You can sell lottery payments for cash – if you won the lottery, of course. Your odds of winning a major lottery jackpot are less than your chances of being struck by lightning, being bitten by a shark, or having conjoined twins, and yet it does happen.
If you are among the lucky few to have hit a lottery jackpot you were probably thrilled at your windfall, perhaps your winnings are more than you earn in a year, or in ten years. For many lottery winners the idea of getting that payment for years is amazing. For others it ends up bringing a level of disappointment or even desperation. You may find that you want to just sell lottery payments for cash, and do it fast.
A Lottery Payout
Lottery winnings are frequently paid out as annual annuity payments to the winner over a 5 to 30 year period. For many winners, these payments are a great idea, but being able to sell lottery winnings in exchange for an immediate lump sum cash payout might be an even better idea at some point in the future. If you have won the lottery you may feel as though that money is yours and you want it all now. Sometimes, this is a good idea, but sometimes not – let’s consider some people who made the decision to sell lottery payments for cash.
Lisa Made the Right Choice to Sell
Lisa is a single mom who was laid off at the beginning of the year and was in danger of losing her house. Then she won a $1 million lottery prize! Her lottery winnings will pay her $50,000 per year for the next twenty years. After assessing her current needs, Lisa decided to sell a portion of her lottery winnings. This gave her enough money to pay off her mortgage so that she will be living mortgage free. She also had some left to put aside for her daughter’s college tuition. Things worked out so well for Lisa she did not have to sell her entire annuity; she has enough income from the the remainder of the annuity to take off the pressure of meeting her living expenses until she gets a new job. Lisa is also considering returning to school to further her education; if necessary, she can sell more of her payments later to pay for her own tuition.
Ryan Sold but Perhaps Should Have Held on to It
Ryan had a good job, earning a solid income. Of course, Ryan wanted more and was thrilled when one day he hit the lottery, winning $1 million dollars! It was an incredible feeling. Thrilled, at first, Ryan was disappointed to learn that this winning would be doled out in annual payments of $50,000. Ryan quickly decided to sell lottery payments for cash. Figuring he would continue to work and support himself, Ryan spent his million quickly on a beautiful house, new car and boat. There was nothing left, but that was okay with Ryan – his job provided him enough money to pay the taxes on his house and the storage on his boat. That was, until Ryan’s company went under and Ryan lost his job. Quickly, Ryan had to sell the boat (at a huge loss) to pay his other living expenses. After a year of no work in the difficult economy Ryan was so behind on his house taxes that he had to sell his home. Ryan’s poor money management and lump sum cash out allowed him to go through his lottery winnings in just a couple of years, leaving him with little to show for it and regretting that he decided to sell lottery payments for cash.
Make the Best Choice for Your Situation
Deciding whether to sell lottery payments for cash or keep living on the payments is a difficult decision. For more information on the potential implications of selling your payments please visit the Strategic Capital website or call us today.