From windfall to wealth: How to invest lottery winnings and other gains

While the odds of winning the lottery are low, it’s possible. Last year, for example, 383 millionaires were created.¹ Winning the lottery or any other type of windfall can be life-changing, but without a smart plan that money can disappear faster than it arrived.

Evelyn Partners works with Allwyn (formerly Camelot) to guide winners through their newfound financial situation. But whether you’ve scooped a modest sum, through an inheritance for example, or hit the jackpot, knowing how to invest your winnings wisely is key to turning short-term luck into potential long-term financial security.

A sudden influx of wealth can be overwhelming. That’s why our financial planners act as a ‘financial sat nav,’ helping you to map out your future, using cash flow modelling to help you meet your short-, medium- and long-term goals.  
 
Here are four essential ways in which Evelyn Partners can help you with your windfall:

If you want to invest your money you can get a good return on investment depending on where you invest, the risk you take on and how long you invest the money for. There are short- and long-term options to consider.

Short-term solutions  
If you’re not ready to make longer term decisions following your lottery win, there are short-term options available while you consider your options and goals. These include:

Cash management services: If you’ve won a lot of money you’d need to spread it across multiple banks. People often do this because of the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 of your money per person, per bank, if the bank goes out of business. It’s a government-backed safety net that helps make sure your savings are secure, even if something goes wrong with your bank. It’s something to consider if your win isn’t huge and you need easy access to the money

Choosing NS&I (National Savings and Investments) products. These are a popular option for savers who want maximum security, as they’re fully backed by the UK government. This means your money is 100% protected, no matter how much you save. Unlike the £85,000 limit offered by the FSCS, NS&I guarantees every penny, offering peace of mind for those who want to keep their savings completely safe

Investing in low-risk portfolios, such as our own offering, the Evelyn Partners’ Cash and Cautious Bond portfolio. This is designed for people who want to keep their money relatively safe while aiming for better returns than a typical savings account. It invests in low-risk assets like UK Government bonds, Treasury bills and carefully selected global bonds. The portfolio, which accepts minimum investments of £350,000, is actively managed and offers a simple, flexible way to spread risk across government-backed and top-rated investments. Remember though, like all investments, it does carry some risk—so there’s a chance you might not get back the full amount you originally put in.

Long-term solutions
Once you’ve had time to reflect on your goals and priorities, you may want to consider longer-term strategies to help preserve and grow your wealth. These options are designed to support your financial wellbeing over many years and can be tailored to suit your lifestyle, values and ambitions.

• Creating a diversified investment portfolio is a common long-term approach. This involves spreading your money across different asset classes - such as equities, bonds, property and alternative investments to balance risk and return. A well-diversified portfolio can help protect your wealth from market volatility while aiming for steady growth over time. Working with a financial adviser can help ensure your investments align with your risk tolerance, time horizon and personal goals
• There are, of course, many other options to consider such as investing your money in a trust or buying property. If you decide that our discretionary options are the way forward, we will start off with lower risk funds to ease you into the world of investing. It’s important to remember though that, as with all investments, there is risk that you could lose some or all of your money. Ultimately, we believe it’s better to give up some short-term gains to ensure that there’s no panic should there be a downturn

You may want to keep your good fortune private, which can help avoid pressure to give away large sums. Others may wish to support family and friends, but in this instance it's important to look at your finances and budget accordingly. We help you assess what you can afford to gift without compromising your own financial future - ensuring generosity doesn’t come at the cost of long-term security.  

We meet with lottery winners more frequently than experienced clients - sometimes every six months - to ensure financial plans remain on course. These regular check-ins can help you to manage spending, avoid common pitfalls and adjust to the emotional impact of sudden wealth. For those new to investing, we strongly advise against managing portfolios independently without professional guidance. After all, such a windfall may be a once in a lifetime experience. 

Our retail investment platform, Bestinvest, offers free investment coaching with Coaches who can run through key questions on whether your investment strategy is aligned with your investment goals.  
 
Meanwhile, at Evelyn Partners, we support lottery winners by improving their financial education too. With all our different portfolios we explain how the money is invested and the associated tax treatments. Once you are willing to increase the risk of your portfolio to strive for more return, we help you understand how equities and bonds behave in various market conditions and highlight the risks. We also introduce you to specialist investment opportunities such as structured products, gold and infrastructure – helping you make informed decisions about how to grow and protect your wealth. 

A windfall can open the door to financial freedom - but only with the right plan in place. At Evelyn Partners, we combine expert financial planning with disciplined investment management to help you turn short-term luck into long-term prosperity. Whether you’ve won the lottery or received an unexpected inheritance, we’re here to help you make confident, informed decisions about your future.

To find out more about how you could strive for financial freedom contact Evelyn Partners to book an appointment with one of our expert advisors.

1. National-lottery.co.uk, Review of the year 2024, 23 December 2024