Have you recently won a lottery? Only a lucky few manage to get their name on the winners list of a lottery payout. If you have recently had such luck, you would know that lottery payments come in the form of an annuity. The process is simple — the total money that you have won comes in monthly batches over the period of a few years until you have the full amount. This is a welcome proposition for some as it allows them to have a consistent source of funds on a monthly basis. However, if you have recently run into a situation where you are in urgent need of a bulk amount of cash and want to receive the entire lottery payout at one go, one great to achieve this is to sell your structured settlements and opt for lump sum lottery payout.
Lottery winnings are typically paid out in the form of structured settlements. For example, the well-know Mega Millions annuity is composed of a total of 30 monthly payments. This scheme, however, is likely to be of little help for you if you are looking to receive all your winnings in cash at one go. Financial requirements can spring up when you are not even looking, and if you need to start a business, finance your education, fulfil debt obligations and improve your credit rating or just simply want to purchase property or a vehicle for convenience, you need cash up front to make those purchases. Your lottery annuity can be sold to bring you all your money up front in such a case. You might even make some major savings, being able to avoid taxes and maintenance fees.
Why Lump Sum Lottery Payout Makes Sense
There are certain times when the need for instant cash is a real, palpable need. You might have wanted for a long time to take that long awaited vacation, or have plans in place to start your own business and are waiting for that initial capital. In situations like these, you can leverage your lottery award, opt to receive lump sum lottery payout and you can be on your way. There are many companies that buy structured settlements and their process is simple — you sell your settlement payment and walk away with the total cash award that you are entitled to, thereby also ending your association with the settlement and receiving all your cash up front. Almost 50% of lotto winners still continue to work after winning a lottery payout, and if you are looking to no longer be a part of that group and do something on your own, this is a great way to do it.
Opting for lump sum lottery payout can also help you make certain savings in the long term. At any point of time, the government can opt to withhold up to 25% of your lottery jackpot wins. Also, with variable annuities as most lottery payments are, there might be the question of a maintenance fee that can come to approximately $30 yearly. Cashing out immediately will allow you to avoid having to pay these fees and receive the entire amount due to you at one go.
In short, if you are looking for financial freedom or just need money to get out of an emergency situation, leveraging your lottery winnings and cashing out can be just the option you are looking for.