If you are like most people, you have fantasized about what you would do if you won the lottery. Playing the lottery is one of the most popular forms of gambling in the United States. Most lottery winners get one big payment followed by many yearly payments. You do not need to take the lottery lump sum payout. If you find you need the money from your lottery winnings you can sell them. There are many companies who will pay cash for lottery winnings. You do need to have a valid reason for wanting to sell because you will have to have a judge ok the sale.
Examples of Reasons to Sell Your Lottery Winnings:
- Pay off your existing debt. The average American household has 13 lines of credit. Americans owe about $12 trillion in credit cards, mortgages, student loans and other debt. Most people in the United States are only one health problem away from having to file bankruptcy. You can take care of all of your debt and save yourself a lot in interest by selling your lottery winnings. This is a great way you can go about paying off your debt fast. Bear in mind that the average United States family pays out about $6,658 each year in interest.
- Go back to school or pay for a family member to get a higher education. College is expensive. If you have won the lottery or have a structured settlement, this can prevent you from being eligible to receive any kind of financial aid. Getting a college degree is a real way to increase your lifetime earnings potential and that of your children. This is only more true for people who can go to school without having to take out a large student loan and is a great way to use your lottery winnings.
- Start your own business. Have you always dreamed of opening your own restaurant or store? A large number of start up businesses fail because they do not have access to enough capital. Selling your lottery winnings for something like this is a very good way to use these funds. Many of the businesses that do not make it have decent business plans and are based on solid ideas.This can be a great way to follow your dreams and make yourself a more secure financial future.
- Diversify your portfolio and delay tapping into your Social Security. Financial experts recommend you do not have more than 30% of their investments in annuities. If you sell your lottery winnings, you can take the money and invest it more broadly. You can also use it to delay your official retirement. The Social Security Administration pays out more when people delay the age at which they begin to accept their payments. The longer you can wait, the better this will be for you.
- Pay off your home or buy a new one. Buying your own house is a great way to invest in your future. These are very stable purchases that can improve your quality of life immediately. Take your lottery winnings and buy your dream home or renovate your current house to make it the home you have always dreamed of living in. This is one of the most practical reasons you can give for wanting to sell a structured settlement. It is also a way you can give your family financial security.
While most people dream of winning the lottery, we do not think a lot about getting one payment each year. Accepting lottery winnings over a longer period of time may be the best plan for a lot of people. They may like the security that comes with receiving payments over a series of years.
If you think that might not be the best thing for you to do, talk to your family. Go to a trusted and experienced financial advisor and discuss your situation. They can lay out the pros and cons of selling your lottery payments. This is a personal decision that should not be rushed or made lightly but you can make a better life for you and your family by selling your payments.