Winning the Lottery What’s the Best Way to Take the Cash?
So, your dream comes true and you win the lottery. You are ecstatic! Who would have thought that you could be so lucky! Then the elation of the win wears off and the reality that you are responsible for a large sum of money sinks in. It’s not as cut and dry as you thought, is it? You have a few decisions to make about your financial future, and it can all be quite confusing. Will you continue to work? Statistics show that nearly half (48%) of lotto winners are still working at their old job. So, maybe you should stick it out a few more years. Or, maybe you should you take the lump sum that the lottery commission has offered and retire? Maybe you should you opt for the structured yearly annuity payments? Should should you consider selling lottery payments instead? Is getting cash for structured settlement payments a wise idea?
Before you make a rash decision, it is important to note that for a typical Mega Millions jackpot of $50 million, the initial payment would be more than $750,000, and future annual payments would grow to almost $3.1 million. However, each of these payments is subject to taxing. The time value of your winnings and collective taxes will also affect the amount of money you will receive considerably, no matter how you choose to receive your lottery payments. It is also important to note that some states will only disperse lottery winnings by structured annuity payments.
Choosing a company to buy structured settlements is an option that you might consider. You receive cash for structured settlement payments rather than receiving monthly payments. This money can be used for anything from purchasing a new home, taking the family on a dream vacation, or investing in stock so that your winnings can continue to make you money. Since statistics have shown that whether lotto winners win $500 million or $1 million, about 70% lose or spend all their money in five years or less, it is important to invest wisely in your family’s future.
It can be easy to make bad decisions when handed a fortune, but there are ways to assure that your new found family money remains secure for generations. Deciding on whether you should choose a lump sum versus annuity or if you should take cash for structured settlement payments isn’t an easy decision, but you can rest assured that the right decision will keep you wealthy for a lifetime.
