial adviser to obtain suggestions regarding how to best deploy your considerable funds to attain your goals in everyday life.
Whenever you've got a significant alternation in life circumstances, it is usually a good time to review your insurance and investment portfolio, also it could be especially beneficial for you to speak with somebody who has experience serving individuals with a greater net worth, because you now have access to investment products and services which were closed for you previously.
Wealth banking, accredited investor investments, and merchandise with a high minimum investment are some of the new options which are now available to you.
Opportunities Come Along With Opportunity Costs
Choosing to do nothing, and letting your windfall sit quietly inside your (regular) banking account, has become the second worst thing you can do together with your money. The worst being squandering it quickly.
By not doing anything together with your money, you're incurring opportunity cost. That money might be earning interest for you personally, invested to capture growth opportunities and earning dividends, or put to good use by starting or supporting businesses.
Think by what your short-term and long-term needs and aspirations are, and structure your portfolio accordingly to get your desired level of liquidity and long-term capital appreciation.
Spending More income Doesn't Equal A Happier, More Fulfilling Life
It may be worth noting that lots of millionaires as well as billionaires still decide to work, despite their riches. Even though you can drawdown your windfall at a sustainable rate for the rest of your life, you'll probably still choose to work.
You don't have to work, but as we've noted previously, we are able to derive great satisfaction in work, whether that's salaried work, volunteer work, or like a self-employed individual. Work also gives us structure in our lives, social interaction opportunities, and a way to keep the body and minds active – which can't be bought with money.
After a particular point, spending (or accumulating) more income won't bring us more joy or satisfaction, and we'll probably have to seek out something deeper.
With A Great Windfall, Comes Great Responsibilities
How can you feel if you found out that someone near to you had lots of money, but wasted it away, and therefore are now visiting you to borrow money that you had to scrimp and save for? You probably believe that it serves that individual right for not cherishing what they had.
With great savings, come great responsibilities. If you ever have the fortune to get a windfall, do stand wisely and benefit the greatest number of individuals.
As you queue as much as buy your next lottery ticket, we hope you'll remember a few of the pointers in the following paragraphs even as you dream and envision yourself with the winning numbers. Best of luck!