What to Consider About Lump Sum Lottery Payouts

October 30, 2015 Finance Tips

Everyone wishes for a little bit of luck every once in a while. Even though many people may hope that traffic isn’t too bad on their way to work, or that class will get canceled the next day, some aim a little higher. Considering the massive amounts of debt that are facing citizens in the United States, hoping for a pile of money to drop in your lap is not uncommon. Fortunately, the lottery offers the chance for people to do just that.

The lottery is the most widely spread and used form of gambling in America. The easy and cheap cost of entry is affordable enough for anyone to enter. To do so, one must simply travel to the nearest gas station or convenience store and jot down their lucky numbers. From there on, it’s just a matter of waiting.

For those lucky few who do find themselves sitting in a pile of lump sum lottery winnings, there is still work involved in receiving the money. The problem that lottery winners face, is the enormous taxes that coincide with lottery winnings. The government can withhold up to 25% of lottery jackpot winnings, which is a substantial chunk of change from a multi-million dollar prize.

There are essentially two ways to handle an individual’s winnings. They can choose an annuity, or just a lump sum lottery payout. An annuity settlement allows the winner to receive fixed sums of money every year, rather than all at once which will accrue higher taxes. The Mega Millions for example offers a version of lottery annuity wherein they pay the winner one immediate payment, which is then followed by 29 annual payments; each payment is 5% larger than the previous one.

The choice between an annuity or a lump sum lottery payout can be difficult to make in the heat of the moment. Having all of the money at once is tempting, but overall you will receive more from structured settlement annuity payments. If it’s any indication of how large of an impact this can have, consider that about 48% of lotto winners still work after they’ve won.

Take time to weigh your options before taking the lump sum lottery payout. It could mean the difference between working and sitting on a beach for the rest of your life.

Four Questions You Need to Ask Before Selling a Structured Settlement

October 26, 2015 Finance Tips

Do you receive annuity payments from a lottery winning, a lawsuit settlement, or a life insurance inheritance? Receiving a small payment of your larger balance each month is a nice way to pad your budget; however sometimes it makes more sense to sell your structured settlements to significantly improve your life. Some people find selling a structured settlement is beneficial as starting a business or getting a degree with the cash will generate more money than the annuity payments provided. Other people choose to sell their settlement to buy a house, get out of debt, or make an investment with higher returns to makes their lives more financially stable than getting a small payment each month provides.

Whatever your reasoning, if your are considering selling a structured settlement, you should ask the following four questions before finalizing the deal:

How much cash will I get for selling a structured settlement?
Companies interested in purchasing structured settlements are doing so to make a profit, you will not be able to sell it for the entire value of the settlement. Additionally, you might be subject to a surrender fee of 10% for selling before the terms of the structured settlement are complete. To get the highest value for your structured settlement, you should consult several companies to get a few quotes. Some structured settlement companies offer instant quotes online, with makes the process convenient.

What options do I have for selling a structured settlement?
You have several options for how much of your settlement you sell; you do not have to cash in your entire settlement. You have the option of just selling a portion of your payments, which allows you to make the investment that you want while reserving some payments for the future.

What documents do I need to gather before I can sell my structured settlement?
First, you will need to prove that the structured settlement you’re selling belongs to you. You can achieve this by providing the annuity contract to the company purchasing your annuity. If you do not have the contract, you can provide the original court agreement you were given when you initially entered into the structured settlement or a letter of updated benefits provided by the company who manages your structured settlement.

Second, you will need to provide proof of residence for the state you live in. The easiest way to do this is by submitting a copy of your driver’s license or state issued ID.
Do I have any restrictions in the sale of my structured settlement?
You might face restrictions on selling a structured settlement from the state you reside in. At least 38 states have enacted some kind of regulation that restricts the selling of structured settlements. Some states do not allow it at all. There also may be restrictions on selling your settlement listed in your settlement’s contract. It’s a good idea to consult an attorney to understand the full legality of selling your structured settlement.

Have you ever sold a structured settlement? Do you have any advice to share with people just starting the process? Please share your input in the comment section below.

Annuities and Structured Settlements For the Financially Clueless

October 7, 2015 Finance Tips

Finances are difficult to manage — just ask the 40% of American families who are spending more money than they earn. Perhaps this means that a call for better financial education is in order.
But where to start? One of the biggest financial things that people don’t understand are annuities. Sure, they may have seen them on a late-night television commercial, but does anyone actually know what an annuity is? Luckily, we have the answers for you with this short yet comprehensive guide.

OK…so what’s an annuity?
An annuity is a lump sum payment that is distributed over the course of an allotted amount of time. The amount of time that the payment period spans for varies, but the most common are between 25 years to a person’s death.

Interesting. How do annuities work?
Like any kind of insurance, annuities started with a premium after purchase. Once the premium is paid, it is contributed towards a pool of money that your annuity payouts will ultimately come from.

I think I get it. But how will it benefit me?
Annuities are an excellent investment for anyone but are ideal for individuals with limited amounts of money in their savings. As previously mentioned, annuities are distributed over a period of an allotted amount of years, usually until death. This means that you will be receiving a lump sum of cash until you die. When you have savings alone, it isn’t always guaranteed that you’ll be able to have money coming to you every year.

Okay but what if I wanted to sell my structured settlement or annuity?
Selling a structured settlement is an extremely popular thing to do. Getting cash for annuity payments happens when you sell your structured settlements, resulting in a lump sum. And when you go about selling fixed annuities, it’s profitable and a way to eliminate debt if you’re in a fix and need extra cash.

What does this have to do with my structured settlement?
When you get into car accidents or sustain an injury, structured settlements are often offered in the form of yearly payments, or annuities. But if you want cash for settlement now, in a form of a lump sum, you have to sell your annuity for a lump sum. See, they all work together.
Read more about this topic at this link.

5 Reasons To Sell Your Annuity Right Now

September 18, 2015 Finance Tips

If you’re interested in selling your annuity, you definitely aren’t the only one! There are plenty of reasons why people sell annuity payments, whether they’re dealing with a lottery annuity or with annuity settlements resulting from a lawsuit.

The most important thing to keep in mind is that selling your annuity payments can be simple and stress-free — you just have to be focused and figure out exactly why you want to sell you payments! For example,

Maybe you’ve found a better investment for your money — whether it’s real estate, the stock market, or a big purchase like a home or car. Annuities are kind of annoying because the money you put into an annuity really doesn’t appreciate over time; in fact, it depreciates, making an annuity a pretty poor investment strategy.
A lot of people just get fed up with all the fees involved in an annuity. Between management fees and the taxes you have to pay when you finally start withdrawing your payments, you can end up paying a lot of money toward basic tasks that don’t really matter.
Financial emergencies are another reason why people choose to sell their annuities, and although this probably isn’t the way you’d like to be spending your money, it’s definitely better to spend money that’s already yours rather than borrowing the money. It’s impossible to predict when these emergencies will occur, so it’s understandable if you don’t have savings to cover the costs.
One interesting trend that occurred following the economic collapse in the U.S. during 2007 and 2008 was that retirement funds began disappearing — and as a result, more people began pruchasing annuities just to make sure that they had something in the future. A lot of these people are now realizing that an annuity really isn’t a great retirement plan.
Last but not least, maybe you want to sell your annuity payments simply because the annuity is yours, the money is yours, and you should be able to spend or save it as you choose! Maybe you want to go back to school, start up a business, go on a big vacation, or just pay off some credit card debt. It’s up to you how to use your money — the only thing that really matters is selling your annuity safely and securely!

Is it Time to Start Saving for Retirement?

September 17, 2015 Finance Tips

When you first enter the workforce, retirement can seem very far away. Because of this, saving for retirement doesn’t get placed high on the priority list. The reality is, however, saving for retirement early on can lead to more wealth for you in the future when you need it.

Did you know that about 41% of people ages 18 to 29 admit that they have never even thought about retirement planning (according to a recent survey)? If you find that number surprising, consider this, as well: Out of those who are nearing retirement age, one in five say they have no money saved. With an eye to the future and some good financial planning, you don’t have to be like so many Americans who struggle after retirement due to a decrease in personal wealth.

So, how do you get started?

If you are employed and have a reliable source of income and you’ve begun paying off any debts such as student loans or car loans, you’re off to a great start. Many find that sitting down and speaking with trained financial advisors or financial planners is a great way to get a plan in place. According to a recent survey, 44% of the people surveyed reported using a defined contribution plan such as a 401(k) or a 403(b). Depending on your household income, amount of debt, and size of your family, a qualified financial advisor can steer you in the right direction and help you find a retirement plan that is perfect for you.

If you’re fortunate enough to have an employer-sponsered retirement plan offered at your job, take advantage of it! This is a great way to get the ball rolling and it is a great opportunity to make contributions to your retirement plan before taxes. Many employers will even match your contributions, so you have even more of an incentive to contribute.

How much should you contribute?

While this is different for every individual, it is recommended that you put away 10%-15% of your income for retirement if you are starting to save when you’re young (in your 20s). If you can afford to save more, by all means, go for it!

Remember, you never know what the future may bring, but you can lessen your anxiety and feel confident if you prepare for it. Saving for retirement is a great way to ensure your will have wealth in your future not only for yourself, but for your family, too. And, you’re never to young to start!

4 Common Ways of Funding a Small Business

September 14, 2015 Finance Tips

Just how are small business owners able to fund their own businesses in such a shaky economy? The truth is, it isn’t always easy to find financial stability, considering the cost of employee wages, equipment, software, rent, traveling, and a variety of other expenses.

Luckily, there are plenty of ways to go about finding working capital loans for small businesses and other types of small business lending opportunities:

Traditional banks: This option has long been considered the best option by many funding experts, but these days, more small businesses are realizing that this options might not be the best one. There are certainly plenty of options for small business loans at a bank, but it could take a long time for a line of credit to be processed.
Credit unions: These are non-profit member-owned institutions that function very much like banks, but they generally provide a little better rates and terms on small business loans. If you aren’t already a member of a credit union, you’ll have to pay a small membership fee and live within the geographical region of the credit union in order to take out a loan.
Government loans: The U.S. Small Business Administration (SBA) offers many different types of small business loans, especially microloans for businesses that just need some quick cash after a disaster strikes. These loans are fairly good options, but be aware that your business might not qualify.
Online private lenders: These institutions are quickly becoming a top choice recommended by many funding experts, because they carefully consider the same requirements as banks consider but they tend to offer better repayment schedules and interest rates.

So which lending option is the best choice for your small business?

Stock Information Takes Some Research To Find

September 5, 2015 Finance Tips

Following the stock market is not always an easy thing to do. If you are someone who is interested in investing, there are a great number of players to keep track of. There are also a great number of factors that determine which publicly traded companies will be a good bet in the long run and not simply just a flash in the pan. Making money in the stock market long term is an endeavor into which it is foolish to enter on your own. Finding the right investment opportunities takes some help and good advice.

Stocks are a global enterprise, and figuring out the system can be frustrating and even overwhelming. Of all the global stocks in 2012, the largest market by far was the United States with about 34% of stocks. Japan was the next largest with about 6% followed by Great Britain with about 6% as well. In the U.S. alone, there are over 9,000 publicly traded securities.

Stock research subscriptions can give you the help you might be seeking. Finding stock market research tools, for example, can help you on your way to some much-desired stability in your portfolio. Long-term funds are often more stable, typically yielding about 75 to 80% return and are 40% less volatile. For 75 years, from 1926 to 2001, small cap stocks in the United States have given a return on average of 12.27%. This is consistent, but obviously less profitable.

The key to finding stock research subscriptions and good overall stock research is to find a place that shares your particular investment philosophy. You’re looking for information that will give you the kind of outcome you desire, so tapping into the advice and counsel of someone who shares you’re opinions about how to get there can be a very smart move in the trading game.

Investing in microcap stocks, for example, may require advice from more informed professionals because you might not be able to get all of the information you need to make the kind of informed decisions you need to make. Microcap stocks are stocks in companies in the United States that have a market capitalization of about $50 million to $300 million. These companies have fewer resources to make information available to the public than larger companies. They’re also less like to be published and talked about than their much bigger counterparts. Microcap investing can bring in a steady return, but make take more work to get there.

When it comes to stock research subscriptions, there are many ways in which you can garner the information you need. There are newsletters, which come out at different times, depending on who is putting it together. You can subscribe to magazines designed to produce research. Of course online information may be the easiest way to get the most relevant information as quickly as possible.

When you take just a few minutes to do some research, you’ll likely find that an enormous amount of stock information can be found online. If you prefer having things in one place, you’re also likely to find stock research subscriptions that can bring you a great understanding of what to do with your stock investments in U.S. microcap equities and even in foreign opportunities such as the China stock market.

Buy Your Stake in a Profitable Company With the Help of an IPO Service

September 4, 2015 Finance Tips

Every company holds a certain amount of stock that can be divided between investors and high ranking officials. The more stock one holds, the larger share of the company’s value they will be entitled to. At certain points in a company’s run they may provide initial public offerings (IPO), a trend that began to surface during the booming stock market of the 1990’s, to sell more assets for multiple reasons:

Growth

Younger companies who are vying for a stronger position in their marketplace may choose to begin an IPO, offering anywhere from 10 to 15% of the company on average, in order to use the capital gained from the sales for expansion. However, even with smaller businesses gaining a lot of attention for cheaper and available shares, the information involved in the transactions can be staggering to comprehend; which is where ipo services can help. Prime brokerage firms can separate the information into accessible reports to moderate the purchase of stock.

Public Trading

If a company becomes large enough, they may choose to take IPOs to the next step and become publicly traded. In most cases regular stock exchanges sell shares while the company’s founders or management are still in total control of the business. Publicly traded companies on the other hand have offered a much larger portion of their company to the public. When these exchanges take place, they represent a piece of the company with which the owner is entitled to their share of assets and profits.

Benefits

Each form of IPO have their advantages for both holders and for management, which an ipo service can layout into clean categories. Private traders are not required to answer to stockholders over functions of the company, while their public counter parts must disclose operations to all invested parties. However, public companies can continuously tap into the stock market to gain capital whenever they deem necessary. Public traded entities must stick to private funding which still has the ability to gain capital but does not have as much freedom to expand.

With the enormous amounts of money that flow through the stock market at any given time, the financial information involved includes copious amounts of paperwork. In order to help understand these transactions, prime brokers can offer ipo services that divide this information into reports which outline how the process operates. 2015 is projected to be the best year for IPOs since back in 2000, so don’t miss out and allow professionals to ensure your money is making it to the right places for the best investments.
See this link for more.

An Efficient Currency Sorter Machine Saves Time, Prevents Errors

August 25, 2015 Finance Tips

What do you think your customers use their jar of loose change for? Once they cash in their coins, are they using that amount as their limit when they find a slot machine in Ontario? Are they letting their children use it for spending money on their summer visit to Canada’s Wonderland?

Whether your banking clients are using their cashed in coins to entertain themselves or their children, or whether they are socking those coins away into savings, as a financial institute you are only thinking about two things when that large bag of coins comes to your teller window: speed and accuracy. The most current and accurate currency sorter machine can give your retail cash management location both speed and accuracy.

If you are a business other than a financial institution, it is just as important that you have a fast, efficient and safe way to process currency. An electronic coin sorter and counter, as well as a fraud-fighter counterfeit machine, purchased from a reliable company can ease the process and improve security by providing well trained support personnel. Making your currency sorter machine purchases from a company that also provides account managers, project managers, highly-trained field service representatives, repair technicians, and logistics experts ensure you always have the support you need when it comes to your cheque, cash and coin processing.

Fully electronic counters, machines that are able to count batches of notes or of coins without having to process them individually, were first introduced in Great Britain in the early 1980s. Fast forward 30 years and cash counting machines now allow a business to maintain 100% assured accuracy for cash transactions. Since the earliest use of a currency sorter machine, the goal has always been efficiency and accuracy. Another major reason that businesses and companies use money counters, obviously, is the amount of time it saves them. Without a bill and coin sorter and counting device, counting notes by hand is time consuming and is usually completed two or three times to make sure the numbers are correct to compensate for any human error.

Whether you are a small business owner in a northern remote part of Canada, or are a small banking institution in Winnipeg, it is important for you to be able to process both coin and paper currency quickly and accurately. Making the decision to purchase a counterfeit bill detector machine and commercial coin counting machines from a company that also provides fast and quality service is key to your success. Your time is important, so yo need technicians with quick local response time that can be tailored to your needs and work within your schedule to get your equipment up and running quickly and accurately.

3 of the Dumbest Things You Can Do When You Win the Lottery

August 25, 2015 Finance Tips

There are smart things you can do after you win the lottery, and there are dumb things you can do.

For example, if you wanted to do something smart after you won the lottery, you would either take your lottery lump sum payout, put it in an account, and let it collect interest for years. Another smart thing you could do is to accept your winnings as a lottery annuity settlement, and collect your lottery payments over the next few decades. You could use this annuity to support yourself as you pursue your passion, such as painting, or writing.

Unfortunately, though, people tend to make dumber decisions with their money. Here are just a few entertaining, but unfortunate examples.

Failing to Read the Fine Print. – Tonda Lynn, a former Waffle House waitress, was not a very nice person. She and her colleagues at the eatery said they’d split the winnings of whatever they won from the lotto tickets the patrons sometimes gave them. When Lynn one, the only thing she split was her job. Since it was only a verbal agreement, it didn’t hold up in court when her former friend sued her. However, being paranoid, she put her winnings in a corporation, and made her family 51% stakeholders. This made her eligible to pay a gift tax of $1,119,347.90 for her $10 million winnings.

Letting the Money Burn a Hole in Her Pocket. – When Suzanne Mullins won the lottery, she took her winnings as an annuity. However, the yearly payments weren’t enough to quench her shopping wants. She used her future lottery payments as collateral for a $200,000 loan, and found herself in debt. She then sold her annuity, but didn’t pay back the debt. Consequently, the loan company slapped her with a lawsuit, and won $154 million.

Doubling Down on Your Luck. – The fact that Evelyn Adams was luck was obvious. Not only did she somehow win the lottery, she won it twice, and all in the span of just two years. However, luck runs out, as she quickly found out. Wanting to ride out her lucky streak, she went to Atlantic City… and gambled her $5.4 million away. Today, she lives in a trailer park.

If you win the lottery, don’t do like these folks did. Make smart choices with your money.

If you have any questions, feel free to share in the comments.

Get Rich City

Year: 2015