What would you do with a million dollars?
Would you take your family on a dream vacation?
Would you finally go back to school and complete that degree and pursue your dream career?
Would you pay off all of your debt and then put the rest away for future use?
Would you purchase a second home where your family could comfortably gather for future holidays?
As tonight’s Powerball Lottery total reaches $422 million it is no wander that some in America are dreaming what they would do with a big win. And while it is fun to dream of what you would do with millions of dollars, the fact of the matter is the first decision of any winner is between smaller payments over a long period of time or to opt for a lump sum up front.
Although some winners may think that taking smaller payments over many years is the prudent choice, winners who opt for a lump sum often see additional benefits:
- Eliminate debt. One of the biggest problems haunting Americans today is the overwhelming debt that many individuals and families have. In fact, as many as one in five Americans between the ages of 18 and 24 qualify themselves as being in “debt hardship.” Additionally, 26% of Americans admit to failing to pay their bills on time. And while structured settlement annuity benefits may seem like the wise and cautious decision, no decision is right if it leaves an individual with high interest credit card balances and over extended home mortgages. The decision to opt for a lump sum is the decision to give yourself a chance to completely eliminate the heavy debt that many Americans carry. Getting a lump sum eliminates the stress of delinquent accounts and the calls from overdue creditors.
- College Education. Too many Americans find themselves stuck in low paying jobs with little chance of career advancement. A college education, on the other hand, can provide an avenue for a better career and more earning potential. Like many things is life, however, college degrees come with a hefty price tag. People who opt for a lump sum payout instead of a structured payout schedule give themselves the opportunity to pay for a college degree up front. a college education can turn a lottery winning, or other large payout, into an investment in a future career with substantial earning potential.
- Dream vacation. For winners who already have no debt and who already have a college degree, a large amount of money can allow a vacation of a lifetime. In a time in our country when everyone would benefit from understanding the different cultures in this world, a vacation with a family can be educational, relaxing, and unforgettable. Traveling together without the worry of expenses is a great way for a family to bond and improve the relationships that are so crucial to the future of the next generation of children. In the busy lives of children and grandchildren, getting together can be a struggle and a challenge. The invitation to spend time in a great location, however, can be the spark that some families need to get to know each other in a more meaningful way.
- Second home.
The places where we live and work are not always the places where we can relax and unwind. A second home location near a beach or in the mountains is the opportunity to step away from the 24/7 connectedness we sometimes feel with our job. And while winning the lottery may not mean that you want to quit work altogether, the winnings could give a you a spot to relax and vacation without the expense and energy it takes to make hotel reservations. An attractive location that provides views of the mountains or sounds of the shore can also mean that your family will start a new tradition of getting together for holidays in both the winter and the summer.
Unfortunately, the average household pays nearly $6,700 in interest every single year. The opportunity to eliminate that debt with a lump sum payout from a lottery winning, a legal settlement, or a retirement bonus is an opportunity to step away from the burden of debt and move on to greater goals in live.