Big Winnings, Small Payments

Investing your money

We all dream of winning the lottery, and many of us act on that dream by regularly buying a lottery ticket. In fact, surveys show that playing the lottery is the most popular form of gambling in the United States. And people do win. In spite of the fact that a large chunk of the winnings is eaten up by taxes and fees, people receive lottery winnings that can change their lifestyles and their fortunes forever. Another way that people may come into a large sum of money is from a legal settlement of some kind. Whether lottery winnings or a structured settlement agreement, the money comes in the form of an annuity settlement, a structured payment schedule. Annuities are usually available in different ways, either over 25 years, or until the receiver dies. That is why people often sell annuity payments in return for lump sum cash.

But for those with financial challenges, it is a hardship to wait that long to get cash in structured settlement payments. In addition, if you were hoping to invest your money or start a new business with the income, you might not be able to do that. The average cost of starting a new business, according to The Kauffmann Foundation, is estimated at $30,000. Or what about buying a new house? Just over five years ago, the average cost of new home was over $270,00, and the expected cash down payment anywhere between 5% to 20% of the sale price. So all those things you might think a lottery winner or settlement recipient might do with their winnings just may not be possible when the money is not given in a lump sum, but rather a structured settlement annuity.

However, you can sell annuity payments and get settlement money now. You can sell your structured settlement and use the cash for immediate needs such as paying off your debt, making a down payment on a home, buying a car, opening your own business or investing your money. Let?s face it: money can?t buy happiness but it can help you do some of the things that make you happy. If you sell annuity payments and get one large sum instead, you may be more likely to do some of those big things you’d planned for. Cash can help overcome some of the obstacles, such as debt, that get in the way of living the life you dream of.

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