You won the lottery! That’s fantastic! But when you win the lottery you’re faced with decisions, the first being lump sum versus annuity payments. A lump sum, obviously, is an amount of money you get up front, while annuities are lottery payments that come in different lengths and periods of payout.
For example, each payment of The Mega Millions annuity is 5% bigger than the previous. They are paid out first as one immediate payment, that is then followed by 29 payments, in a year. For a typical jackpot of $50 million, the first payment would be more than $750,000 and future yearly payments would grow to more than $3 million, with this payment plan.
But yearly annuity payments are subject to taxes and penalties. Withdrawals that are made before the age of 59½ are subject to taxes plus a 10% “early withdrawal” fee. Investments in deferred annuities are known to require 15 to 20 years to achieve a rate of return that is greater than other low risk investments. If you sell your lottery payments and get cash for structured settlement payments, you can start making smarter investments in yourself and your future, today.
If you were to sell your lottery annuity and get your lottery payments all at once, there are so many things you could do to better your immediate situation and your future. You could put a down payment on a home or car, pay debt down or off completely, eliminating high interest rate credit cards. You can pay for your child’s education and give them a head start, or take the whole family on a much needed vacation. Or how about paying off those medical bills, that seem to be such a source of stress they wind up causing more medical bills?
So let’s see, by getting lottery payments now you could be out of debt, managing your finances, looking toward the future with a new home… What are you waiting for? Sell your structured settlement annuity now and get your lottery payments today.