Winning the Christmas lottery jackpot means pocketing 400,000 euros before taxes. This blessing is not good for a golden retirement -most want it to cover holes such as mortgages- but managing it in the right way allows you to stretch it to the maximum. If it is the intention, you have to move it yes or yes: having the money set aside in an account or under the mattress makes inflation eat up the sum.
First of all, it must be taken into account that the 400,000 euros net are not received. Like last year, the first 40,000 euros of the prizes are tax-free, while the rest is taxed at 20%. Thus, the first remains at 328,000 euros, the tenth after paying 72,000 in taxes. The second goes from 125,000 to 108,000, and the third, from 50,000 to 48,000. Treasury always wins...
With the fat man's 328,000 euros under the mattress or in an account, without spending it in the long run, inflation does not forgive if it is left alone. In a term of 10 years and an average inflation of 2% per year -the ECB's objective- they will decrease to 220,734 current euros, equating the purchasing power. But we live in times of higher rises. With an average of 3%, the 328,000 euros become 244,062 in a decade, draws Paula Satrústegui, wealth advisory partner at Abante Asesores. "If I leave the 328,000 euros under the mattress, in twenty years I could buy the same as today with 181,605", she sums up in another scenario with 3% inflation.
The latest forecast from the Bank of Spain points to a rate of 4.9% for 2023: next year alone, 16,000 euros in purchasing power will be lost. It is time to look for alternatives to match the price increase and at least maintain the purchasing power of the prize. "The money in the current account loses value due to the effect of inflation, you have to look for an investment," says Antonio Castelo, an analyst at iBroker. Where? And with what profitability?
More than recommending something in particular, traditional advice comes to light. Build a portfolio "highly diversified by geographic area and type of assets," says Satrústegui. Castelo remembers that the starting point is the profile of each one. "You have to draw up a profile according to the personal situation of the winner. His present and future needs, age, job stability, salary, his aversion to risk...", continues Castelo.
Goals will have to be reviewed, such as buying a home, retirement, a child's education... Depending on this, you can risk more or less. "It will help to see how we have to put the money to work based on our objective. At least it must be to equalize inflation," Satrústegui details.
Regarding profitability, "every point that we get above inflation is going to be noticed," he says. Take out the calculator and with a return that equals inflation in ten years you get 399,830 euros with the fat (328,000 euros), with inflation and an extra 1% you get 440,805 euros and with an additional 2% to 485,520 euros. At 20 years between equaling inflation and exceeding it by two points, the difference can reach 230,000 euros... "Anything that beats inflation, the better," Castelo clinches.
A good investment solution goes through investment funds, agree the experts consulted. "But not through the banks, which are not always the most appropriate," they believe in iBroker.
With the rise in interest rates, a cycle change opens in which lower-risk options, such as bank deposits or public debt, are becoming more attractive. Of course, beating inflation is more complicated and you have to look abroad. Based on data from the comparator Raisin, after less than a year the deposit that pays the most is that of the Italian Banca Progetto and its 2%. At one year, 2.90% of the Belgian CKV stands out and at 2 years that of the Lithuanian Fjord Bank. In longer terms, it reaches 3% at 10 years.
"With deposits and debt, you are still well below inflation," says Castelo. To this we must add the ability to achieve liquidity, since by canceling the deposit in advance or selling a debt security before maturity, out of necessity, you can lose out. The most conservative may be better off buying housing to rent, he says.
In the end, everything happens by taking distance, planning and not going crazy. "It's money you didn't have and you probably want to indulge yourself, don't lose your head. If you give the same importance that you give to the money you get from your work, you will avoid finding yourself in a compromised situation," the Bank of Spain recommends .