Did your initial happiness start to wane after you won the lottery or received a settlement from a lawsuit? Was your unhappiness caused by the sight of the structured payments you’ll be receiving instead of the lump sum you hoped for? Not only do lottery winnings withhold 25% for federal tax and additional money for state taxes, but they are meted out in structured payments over many years.
If you’re asking “Can I sell my annuity?”, the answer is yes. The average settlement payout is around $325,000, which if you can sell your lotto win for a lump sum, qualifies you to do some of these things and take your life in a different direction:
Invest in your future: About 92% of people who sell their structured settlements are reported to be satisfied with their decision. This may be related to the fact that with a lump sum of money, it is more possible to make investments in the future that pay off big time later on, even more than the initial lump sum. Money doesn’t grow on trees, but it sure does take money to make money, and you can help it by investing in yourself and your own abilities. Two long term investments that lead to financial security and independence are:
Patience, hard work and a higher education, made possible by the jump start provided by the cash you got for your structured settlement,is the path to job and financial security, retirement plans, investments in real estate or stocks, or the ability to donate to charities and good causes. What will you study, receive training for, or get certified in? The world is your oyster now that you decided to opt for a lump sum.
Start A Business:
There’s nothing like being your own boss — but its nearly impossible unless you have the start up capital, which can be difficult to acquire if you’re already struggling to make ends meet. Are you looking to start a specialty lemonade bar? A puppy palace? A restaurant that serves gourmet toast? Get a jump start on your dreams.
Get Out of Debt
What’s holding you back? If it’s fear or anxiety associated with your credit card, student or house debt, opt for a lump sum by selling your structured settlement and unchain yourself. As the lightness and freedom of paying off all or most of your debts washes over you, ask yourself this — what will you do now that you’re free? Going back to school, traveling to a dream destination, or buying a car are all options now.
Buy Your Dream House
It’s all well and good to speculate about grand plans to travel, open a million dollar business, and get a few degrees, but none of that will be possible without a home base. If your dream home was just out of your reach before, now that you decided to opt for a lump sum and get that settlement money now, it is within your grasp. Close your fingers around your new home, which, by the way, is also an excellent long term investment, and breathe a sigh of relief.
If you have any questions, feel free to share in the comments.