You were lucky enough to win the lottery. After the initial surprise and excitement, you begin to plan what you would do with all that additional money. You could pay down your debt, purchase a new home or car or take a large, dream vacation. Many options probably ran through your mind. You probably had family members and friends making suggestions to you. When you contacted the lottery commission, you realized that you would, instead, receive monthly payments for your lottery winning payout. You realized that this would limit your options and you may not be able to do some of the things that you had originally planned to. However, selling your annuity is a possibility. When you sell your annuity, you have all of those options that you originally thought you had.
The Mega Millions annuity is paid out as one immediate payment followed by 29 annual payments. Each payment is 5% bigger than the previous one. It may be difficult to budget with payouts like this, because you will have to portion your money for an entire year. This can be difficult or even impossible if you have no other income. You may not be able to purchase a car or any other large purchase with that money, depending on how much your yearly payments are. However, when you receive cash for annuity now, you can make those large purchases that you wanted to make.
When you receive a large lump sum of money, it is important to plan for your purchases. You may find that many small purchases can add up to be very expensive. If you lend money or give money to many people, you will notice it eventually. It is best to make a plan of your purchases. Figure out the things that you really want and purchase those things first. If you would like to have a home that is paid in full, do that first. Purchase a reliable car. Both of these things will add value and can be sold for money later on, if needed.
It is also important to set yourself up for a secure financial future. If and when the money runs out, you do not want to be left in a debt full and money struggling situation. You can make many preparations with your money to ensure this financial freedom. You should always pay off your debt, as soon as possible. Every single dollar of debt should be paid off. You should not have a mortgage, car payment, student loans or credit card debts. The average U.S. household with debt carried $15,355 in credit card debt and $129,579 in total debt. If your debt to income ratio is not equal, you will eventually be in so much debt, that you cannot afford it. Household income has grown by 26% in the past 12 years, but the cost of living has gone up 29% in the same time period. If you pay down your debt with your money, you will open up many new possibilities.
Investing your money or starting a new business can be a great option for a large amount of money. When you invest in money, you are acquiring additional income. When you begin a business, you are creating something that will provide you with additional income. Companies that buy structured settlements often sell to those people who want to sell their annuity for bigger opportunities. Cash for your settlement can really open up your possibilities. If you are deciding between a lump sum and annuity, consider all of the options and the furthering of your financial future that you can do with the lump sum.
Most lottery winners are left with smaller, monthly payments that prevent them from doing what they want with their money. With a large lump sum of money, you can really set yourself up for a secure financial future, if you plan correctly. When you sell your annuity, you should carefully plan what you will do with your money. You should pay off any and all debts. You should purchase things in full that you want. Investing or starting a business can increase your income possibilities.
