Winning the lottery may seem like a dream. People who win the lottery imagine their lives instantly changing, and all of their worries falling away. Why is it, then, that nearly half ? 48%, to be precise ? of all lottery winners still work after hitting the jackpot? The fact is that lottery winners often end up dealing with annuity payments, which means that their money is disbursed over the course of months or even years. That lump sum that many of us imagine when dreaming about the lottery? Is really, in fact, little more than a dream. But you can make it a reality and get cash for annuity payments, and the lump sum lottery payout you really wanted. So, what can you do once you get cash for annuity payments?
1. Settle Your Debts
A big reason why some choose to sell their lottery payments is that they need money now, as opposed to a few months or years from now. In many cases, the way a lottery annuity is distributed means that the monthly payments won?t be enough to settle debts in a timely fashion. This is a real concern for many lottery winners, as millions of people owe fairly large amounts of money due to things like medical bills and student loans. It?s no wonder why so many choose lump sums over annuity payments ? by the end of 2013, 34.8 million individuals had deferred annuity contracts, with the money involved exceeding $2.58 trillion.
2. You Can Control Your Money
It sounds ridiculous at first ? of course you?ll have control of your lottery winnings, right? That?s not a question, is it? Actually, it very much is if you don?t get a lump sum of cash for annuity payments. Unfortunately, the government already withholds 25% of jackpot winnings, and it will only get worse as time goes on. If you make a withdrawal from your annuity before age 59.5, you can be hit with taxes and a 10% early-withdrawal penalty. You should be able to have control of your winnings as soon as possible, but this simply isn?t the case when you?re dealing with them on a month-by-month basis. Once you sell annuity payments, you can have the freedom to do what you want to, which leads us to reason number three.
3. You Can Follow Your Dreams
Selling lottery payments means that you can take the lump sum you receive in return and do with it whatever you please. If that means taking the trip to destinations you?ve only ever imagined visiting, you can. If it means investing for future profits, you can. Even if it means going back to school, that is up to you. The most important thing that selling your lottery payments gives you is a choice.