So you?ve been saddled with an annuity payment ? maybe after winning the lottery, or having a lawsuit settled. What is an annuity payment, or for that matter an annuity settlement, you may be wondering. And what does it mean to get cash for annuity payments? There are so many things being offered to you right now, with very few explanations and no way of telling what is right for you in the long term. After all, it?s a lot of money you?re dealing with, right? Sit down and take a deep breath; you do have options, and you can choose the option of cash for annuity now if you want to. You?re not saddled to one specific arrangement.
What Is A Lottery Annuity? What Is A Structured Settlement?
A lottery annuity, depending on what kind you end up with, will dole out your money annually over the course of what will probably be many years. The Mega Millions annuity, for example, is paid out as one immediate payment followed by 29 annual payments. Although each payment is 5% bigger than the other, you will not have the option of getting an exact amount you want unless you make an early withdrawal. If you make a withdrawal within the first seven years of creating that annuity, you?ll often end up with surrender charges of more than 7% of your investment. In a structured settlement, you?ll similarly receive payments on an agreed-upon schedule rather than a lump sum. Cash for annuity payments or a structured settlement gives you that lump sum.
Why Choose The Cash For Annuity Payments Option?
There are plenty of reasons why people would choose to sell their structured settlements, or get a lump sum lottery payout. Did you know, for example, that 48% of all lottery winners continue working after winning? Why can?t they just sit back, relax, and enjoy the money they?ve won? For one thing, their money is still tied up in an annuity payment. For another, the government already withholds 25% of lottery jackpot winnings. If you can?t use your money the way you want to, you?ll experience at the very least frustration, and at the very most serious financial issues.
What Can You Do With The Money You Get In A Lump Sum?
That?s the thing about lump sum payouts. You can use them however you want to. Many choose to sell their lottery annuity payments and structured settlements because they need the money now rather than later. They use it for everything from paying off student loans to taking care of debt related to medical incidents. If you need money now rather than later, then selling your annuity or structured settlement may very well be a wise decision. It?s up to you; and many do want what happens to their money at any given moment to be up to them, and not those in charge of their annuity or structured settlement.
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