Structured and annuity settlements can provide a steady, dependable stream of income over the course of years. With American debt at an all-time high, however, it is nice to know that pre settlement loan companies are there to cater to those who are too impatient to wait decades to get all their money back.
The Lottery Will Rip You Off
Everyone dreams of winning the lottery, but most lotto winners end up worse for wear. That’s because the lottery doesn’t tell you that 25% of your winnings go to federal taxes, not to mention between an additional 6 and 9% for state taxes. Most large winnings are not paid out at a single time, but in annual payments for 25 years or until you die. The Mega Millions Jackpot unity starts as one immediate payment followed by 29 years worth of payments at an increase of 5% per year. Powerball similarly pays an increasing annuity that lasts for 30 years as well. In the end, winning the lottery may actually end up being a burden.
Victory in Court is Bittersweet
If you end up winning a court case where you are paid a structured settlement, you might think that your financial worries are gone for good, as the average payout for a structured settlement is around $324,000 dollars. This is money is paid out like an annuity however and, just like the lottery, taxes and fees mean that you lose out on money before its even in your pocket. Most people who are paid a structured settlement need that money immediately to pay off loans and debt, over 37,000 Americans state that they use money from a structured settlement each year.
Selling Your Annuity or Settlement Can Net You Maximum Returns
When waiting isn’t an option, pre settlement loan companies are willing to purchase your settlement or an annuity. It should be noted that selling an annuity can cost a surrender charge of approximately 10% of the cash due, the trade off being that you won’t have to wait for your payment. With an ‘immediate’ annuity, clients generally start receiving payments in as soon as 30 days. 92% of people who sell their structured settlements or annuities report satisfaction with their decision.