Month: October 2015

What to Consider About Lump Sum Lottery Payouts

    Finance Tips

Selling an annuity settlement

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

    Finance Tips

Get cash for your settlement

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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

    5. 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

    Finance Tips

Fastest cash advances

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.