There are two really easy ways to get money: either win the lottery or sue someone. With all great things however, there are certain conditions and stipulations that may stand in the way of your fortunes. Here is what to expect if you win the lottery or receive a structure settlement.
Singing the Lottery Blues
Once you win the lottery you will immediately have to give the federal government 25% of your winnings as taxes, plus an additional 6-9% for state taxes. Furthermore an annuity pays out over years or decades: the Mega Millions and Powerball annuities increases by 5% for the 30 annual payments. Even those set to receive an “immediate” annuity will have to wait for 30 days before receiving payment. Other surrender charges, early withdrawal fees, and maintenance fees are designed to slowly feed off of your annuity over time.
Seeing the Settlement Reds
Those who win their civil lawsuits often receive a similar structured settlement annuity. Every year there is over $6 million paid out to fund new settlements with the average structured settlement payout averaging $324,000. Over 37,000 Americans use structured settlement money every year, and yet they too have to face hidden fees and issues associated with the settlements. No one receives a lump sum payment initially, but the option always exists to sell you structured settlements or annuities.
How to Turn Your Annuity or Settlement Into a Lump Sum
There are many companies dedicated to purchasing structured settlements and annuities for a lump sum of cash. Up to 92% of those who sold off their structured settlements are satisfied with their decision. Before you look into a company for purchasing structured settlements, know all of the details associated with your annuity or settlement. Selling off either can result in potential surrender charges of up to 10%. Selling an annuity settlement may not get you 100% of the figures you were promised, but it is the easiest way to get the most for your settlement now.