When most people dream of winning the lottery or settling a lawsuit for a lot of money, they imagine getting the entire amount all at once. Unfortunately, this is not how it usually works. For example, if you win the Mega Millions lottery and the jackpot is $50 million, you will get one big payment and the 29 annual payments. Each check you get will be about 5% larger than the one before it. The Powerball lottery has a similar payment plan. There are ways to get that money sooner. You can sell your lottery winnings or you may qualify for pre settlement loans.
If you want to look into selling lottery payments or selling your annuity payment, there are things you need to do. The first is find out if you qualify for pre settlement loans or if you can sell your lottery payments. The first thing you need to do when you are considering one of these options is of over your finances with someone you trust and who knows a lot about these things. There are tax implications worth learning about when you sell your structured settlements or lottery winnings. You will have to show a judge you understand the tax ramifications.
The other thing you need to prove to a judge before you sell your annuity is that you have a good reason. Here are a few reasons judges accept for selling annuities or getting pre settlement loans.
You want to continue your education. Getting a college degree (or higher) is one of the best ways to make sure you have great earning potential but it is expensive. The typical public school tuition for one year is over $9,000 .If you want to go to a private college, that figure jumps to over $30,000. Most people who have an annuity cannot qualify for financial aid. So, if you want to get a college degree or go further and get a professional degree, say a law or medical degree, you are talking about needing up to a quarter million dollars. This is an excellent reason for wanting to sell an annuity.
You want to start your own business. The main reasons most start-ups fail is a lack of access to capital. If you sell your lottery winnings or get pre settlement loans, you can put the money you receive now into that business you have always wanted. You can make sure you do it right and give your dream a better chance of succeeding when you have enough money to invest. This is another great reason judges accept sales of lottery winnings and structured settlements.
You want to buy your dream home. How great would it be to buy your own home outright with no mortgage to deal with? In the first place, you can save a ton of money by buying your home with cash. Home sellers will reduce the price of a home if they can get all that money up front. Secondly, aside from a lower price for the house, you do not have to pay any interest on a home loan when you pay for it up front. This is another great reason to sell your annuity. An investment in a home is one of the best ways you can spend your money from the lottery or lawsuit.
You want to pay off your debt. Most American households are in debt. The average American househols has over $120,000 of debt. Regarldess of the reason for your debt, it is costly. Nearly one in five American adults aged 18 to 24 say they have a “debt hardship.” This debt incurs more debt as the interest adds up over years. Paying this off is a great reason to sell.
The decision to sell an annuity, structured settlement or get pre settlement loans is very personal. At least 92% of people who sell their lottery payments or structured settlement say they are happy they made that decision. This does not mean it is the right decision for you and your situation. Go through your finances with a trusted advisor. Spend some time on this so that you are happy with your decision.