17 Aug What You Need to Know When Considering Selling Your Lottery Payments
If you are the lucky winner of a lottery jackpot, then congratulations are in order. You are part of a small minority of people who have been fortunate enough to scratch that one special ticket or hit your favorite set of numbers in a drawing, something that most people would give anything to do. You now have the power to control your financial destiny.
However, as the old saying goes, with great power comes great responsibility. It’s important that you know everything that comes with being a lottery winner. For example, did you know that most lotto winners lose or spend all their winnings in five years or less?
Be smart with your fortune and avoid becoming another statistic. About half of lotto winners remain grounded, working at their old jobs and using their lottery annuity to supplement their income. For some, it may be wiser to sell annuity payments for a lump sum. Selling lottery payments will help you avoid some of the pitfalls that come with your winnings. Here are two important benefits of selling your annuity and cashing in on your good fortune:
Annuity payment taxes can be confusing.
All annuity payments are subject to income taxes, some of which can be as high as 35%. Paying these monthly taxes can lessen your annuity even more. When selling lottery payments for a lump sum, it is a one-time transaction that takes care of all taxes involved. You can stop worrying about how much you’re losing and start enjoying how much you already have.
Get the cash to start the life you’ve always dreamed of.
The best reason for selling lottery payments is an obvious one, but it’s worth noting. It’s impossible to really imagine the feeling of having millions of dollars in your bank account until it actually happens. You can close your eyes, take a deep sigh, and know that you’ll never have to worry about an annuity ever again. Paying off debt, buying a house, or going on an extravagant vacation are just a few of the things you can do with your lump sum payment.
Talk to an experienced professional about the best option for you if you’re currently receiving lottery annuities. Besides walking into the store and buying that lucky lottery ticket, it could be the wisest decision you ever make.