How to Take Advantage of the Christmas Lottery Jackpot

But what is the best way to get the most out of the prize? From the financial comparator HelpMyCash.com they advise to keep a cool head; It is a high amount that can generate high profits if we do not waste it.

The bet on the brick it is the most typical and traditional investment in Spain. And, although being able to pay a property tocateja and not having to ask for money from the bank sounds great, experts do not always recommend it.

Why? Right now, mortgages have a great advantage: their low interest rates. It is possible that going undercapitalized completely for the purchase of a house is the wrong way and it is more profitable for us to advance a part for the purchase and finance the remaining part. The remaining fraction can be used for other investments that generate us superior profitability at the interest of the mortgage loan or to save it for emergencies and so on preserve some financial lung.

According to the risk rating agency Fitch, the price of housing in Spain will fall between 4% and 6% in 2021, to stabilize again in 2022, so 2021 could be a good year for the purchase of a property.

Yes, if we want buy to rent laterWe must bear in mind that the price of leases is falling in some areas, either due to lack of demand or because of tougher regulation at the regional or local level. Therefore, it is advisable that Let’s study the area in which we will acquire the home very well so as not to be surprised.

On the other hand, If we already have a mortgage and what we want is to get rid of it, we must assess whether it is worth canceling it. And it is likely that their interest is very low (the Euribor is now trading at historical lows), so it may be more convenient for us to invest that money in products that give us a good return, especially if the loan is prior to 2013 and we have the right to deduct the fees.

Invest the money

Investment products can generate interesting returns, but we must not forget that profitability and risk they usually go hand in hand. The bank will surely offer us to invest the prize money in products such as stocks, funds, pension plans, ETF or insurance. But are they good options for our profile? It depends, not all investment products are for all clients.

It is always advisable to understand what is being hired, know its risks, diversify investment in various products to compensate for possible losses and gains (never put all your eggs in the same basket) and, in addition, consider investing outside of Spain.

If it seems like a complex world, it is interesting to look Professional advice and put the prize money in the hands of an expert who is in charge of determining our investor profile and offering us different alternatives according to our aversion to risk. Of course, we must know that if the manager works for a bank, he will also look after the interests of the entity.

Diversification, key

For those who are more reluctant to the possibility that their money will suffer ups and downs, there are products that are not so profitable, but much safer: fixed-term deposits or, directly, a bank account. By choosing one of these products, we eliminate the opportunity to achieve high returns, but we will know the interests that the bank assures us from minute one, they explain from HelpMyCash.com.

Diversification is once again a key tip. We must know that the money is insured by the bank, since it guarantees us the capital invested in accounts or deposits. However, in the event of bankruptcy or insolvency of a bank, only the first 100,000 euros are protected by another body that is in charge of covering the bank when it is in trouble: the Deposit Guarantee Fund. For this reason, it is interesting not to keep more than 100,000 euros in a bank and diversify the capital in various entities if it exceeds this amount.

What alternatives are there? The Raisin savings product platform offers time deposits with attractive returns from different European banks. Of course, with a deposit we will not always be able to beat inflation, since the maximum interest we can aspire to in Spain is 1.36% APR, but we will be able to mitigate its effects.

By investing, for example, 100,000 euros of the prize in the most profitable one, the J&T Banka Deposit for 5 years at 1.36% APR, we would get insured interests of about 7.000 euros gross at the end of the term.

If instead we want security, but we don’t care take some risk, you can combine the investment and allocate a part to a safe product and another to one that involves a bit more risk. In addition, there are mixed products, such as combined deposits. An example is the Banco Mediolanum Deposit Mix, in which a percentage of the investment is insured at a fixed term and the remaining percentage (which must be equal to or greater than the contribution in the deposit) is invested in an investment fund managed by the bank.