If you are lucky enough to win one of those huge lottery amounts, you will quickly find that you don’t get the entire amount at once. That information is all disclosed in the lottery game play rules but few of us take the time to read such details. What you will receive should you win is a lottery structured settlement. This allows you to get a portion of the winnings at a time.
The settlement may consist of month payments, every few months, or a payment once a year. The payments may continue for many years but it all comes down to how much money you win. Let’s say that you win $1 million in your local lottery. They may send you a check every month for the next 25 years to pay you what you have won.
Many times though groups of people go in and buy lottery tickets for those large jackpot amounts. Then the amount that each person gets each time is smaller than if it is only one person that won it. The thought of any extra money for most of us though is one we gladly entertain.
Still, it can be frustrating with a lottery structured settlement because you may still feel limited. Instead of being able to take that money and do all you want with it you feel that your hands are tied. To get the financial freedom they want though many people look into selling their lottery structured settlement.
Then they are able to get a lump sum payment. This will be a fraction of the amount that would have been paid out over the life of the settlement though. It can be a tough decision to decide to continue with the set up payment schedule or to get the lump sum so that you can buy what you want, invest, and enjoy those funds today.
It can be a good idea to have legal council explain to you what they suggest and why. For some people it is a good idea to sell the annuity but for others there is a huge risk that they will soon find themselves out of money. There are also other options such as only selling a portion of those lottery payments.
The flip side of this equation is someone who may be interested in buying the stream of payments in exchange for paying out a lump sum now.
A person like this might be an investor who isn’t satisfied with their returns from other investments and wants the security of a sure thing. This type of person is also more interested in the income stream than having a large sum now that they can’t use and which if they spend will quickly diminish in value faster than it is earning interest. For someone like this buying a lottery structured settlement might be just the answer they were hoping to find.