Lottery winnings can set a person financially for a lifetime or, even more, if it gets to the beneficiaries. Lottery winners can receive their lottery payments according to what they choose. The winnings can either be received in periodic lottery payments or as a lump sum.
If the winner wants the lottery payments
all at once, it is known as a lump sum award. On the other hand, winnings received over a long period of time become an annuity. However, how the lump sum award or annuity works may depend on the laws of the state the winner lives in or rules of the lottery company in question.
Lump Sum Payout
Lottery winners may want to consider their lottery winnings for profitable investments. For this purpose, they may opt for the lump sum where they receive cash immediately. This way they can take the investment opportunities available at the time beating any market returns that are long-term. They may invest their lump sum award in commodities or real estate, or even metals, bonds, and/or stocks. Some lottery winners may use their lottery payments to pay off debt or make an extravagant purchase.
On the downside, when choosing a lump sum award, winners may not get the entire amount for the lottery winnings. The original amount may be deducted for tax by the federal government and often, the states may pile on their own taxes on the remaining amount of lottery payments. However, even after these deductions, many lottery winners will get away with a reasonable amount of money that can settle them financially.
On the other hand, some people are not good with money. When awarded the lump sum, they don’t use the money wisely. They don’t invest or pay any debt. In fact, they don’t protect the money properly either so they are often at risk of getting robbed.
If you think, you can’t handle a large sum of money at a single time; don’t have any idea about how to use it effectively, it is better to consult a financial advisor who guides you with the money or to consider other options like an annuity.
Periodic Lottery Payments
There are multiple benefits for choosing the periodic lottery payments in the form of an annuity. First and foremost, lottery winners can skip large tax deductions in this manner. They are also more likely to receive a larger payout in the long run.
On the other hand, periodic payments mean that you can protect yourself financially for long term period. If you retire before the annuity is completed, you will have a stable life in financial terms even after you are not working. If you choose beneficiaries for the lottery winnings after your death, your coming generation will be at a financial advantage as well.
With an annuity, you always have the chance of selling it. At any time, if you need quick cash, you can hire a reputable structured settlement company to find you a certified funder to buy the annuity. This way, you can earn quick cash to meet any financial obligation of the time.
Just like lump sum award, there are drawbacks to periodic payments as well. Often times, your financial requirements may be bigger than the periodic payment you are about to receive. You can’t depend entirely on these lottery payments in periodic sums to meet every kind of requirement. You may have to pay off debt, send children to college, or handle a medical or health issue or emergency. In such situations, selling the periodic lottery payments is the best option.
Lottery Cash Now
If you had chosen for lottery payments to be received periodically in the form of an annuity, but you need money now, you should consider selling the lottery payments. You can get lottery cash now depending on the laws of the state you live in.
In some states, it is easy to determine if you can sell lottery payments and get lottery cash now. In others, the rules may be complex and you should hire a consultant, broker or attorney to help you.
You can receive lottery cash now either through selling your entire annuity or just part of the lottery payments. Selling a part of the lottery payments will give you a steady flow of income for a while. Selling the entire annuity will get you more cash at once but you may be compromising your financial stability in the long run.
Lottery Cash Now with We Pay More Funding
We Pay More Funding will help you manage your lottery winnings smartly. You can consult us for finding out what is the best option for you; lump sum award or periodic lottery payments. You can also hire the services of We Pay More Funding if you want to sell your entire annuity or part of the periodic lottery payments.
We will help you find trusted and certified funders to sell your lottery payments to get lottery cash now.