Debt can be crippling. You want the chance to turn your life around big time, but you’re stuck under a sea of bills that stack up higher and higher every month. So what happens if you get lucky and win it big at the lottery? You suddenly have a massive influx of money at your disposal. You can get out of debt! You can move somewhere different and start over! Except…you’ve been told that you’re receiving structured settlement payments instead of cash upfront. So you’re only getting a portion of your earnings one year at a time. Suddenly, your dreams may feel like they’re impossible. What to do? One option is to sell structured settlement payments for cash.
If I Were To Sell Structured Settlement Payments for Cash, How Would I Benefit?
Hypothetically, say you win Powerball or Mega Millions, who give you payments for 30 years, that increase each year. This means you get a set amount (dictated by the lottery and government regulations) that won’t change depending on your immediate need. Sure, Mega Millions may increase the amount by 5% every year, but if you have a tough year, you may need a higher increase than that. Even if you’re among the 48% of people who still work even after having won the lottery, you may want to sink that money into other investments or pursuits. With your money being doled out year by year, that can be difficult.
Additionally, if you’re older, you may not even be able to reap all the rewards of having your money parceledo ut over a 30 year span. What if you want to enjoy the pleasures of old age with vacations, a new home, or more? It all boils down to you not being in control of your money.
What Happens If I Sell Structured Settlement Payments?
If you’re looking at selling lottery payments that you’ve earned, you’ll receive a lump sum instead; in other words, cash for your structured settlement. Much debate has been had over lump sum vs. structured settlement payments, but in the long run, it gives you greater personal financial freedom.
Now naturally, you want to be smart about the cash for structured settlement payments that you’re receiving, so you don’t squander it or make bad financial choices. One good way to remedy this newfound freedom is to hire a financial advisor who will be able to set your money straight. He or she can help you figure out the most effective way to pay off any outstanding debt you have, how to invest wisely, and set you up for a secure financial future with the lump sum payment you’ve received.
Deciding to choose a lump sum payment usually works out for most people. Around 92% of the people who chose this option were happy with their decision when asked later. It lets you choose how you want to spend or save your money and make the choices that are right for you in the moment. No business or company can really choose that path for you. Choose wisely with a lump sum payment!