3 of the Nicest Things People Have Done After Winning the Lottery

Sell structured settlement payments

There are two main ways winners can receive their lottery payments — as either lottery lump sum payouts or as lottery annuity settlements — but there are billions of ways that money can be spent, some of which are nicer than you might think. Here are a few of the more unique ways people have used their new riches.

Upgrading the ‘Ol Alma Mater.

Gloria MacKenzie won the lottery at the ripe old age of 84-year-old, and knew just what to do with her money. First, she upgraded her home. Rather than continuing to live in a shabby shack with a tin roof, she bought a 6,322-feet-square home in one of Jacksonville’s gated communities to the tune of $1.2 million. Then, she dropped another $2 million upgrading her former hometown high school in Maine, where her daughter taught biology at the time.

Building a Waterpark.

When John Kutey of New York won the lottery back in 2011, he decided to spend his $28.7 million giving back to his community. He used the money to demolish a local wade pool, and install a new, $250,000 spray park. The park opened in 2013, and though Kutey and his family lived in Florida at the time, they made it to the grand opening.

Giving to Charities.

Robert Erb of British Columbia won a cool $25 million in November of 2012. That year, Erb estimated he spent more than $8 million giving charitable donations and gifts to individuals in need, including 10 cars, $300,000 in dental care, and $70,000 fixing up the local community association’s facility. He also left a $10,000 tip at a restaurant after he heard about the owner’s daughter being diagnosed with cancer. Oh, and the 61-year-old donated $1 million to support the legalization of marijuana.

It doesn’t really matter whether you decide to get lump sum payout or an annuity, just so long as you invest it wisely, as these folks have done.
If you have any questions about lump sum payouts or annuity settlements, feel free to share in the comments. More like this article.

Win the Lottery? Congrats! Think Twice, However, Before Leaving Your Job

Lump sum versus annuity

Moving to Tahiti. Buying a Rolls Royce. Spending your summers in the south of France. These are just a few of the images that pop up when we think about winning the lottery. One thought that certainly doesn’t come up that often is the idea of staying at your job after winning. But did you know that a whopping 48% of all lotto winners continue to work? It may be hard to believe but the reality is that winning the lottery, despite its connotations, isn’t what it’s cracked up to be.

Lottery payments are notorious for their gradual and often frustrating allotments. That is, lottery winners usually do not get their winnings all at once. Instead, lottery organizations opt to pay winners gradually. The Mega Millions lottery, for example, shells out lottery payments over a span of 30 years: one initial lump sum and another 29 payments, each one 5% greater than the one before it. For obvious reasons, this can be very frustrating for lottery winners, who want nothing more than to collect their money in peace. Add on the fact that the government — federal, state, and local — takes up to 25% of lottery winnings, lottery winners can become more than flustered. Overall, with the flow of money rather tight (at least at first), lottery winners often have to continue to work before they can live off the fat of the land.

Because of this, many lottery winners turn to annuity settlement deals to get their cash quick. Structured settlement annuities are financial arrangements in which a lottery winner signs over his or her earnings to a company for investing. In return, the company provides their lotto winnings much quicker, either in a lump sum or in a gradual (but more favorable) payment cycle. Structured settlement annuity benefits are massive, which may account for the fact that 92% of people who sell their structured settlements are ultimately happy with their decision.

When you win the lotto, just do yourself a favor: win the lotto the right way with structured settlement annuities.

Three Well-Kept Secrets to Successfully Selling an Annuity

Buy structured settlements

So you’ve received a structured settlement in the form of an annuity. Now what?

An increasingly popular option for people who have won structured settlements is to sell these annuity settlements in exchange for a lump sum, or the total amount of money awarded in the settlement. If you need your annuity money now, it might be your best option to sell this annuity, as early withdrawals from your annuity find can come with a 10% penalty.

But if you’ve tried to look into selling annuities, the process might seem complex, even labyrinthine in nature.

Selling your annuity settlement in exchange for a lump sum doesn’t have to be impossible — or even challenging. Here are three of the best-kept secrets to selling fixed annuities that will help you sell your annuity in no time:

Determine if your annuity is sellable

It’s important to understand that not every annuity is sellable. For example, if your annuity is a structured settlement, you may have to obtain a judge’s approval before you can sell these structured settlement payments for a lump sum, as some states have passed a Structured Settlement Protection Act to protect consumers just like you. It’s also a good idea to determine the resell value of your annuity before searching for buyers.

Don’t say yes to the first offer you receive

While it can be tempting to sell off your annuity to the first buyer you find, it’s better to wait until you’ve met with a reputable annuity buyer who will work with you every step of the way and give you the best offer possible. Understand that no matter what buyer you choose, you won’t receive the full value of your annuity — these buyers need to earn a living somehow.

Understand what form of payment works best for you

When it comes to selling an annuity, there are a variety of different purchasing plans from you to choose from. The straight purchase, partial purchase, split purchases and reverse purchases are all very different options for selling annuities. Determine which of these would work best for you before selling off your settlement.

Have any other questions or comments on how to sell annuity payments? Let us know by simply leaving a comment below this article.

Pros and Cons Sell Annuity Settlements For Cash

Selling an annuity settlement

Every year millions of Americans will receive structured settlement annuity payments. A few lucky winners will receive big paydays from the Mega Millions lottery jackpot, while others will settle for personal injury, wrongful death, or insurance claims.

By the end of 2013, there were more than 34 million individual deferred annuity contracts in place, adding up to $2.5 trillion. Some people will choose to sell an annuity for fast cash. So what are the structured settlement annuity benefits that stop others from selling?

Tax Incentives…

A structured settlement usually offers annual payments that are exempt from income taxes and even capital gains tax. And since most experts agree that tax rates will eventually rise, an income tax exemption will be the envy of one percenters everywhere.

Furthermore, continued eligibility for federal assistance programs is one of the biggest structured settlement annuity benefits. For Americans who depend on assistance programs, a structured settlement can disqualify them from programs they need to get by. Setting up a trust with annuity payments can avoid this issue.

So why do so many people choose to sell structured settlement payments? The most common answer: fast cash. Many people can’t afford to wait for money that is rightfully theirs.

The hard truth is that more than 40% of U.S. families spend more cash in a year than they make in income.

  • On average, Americans owe $12,000 in student loans, $8,000 on car loans, and about $70,000 on mortgage loans.
  • Most U.S. adults owe $3,761 of revolving credit each year.
  • In total, 64 million Americans (35% of the population) said they were unable to pay bills in 2014, with medical bills being the most common complaint.
  • According to The Rutter Group, 90% of accident victims use all the money from their claim within five years.

For many Americans, selling a structured settlement provides the cash they need to finally get out of a financial hole. For others, a cash payment can provide the upfront capital needed to finally buy their dream home. Most lenders require a cash down payment of up to 20% of the house price. And since the average home price in 2010 was more than $270,000, it’s easy to see why some Americans can’t wait for annual payments.

Ultimately, every American is in a totally unique situation. If you’re the recipient of a structured settlement annuity, research all your options before making any big financial decisions.