Playing the lottery is currently the most popular and widely practiced form of gambling in the United States. Maybe you buy a scratch off from time to time or maybe you are an avid power ball player. Whatever your game may be you need to be aware of what your options are when you win big. Many people don’t know that lottery winnings are not paid out in a lump sum as they are typically advertised. Instead, the lucky winner receives lottery winnings in a monthly payout for up to several years in a process known as a fixed annuity. As you can probably tell that isn’t what a big winner wants to hear. Selling fixed annuities is an option many winners are choosing so that they can actually get a lottery lump sum payout. Here are a few things people do after selling fixed annuities:
1. Pay Off Huge Debts - In February 2015 alone there was a daily average of 3,422 bankruptcy filings in the United States. That statistic is absolutely indicative of how many Americans are struggling financially. Selling fixed annuities in order to get a lump sum payout is a way to end your struggle with debt. Whether you are behind on your mortgage or drowning in credit card or medical debt, you can use your lump sum lottery winnings to get rid of it for good.
2. Invest - Often times individuals who choose to sell annuity payments will discuss their options with a financial adviser who can guide them. Financial advisers will sometimes recommend putting the money into certain types of bank accounts so that it is protected and grows interest, and others will recommend investing the money. Although investing your money is a risk, there are experts available who can give you their educated opinion on how to grow your money.
3. Travel - Do you have a certain country that you’ve always wanted to visit, but didn’t have the funds? If you decide to sell your fixed annuity payments and receive a lump sump payment for your lottery winnings this can be your chance! You may not win enough to quit your job forever, but with the right money management you can afford a great trip for a couple of weeks or longer and finally see parts of the world you’ve always dreamed about.
The average American adult owes nearly $4,000 in revolving credit to lenders right now. Don’t be a part of that statistic. If you win the lottery don’t settle for a fixed annuity that will only give you a small amount each month. Sell your structured settlements and get the money you deserve.