What do you do if you win the lottery? Have you won the lottery? Many times large lottery payouts are paid as annuities in small payments over a long period of time. But what do you do if you need a lump sum of cash? Fear not, you have an option.
Today there are companies out there that will buy your lottery payments. You sign over the rights to the payment stream and get today's cash value. Of course the value of your lottery winnings is much less than the total of all payments combined because the total winnings are equal to the total payments over the payment period. The Lottery only has to come up with a portion of that amount, invest it at a percentage rate, and pay you the installments.
Here is an example. The Lottery may only have to invest $500,000 at 3% for 20 years to pay you $1,000,000 in total payments over 20 years. If you had the option to receive a lump sum, you would get the equivalent dollar value in today's dollars of $500,000.
Essentially, a structured settlement buyout, or lottery buyout, is the same thing as receiving the cash value of the winnings today. Be mindful of a few things when selling your lottery winnings.
You must realize that this is a legal transaction that can take up to 10 weeks to complete. Make the necessary adjustments if using the lump sum cash for a major purchase.
There are also many companies that will buy your lottery winnings. Contact several before making a decision on which one to use. Find out their reputation first and foremost. A company with a good reputation is critical to help avoid delays or even scams. Also find out what discount rate they will be using. The higher the discount rate, or THEIR required rate of return, the lower your lump sum will be.
Lastly, find out about the fees involved. The fees charged can vary greatly between companies. Overall you need to look for the best value for your situation and do what you feel most comfortable doing. You can get cash for your lottery winnings nowadays where just a few years ago you were stuck with small payments over a long period of time.
Get Cash Now for your annuity or structured settlement . Find out what you should watch out for and how to get the best value for your annuity .