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Can I Sell My Lottery Payments

 

"7…Yes!  4…12…19…32…6!  No Way!  I just won the lottery!”  This is a dream come true for most people.  However, many people don’t realize that they don’t truly get the entire jackpot they thought they won. 

 

Once you win the lottery, you may have two or three options:

 

(1)You can cash in your winning ticket and immediately receive a smaller lump sum; or

 

(2)You can receive all the money over a period of time in smaller payments; or

 

(3)You have no option: the lottery decides for you and provides you with lottery payments over a 20 to 25 year period.

       

        If you choose option 1, you will receive a lottery prize in the form of a lump sum payment.  This lump sum payment will be significantly less than the total award prize amount due to the discounting of the total award prize.  You only receive the full amount of the award, if you take it over the 20 year period in annual installments; however you will have to wait the full twenty years to receive your full lottery prize award.

       

        If you choose option 2, you will receive the entire lottery payment amount over time.  The problem is that most people don’t realize that a fixed monthly or yearly payment now is worth much less than the same monthly or yearly payment in the future.  So while you may be enjoying your payments now, you won’t get as much “bang for your buck” 10 or 20 years from now.

       

        Do you remember you parents saying that an ice cream cone only cost a nickel when they were kids?  Today, the same ice cream cone can cost you $1 or $2.  This goes to show that $1 today can buy more than $1 20 years from now.  So when you’re thinking of whether to take option 1 or option 2, think of what your monthly or yearly payment will buy you this year, and think about what that same payment will get you in 20 years.

        

        If you were not given an option and were automatically set up in a lottery annuity, you can still receive a lump sum payment.  US Settlement Funding is a purchaser of Lottery Payments and we will buy your future payments for the most cash now. Even if you just want to sell part of your future payments, our professionals will custom tailor a plan that suits your needs.

 

Contact us today for a free quote!