Most people have dreams of winning the lottery. What most people’s dreams do not include is the fact that most lotteries do not pat the entire amount all at once. Instead of getting a lump sum payment, winners get one larger payment followed by decades of annual checks. The Mega Millions gives one large check and then 29 annual payments where each is about 5% bigger than the one the year before. Powerball just breaks its jackpot into 30 yearly payments that also will increase over that time period. Of course, most people also do not think about the taxes paid on lottery winnings. Nearly one quarter of the jackpot goes to the federal government and then between 6 and 9% is taken for state taxes, depending on the state. This is fine for many people but some would prefer to get their money sooner than later.
It is possible to speed up the time frame for getting lottery winnings or from a lawsuit. There are companies that buy structured settlements. If you need your money sooner than you are scheduled to get it, you can sell your structured settlement or lottery jackpot for cash. Selling lottery payments is more complicated that selling other things but if are interested in getting a lump sum to start a business, pay for college or other reasons, it is possible.
Steps to Selling Lottery Payments and Annuities:
Talk to a financial advisor about your situation. You will need a good reason that will be accepted by the court for selling your annuity. Being interested in getting a lump sum is not enough. They can help you prioritize and set the reason you will bring to the court. You will be able to articulate what you plan to do after getting a lump sum payment so you need to decide if you want to use it to start a business, pay off your debt to avoid bankruptcy or want to pay for a college education. There are other good reasons but you need to be clear on your specific reasons for doing this.
Keep your future financial needs in mind. When you talk to a financial advisor, talk to them about how selling your lottery winnings or structured settlement will impact your financial future. There are tax implications for selling and you do forfeit some of the money that is yours when you sell. People who sell their annuity or structured settlement lose up to 10% of that total amount. If you are just starting out, you do not need to think about your retirement but if you are closer to retirement age, you should think about that. Sometimes getting a lump sum payout is not the best thing to do.
Find the right company to sell to. You will have to do some research into the best companies to buy your annuity. You can look online for companies that can help you with this. Do you know anyone who has sold an annuity or structured settlement? If you can get a personal recommendation, that is the best way to get any goods or services. Ask your financial advisor if they have any suggestions about this.
Have your sale approved by the court. You will need to talk to a lawyer about getting your paperwork together and getting in front of a judge to approve your sale. Remember, this is why you worked out your reasons for selling and getting a lump sum payment rather than the yearly payments.Be prepared to answer questions from the judge about your reasons and your situation. They just want to make sure you understand the ramifications of your sale. Just explain the reasons you have worked out and you should be fine.andnbsp;
Once your sale has been approved, it should take about 45 days for you to get your money. The judge approves the sale and then the transfer of funds happens. Nearly 92% of people who sell their structured settlements and lottery payments say they are pleased with their decision. If you do your research and spend some time thinking about your financial needs and situation, you should also be happy with your decision to sell.