Prolonged Annuity Payments Versus a Lump Sum Now

Investing your money

If you have been looking for ways to reduce debt so that you can manage your finances better, receiving a structured settlement annuity may seem like the break you have been waiting for you. However, there are several things that you should know before signing on the dotted line to receive your annual or monthly payments.

  1. Prolonged Process
    After you find out that you are going to be receiving annuity payments, it can still take a very long time for you to actually have them in hand. The waiting period could take months, even years before you ever see a penny of your money. The reason for this is that there are so many legalities and processes that a company must go through when doling out this type of cash. Then there’s the question of how they will report it on their taxes and so their accountants have to hold on to it for awhile. What it really comes down to, is they are dragging their feet.

  2. Small Payments
    If your settlement is coming from lottery winnings or winning a case like an auto accident, these companies will do everything in their power to not have to pay out a lot at one time. Setting up payments with you will be done in such a way that it benefits them. They are not thinking of your best interests. Sure, they may give you options of amounts and time frames but all of them are first of all beneficial to the one giving away the money. Usually, annuities are spread so thin and for so long that the payments you end up getting every year or month are so small that they barely make a difference. You may be receiving money for the next 30 years but the payments will be very small amounts.

  3. No Tax Breaks
    You will still have to pay a very large amount in taxes the following year after receiving your earnings. This is on top of what will already be taken out in order for the company to pay taxes. Yes, they will take it out of your money. And then you have to pay your own taxes out of it also.

So, what else can you do? How can you avoid these problems? You can sell your annuity. What does that mean? Well, once you know the amount that you are going to be getting, you can sell that amount to a company that will buy it for a certain price. While there may be fees and things like that involved, there are many benefits that could outweigh waiting for your yearly installments. If you choose to sell your annuity, this means several things:

  1. Immediate Payment
    Typically, When you want to sell your annuity, you don’t even have to wait to find out if you have won your case or not. If you know the amount of the settlement, you can put in an application for sale at one of these places. They will give you an offer and once you accept it, you can expect a check within days.

  2. Quick Turnaround
    The whole process can take less than two weeks once it’s started. Actually, the main waiting periods are up to you. Your application will be reviewed and an offer made, as mentioned above and then it really is up to you how long you wait to accept or deny. You can negotiate the final amount as well if you don’t mind waiting a few extra days for your payment to get to you.

  3. Lump Sum
    Selling your annuity payments means that you will receive your money in one lump sum. No more waiting year after year for your money to get to you. You can have it all right here and right now. This is extremely beneficial if you are trying to pay off medical bills, get out of debt or pay a large item.

Deciding whether or not to sell your annuity is a big choice. It really comes down to what is in the best interest of your life goals. If all you are doing is saving for nothing in particular, annuity is fine. But if you have plans to travel or live large, you’ll need all of your money as soon as you can.

What Options You’ll Have When You Sell Your Annuity Payment

Receive lottery winnings

If you or someone you know has ever been lucky enough to win the lottery then you are probably aware that receiving your winnings is a bit different than what most people imagine. In fact, most lottery winners don’t receive lump sum payments at all, but rather something known an annuity settlement which mean they get small amounts each month for several years. If this sounds a bit unfair that’s because it is. The good news for people like you or your friends or family members who have won the lottery is that there is a way that you can avoid waiting on an annuity settlement. That process involves selling your annuity payments to get the lump sum lottery winnings you deserve. Here are just a few of ways you can change your life by selling your annuity settlement:

1. Ending The Hold Debt Has On You – Right now, millions of Americans are plagued with debt. In fact, the average American household carries over $15,000 in credit card debt alone and over $100,000 in total debt. Student loans are also on the climb and grew from $1.21 trillion to 1.3 trillion in just the twelve months between 2014 and 2015. When you sell your annuity settlement and receive a lump sum payout instead of small monthly payments you have the opportunity to finally get out from under the debt that has been weighing you down for decades.

2. Making Investments – Another benefit of selling your annuity settlement is the ability to make your winnings last with investments. Many lottery winners even take the time to meet with financial planners to find out what their best investments should be. Not only do you have the opportunity to invest your winnings in stocks, but you can also make investments in your own future by purchasing a home. Today, it is standard for mortgage lenders to require a cash down payment of anywhere from 5-20% of the sale price, and you can provide that when you sell your annuity payment!

3. Making Once In A Lifetime Purchases – Selling your structured settlement to receive lump sum lottery winnings can allow you pay off your debt, invest in your future, and also to make once in a lifetime purchases. Maybe you have always wanted to visit the country of your family’s heritage in a place like Greece or Italy, but haven’t had the funds to do so. Or perhaps you have the desire to take a few months of work to see parts of the United States you’ve never seen before. Whatever you decide to do, having the lump sum lottery winnings you deserve can help you achieve your goal.

The three ideas above are just a few of the ways that you can spend the money you get from selling your annuity payment. The final choice is ultimately yours.

Erase Debt by Selling Your Structured Payments

Lump sum lottery winnings

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.