Ka- Ching! Make your own lottery win

The record €250m Euromillions win had everyone fantasising about what they would do with a big windfall.

But you don't have to just dream about it - you can build your own!

Here are some alternatives to lottery bets that guarantee you end up with a jackpot - albeit usually a much small one!

Prize these bonds

Prize bonds give you a chance of winning a jackpot – while also, crucially, keeping your money intact.

Each year 1% of the total prize bond fund is paid out in prizes by An Post.

Ensure a windfall - by saving instead

Almost everyone who does the Lotto loses almost all their money.

But you could earn a guaranteed sizeable windfall if you saved it instead

Let’s say you spend €12 a week on two Lotto bets, including Lotto Plus.

That would tot up to €12,480 even if you never earned a cent in interest on it.

But @ 2% interest, your pot would reach €15,535 over 20 years.

Invest the money

Even better, let’s say you invested the money and managed to earn a fairly conservative return of 5% - (half the historic returns of the S&P 500 shares index).

You’d have a princely €21,462 over 20 years.

If you managed to match the S&P’s historic 10%, your returns would be a tasty €39,816 (although don’t bank on that given uncertainty surrounding the world economy).

Put it in a pension

A pension is basically a guaranteed lottery win. A good pension properly invested could accumulate to a seven figure sum over a career.

But it would only cost you less than half of that amount in actual cash because you get tax relief at 40% and benefit from the magic of compound interest multiplying your investments.

If you put €12 a week into your pension instead of the lottery, you’d have an extra €47,000 in your pension fund, according to New Ireland’s retirement calculator (which factors in tax relief). Then you’d be a real winner!

What €12 a week adds up to over 20yrs

Returns over 20 yrs	Annual    return	Total €
Lotto*	-43%	7238.4
Prize bonds*	1%
Savings	2%	15535
Investment	5%	21462
Investment	10%	39816
Pension**	5%	47000

Based on spending/investing €52 per month for 20 years – a total of €12480. 

*Lottery and prize bond return based on the average return from prize funds. Most likely the National Lottery payout will be zero or a small sum with an outside chance of a big prize; prize bonds return all your money, though with an even-smaller chance of winning. Pension returns include tax relief at the higher rate.

KEL GALAVAN's TOP TIPS

'Finfluencer' Kel Galavan - or MrsSmartMoney online - would offer the same investment advice to Lotto winners as ordinary savers and investors.

“How I’d approach it is surprisingly similar to what I’d recommend to anyone building long-term wealth (just with fewer yachts involved!),” she told us.

“For anyone without a jackpot win but still wanting their money to work smarter, it's not about spending like a millionaire; it's about protecting and growing your money like a millionaire.”

Here are her choice investment tips for all readers:

1. Safety first.  Start with a financial plan and expert advice. Before making any big moves, work with a trusted financial advisor to set clear goals, manage taxes, and build a diversified investment strategy tailored to your needs.  

2. Build a ‘money life jacket.’ Keep some cash reserves accessible to cover emergencies or opportunities. This protects your investments from forced sales during market dips. Sleep-at-night money.

3. Global growth.  Don’t put all your eggs in one basket. Spread the rest across diversified ETFs (Exchange Traded Funds): global stocks, sectors like tech, health, clean energy - long-term growth without betting it all on one horse.

4. Property? Maybe. If it’s strategic. Not for the ‘passive income’ myth, but because everyone needs somewhere to live, and over time, there will always be some level of demand. Real estate is definitely not for the faint of heart. 

5. Avoid panic. The market moves. Your investment strategy shouldn’t react to every headline.

6. Give wisely. With that kind of wealth, you can truly change lives - but do it with a plan (and a good tax advisor).

7. Angel Investing: Again, not for the faint-hearted, but maybe put a 1% or 2% and become your own Dragons Den. It could be fun and change the world in your own little way. 

Kel runs a special course for investors. Details are on her website: www.mrssmartmoney.com.