If you have a big payment due to you, in the form of structured settlements from the lottery, insurance or a lawsuit, you may still be waiting a long time to see your money. Payments are typically made over a period of 29-30 years, called an annuity. But it is possible to sell annuity payments to receive your money in a lump sum.
Many people prefer to get cash for structured settlement payments. This puts you in control of your money now, when it’s needed. The reality is that to follow your dreams, you need cash. You may have plans to buy a house, go to college or to create a college fund for your kids, to travel, to help out your favorite charities. If you decide to opt for a lump sum, you can get started right away while your vision is fresh and you have the energy to make your dreams come true.
Structured settlements payouts are a trickle
There is not much choice when it comes to payout options. A lottery annuity typically is paid out over years, even decades. For example, Powerball annuity payouts are spaced over 30 years, with each successive payment bigger than the last. So you can expect to be a millionaire in 30 years’ time.
For many people, that’s just too long to wait. Mega Millions has a similar payout schedule. The first immediate payment is followed by 29 yearly page,has, increasing by 5% each year.
Don’t wait 30 years for your money
Like most people, you may be wondering what to do when you win the lottery. By the year’s end in 2013 in the U.S., the total worth of deferred annuity contracts was $2.58 million, spread out among 34.8 million individuals. Each year, nearly 37,000 people in the US receive money from a structured settlement.
A very large number of these annuities are turned into lump sum payments. Some 92% of those who do so are satisfied with their decision. Like them, if you sell your lotto win for a lump sum, you can see your money sooner rather than much, much later.