How to Decide Annuity vs Lump Sum Lottery Winning Payments


Selling a structured settlement

If you are lucky enough to win a sizable amount of money in one of the many lotto drawings that take place throughout the country, then you have to decide annuity vs lump sum lottery winning payments. However, if you start out with an annuity, you do not have to keep getting lottery payments.

When faced with the decision annuity vs lump sum lottery winning payments, many people choose annuity in hopes of keeping their money safe for years to come. However, the more money you have the more money you spend and those that spend faster than it comes in, get anxious and either need or want the money to pay off debts. This is true, even if you win the Mega Millions which pays a large payment up front and 29 payments that grow by 5% each year or the Powerball whose payments also increase each year for 30 years.

If you have to make the decision annuity vs lump sum lottery winning payments and choose the annuity and then change it to a lump sum payment, it will cost you approximately 10% of the full amount. This is in addition to the 25% that Uncle Sam, the Federal Government takes out in taxes and any state taxes that may have to be paid, which can be up to 9% of the total amount won. However, when you get cash for your settlement, you can get the money in about a month and begin using it for what you need or want it for. In addition, over 90% of people who chose a lump sum payment when they had to decide annuity vs lump sum lottery winning payments were happy with their decision.

There are many people who have to determine annuity vs lump sum lottery winning payments. In fact, over 34 million people signed deferred annuity contracts in 2013. These people received over $2.5 trillion. Therefore, it may be time to try your luck and play the lottery. If you win, then you to could be one of the 37,000 Americans collecting over $324,000 from a structured settlement each year or you could collect your winning payments as an annuity settlement and have access to all of your money all at once and not have to wait for it each month.

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