Do you dream of quitting your job, volunteering for a worthwhile cause, and playing more golf? Do you dream of traveling to Spain, Greece, Argentina, or Brazil and spending alternating afternoons visiting historic locations and enjoying the beach?
While retiring early from your job or traveling to exotic vacations may not be the first thing on your bucket list, taking a lottery annuity payout could allow you to get much closer to your financial goals. Making the decision to take structured settlement cash now is the best decision for many individuals.
You Have Won the Lottery! What’s Next?
A winning lottery ticket is good news. It does, however, require some decisions. The first decision is a choice between accepting a structured settlement annuity and taking a up front cash for structured settlement payments. Structured settlement annuity benefits are small payments that are scheduled to be paid out over many years. A lump sum settlement allows a lottery winner to immediately get the cash that is rightfully theirs.
While the initial lottery agreement is some type of structured settlement payout plan, this may not be the correct decision for all people. Some of the reasons to take a lump sum payout from a lottery include:
- Money for a dream vacation. Too many people put off their dreams until it is too late. Waiting until the perfect opportunity to travel can mean missing out on the trip of a lifetime. Making the decision to take an “immediate” annuity, however, means that the lottery winner can generally start receiving payments in as little as 30 days. These funds provide the funds for a family vacation to the streets of Paris or the museums of the Smithsonian in Washington, D.C.
- Money for a vacation home. As families across America become more and more busy, they sometimes struggle to find time to be together. A vacation home in the mountains or near a beach can serve as an open invitation to both friends and family. Instead of spending large amounts of money on hotels, families can gather in a comfortable, familiar space in a grand location.
- Money for a college education. Whether you are looking at paying for a college degree for yourself or a college degree for a son or daughter, education is a wise investment. The one obstacle that keeps many from pursuing their college goals is money. Money from a cash settlement erases the funding problem and few things bring a greater return on an investment than a college degree.
- Money to pay off a home loan. One obstacle that keeps many people from retiring early is the burden of a house payment. Money from a lottery annuity payout can allow you to eliminate your home mortgage. A paid in full home is a major asset. That major asset can be used as collateral in the event you need to make major home improvements or take out a future car loan.
- Money to pay off credit card debt. While some lottery winers can dream of vacation homes, exotic travel plans, and second homes, this is not the reality for everyone. If you are crippled by high interest credit card payments the best reason for taking a lottery annuity payout is to pay down your debt. It makes absolutely no sense to be paying high interest credit card debt when you are not taking possession of money that is rightfully yours. The average household in America is currently paying a total of $6,658 in interest every year. And since 70% of Americans indicate that there is greater stigma about credit card debt than other kinds of debt, ridding yourself of high interest credit card payments should be a goal.
Nearly 92% of claimants who sell their structured settlement indicate that they are satisfied with their decision to take their lottery annuity payout immediately. Getting immediate access to these funds allows the recipients to make some major financial improvements. Winning the lottery is exciting, but the real excitement is in the decision about what to do with the money. While taking the cautionary structured settlement may initially seem like a safe decision, this is not always the best decision. Taking a lottery annuity payout is often the best choice.