So you’ve won the lottery or — in an even more likely scenario with 90% of cases going to trial ending in victory for the plaintiff … won your lawsuit. When choosing between keeping or selling your annuity or structured settlement, a big thing you need to consider is the future and what you want out of it. So it’s important to consider what you could do with the lump sum you will receive by settling your settlement or lottery payments.
1. You Can Take Care of Immediate Problems
When you’re considering a lump sum versus annuity, you should carefully consider your immediate needs. When you get your payments in monthly increments, the sum may not be enough to cover potentially unexpected things like medical bills. If you find yourself facing unpredictable problems, it may be best to reject monthly payments in favor of cash for structured settlements or lottery annuities.
2. Selling Your Annuity Can Open Important Doors
Every year, thousands of Americans have to defer college plans due to increasingly heightened tuition costs. Consider the fact that the average employee lawsuits end with a settlement of $150,000; that is potentially at least four years of tuition taken care of. However, the money divided up into monthly payments with added fees and taxes is not nearly as effective as a lump sum.
3. You Can Enjoy An Easier Lifestyle Sooner
Almost half of all lottery winners continue working the same jobs they had prior to winning the lottery. In the case of the Mega Millions jackpot, this can be as much as $50 million dollars; why aren’t the winners quitting? It’s because, with good reason, they don’t feel comfortable, as they remain dependent on monthly payments and must keep track of “catches” like withdrawal fees.
4. A Lump Sum Gives You Access To What You Want
Selling your annuity is a big decision, but often a necessary one with great rewards. With access to cash sooner rather than later, you can finally buy things that you want and deserve. Previous people who’ve sold their annuities or structured settlements have put their money towards anything from luxury cars to their dream homes and vacations.
5. You Can Invest Your Cash And Make More
Once you have your money, you can invest and it grow the sum. For many, this is made even easier by the fact that the same finance companies that buy your payments can offer financial advice.
In the end, it’s important to consider what you will do with the money you get from selling your annuity. If you make this decision, it can change your life, and with the right guidance, for the better.