There are thousands of lottery winners each year. Some of them are for millions of dollars. It’s a life-changing experience.
You might think those lottery winners have it made, but many can’t escape financial trouble. Many end up broke and almost a third declare bankruptcy.
If you recently won the lottery, you have to look at your financial options. Structured settlement services can help you make the most of your money.
Read on to learn what they are and how you can get cash now from your lottery winnings.
How Do You Get Lottery Winnings?
Winning the lottery is thrilling and exciting. There are a couple of ways to get your winnings if you’re lucky enough to have a winning ticket.
The first is a lump sum. This is where you take the entire winnings in one payment. The other option is to take your winnings in annuity payments.
This is where the amount of money is divided over several years. For example, if you won a $1.5 million lottery, you might see annuity lottery payments over 10 years.
You’d receive $150,000 a year over 10 years. That seems pretty reasonable, but you have to account for taxes.
The larger lotteries, like Powerball and Mega Millions, spread the payments over 29 years. State lotteries vary in their annuity payments. Some might be 10, 15, or more years.
Using Settlement Services for Quick Cash
It seems like a great idea to take annuity payments. It’s like having guaranteed income for years to come.
You can’t predict what happens in the future. If you decide to take annuity payments for your winnings, you might find yourself in a situation where you need cash.
You might want to pay cash for a home, have a financial crisis, or pay for your kid’s college expenses.
Settlement services let you sell your future earnings from the lottery for cash now. That’s an option if you chose annuity payments and your circumstances change.
How to Find Settlement Services
The first thing you need to do is to find out if your state allows you to sell your lottery annuity payments.
There are companies that purchase your lottery annuity for a cash settlement. Settlement services vary greatly, and you need to make sure you choose the right one for your situation.
In some cases, the annuity transfer has to be approved by a judge. It’s essential to choose an experienced company to handle the transfer. RightWay Funding is one example of settlement services.
Settlement services make an offer for your annuity. They’ll also charge fees to transfer the annuity to them. You’ll want to research these companies carefully. Check out reviews and testimonials before you decide.
Take Control of Your Lottery Winnings
Winning the lottery changes your life. Your first decision is to decide how to take your winnings. If you decide to take annuity payments, you might need settlement services down the road.
Once you have your cash, you can think about upgrading your lifestyle. Check out the Lifestyle section for great tips and insights.