Winning the lottery is a dream for many. They imagine what they will do with all of their cashing winnings. Common lottery winning dreams include new home purchases, new vehicles, paying off debt and taking all inclusive vacations around the world. Some may even be interested in starting their own business or purchasing multiple homes all over the country. Winning the lottery can be very exciting, but what many people do not realize is that, generally you do not get your entire lottery winning at once. Most lottery winnings include monthly structured settlement payments. This means that instead of one large payment, you will receive smaller ones each month or year.
At the end of 2013, there were also 34.8 million individual deferred annuity contracts in place exceeding $2.58 trillion. This means that a lot of people are owed money. A lot of the countries lottery winners are owed a large portion of their winnings. It can be difficult to do all of the things you want with your large amount of cash, when you never receive that large amount of cash.
Some lottery winners may even still be struggling, despite the amount of cash that is owed to them. Their monthly payments may not be enough to purchase that house or take that dream vacation. It definitely may not be enough to pay off debt. 64 million people, or approximately 35% of the U.S. population, said they had trouble paying bills or were stuck paying off medical debt in 2014. Some of these people may even be lottery winners, who are still waiting on a majority of their lottery winnings.
Fortunately, lottery winners with structured settlements have the option of selling their annuity and getting cash for structured settlement. When you sell annuity payments, you are signing over your monthly payments for a large amount of money. Minor fees may be charged, but these fees are usually worth receiving all of your money, at once.
Annuities are available in varied lengths and payout periods, two of the most common are payments over the course of 25 years or payments until death. Many people actually prefer to get settlement money now, so they can enjoy their cash on things they want or need now. Additionally, when you sell annuity payments, you are able to increase your financial situation, which often pays out more in the long run that waiting for those payments every month.
For example, someone who takes their cash for lottery winnings after they sell annuity payments, can purchase a business. If the business is run correctly, it will eventually produce profits. These profits can be added to the monthly living income, and there is no time limit on this business, as there is with the structured monthly payments.
When you sell annuity payments, you can also focus more on financial management of your money. You can pay off any outstanding debt, thus increasing your credit rating. You can purchase items, like your home and car in cash, avoiding very expensive and high interest rate charges. You can also take that dream vacation, without worrying about having to put it all on a credit card. It can also be beneficial to invest some of the cash payment into a high returning fund, setting you up for retirement. These are all ways to increase your financial freedom after you sell annuity payments.
Most lottery winnings pay out in monthly structured settlements. Although extra money every month is helpful, it may not be enough to do the things you dreamed with your lottery winnings. Selling your annuity payment for a large amount of cash can actually be beneficial to your financial situation. You can do things like avoid interest charges on cars and homes, invest and begin your own business that produces profits.